Apologies for the long delay between posts. Been busy the past week with work as well as other commitments. =) Now I'm back and ready to kick off the blog proper again.
Now for my aggregate financial strategy. What I lay out here is my generic financial strategy using an amount of seed money. I shall start with $30k from July 1st and follow to the plan. Previously I had tried out various strats and played around with the numbers till I came out with an end result I desired that looked attainable for the average joe. =)
Here it is: Darren's Aggregate Financial Strat: 35-40-25
Seed Money: $30,000
Short Term: 35% = $10,500
Mid Term: 40% = $12,000
Long Term: 25% = $7,500
TARGET: $50,000 from this $30,000 in 5 years' time, i.e. 2011.
Gain year-on-year average: between 13%-16%
Gain overall: 70% appreciation in 5 years.
Illustration: Wonder how a 35-40-25 strat would work for $30,000 after 7 years? Check it out below. =)
Reason for 35-40-25 strat:
I put a rather heavy emphasis of 35% on short-term investments, because firstly the stock market is hot now (just be careful not to overplay and do margin trading etc, IT CAN KILL YOUR MONEY!!) and I'm trying to garner some good gains. It's been kind to me thus far, making about a couple grand for a bit of work these few months on the side while I was studying.
Then a bulk (40%) of my pool goes into mid-term investments which are relatively safer and provide decent solid returns. Through this I can get 30+% appreciation over 5 years so that by the time I graduate, I'd have a decent pool of money that has accumulated well over the few years while I studied in Uni.
The final 25% goes to long-term investments which in essence are there to beat the miserable savings account bank interest rates, as well as to trump inflation. Therefore, this 25% would yield decent returns over the years and provide a "rainy-day" pool of money for me to fall back on should the need, touch wood, arise. Either way, in short, it means I got safe money that is still growing healthily rather than sitting like a dead duck in a bank savings account.
Conclusion
Well, the numbers look good, but ultimately the onus is on you to make it work. It's easy to crunch numbers and look at them and feel good. But hitting those numbers will take a fair bit of research and work, but the dividends of good ol' hard work pay handsomely. =)
PLUS: remember, you should still be saving some money every month and adding it to your money pool. Imagine how large a pool you can accumulate over 4 years in Uni if you save $100 every month and apply the 35-40-25 strat to it. Getting from say, $30,000 to $70,000 over 5 years is a realistic, attainable goal. =) You should tweak your strat to suit your lifestyle and goals and I wish you all the best in your money-growing endeavors!
Cheers!
Spalsh
Now for my aggregate financial strategy. What I lay out here is my generic financial strategy using an amount of seed money. I shall start with $30k from July 1st and follow to the plan. Previously I had tried out various strats and played around with the numbers till I came out with an end result I desired that looked attainable for the average joe. =)
Here it is: Darren's Aggregate Financial Strat: 35-40-25
Seed Money: $30,000
Short Term: 35% = $10,500
Mid Term: 40% = $12,000
Long Term: 25% = $7,500
TARGET: $50,000 from this $30,000 in 5 years' time, i.e. 2011.
Gain year-on-year average: between 13%-16%
Gain overall: 70% appreciation in 5 years.
Illustration: Wonder how a 35-40-25 strat would work for $30,000 after 7 years? Check it out below. =)
Reason for 35-40-25 strat:
I put a rather heavy emphasis of 35% on short-term investments, because firstly the stock market is hot now (just be careful not to overplay and do margin trading etc, IT CAN KILL YOUR MONEY!!) and I'm trying to garner some good gains. It's been kind to me thus far, making about a couple grand for a bit of work these few months on the side while I was studying.
Then a bulk (40%) of my pool goes into mid-term investments which are relatively safer and provide decent solid returns. Through this I can get 30+% appreciation over 5 years so that by the time I graduate, I'd have a decent pool of money that has accumulated well over the few years while I studied in Uni.
The final 25% goes to long-term investments which in essence are there to beat the miserable savings account bank interest rates, as well as to trump inflation. Therefore, this 25% would yield decent returns over the years and provide a "rainy-day" pool of money for me to fall back on should the need, touch wood, arise. Either way, in short, it means I got safe money that is still growing healthily rather than sitting like a dead duck in a bank savings account.
Conclusion
Well, the numbers look good, but ultimately the onus is on you to make it work. It's easy to crunch numbers and look at them and feel good. But hitting those numbers will take a fair bit of research and work, but the dividends of good ol' hard work pay handsomely. =)
PLUS: remember, you should still be saving some money every month and adding it to your money pool. Imagine how large a pool you can accumulate over 4 years in Uni if you save $100 every month and apply the 35-40-25 strat to it. Getting from say, $30,000 to $70,000 over 5 years is a realistic, attainable goal. =) You should tweak your strat to suit your lifestyle and goals and I wish you all the best in your money-growing endeavors!
Cheers!
Spalsh
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