Thursday, December 26, 2013

Year End Thoughts

When I started this blog, I was planning two posts per month. When I check the posts in 2013, I realize I failed terribly in this target. There were many months even without a single post this year. So, I thought I would write some thing, before the year ends.

But that "some thing" is the problem. When you blog without anything specifically in mind, it is easy to get it boring both for the writer and reader. At the risk of that, I will explore the year about to end.

How was the year 2013 for me financially? Looking back, I realize it was an year which did not go the way I planned. First the miss to submit investment proof to my employer on time, which caused tax cutting which is nearly equal to half my monthly salary, that too, for two months. It was very hard two months, but I realized that I can live with 50% of my salary, if I really want to. Later, I got the amount refunded by IT department.

Then there were unexpected medical emergencies. Unfortunately my medical plan did not cover 100%. Then more vehicle maintenance charges. Last year I upgraded my car, and for this car, I need to spend more money as maintenance charges. Not to mention it is far inferior in mileage to my previous car. And then more educational expenses for my children, considering all these, I was in a tight wallet throughout the year.

That means nothing on positive side? No. I got a good salary hike this year, even though a large part of it went to variable pay. During the variable payout, being a private limited company, my employer enjoys  freedom to come up with a convenient number as variable payout percentage. But we should be optimistic. I hope I will get a good percentage return next year.

Secondly, I have crossed many milestones this year. For one, I started a PPF account. For another, there is much increase in my net worth, thanks to the regular investments.

Then what should I look forward to in 2014? Of course I need to do many miles stones. I am listing here a few on hope that this would help some one else.

  • Increase my emergency fund
  • Increase life insurance coverage
  • Start investing in commodities like Gold.
  • Start investing in real estate (a least priority item)
  • Reduce expenses
The list can go on. If you remember what I wrote last year during this time, you can see I am making good progress. What's your experience in 2013? Please feel free to put it in comments.