Friday, 25 November 2016

Relationships between Bond, Stock, Gold, Property 

Rising Yield of Bond = early indicator Cash Rate will go up
  The shorter the bond term = the stronger it is as an early indicator
  "Bond yields are rising as policymakers, acknowledging that monetary policy has reached its limits, are turning to fiscal policy to prod economies," Mr Conlon said.

Bond Price and Stock Market Prices = positive correlations
  Bond Price = early indicator
 
Bond Prices and Interest Rates = negative correlations

Bond Prices Fall then Interest Rate Rise then Stock Market corrects
  Borrowing become more expensive for companies (businesses) and individuals, profit declines, stock   market corrects
  smart money leaves bond then leaves stock market ... money goes to ?

USD and Commodity = negative correlation
  Commodities rising, bond prices will go lower, stocks will still be charging









Wednesday, 23 November 2016

KDR Knockdown Rebuild steps

Process to knock down and rebuild (no heritage protection)


Obtained Demolition Permit
sources: 

http://www.monash.vic.gov.au/Building-Planning/Building/Demolitionhttp://www.carlislehomes.com.au/knockdown-rebuild-melbourne/home-demolition-tips/


Time line: Up To 20 Business Days

To Note for Demolition
1. Insurance: 
Your demolition contractor must have insurance for any damage to neighbours’ properties, structures and surrounding environment. 

2. Asset Protection:
Importantly, it is your responsibility to obtain an Asset Protection Permit from council.
Time = before works starts on the property that could endanger any council's assets. 

3. Ensure storm water and sewer are capped.



Obtained Building Permit
http://www.wangaratta.vic.gov.au/services/building/images/PN-62-2014-Documentation-Required-for-Applications-for-Building-Permits.pdf
The site does not need to be demolished. Only in some situations it needs to be demolished 
Obtain this before demolishing.
Do not let tenant to vacate the house prior obtain demolition permit, building permit and abolishment acknowledgement).

After obtaining demolition permit and building permit:
Obtained abolishment for gas and electricity. 
Time line = 5 business days before tenant vacates.

Electricity Pit




Thursday, 26 May 2016

How to really save money?

I am a very good money manager. I save a very high amount of my salary consistently every payday. I was saving 75% of my income consistently in the last three years.
I have zero debt. I paid everything, including car, with cash - no loans. I aimed to be able to afford a house with cash, too.

I am not a weirdo frugal. I wear reasonably nice clothes, shoes and accessories (bags, watch and jewellery). I go out and enjoy nice dinners occasionally.
And no, I am not a high income earner. I earn $70,000 gross per year.
And no, I don't earn any bonuses at all.
And no, I don't get anything (money, gifts, presents, bribes, or anything alike) from anyone, at all.

People always come up to me and literally complained, "why can you have that?" "how do you  afford that?" "how do you have enough money?" "you must have a rich boyfriend!"
All sort of negativities.

I always say "save, have zero debt and pay cash for everything."

May be, if I write things down, it will be much clearer.


The journey of a thousand mile begins with a single step - Lao Tzu

Like any change, any goal or any achievement, saving money must be researched and planned for.
And I did research before I embarked the journey of saving money.
I took saving money as a journey that I want to last life-long with high quality.

The research took a fair bit of time and effort. And I shall summarize and share my findings down below.


Firstly,  you must make a decision - a decision that you want to save money. Just decide.
And let the decision sit with you until you are comfortable with it. Take your time, do not rush it. Because you want a quality change in your life that will sit embedded well in you that will last a life time without much effort, because you have done a quality change (it becomes you - rooted in you).

What I did: every morning during quiet early morning commute to work, I make a decision to just save money.
Just like regular piano practise, I became wanting to save money. It became robotic.
I stopped the chanting mantra until I was comfortable (it has become second nature to me).


Secondly, change your money mindset, because knowing is half of the battle. Sun Tzu would say know the land, the weather, the terrain, etc before attack. The battle is won at planning.

Have you heard why the first generation makes the money and third generation loses it?
It is because the third generation do not know how to manage and keep the money?

And do you know that the old money's 4th, 5th, 6th and so on generation are being taught by Asset Management firms on how to manage money the right way? That is the way that the original money maker keeps the money and passes it down to the next generation.

Have you heard why the rich gets richer and the poor gets poorer? Not just because the rich is cunning and sly. But also because they know how to manage money and they have the right money mindset (not the cunning, sly and bad ones).

Money mindset to adopt:
- The rich (unless they get their money effortlessly) do not spend money like those on TV, with flashy cars and flashy shoes. The rich do not spend all day lazying on pools drinking cocktails.

They work hard to earn their money and keep it. For example, Warren Buffet, Bill Gates, Ingvar Kamprad, Gerry Harvey, etc.
We all have heard tales about them, on how good they are in keeping their money.

- We tend to envy or respect those with branded products. Do you know if they buy them with credit and have creditors calling their backs and the risk of losing their house, etc?
Or do you know if they genuinely afford them?

- If you cannot afford to buy it with cash (including cars, excluding houses) you cannot afford it. That is the old money style of purchasing.

- The source of income or money is not banks or any other creditors (aka loan sharks).

- No to credit card loans, personal loans, car loans, holiday loans, student loans.
Why?
An item costs $200 and you want it badly. But you do not have enough in your bank account and you used credit card or loans.
Credit card has 20% interest rate per annum, Loans (I don't know - I've never had one).
At the end of the year, it will cost approximately $240 for you to obtain your wanted and prized item.
What are the chances that you snowball your credit card debt?

I know a colleague, she has $40,000 credit card loan which she refused to pay because she thinks every one has debt. In less than 6 months, the debt has snowballed to $50,000. She still refused to pay. She still thinks she is right.
In her scenario, she might have obtained goods of $20,000 - $30,000 on credit. But the interest repayment she continuously must pay to her creditors are high, i.e. another $20,000 - $30,000.

