Net Worth: Q1 2010

There hasn't been too much go on in my finances this quarter. The time just flew by - I can't believe April is here. I have not shopped in three months, I continued to put away my regular savings amounts through automated payroll deductions and I stayed focused and motivated.

I liquidated my cash ISA and put the money into stocks and shares. I did this because of high inflation and meager interest rates.

There haven't been many opportunities to get cashback - probably because I'm not shopping. After a poor year in 2009, my stocks and shares have sprung back. I've detailed my investment strategy or lack thereof in the early days and the tools that help me make better decisions.

I'm planning on removing my car and personal property from my net worth. It'll give me an accurate assessment of my liquid assets. I aim to ditch them by next year. The reduction will be in 25% increments.

In February, I set myself a new savings target very unexpectedly. I realised that when you want something enough you do something about it. I wanted to put more away towards retirement, so I committed to saving 30% of my income. I now live off approximately 32% of my income. It's still early days so all I can say is, so far so good.

In an attempt to understand where my money was going on a quarterly basis and identify waste, I took something FB from Fabulously Broke in the City said about your spending being a reflection of what is important to you, and made myself a visual reminder. I'm also tweaking some things (expenses) over the next month.

That's all for now.

How To Get Rid of An Annoying Person Sitting Next to You on A Flight

1. Quietly and calmly open up your laptop case.
   
2. Remove your laptop.
   
3. Open you laptop and power it up.
   
4. Make sure the annoying person can see your screen.
   
5. Close your eyes, tilt you head backwards and pretend to pray.
   
6. Open your eyes
   
7. Click here

...then prepare to be tackled by some vigilant travellers, reported to security, hauled of the plane, detained under the Terroism Act, interrogated, released on bail and charged with wasting police time...but you would have had a good laugh on the flight!source

ISAs in 2010

I know I talked about ISAs last week when my bank played their annual end of tax year "hide-ya-money" prank. I know I went off about their poor interest rates for 2010/2011, but ISAs have been good to me in the past and I feel duty-bound to give a fair assessment of our relationship.

The Individual Savings Account (ISA) is the most accessible and sensible tax-sheltered investment in the UK at the moment. In 2010/2011, the ISA limit increased from £7,200 to £10,200 per person. That is £10,200 worth of tax-free savings that anyone, 16 and over, can save over the course of the financial year.

ISAs can be Cash, Stocks and Shares or split equally. Before 2008, I only invested in a Cash ISA and truthfully, I haven't utilised this vehicle to the best of my ability in the past. I always had better things to do with my money [read: shop] than saving it in an ISA. I would wait until close to the end of the financial year, then chuck a bit of money into one to make myself feel better. Last year, I realised I was paying more in credit card fees than I was getting in interest from my ISA. I took a huge chunk out of it and paid that balance off.

Then, I opened a Stocks and Shares ISA and got serious about the stock market, tackling my financial irresponsibility and securing financial freedom. Things went well. I put some money away every now and then, I stayed on top of my investments and I saw returns quickly. Then they started to fall in value and this new investor nearly didn't make it.

This year, I'm focusing on a stocks and shares ISA because cash ISA interest rates don't beat inflation and I can't accept that. So, with my share value rising again, my first rebalance behind me, I am committing to putting away £5,000 before the end of the year. I hope to overshoot that figure in total, but it appears a SMART goal.

Quick Guide to Internet Browsers

source

That adequately sums up how I feel. I run three different browsers. I use IE for sites that refuse to get with the times. I stay with Firefox when I need reliability and Chrome is for quick research. Ain't that sad?

Kurt Geiger Gets It

I'd like to introduce everyone to my shoe indulgence for 2010. If you see me this week and I keep getting a "far away" look in my eye, know that I am day dreaming about these shoes.

In real life, these bad boys are the business. The finish is exquisite, the leather is beautiful and they make my feet feel awesome. They've managed to take my mind off the shoes I didn't get, but still want. If only their price made my wallet feel as awesome. All I know is, they better go on sale this year or I will have to hurt someone.

Marchin' into April without CashISA

I prefer to do my banking over the internet. I check my accounts very often - at least once a day. Every year around this time, I get a shock from my internet banking aggregator. The money in my tax-free savings accounts disappears. That's always my wake-up call. It means it's that time of year to plan ahead. It means it's that time to look at cash-efficient savings vehicles and plan an allotment strategy.

Even though this "disappearance" of funds happens annually whilst interest is calculated and paid, I get a jolt everytime and quickly make a mental note to research my options. I'm not saving so much annually now that I go over the tax-free limit so my consideration doesn't include non-tax sheltered savings.

