July 2014 YNAB Spending Report and Analysis

Hello all!

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)!

Spendings_2014Jul

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 & DrinksDaily consumable necessities (breakfast, lunch, dinner)
Food SurfeitDaily consumable desirables (take-home snacks, satisfying cravings, etc.)
Other SpendingsOther desirables aka Monthly guilt-free spendings (friday dinners, personal purchases, etc.)
Transportation FareMonthly public transportation fare ONLY. (Cab fares to be allocated in Other Spendings)
20% EndowmentAllowance to parents (20% after CPF/Tax Deduction)
Other VenturesCurrently just FIFA World Cup 2014 bets
Savings ReserveAutomatic Savings Allocation
CPF DeductionsAutomatic 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
situpbench 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
levis511Reason: 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?

Regards,
The Independent Abecedarian

It’s either you dream big, or nothing!