Selling Shares- To Increase Cash Buffer
It has been a while since my bank account has 5 digits. I have been buying stocks and index funds whenever I can through the past few years. So when I sold my position in Breadtalk, it is to prepare a cash buffer to sit on and wait for opportunities.
At the same time, I am keeping more of a buffer as I embark on my next stage in life. If you read my profile, you will know that I have had quite a few career changes. For the next year, I will be embarking on a specialized masters course (certainly not an MBA). So I need to accumulate to pay the fees, which is over $10,000.
I am a believer in planning ahead before even taking the course. So I am ready with the money even though I am going to pay by installments. I want to have the cash so that I don’t have to sell more shares later if the market plunges. So I need to balance out some risks that I am taking.
My wife and me are believers in not keeping up with the Joneses. We don’t have a car, nor a maid, no condo, no club membership, no 32 inch LCD TV nor plasma TV.
Our badge of honor is that my wife has no LV handbags, we rather buy the stock/unit trust of the company. Or maybe my wife is giving me doublespeak? I must ask her.
Today, she and I were at Ikea to buy mattresses because a big group of her relatives and friends are coming over sometime in August this year. She wanted a cheapskate mattresses, I argued that we should get slightly better ones.
In the end, I won the argument over the mattress, but conceded to the cheapest mattress pad for the beds. We are both cheapskates :)
Her logic is that the relatives will be here for a few days only, so we do not have to spend much to get the best quality ones. My is just that I do not want the mattresses to fall apart after one year and have to go through the hassle to get another one.
We rather have more money to give to both sets of our parents and of course to increase our investments.
So you understand why we don’t have all the things and gadgets at the top. We buy stuff via unanimous agreement.
Have an enjoyable and fruitful week ahead.
April 26, 2010 at 2:34 AM
Do you guys have kids? If yes, it's hard to avoid a maid. I used to do without a maid until my wife gave birth last year. Since then the maid's help has been invaluable - a small price to pay I feel.
As for the TV, erm you guys don't watch TV at all? I got my 32" at a very cheap $799.
Assuming you guys keep up such a simple lifestyle, you should be able to save >50% of your salaries every month....
April 26, 2010 at 10:48 AM
lol really save a lot of money through this. Cherish your wife..not easy to find a gal like that nowadays :P
April 27, 2010 at 11:47 PM
Hi Musicwhiz,
Yeah, I have a TV, the old type CRT kind. Its the same old TV since we moved in more than 5 years ago.
Significant other said only when it spoils can we get another.
Nope, we don't have a kid, so when and if we do, our expenses will go up. Will see if we can cope without a maid though.
Thanks for the visit.
Lemiz
April 27, 2010 at 11:49 PM
Hi Dou,
Thanks for visiting.
Money saved is never enough :) Ya, I appreciate my wife. Think hard to find someone like that, so quite lucky to have found her.
Lemiz
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