Thursday, June 25, 2015

A New Home For My House Down Payment Fund

Given this:

Net investment return to 25 June 2015


KiwiSaver



Since 26 March 2015
7.44%

Last 12 months
21.99%

Last 3 years
20.19%p.a.

Last 5 years
15.35%p.a.



and after doing some research, I have decided to move some of my $63K savings to a brokerage account with the same company that manages my Kiwisaver, in many of the same funds that I invest in to get the returns shown above. I know it isn't good to chase returns, but it isn't good for my long-term goal money to be sitting in a savings account, either. Especially with interest rates falling, now seems to be a good time. And at this rate--with house prices rising more than average wages each month--owning a house is definitely going to have to be a long-term goal. A friend of mine who recently scoped out buying a starter home with her partner--who both make very decent salaries in very stable jobs, are very well educated, and have juuuust over a 6 figure house down payment saved already--were turned down by the bank, saying that they were just SOL on every single option out there. Apparently you have to put down 40% or more for a lot of real estate here now, and the average house price for Auckland is $800K...you do the math! Houses in Auckland are ridiculously out of reach for even well off, highly employed individuals, not to mention poor PhD students.

Funds to Move
$24.5K House Down Payment Fund
$13K Europe Trip Fund
$37,556.78  Total

Moving nearly $40K from a very safe, income-generating savings account to a volatile, no-guarantee fund account is quite daunting to think about, no matter how well the funds are doing! I'll probably stick with SuperLife, as soon as they get back to me with all my questions answered. And obviously I will invest in the Property Fund!

Wednesday, June 17, 2015

Un Viaje

The opportunity (read: a really, really good excuse!) to visit South America next year came up recently. I *really* want to go. A few far-flung friends will be going as well, so I'd love to make it a road trip and see some sights!

The Money
I have already researched my options. A flight is $1,300 NZD return, OR I could use some of my American Airlines or BA airmiles to get to and from South America. I was hoping to use up my BA miles on a big Europe trip, but that can't happen for quite a while, so I'll have the opportunity to earn more (hopefully). I'll also sign up for the LAN credit card to get 20K airmiles for short-haul flights.

I think most of SA is quite a cheap place to travel, in terms of accommodation and food, so I'm not too worried about having enough cash, particularly if I use airmiles to travel. I think I'd be able to save up enough money by next year. Perhaps $1,500 would be enough? Ooh, I need to do some travel planning!! I'll probably go for two weeks? Which brings me to the problem...

The Time
I have literally no time to go, not if the current state of things keeps up. Maybe if I manage to get my first paper draft out by then I will be allowed to go.

Oh, I don't care anymore. I can't stop living my life for the PhD. I'll eventually complete it. This feels like a once in a lifetime kind of thing.

Tuesday, June 16, 2015

Windfalls!

Tax Credits!

I got $673.91 back from NZ taxes, all thanks to the Earned Income credit.

Electricity Reductions!

I switched out our power company and got a $100 discount on our bill for May, which would have been $185 without the discount. Despite that, I didn't like that new power company, so I ended up switching back to my original company, which was offering yet another $100 discount! So that is quite useful for the expensive winter months of electricity, which usually approach $200 or more.

Sunday, June 14, 2015

Because Giving Doesn't Have to Feel Difficult to be Meaningful

From time to time, I look at my meager charity budget and feel quite guilty. I love that I have a line-item in my budget to donate to the causes I support, and I get a total thrill every single time I donate money or choose someone to loan my Kiva dollars to. But it is something that I have come to really enjoy--something for myself. It doesn't come at a huge cost to me, I think is the problem. It feels too easy, like I'm throwing money at an issue rather than getting my hands dirty and really tackling it from the inside. Money makes a difference, but only if there are people who know what to do with it, and folks to carry out action plans to make effective change. My guilt tells me: I need to give my time, as well as my money.