So is it better to pay cash - your initial cost will only be $20,000 no interest repayment. or with loans, where you pay interest on it?
Money wise, of course paying with cash.

You may know argue with me that waiting will make you pass out on trend. And the rich are the trendy ones.

Go back to earlier dot points
- The rich (unless they get their money effortlessly) do not spend money like those on TV, with flashy cars and flashy shoes. The rich do not spend all day lazying on pools drinking cocktails.

They work hard to earn their money and keep it. For example, Warren Buffet, Bill Gates, Ingvar Kamprad, Gerry Harvey, etc.
We all have heard tales about them, on how good they are in keeping their money. 

- We tend to envy or respect those with branded products. Do you know if they buy them with credit and have creditors calling their backs and the risk of losing their house, etc?
Or do you know if they genuinely afford them? 
- The rich (unless they get their money effortlessly) do not spend money like those on TV, with flashy cars and flashy shoes. The rich do not spend all day lazying on pools drinking cocktails.

They work hard to earn their money and keep it. For example, Warren Buffet, Bill Gates, Ingvar Kamprad, Gerry Harvey, etc.
We all have heard tales about them, on how good they are in keeping their money. 

- We tend to envy or respect those with branded products. Do you know if they buy them with credit and have creditors calling their backs and the risk of losing their house, etc?
Or do you know if they genuinely afford them? 

Again another explanations that I want to point out to explain
Have you heard why the rich gets richer and the poor gets poorer? Not just because the rich is cunning and sly. But also because they know how to manage money and they have the right money mindset (not the cunning, sly and bad ones).

For example, (almost) every one loves and covets for Hermes, Chanel, Prada, Gucci or Miu Miu. A status symbol, many will say. A symbol of success, many will agree.

Many of these brands are owned by 1 family, the LVMH.

How rich are they? How wealthy are they? Very wealthy.

How many people volunteer to give thousands of dollars of their people happily and cheerfully to buy Chanel, Hermes, Prada bags? Many people do so happily. That is LVMH is earning a lot of money from their sales.

Another example, Zara is a very successful business. We love their designs and affordable prices. Many go there to do retail therapy and to look good in social and professional networks. We are willing to pay for their $50 tops or $100 coats. Almost everyone I know has at least 1 Zara in their closet. I have about 20 Zara. (about $50 x 20 = $1000). And that is from me alone.

Zara has thousands or tens of thousands or hundreds of thousands, at least, customers per year.

Imagine how much sales they are earning.

Do they cheat money from us? NO, I don't think so. We are willingly giving them the money.

Some of us are even worse, we use credit cards and pay interest only on the credit, to pay for those goods.

That is one of the many many many reasons the rich is richer.


I am lucky, my grandmother drilled in each one of us on how to manage money. She taught us on how she got our money. I know my money mindset very well.

It pays you a dividend if you read up on classics such as
- The richest man in Babylon
- Rich Dad and Poor Dad


Don't move on to the next step until you are comfortable with the money mindset because mindset is everything.









Sunday, 3 April 2016

Saving Report: I saved 68% ($1346) of my Salary Income in this fortnight

Saving Income Report


Fortnightly Saving Report Early April.png




Now … Another fortnight, another saving report which should have been done last Thursday - payday. But it was a long weekend and I was pre-occupied with many other things. So here we go.


This fortnight, I have a lot more expenses to be paid, such as monthly train ticket, credit card payment for end of year clothes and shoes replacements, and extra entertainment expenses for the long weekend.


This fortnight, I saved 68% of my salary income.


End of year shopping using Credit Card
200
Private Health Insurance
42
Groceries
100
Weekend
100
Easter long break
100
Monthly Train Ticket
75
Mobile
20

637
Savings
68%
Previous fortnight
80%
Average Year to Date
74%




Saving Income Report


Fortnightly Saving Report Early April.png




Now … Another fortnight, another saving report which should have been done last Thursday - payday. But it was a long weekend and I was pre-occupied with many other things. So here we go.


This fortnight, I have a lot more expenses to be paid, such as monthly train ticket, credit card payment for end of year clothes and shoes replacements, and extra entertainment expenses for the long weekend.


This fortnight, I saved 68% of my salary income.


End of year shopping using Credit Card
200
Private Health Insurance
42
Groceries
100
Weekend
100
Easter long break
100
Monthly Train Ticket
75
Mobile
20

637
Savings
68%
Previous fortnight
80%
Average Year to Date
74%


To find out how I save 75% of my income, please click here
To find out on how to stick to your budget, please click here


75% saving rate.png

To get your free budget planner click here.
To follow how I save $130,000 in 3 years on $60,000 average annual incomes click here. (350++ ways on how to save money)
To stick to your budget click here.
To save more money click below:

I’m a great believer in luck,
and I find the harder I work the more I have of it.
Thomas Jefferson


Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
Benjamin Franklin


A journey of a thousand miles must begin with a single step.
Lao Tzu


The future belongs to those who believe in the beauty of their dreams.
Eleanor Roosevelt.

To find out how I save 75% of my income, please click here

To find out on how to stick to your budget, please click here


To get your free budget planner click here.

To follow how I save $130,000 in 3 years on $60,000 average annual incomes click here. (350++ ways on how to save money)
To stick to your budget click here.
To save more money click below:



I’m a great believer in luck,
and I find the harder I work the more I have of it.
Thomas Jefferson

Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
Benjamin Franklin

A journey of a thousand miles must begin with a single step.
Lao Tzu

The future belongs to those who believe in the beauty of their dreams.
Eleanor Roosevelt.