Tag: t_intro44

passUp$2k/M pay: comfortable(!! luxury)burnRate S$6k→8k

Posted on by tiger40490

In Apr 2018, I made a choice to walk away from additional (USD 2.6k/M pretax) income because I felt I didn’t need the extra income, but that’s really based on personal burn rate (below S$2k).

Earlier, I made similar decisions — In Apr 2017, I gave up some BGC/PIMCO java positions above $800/D for a $715/D position

As a family, our burn rate is about S$6k, so the additional income does mean a lot. To feel indifferent about additional income, we should really live more comfortably, …like $8k (although I really wish it was $4k, which would make me feel more “secure”.)

  • more hourly maid? Yes
  • better furniture for wife? yes. I don’t need it.
  • more enrichment programs? no. too much!
  • more staycation? Yes
  • more taxi trips … to save time? yes
  • more eating out? No. already a lot
  • more vacations (like YLZ)? no. Too luxury not worth it

##what homes/locations feel impoverished #family

Posted on by tiger40490

See spreadsheet q(U.S.8Past_Home.xlsx).

Opening Example: Newport unit interior is OLD but clean, very much acceptable. The street cleanliness and location really made me feel “luxury”.

Example: Wayne St (Jersey City) house internal looks too old and feels poor for a family.

Example: Fort Hamilton Parkway house felt clean, old, and working class. Acceptable for my family. Not impoverished.

Example: 45 Juliette house felt too old, though inside my unit fairly clean.

  • School is the most important factor. Let’s put it aside
  • commute is important to my feeling of rich/poor, but Many high-end homes require long commute.
  • The rest roughly ranked for myself:
    1. interior (not exterior) renovation is often the biggest factor affecting “feeling poor/rich”. However,  interior can be improved, while the location and size can’t improve.
    2. street cleanliness including old, rundown buildings. See https://tanbinvest.dreamhosters.com/2017/07/16/street-cleanliness-water-front-unnecessary/
    3. parks — within walking distance… exercise, evening stroll. Cf Bushwick and EastOrange.
    4. playground
    5. small windows
  • ? size? To some extent only. Some of the tiny coops can feel luxury. Consider Newport
  • ? privacy, isolation, far from downtown? Not at all. Some of the most expensive homes offer that
  • ? exterior appearance? Not at all. Some of the most luxury homes in 老天津 were “dressed up” like dilapidated.

The rich provide more4their kids,but I did a good job as a dad!

Posted on by tiger40490

When you read any serious writing, or watch a movie, you will realize that for a parent, “good job” is NEVER about how much money we provide for our kids, though it is still part of the “job”.

The more casual (occasionally careless) a conversation is, the more likely we would notice hints

“amount of money parents provide” is correlated to “QUALITY-of-parenting”.

(Similarly, a good job as a child is never about how much money we provide our aging parents, or the qualifications or the financial success we earn for our parents.)

Here are what I have done so far: I have spent a lot of time with my kids, and I carefully plan for their future, not only financially. I would say that effort to guide them on life skills, survival skills, recovery skills, good habits, self discipline, self motivation etc is more important than an ambitious university education fund.

I work hard to earn more money to support myself, my wife, the safety and well-being of my family. In contrast, funding my kids’ university education isn’t my most important financial duty.

就学基金 # student loan !! parents’ duty

Posted on by tiger40490

Chinese culture — OCBC advertisement would tell you an aerospace engineering degree costs S$260k… and it’s parents’ responsibility!

Chinese culture — even after his children graduate from college, the Chinese parent still takes the responsibility to help them pay off their student loan, or help them buy their home. I think in other cultures the young adults are responsible for their finances at a much younger age.

Introspective — Sure a private uni is good, if we can afford it, just as …

  • 30-minute commute is good, if I can afford it.
  • home with a private study room is good, if I can afford it.
  • private yoga instructor is good, if I can afford it
  • $200/month yoga program is good (even though I attend only 4 sessions), provided I don’t need to worry about the cost.

My own experience – I had reasonably good A-level grades, so I could have applied to some private U.S. universities but not outstanding enough to earn scholarship. My parents only had enough money for a Singapore university. I felt fine. I didn’t suffer or regret.