I grew up going to church, so I can see why my concept of volunteer work is inextricably linked to helping the poor, the sick, the luckless. It's also the feeling that went along with giving: we're taught that tithing should be an amount that stings, that costs us. We should feel the cut. No wonder I think that the charity worker, the volunteer, the giver, should also feel like they are suffering a little bit when giving. My experiences with volunteering with my church group also jibe with this feeling. The work we did with the church involved soup kitchens, visiting the elderly, playing the piano for various groups, singing carols in hospital wards, and other such tasks. While I was always glad I did them and very much see the value in these activities, I found all of them to be uncomfortable, dreaded doing them, and just sort of felt forced to do it, as a "good Christian." (I am really ashamed of myself and can't believe I admitted all that; I really hope that doesn't make me a bad person.) So yes, unfortunately, my connotations with volunteer work are not good, and I definitely think that if I'm not dreading it a little bit, it doesn't count as giving back.

I occasionally get twinges of extreme guilt that I am not still doing the kinds of things I did with my church group. Once in a while I research options for volunteer work in Auckland to try to quell my guilt. As I thought about this topic more, though, I realized that I already volunteer and donate a ton of my time already. It just doesn't take the form of ladling out food at a soup kitchen, and it also doesn't feel like I am being forced into an uncomfortable situation. Pretty much the opposite, in fact! Through my job, I regularly get requests to share my knowledge in my field of expertise--outreach activities. Often this means giving talks or visiting a classroom or organising a huge event for the public. Sometimes (oddly, several times recently!) it is as simple as leading an artist around on a field trip and chatting about various subjects of interest to us both to give them some inspiration. Even though I technically am allowed to take some work time to do these tasks, I often end up preparing for and doing these on my own time, particularly on weekends. I also write a blog, maintain a facebook page, and have a twitter account where I interact with the public, answer questions, and provide information about my subject of study, all on my own time.

So maybe I am not working directly with a cause that I'd normally associate with volunteering, but I don't think that makes my contributions any less important. I am still giving back, in probably the most valuable way that I can, in fact. This doesn't mean that other forms of volunteering aren't absolutely necessary and couldn't use my help, but for me personally, my energy and time is maybe (maybe?) best utilised by sharing my deep, intimate knowledge of a subject that most people find interesting anyway. This, coincidentally, is knowledge that just may save someone's life later, which is partly why I am so passionate about my career. It isn't filling the lofty goals of feeding the hungry, calming the distressed, providing companionship to the lonely or solace to the infirm, but maybe it still counts as something. Maybe I don't need to feel so guilty.

So, on that note, perhaps it is time that I give myself some credit and think of my contributions as meaningful. Right now, honestly, my outreach activities are one of my guilty pleasures. I get to take (some) work time to do something I consider extremely rewarding and fun, which also happens to give back to the community. Maybe I need to reframe that guilty pleasure activity in my mind, and view it as something meaningful that I am giving, rather than taking for myself.

Perhaps giving doesn't have to feel hard to be important. Maybe giving in a way that feels easy to you is actually the best way to give back.

Thoughts?

Friday, June 12, 2015

"Mailbox Money"

Oh, how the other half lives...this is, in part, why I watch reality tv shows. The spoiled trust fund babies of Southern Charm have opened my eyes a little bit. The adorable Shep mentioned something called "mailbox money" and my ears perked up. What I am guessing Shep means by mailbox money is passive income, gleaned from his trust fund.

The closest thing I have to that is my interest in my savings account. It is usually good for $200 or so each month. It is a really good bonus each month in case I go over budget, but is that the best I can do?

I have $63K sitting in cash, gaining interest. With the NZ gov't decreasing interest rates and my Kiwisaver (stocks) doing so well, I really have to start thinking about which of my cash funds are longer term and which are best to park in an NZ brokerage account.

It is interesting, because I generally manage to cover most expenses within my monthly budgets. Aside from my US Trip Funds each year, I don't transfer large chunks of money out of savings, just in.

Stays in cash/To be used in the next 2-3 years:
$10K Emergency Fund
$2K Insurances Fund
$3K 2015 US Trip
$3K 2016 US Trip
$6.8K PhD Fund
In active saving mode, to be transferred to Kiwisaver at the end of this year: $1250 KiwiSaver Lump Sum

Potentially move into a brokerage account in NZ/Probably not used in the next 5 years:
$24.5K House Down Payment
$13K Europe Travel Fund

Hmmm, now: which brokerage to invest with? As far as I can tell, no slam-dunk firm like Vanguard exists here--they all have major pluses and minuses. And, which stocks and bond funds do I pick? Do index funds exist here? Also, it's like there is a different language to learn when investing in a different country: I now need to know about FIF and MER and all sorts of new acronyms! Time to do some research...