Like most people, my tax-free saving vehicle of choice is an ISA. The government recently overhauled ISAs. The new limit is £7200 in cash, stocks and shares. The maximum cash ISA holding is £3600 per year. Last year I had both a cash ISA and a stocks and shares ISA. The interest rate on my cash ISA was okay, but it wasn't as good as past years. This year, I'm ditching the cash ISA.

Why?

Well, because the interest rate is piss poor. It can't even preserve my money's buying power. The best cash ISA interest rate for 2011/2012 is 2.50%*. Inflation currently sits at 3.6%. The SkyNews finance segment says money must grow at at least 4.4% whilst invested.

So, no I'm not willing to watch inflation kick my money's ass.

* This is based on the amount I am able to put away and a maximum investment term of 12 months with no early withdrawals.

Dorks Rule!

i was never one of the cool kids at school. I hung out with them, but I was always the geeky dorky one who loved gadgets and taking stuff apart. For that reason, the senitments in this hilarious parody of Alicia Keys and Jay-Z's "Empire State of Mind" resonate.

Happy Hump Day people!

Morningstar is Awesome

I don't work for Morningstar. I don't know anyone who does. They just provide me with a great place to look at how my stocks and shares have performed since I acquired them and to monitor stocks I intend to buy.

Since I started making grown up decisions investing, I have been okay about asset allocation. I have been not-so-great on portfolio diversification. Somehow, I thought holding different asset classes did that sufficiently - newbie mistake or just plain dumb - I'm still not sure.

Now, I'm actively looking to offset my risk and exposure in markets against others. So, this is when my affair with Morningstar began. I'm a fan of the Free Portfolio Analysis tools and particularly like the Instant X-ray. Above all, I adore the fact that this is all free.

Check it out if you need a one-stop shop for objective stock/ETF/fund advice and good tools for analysis. More coming soon on my attempts to play the market like a grown-up

To The One Who Nurtures Me

I’m not full of answers, though I pretend that I am. If it were not for your sweetness, I would not know who I am.

Happy Mother's Day Cherie!

Happy Mother's Day( to all who celebrate this Mother's Day) people. Know that your efforts are not in vain, that your children are enriched by their experiences with you and that everyone recognises motherhood isn't an easy job.

C.V. Writing: Google Maps is the new Microsoft Word

In a world where we are all struggling to stand out from the pack, how you come across on your C.V. is of the utmost importance.

That's why, when I saw Ed Hamilton's C.V., I had to applaud him. Top marks for ingenuity and humour.

source

Are You Paying Too Much (Council) Tax?

I sure was, and I had been for two years.

Can you imagine that? For two years, the wonderful Council that I reside in continuously overcharged me and nobody realized this. They acted like they had no clue I lived alone and thus was very eligible for the single person discount. Yet they were happy to hound me every single time money was due. Shame on me though - I didn't even realise I was overpaying. I mean, I always complained about how expensive living in this borough was, but I bore it as an unavoidable evil.

So, earlier this week, I was thinking about the two main ways to attain financial freedom i.e.:

• Earn more.
  
• Spend less.

I began looking at all my bills to see if I could cut back in any areas. Now, I feel like I run a pretty tight ship so I wasn't expecting a whole lot of wiggle room, but freeing up money is always worth the once-over.As usual, I was struck by how high my Council tax bill is, so I called the Council to see if I could get something for nothing ask a few questions. Fifteen minutes into the conversation, I realize I'm not getting the single person discount and I kick off.

Long story short, I should be receiving a nice check with two zeros on the end and a number above 6 preceding those zeros soon. The sensible part of me wants to say, "just apply it to my 2010 bill and I'll pay a lower rate each month". I'm sure that part won't win.

Are We Still Doing This in 2010?

**My apologies for the rant yesterday. We are now back to our scheduled programming**

I know soldiers are taken through lots of training before deployment. I imagine said training includes post-mission briefings and the importance of confidentiality is impressed upon them strongly.

So, why would you post that you will be "cleaning up Qatanah" on Facebook?

If nothing else, are you looking to get shot? does the safety of your section/squadron/platoon (what's the word I'm looking for?) mean nothing to you?

Question: Was it worth the ten days in prison?

source

All These People Have Nothing To Say

There is a shortage of opinion from middle level management in my office this week and that is rare. Why the shortage you ask? Well, it is because nobody knows where my money went. My bonus money that came from long evenings, sacrificed Saturdays and numerous brainstorming sessions. It has been five weeks and nobody can tell me where my money went.

This is f**kery.