If my kids are really good students they would have enough choices beside the expensive universities. In that situation, if we can’t afford a private university, we would accept. That’s what happened to me as a student, and what happens to many talented students every year. I don’t believe the expensive university education is such a make-or-break factor. Getting into a good firm (like Goog, APPL or GS) might be.

As of 2017, tuition + expenses per student per year is between 50k – 60k for one colleague (per Shubin). Another colleague said 250k for 4 years per student. I have reason to believe these are realistic numbers. Luckily, my 2 kids have no “overlap”, so I can slowly save up, if I take up the responsibility.

  • Option: Grandpa stressed many times — a mediocre university is fine
  • Option: student loan. We will probably max this out
  • Option: they work to pay for themselves
  • Option: some “local” state universities are good enough, such as Stony Brooks
  • Option: Singapore universities are more affordable
    • All university students get student loans up to 80% of tuition, with no questions asked. I received that myself, as a foreign student.
    • For the needy students, there are bursaries. As a foreign student, I received S$3000 every year
    • There are still other financial assistance schemes for Singapore citizens.
    • For living expenses, my kids could work in the university or outside. I did that a few times while in college. Very easy to find jobs.

 

commute: subtracted from%%24H

Posted on by tiger40490

Ideally, office should be connected to train stations by walk, bike not bus!

Many people feel 20 min difference (like 40 vs 60 minutes) in commute is negligible. “It’s 20 minutes x both ways in a day.” For me, on same days it feels terrible to waste those 40 minutes on commute!

One of the things I always hated is long commute. One of the things I love is reading, including but not limited to
– self-improvement(muscle building)
– my own reflections in recoll and blog
– Time magazine
…

These can take place on a train commute, so I should really stop thinking the old way.

To really make this happen, we need to plan meticulously (like the Outlook-GTD procedure)
* printer
* big-screen smart phone
* leave home early
* avoid buses completely
* minimize driving

–when speaking to friends and agents

  • “I have lower tolerance for long commute than my peers. I’m willing to pay a premium for a quicker commute.”
  • My soft limit is 50 minute train journey. Door-to-door becomes 60+ minutes when we add transfers at stations.
  • 25 minute train journey would be “very good”
  • “I much prefer trains rather than buses or driving”

[Feb17]nonwork income: how much is enough2let me pick low-stress job

Posted on by tiger40490

I used to say “IF I have this much passive income, I would have the option to quit a stressful job like this, and take on some job I enjoy.” A job like my ICE c++ project?

Q: how much monthly passive income is enough? How about an income enough to cover all my tax-like expenses including rental?

A: in Singapore, I feel S$(5->6)k could be enough.

A: in U.S. burn rate is much higher, so no end in sight.

savings enough2last20Y now5Y#with kids

Posted on by tiger40490
Burn rate can either reduces or contributes to long term look-ahead worry. Since my bachelor years, My monthly burn rate has increased all the way to $5k – $6k, largely due to the taxes (https://tanbinvest.dreamhosters.com/2016/10/21/after-tax-income-be-careful/)

One reason — when living alone (like White Plains) I enjoy and take pride in my “simple lifestyle”. However, when my kids are with me, I see such a lifestyle not as simple and beautiful but impoverished and deprived. I want a bigger home for them, toys, enrichments …

When a bachelor, my burn rate was below $1k excluding rent. Contrast the recent peak, when my burn rate exceeded $10k/m
  • $2.5k mtg
  • $2k on average UChicago
  • $1.5k on average allowance paid to wife and GM
  • up to $1000 “taxes” including utilities, MRT, town council, school bus
  • —– (7k so far) ——
  • $1200 on average pre-school fees. $1400 -> $800+$300
  • $300 insurance — annually Aviva $600 + AIA $1700 + AXA $1100 + Prudential $400 + MSIG $300
  • $500  training for boy (on average swim $100, fitness $300, piano $60, home tutor $150, ad-hoc community center courses)
  • $400 NTUC
  • $500? (on average) travel + dining
see also https://tanbintpy.wordpress.com/2016/10/09/reduce-monthly-spend-from-5k-to-4k/