Thursday, June 04, 2015

May Spending

Just like the title says:

May 2015 Budget
Category Spent Budgeted Amount Balance
Rent $1,100.00 $1,100.00 $0.00
Groceries $584.81 $425.00 -$159.81
Internet $29.33 $29.33 $0.00
Electricity $19.43 $50.00 $30.57
Eating Out and Alcohol $117.60 $125.00 $7.40
Charity $0.00 $25.00 $25.00
Cell phone $22.00 $40.00 $18.00
Medical $0.00 $65.00 $65.00
Misc $779.24 $600.00 -$179.24
Savings $500.00 $500.00 $0.00
Total $3,152.41 $2,959.33 -$193.08
Remainder $172.36

Income (5 paycheck month):
$3,324.77
Remainder of $172.36 was transferred to June. I have a feeling I'll need it--work is a beast until my trip in August, even with my new 'relaxed' schedule.

Rent was high this month, it being a 5-rent check month. $220 x 5 = $1100
Groceries were way too much (again due to the 5 weekend month: $584.81
Internet normal at $29.33. I'm switching to Trust Power (to get cheaper rates) in August when my current contract is up.
Electricity was less this month due to switching to a cheaper companies half way through. I get a $100 credit for the rest of the month's bill (the first bill at the new company) so hopefully that doesn't add too much to the total.
Eating out and alcohol  was $117.60. Right on target.
Charity will donate double next month. :)
Cell phone, I've also switched cell phone companies, as I explained in a review of my expenses. My minutes and data should roll over and my monthly plan is $16 per month now.
No medical spending this month, but I'll have some next month.
Misc spending $779.24. Wowza.
alcohol  $            7.00
entertainment  $          18.00
exercise  $               -  
fees  $            2.00
gifts  $          18.99
goods and wants  $        537.12
transportation  $        213.79
travel  $               -  

Goods and wants:
I should get a handle on Misc spending. This month I spent a lot at the American store...

40phd massage treat voucher
10.5american store
56american store
29phd massage treat voucher
49.6toaster, chopping board
17fleece leggings
69flannel sheets for winter
30dryer balls
20desk organiser
125.46vitamins, neck pillow, earbuds, toothbrushes, 
60.57jewelry boxes, rubber gloves, toothbrush, 
19.99fur booties slippers
10.00phd treat--eyebrow wax/mani-pedi

So, I've done (or will do) everything I can think of to reduce my regular monthly expenses. Rent is super cheap with my couple flatmates and carpark tenant paying $1,560 of the monthly $2,200 rent bill, cell is $16 a month, internet WILL be less than $17 per month starting in August, and I'll continue to do whatever I can to reduce my power bill. Luckily my flatmates also do not waste energy. If I keep my portion of the power bill at $50 or less, my regular monthly expenses will total less than $750. Kind of puts how much elective irregular spending I do into perspective (although that doesn't include food costs, which equal or surpass my rent expenditure most months!!!).

Other than that, I just have to work on cooking more and cheaper meals to reduce my grocery bill, and stop being super lazy and renting my car share car every weekend. Maybe every OTHER weekend?

Luckily, I should have some money coming my way in the next few months--I'm owed some taxes from NZ for last year, and September is always good because of the AECT/power dividend. Every little bit helps!!

Wednesday, June 03, 2015

June 2015 Goals

An O-fficial place to put these goals (and my progress!) since this was buried in a previous post:

June Goals
As usual: Sleep 8 hours each night. And this month, I should really start getting into a solid bedtime/wakeup routine.

Stretch goals: 
  1. Update my CV, LinkedIn, and ResearchGate with new grants I won! and the new tasks I have performed in my expanded job role. 
  2. Reschedule medical appointment.
  3. Get results from my blood test. 
  4. Track time for two more weeks using new method. Now I need to review how I spend my time and make some changes.
  5. Schedule massage pampering for June. August one scheduled.
  6. Go to one Pilates class. Choose a location and a time/day.
  7. Think about going to stretch class. 
  8. Continue German lessons. Try for daily. Need a new method. I am totally bored, and it is too hard all of a sudden.
  9. Review one bridge rule. I'm not sure how interested in this I am anymore.
  10. Review astronomy/June star chart. DONE
  11. Reschedule laser appt. Nope. After a year of trying it out, I'm willing to accept defeat. Laser hair removal just doesn't work. I'm not paying for any more sessions.
  12. Update billing accounts with new power and phone company (I switched both!). Also switched BACK to my original power company because the new one was too hard to manage. I had to contact them to find out how much to pay them. Ridiculous. At least my old-new company was offering $100 $250 off my next power bill to come back. :)
  13. Finalize August trip plans. I think so. All flights and accommodation is booked, and I have instructions on how to take trains, where to find the stations, and which trains to take. I still need to do some research and I.D. my top things to do in each country.  Prague: 1. Sedlec Ossuary (need to book tour) 2. Charles Bridge 3. Walk around Old Town. 4. boat restaurant with view of Prague Castle at night (need to make booking) 5. ancestry tour for dad's side of family. Germany: 1. eat at recommended restaurant. 2. visit mining museum. 3. bike around lake. London: 1. London Eye at sunset. 2. tour of Stonehenge and Bath. 3. dinner/drinks with Auckland transplants there.
  14. Organise June public outreach event successfully. Yep! Went off without a hitch. :)
  15. Meditate.
  16. Think about going to a therapist/life coach.
  17. Cancel Kiwibank Airpoints cc.
  18. Back up computer.
  19. Start researching Wish List items so that I can order them before I go home. Camera! Raincoat! Cashmere!
  20. Decide on credit cards to apply for to use at home (to get bonuses). Use Brad Barrett link.  Applied for Chase Sapphire cc. Once approved, can start charging items that I can buy online to get a head start on my August/Sept US shopping.

Monday, June 01, 2015

Net Worth May 2015

NW since DEC 2014
NW Dec 2014 This month  Difference ($) Difference (%)
NET WORTH (same) 104128.75 110570.08 6441.33 6.19
NZ Net Worth 82442.59 87991.37 5548.78 6.73
US Net Worth 21219.15 22327.71 1108.56 5.22

Change from last month: Last Month This Month Difference ($) Difference (%)
NET WORTH (same) 108773.13 110570.08 1796.95 1.65
NZ Net Worth 86226.31 87991.37 1765.06 2.05
US Net Worth 22295.76 22327.71 31.95 0.14

Finally got around to graphing my NW out. I dare say I am making very steady progress...impressive since my salary has been all over the place.

Notes:

  • The most noticeable dip in 2013 was right after my ski trip, Asia holiday, and US trip...combined they packed quite a wallop. 
  • In general, my US trips are noticeable in the graph, but I always rebound somehow. Those trips are always spendy, but get me through the long years abroad, and don't seem to really change the rate of progress, so...I guess I'm OK with it? 
  • The $NW total is treated as if USD and NZD are worth the same. Actual US NW will be lower, NZ NW higher. This method tracks overall increases, rather than the dips and highs in the exchange rate.
  • According to this, I've broken 100 Gs. Nice!


Credit Card Plan and Roster

Since Chase has some god-awful new rule about applying for more than 5 cards every 2 years, I have to be careful now. I need to figure out how many I've applied for and keep track of my apps:

2015

US
Chase Sapphire Preferred (min. spend met! Sept 2015; 45K points) Points awarded October 2015
LANpass Visa Signature (min. spend met! Sept 2015; 20K points) Points awarded October 2015
Chase Explorer Business ($2K min. spend; applied Oct 11 2015; APPROVED 14 October; 50K points) Min. spend met November 2015. Points awarded Dec 2015.

New Zealand
ANZ Air NZ airpoints card
Qantas ANZ Visa Platinum: applied Nov 13 2015. (20K points; $1K NZD min. spend; apply by 31 Dec; first year fee waived). Approved 25 November 2015. Min spend half met mid-December.

2014

AMEX Delta SkyMiles
Citibank AAdvantage Platinum Select World Mastercard
Barclays US Airways Premier World
AMEX Delta SkyMiles Business

2013

Chase United Mileage Plus Explorer Business (reward: Sept 2013)
Chase United Mileage Plus Explorer (Reward: April 2013)

2012

Chase British Airways

2011

Chase United Mileage Plus
Chase Sapphire Preferred



For my future ref, here is my previous post on the plan.