Once again another month has passed. With YNAB, I have successfully taken down all my daily expenses, big or small, with minimal hassle. The feeling of the end result, aka the chart report, is just alluring and assuring since I know that my spendings are well taken care of (or not)!
Moving to this month’s spendings, you can see that the spendings somehow remain the same without much changes, except an additional ‘Other Ventures’ spending for this month. Setting aside a substantial amount of budget for this category which currently includes just some FIFA World Cup 2014 bets. As you can see, it is considered a spending due to the bets having an overall net deficit. (Congrats to Germany by the way!)
On top of that, I guess I forgot to explain the categories in my first YNAB Spending Report and Analysis post! Hence below is a brief explanation of each category:
|Food & Drinks||Daily consumable necessities (breakfast, lunch, dinner)|
|Food Surfeit||Daily consumable desirables (take-home snacks, satisfying cravings, etc.)|
|Other Spendings||Other desirables aka Monthly guilt-free spendings (friday dinners, personal purchases, etc.)|
|Transportation Fare||Monthly public transportation fare ONLY. (Cab fares to be allocated in Other Spendings)|
|20% Endowment||Allowance to parents (20% after CPF/Tax Deduction)|
|Other Ventures||Currently just FIFA World Cup 2014 bets|
|Savings Reserve||Automatic Savings Allocation|
|CPF Deductions||Automatic deduction of 20% stated contract salary into CPF Account|
Lastly, the main take away for this month is the question – If a depreciating purchase of an asset, which gives intangible dividends, worth it in the long run? During this month, I had purchased two sets of considerably compelling purchases (>$50 each) which as of writing, I am still unsure if it is worth the cost. I am sure some of my readers will face this sooner or later during their budgeting months. Hence with noting the breakdown of the purchases, I hope you will be able to understand how a purchase should be analysed before making a BUY decision. Also, to get an answer for myself if they are worth it at the end of this post!
Purchase 1: A sit-up bench for working out
Reason: Having purchased some adjustable weight dumbbells and a Double-end bag for going a year now, I believe every fitness purchase I made has been an effective investment. The dividends include getting compliments, self-respect and confidence which are mostly intangible. Working out 1-2 times a week with weights and training tactical drills 1-2 times a week with my DEB, I would still take this fitness pathway to my current build if I were to go back in time. Therefore, after extensive research and budgeting, I have decided to get an acceptable quality workout bench as inexpensive as possible. While the key specifications I require are its ability and stability to work as a benchpress and tricep overhead pulls which I am working them by lying awkwardly on the floor previously, I am not getting it mainly for doing sit-ups. Looking around Qoo10 shopping site, I found a sit-up bench on sale. Reading the multiple reviews about seller’s excellent customer service, delivery time and most importantly the solid build of the sit-up bench, I fell for the promotion pricing and got it delivery in two days.
Purchase price: $55 incl delivery, with one year local seller’s personal warranty. Saved up to SGD$200 by buying a non-branded bench and a ‘non-weights-dedicated’ bench, where having both brand and gym-dedicated bench would cost over $250 easily
Expected Investment: 5-8 years
Expected end value: $0-10
Depreciation: (55-10)/8 = $5.63 per annum
Dividends: Bulk up in shape, keeping fit and boost in self-confidence
Purchase 2: Levis jeans & t-shirt
Reason: In need of a slim-cut jeans for more than a year now, bought two pairs of non-branded skinny jeans within past year but got ruined due to extreme shrinkage after throwing into dryer. Was waiting for Levis to come out with some promotion as I do not have a reason to buy a jeans which is over $100. Having worn five times now, I believe this is my best pair of jeans for past whole decade (Not promoting Levis nor exaggerating my post, it is really just that I can never find something that fits me without having it tailored)!
Purchase price: $120. Saved up to SGD$50 due to Hari Raya Puasa Promotion “40% off bottoms + 30% off tops” by buying the additional t-shirt.
Expected Investment: 5-10 years
Expected end value: $10-20
Depreciation: (120-20)/10 = $10 per annum
Dividends: Style, Comfort, Self-confidence
Not sure if these breakdown (similar to a financial diary of some sort) interests you guys but it really does help me in making decisions, giving reasons why and why not to buy a big purchase. I genuinely hate regretting a big purchase, don’t you too?
The Independent Abecedarian
It’s either you dream big, or nothing!