Budgeting for an unbudgeted trip

In May, on a whim, I deiced to plan for a trip to Japan.
Without much thinking and consideration of my finances,
I booked the air ticket as there was an offer on Singapore Airlines
for a return trip ticket from Singapore to Tokyo (Haneda).

In this and subsequent posts, I will be putting up my proposed budget for the trip,
hopefully, I don't blow this budget.

This is a budget that I have drawn up after checking out all the websites.
Well, this is my first trip to Japan and i realized that Japan goes by a Honor system.
Most places do not require you to pay via credit cards or transfer the payment to secure your booking. They will hold the room for you and you settle the payment when you arrive.

So I wonder if most Japanese business function on a cash flow accounting system instead of a double-entry system. But that is a story for another day.

ITINERARY
Destination	Days (Stay) Nights		Lodging		J Yen	S$
Tokyo	2	2	Kimi Ryokan Tokyo		7875Y	103
Hokkaido-Biei-Furano	2	2	Cress Guesthouse-Biei		10000Y	131
Sounkyo Onsen+Daisetsusan	1	1	Resort Pension Yamanoue @ Sounkyo		8800Y	115
Hokkaido-Sapporo	2	1	Sapporo City		S$68	68
Mt Fuji-Hakodate	2	1	Mt Fuji		3900Y	51
Tokyo	4	3	Shinjuku Washinton Hotel 3-2-9 Nichi Shinjuku Shinjuku-ku Tokyo Ph:81 33343-3111		$252.20	252.2
					Total	720.2
TRANSPORTATION
From (Source Station)	Mode	Dep	To (Destination)		Jyen	S$
Haneda Airport to Kimi	Limo Bus	Haneda	Ikebukuro West Station		1200	16
Ikebukuro to Kimi	Taxi	Ikebukuro	Kimi		2500	33
Kimi	Limo Bus	Haneda	Haneda-Flight to Sapporo		1200	16
Monorail to Airport	Monorail	Haneda	Haneda-Flight to Sapporo		720	9.5
Air Ticket to Sapporo	Place	Haneda	New Chitose Airport (CTS)		21600	283
New Chitose Airport	Train	Biei	Biei		1040	14
Biei Furano Round Pass	Train	Furano	Furano		5400	71
Sounkyo	Train/Bus	Biei	Sounkyo Onsen/Daisetsusan		1920	25
Sounkyo	Train/Bus	Takikawa	Sapporo		1920	25
Asahikawa	Train	Sapporo	Sapporo		4170	55
Sapporo	Train	New Chitose Airport	Tokyo		1040Y	14
Haneda Airport	Kawaguchi 5th Station	Haneda	Mt Fuji		2400Y	31
Kawaguchi Sta.	Bus/Monorail	Gotemba	Gotemba(Outlet Mall)		1470	19
Gotemba	Bus/Train	Gotemba	Shinjuku		1630	21
Shinjuku	Monorail/Bus	Haneda	Flight back to SG		1200	630
					Total	1263

Total so far including accomodations and transport now amount to close to $2000.

Here's an estimate of the break down of the cost though cost might vary depending on the season you are travelling. I will be travelling in September of this year and hopefully I can stay within a budget of
S$3000.00 including personal expenses and gifts.

I had previously spent only S$1100 for a two week trip to New York and Boston and hope to stay within a budget. The above 2 week trip involves bunking in with a friend for 2 weeks in Boston and staying at a 3-star mid-town hotel in New York City that is within walking distance to the Lexington Subway. However the $1100 includes transport, meals personal expenses only andit excludes air ticket from SG to New York City.

Leave me comments on tips on how to save during my Tokyo and Hokkaido trip.
I will appreciate any tips you can offer and will write up about it when I return after using your tip.
Might also send you a gift if my budget allows.

How toSave $100,000 in 7 Years

I had originally written this article under another blog but realized that it fits into this blog theme on SG Smart Money. Hence I have decided to shut down that blog and just concentrate on this one.-
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How to Save $100k in 7 Years

This is my first post in Blogger and I am inspired to create this blog after coming
across this article in the Straits Times, dated 7 July 2013 article.

In this article, it shows how a young fresh grad, just straight out of school can save $100,000 in 5 years.

This article also assumes that

• You save 50% of your take home pay
• You are single
• You have cheap hobbies

• You are willing to make some sacrifices.

However, this article does not take into account the various 'milestone' events that can thwart a youngster's 'best laid plans' such as

• Student loans
• Weddings
• Honey moons
• New house
• Any other 'catastrophic' events.

After reading this article, I am inspired to safe $100k within the next 7 years.
In the next 7 years, I will be 40 and this is the goal that I want to reach at 40.
I am also hoping that combined with investments, I can exceed this goal. 

This is what I aim to to

1) Save 30% -50% of my take-home pay
2) Invest 60% into REITs and dividend paying stocks.
3) Start a part-time venture

I am also looking for a tracking chart to track my progress.

Creating Your Money Ladder

Money Ladder

I am currently reading a book titled
"The Story of Rich" .

Rich in this story is about a small business owner who successfully sold his small business for an 8-figure amount and is waiting to retire.

However with the amount of money coming to his hands, he is pondering how to plan for it.

This book is part parable, part-non-fiction and how-to book on personal finance.

There is a particular chapter where the author mentions about creating a money ladder.For instance, if you have $400,000 of savings, you might want to split them into 4 portions.

• First $100,000 is used as emergency cash and is placed in a fixed deposit account.
• The next $100,000 can be invested in high growth shares for greater yield
• The next $100,000 can be invested in dividend playing stocks
• Last $100,000 can be invested as an opportunity fund.

In this way, one can ensure that they have sufficient cash when they need to use in an emergency and not have to compromise on growth in a stock market.

I realized that this plan may work if you have lots of cash upfront but i am thinking of this works if you have limited funds like $40,000?

Here's how I would split the $40,000

• $10,000 in emergency funds
• $10,000 small companies and high growth stocks
• $10,000 dividend playing stocks like blue chips and REITs.
• $10,000 in bonds.

What do you think?
Is this type of assets allocation effective or only works for those with a large 'war chest'?

Money Ladder

I am currently reading a book titled
"The Story of Rich" .

Rich in this story is about a small business owner who successfully sold his small business for an 8-figure amount and is waiting to retire.

However with the amount of money coming to his hands, he is pondering how to plan for it.

This book is part parable, part-non-fiction and how-to book on personal finance.

There is a particular chapter where the author mentions about creating a money ladder.For instance, if you have $400,000 of savings, you might want to split them into 4 portions.

• First $100,000 is used as emergency cash and is placed in a fixed deposit account.
• The next $100,000 can be invested in high growth shares for greater yield
• The next $100,000 can be invested in dividend playing stocks
• Last $100,000 can be invested as an opportunity fund.

In this way, one can ensure that they have sufficient cash when they need to use in an emergency and not have to compromise on growth in a stock market.

I realized that this plan may work if you have lots of cash upfront but i am thinking of this works if you have limited funds like $40,000?

Here's how I would split the $40,000

• $10,000 in emergency funds
• $10,000 small companies and high growth stocks
• $10,000 dividend playing stocks like blue chips and REITs.
• $10,000 in bonds.

What do you think?
Is this type of assest allocation effective or only works for those with a large 'war chest'?

How to Save $100k in 7 Years

This is my first post in Blogger and I am inspired to create this blog after coming
across this article in the Straits Times, dated 7 July 2013 article.

In this article, it shows how a young fresh grad, just straight out of school can save $100,000 in 5 years.

This article also assumes that

• You save 50% of your take home pay
• You are single
• You have cheap hobbies

• You are willing to make some sacrifices.

However, this article does not take into account the various 'milestone' events that can thwart a youngster's 'best laid plans' such as

• Student loans
• Weddings
• Honey moons
• New house
• Any other 'catastrophic' events.

After reading this article, I am inspired to safe $100k within the next 7 years.
In the next 7 years, I will be 40 and this is the goal that I want to reach at 40.
I am also hoping that combined with investments, I can exceed this goal. 

This is what I aim to to

1) Save 30% -50% of my take-home pay
2) Invest 60% into REITs and dividend paying stocks.
3) Start a part-time venture

I am also looking for a tracking chart to track my progress.

How to Allocate Your Money for Investing

I am recently researching into various ways to allocate one's funds for investing.

There is a book -"I Will Teach You To Be Rich" with an accompanying Blog with the same name at
http://www.iwillteachyoutoberich.com/blog/

advocates allocating your funds this way

• Short-term account

This is money that will e spent within the next 12 months.

So if you were to save about 10% of your monthly paycheck, you may need to allocate a percentage of that 10% into the three accounts. Take for example, a person who saves $1000 per month, he may need to allocate $300 to his short-term account to pay for forthcoming expenses like an upcoming wedding gift, travels in the year or for some 'unexpected ' expenses that may come up.

• Mid-term account 

This accounts is allocated for funds that will be needed within the next 3-5 years.

Your mid-term account is an account which will help you grow your wealth as well. 

Since these are funds you only need within the next 3 to 5 years, you can use these funds to invest in bonds, preference shares or currencies to earn higer interest.Again, you may allocate 30& of your savings to this account.

• Long term savings

Long term savings as the terms suggest is allocated to funds that you will need only 10 years or more down the road.  You can afford to invest in equities, preference shares, REITs and other investment vehicles that have a longer investment horizon but yield higher returns. Your long term savings are used for a down payment for a house, your desired vacation with your family, etc, etc etc.

This is another method of allocating your savings besides the investment approach used in the previous post.

How to Start Investing

I realized that most people have it backwards when it comes to investing.

To me, investing is supposed to be a tool to help you build your wealth and not a 'stumbling block'.

Hence in order to invest, one has to have one's finances sorted out first.That includes making sure that your basic needs such as

• day-to-day expenses are sufficient
• insurance needs are fulfilled
• emergency cash cushion is in place.

If you already have the above 3-pillars in place, then now'e the time to start to consider on investing in order to build greater wealth.

Here are the steps to take before you begin investing

• Sort out your finances
• Figure out how much you can invest monthly.
• If the amount is too small per month, you may like to combine cash from several months before investing. Alternatively, you can also invest in DRIPS or fractional amounts until you have built up sufficient amount to purchase the whole lot.
• Split the funds for investing into a separate account. 

How to allocate your investment funds

This is what I have read from the book Value Investing for Women" which I find useful here in terms of the allocation of funds for investing.

• Split up your investment funds into 3 accounts and label a) 30% into a Financial Freedom Account b) 30% of the funds are allocated when a mini-crisis happens c) 40% of the funds are allocated for buying when a crisis event happens.