I'm an easy-going person and I can roll with the punches. I don't throw tantrums and I don't like to cause scenes. I'm a big picture kinda girl. That being said I am getting to a point where, though I adore a lot of my clients, I no longer want to be associated with this firm. I have real concerns about their attitude towards employees, and these aren't issues I can ignore. I do not play when it comes to my money and somebody here seems to want to play all the time.

I guess I'm acknowledging that I've gotten to that point. It's that time to stick it out until I find something else or until I save enough to bounce. They are about to bring out the South London in me.

Only Play the Games You Can Win

On repeat, on my computer, probably for a while.

Has Anyone Said "Good Job Kid"?

A certified air traffic controller took his son to work. He also let his son direct air traffic. His son was very professional and courteous. One of the pilots commented the kid did an "awesome job" and others were clearly amused. The Federal Aviation Authority however wasn't. The controller and his supervisor have been suspended and an investigation is underway. The FAA has made it clear that this kind of behaviour "is not acceptable". Here's the unaltered audio:

One part of me (the part that thinks kids are adorable) cannot get over how cute this young man sounds. If he were my son I would be very proud. Clearly, he took his task very seriously. The kid demonstrated good social skills (you can hear him building a professional rapport with the pilots) and he paid attention to what his father told him to say (he spoke clearly and audibly without mumbling).

The other part of me (the cynical lawyer) cannot believe the child's father's lapse of judgement.

You live in America.

You work at JFK.

You know all about the risks (electronic, technical, mechanical, terrorist and otherwise) aviation has to deal with. And yet you find nothing wrong with letting your son control air traffic? So, to recap, my bottle of Snapple is more risk to our safety in the skies than a kid directing air traffic and/or being a distraction in the tower? *side eye*

Maybe I'm just jealous. Whenever I went to work with my mother as a kid, the most fun thing I got to do was go outside and buy some candy. I couldn't touch anything and I had to be very quiet. Damn, I am jealous! Anyway, I think the young lad did a great job so I'm sayign well done young'un!

Life Lessons: Wanting It Enough

One of my nearest and dearest is going through a very hard time. After meeting an awesome man, establishing a friendship and falling for him, they finally realized they were good together and embarked on a relationship. It appeared to be everything they could ask for.

They broke up last week after a year and a bit. They broke up because their short-term goals can't be reconciled. He is moving halfway across the world because of an amazing job opportunity and, though she isn't averse to moving, for career reasons she needs to get farther along in her field (in the UK) for at least five years.

His side:
He doesn't feel he is in a position to ask her to abandon her goals and move for him.
He knows she deserves more than a long-distance boyfriend, so he won't suggest it.
He believes they could work together, but is a realist and doesn't want her to wonder "what if" in the future.

Her side:
It took her this long to find him. She can't believe it is over and for such an insignificant reason.
She would move if he asked her to, providing there was a compromise on timelines.
She knows they could be so good together, but she won't beg him to give it a chance.

I don't know what to say to her. I know she feels terrible and thinks about the situation a lot. She isn't the mopey type so she is putting on her gameface and going about her business like she isn't tearing up inside.

I am trying to focus her attention on the bigger picture and bring some realism into the situation.

Bottom line: he didn't want it enough to make it work.

He might realize he made a mistake later on, and he might not but I am here to give my friend the realist's view - which she already knows on some level. It got me thinking of all the things we say we can't do (for varied reasons) that are us just not wanting it enough to try.

I thought about myself - always wishing I could save at least 30% of my salary, but not doing so. Immediately, I set up a payroll allotment for a sum that will put my monthly savings at 30% of gross income. This is huge for me because I haven't had a payrise, I just got back from vacation and I have another coming up in 3 months. I want to be forced to live on 32% of my income (rent is about 20%, taxes are 18%) and succeed at it. I want it, and I mean to get it so it is time to walk the walk.

How To Stand Up For Yourself (and make some money)

Last week, I came across an article on Gizmodo about a man selling a damaged step (from the Manhattan Apple Flagship store) on eBay. The bidding was somewhere in the region of $2300 when I checked it. I wasn't surprised - Apple fanboys and fangirls have serious disposable income and aren't afraid to spend it.

Yesterday, whilst making the blog rounds, I realize Gizmodo have posted again about it. It seems the step manufacturer tried to strongarm the enterprising man for attempting to sell the step. Long and short of it, the man stood his ground and the step has been relisted. Last time I checked, it was at $7230*.


I have two comments on the matter:

1. Good on the man for standing up for himself. It doesn't appear Apple are pursuing him though - Apple probably went after the step manufacturer / fitter for breach of contract. I understand the step is patented so there are probably contractual clauses covering disposal of its parts.
   
   
2. $7230 for a used broken glass stair? Really?

*Update: $9950