Tuesday, March 17, 2015

Updated Visual Budget for 2015

2014 went by like a blur and now with an extra child and more expenses, as well as higher income, I just wanted to update what my budget would be in terms of days at work.

At my current income level and current house, it takes about 4 days of work to pay the mortgage, about 4 days for retirement, 2.5 days for food and about 4 days left over for savings.  Up in our budget is our expense for kids activities.  One day of work covers that for the month.  

This coming year, we are looking to buy a house as well as send one of our girls to private school.  A new house at our price range would be about 9 days worth of work or an increase of 5 days.  Private school is another two days of work (and that is just for my eldest child).  If all things remain equal, I would have to cut back considerably in my retirement savings as well as my miscellaneous spending. Or just work more overtime.  But I will think about that later.

Wednesday, February 20, 2013

Level 3 options enabled

I have done covered call investing for a while. This is offering someone insurance to buy your stock if it sky rockets... Or offering your seat on a filled airplane... If the plane is full, your seat is worth lots of money... On the other hand, if the plane is relatively empty, you can offer up your seat, but no one will want it.

That's how covered calls work. You own a stock and offer to sell it at a certain price, in exchange you get a small premium for your efforts.

In a similar manner, there is another investment strategy called cash secured puts. It does the exact same thing except you don't own the stock. Instead you offer to buy that stock at a lower price... or insuring the seller in case the stock tanks. Using my plane analogy, you are offering to buy a ticket at a lower price... If the plane is full, you move on and wait for the next flight, but if it had room, you can buy the seat at a lower rate, and get a small premium for your efforts.

Just make sure you want to go to where ever the plane is headed. In like manner, make sure you like the underlying stock you are writing the cash secured put for. In any case, happy investing.

Sunday, February 10, 2013

2012 Expense Breakdown

Here's the breakdown for our expenses in terms of total expenses for 2012:

Home 30.0%
Food 16.2%
Gifts 16.2%
Education 13.5%
Auto 8.2%
Utils 7.0%
Health 3.7%
Misc Shopping 6.1%

Thursday, January 24, 2013

Finance Report for 2012

This past year was a year of expansion.  We spent a lot, grew a lot, and our family increased in number.  It was an interesting year with ups and downs, joys and sorrows.  Here's the latest financial report for 2012.

Mint changed the pie charts this year so that the actual numbers doesn't show up.  We'll break it down by expenses.



Here's a breakdown of the major expenses.

HOME:
 FOOD:
 GIVING:
 EDUCATION:


 AUTO:

UTILS:

HEALTH:




Unexpected increase in Education and Health this year that past year did not see.  This is due to various courses we took this year as well as baby#3 being born.  We did not travel much this year either mainly due to baby#3.

In comparison with 2011, we did ok.  Up perhaps 10%.




Sunday, January 6, 2013

Net Worth Dec 2012

Here it is: the final numbers for 2012.  This was a really good year in stocks.  The fiscal cliff scare might have proved more difficult to predict, but once there was some sort of positive mood, the whole market just upped and jumped.

In any case: