Personal Money Tips

Usually, I maintain a savings account for unexpected expenses. As the savings account increase, I’ll transfer some of the money to purchase bond mutual funds or put it in fixed deposit. I won’t touch the money once it is in these 2 intruments. Whatever expenses I incur comes out of my checking account.

This month is different. Due to lower income than expected and also some big purchase (laptop computer), I have to dig into the savings account, to pay off the new laptop, bought on credit card. By the way, I paid the full amount. Some other bills, plus insurance premiums that came up forced me to use the funds in my savings account. I did not feel good about it. As a matter of fact, my Palm organizer conked out a few days ago, and would probably cost a few hundred to replace. Usually, the money would come out of my checking account.
 
I’m writing this to share my strategy to save money. Because I have to dig into my savings account and reduce it a fair bit, I didn’t feel like spending this month on whatever. As I’ve developed this habit, touching the savings account is a red flag for me. At this time, I stopped myself from making big item purchase until next month. This could be  a strategy you can use too. Any time the amount of savings exceeds a certain amount, transfer it out, invest it but don’t spend it.

Now, if I really have to break out the bonds or fixed deposit, it really have to be an emergency or it would be to buy an investment, as in investing in a property, or shares. Whatever it is, the money would not go for a new car, new gadgets or holiday. You might have a similar strategy to save money or to stop you from spending more when you don’t have the money. This way, you won’t buy things on credit and get into debts. For your info, I contemplated buying the new laptop after several months and it wasn’t a impulsive purchase.

Technorati Tags: spending strategy, impulsive spending

Recently, I found out that our local 7 Eleven is a pick up point for courier service. I was quite happy to discover that because 7 Elevens are everywhere. The usual office boy service that use from time to time have increased their prices and imposed a surcharge for further distance and the price is getting way too high. I don’t have that many documents to send to warrant starting an account with a courier company. So usually I do with the office boy service that up until recently, was reasonably cheap and reliable.

When I found out that a bigger courier company X does a pick up from 7 Eleven with cheaper prices compared to the office boy that I used, I was happy. But my happiness was shortlived. Today I had some urgent documents to courier to a client. When I went over to the nearest 7 Eleven with is about 2 km from where I stay, they ran out of courier envelopes! Since it was fairly urgent for the document to reach my client, I decided to head to the next 7 Eleven. Alas, I was told the bar code on the last envelope was torn and the nice lady told me, she can’t sell it to me. It would not reach the destination anyway. This exercise is getting less and less convenient by the minute

So I headed over to the 3rd convenience shop and finally they have the envelopes I wanted. I paid to have the documents sent out and drove back thinking about the whole thing that took me more than an hour. I asked the lady at the first 7 Eleven, “How come there all the envelopes were sold out?” The reply, we have to order them. Apparently, they are not replenished by the courier company X when they do the collection. Individual 7 Elevens have to order them. I just wonder whether company X realize just how much money they lose or even the potential goodwill they lose when they let the customer down like that. Imagine this scenario. You have an ultra urgent document to send out and all the time, you depend on this company to do their job. But then, then you found out something you have to go hunting around for alternative company to fill in.

After going through this whole affair, I went to gas station to enquire about whether there is another courier company in the neighbourhood and yes, there is! But, these guys don’t collect after 5pm. Another no no. And yet both these companies are not maximizing the opportunity to provide a level of reliable and convenient service to their customers. I’m pretty sure there is a market for sending documents, otherwise both these courier company would not have started the service in the first place. But the level of service leave much to be desired.

Technorati Tags: quality services, customer dissatisfaction

Forbes published a list of top richest people all around the world for 2006. There is no change in the top 2, which is still lead by Bill Gates, followed by Warren Buffett. Changes in the stock market however had reshuffled 3rd position compared to those from last year’s list. The 2006 Top Ten Richest People according to Forbes magazine are as follow:-

1. Bill Gates ($50 billion)
2. Warren Buffett ($42 billion)
3. Carlos Slim Helú ($30 billion)
4. Ingvar Kamprad ($28 billion)
5. Lakshmi Mittal ($23.5 billion)
6. Paul Allen ($22 billion)
7. Bernard Arnault ($21.5 billion)
8. Prince Al-Waleed ($20 billion)
9. The Lord Thomson of Fleet ($19.6 billion)
10. Li Ka-shing ($18.8 billion)

Although I write about the top 10, whatever the ranking, I believe that if you have almost everything you want (that money can buy), then whether you have $50 billion, $30 billion or anything that ends with billion, I don’t think that would make that much different in your lifestyle.