Neville's Financial Blog

All of these are seperate checking and savings accounts I have:

General Account - When any money comes in or out, it goes through the general account. There is always at least a $400 cushion in the general account for a rainy day.

Spending Account - This is the money I have available to spend on any frivolous thing I want. 20% of my paychecks go here and 20% of money generated. $40 per month is also automatically deposited. By 11.17.2006 I plan to use this account (with the same percentage rate) to pay for all general living costs.

Spending Account 2 - This account was created for larger purchases related to spending such as Christmas gifts, vacations, birthday gifts etc.. I have started putting about $20 per week into this account through automatic transfer. This account should most likely build year-round until big events come along.

Investment Account - I keep a minimum of $500 here at all times. I put a mandatory $240 every month and 30% of other income. When the amount tops $1K, I generally infuse the money into my stock portfolio. Any purchases that make me money are charged to this account also.

Bill Account - I’ ve got bills to pay, and this is where I pay them from. There is approx. $10 per week being automatically transfered to this account.

Permanent Savings - This is the ultra-secure savings account which will not be exposed to risk. I put a mandatory $160 in here every month plus 30% of other income. I will never touch this money until I am over the hill.

Charity Account - This account slowly builds money all for the purpose of giving it away to charitable causes. Making money feels great, but giving it away feels better!

Stock Portfolio – My current brokerage account value. This can vary wildly as stock prices rise or fall.

ROTH IRA - My ROTH IRA account which I buy stock, bonds, index funds etc. I will never touch this money till retirement.

Emigrant Direct Account - This is another permanent savings account, but not hosted with Bank of America. I keep this account aside because it gives decent returns and no risk.

Credit Card Balance - This will always be zero or negative because I pay off my credit cards before charges are even made.

Business Holding - This is the amount of money I OWE to the company that fulfils all my online business orders. Since bills usually come 2-3 months later, I sometimes leverage this money for play in the stock market. This money CAN be used, but I generally do not.

Investing in stocks and making my saved capital appreciate is great, but it doesn’t help me pay expenses. I like to invest and re-invest money for my future, but what about the expenses I have now?

After I graduate, to pay bills I will need some steady income. So far I have thought of these three steady income ideas:

1. Getting a Job: Easiest way to make money. The monthly paycheck can be used for savings, investing and paying the bills. You can also simultaneously run a small, low maintenance business on the side.
2. Real Estate: Difficult entry. Renting out a piece of real estate provides a great monthly income, but it can also be a big cash drain. This method would go along well with having a job, since the real estate generally requires little attention once established.
3. Small Business. Intermediate entry. I personally like this one the best, because owning a business gives me the feeling of earning my money. All my risk and labor will come directly back to me with a small business. This method can also go completely wrong, and is very risky if it is your sole income.

After college, I plan on doing all three within two years. As of now, I already invest, run small businesses and hold a job. Some real estate needs to be added to my current situation. Perhaps I will buy a small apartment or condo in an emerging area soon.

My weekly transfer of…

• $60 to investment account
• $40 to permanent savings
• $10 to spending account

…went through on Friday like it does every Friday. I got a $150 check for some web design which I evenly distributed through the savings, investment and spending accounts. I also get a $300 check sometime next week from work.

Total assets went up $856. Keep in mind that total assets include my business balance, a.k.a. the money I OWE the fulfillment company.

General Account: $1,821

Business Balance: $1,683

Spending Account: $303

Investment Account: $983

Permanent Savings: $5,170

Stock Portfolio Value: $8,134

Credit Card Balance: $0

Total Assests: $18,094

Still in New York and having lots of fun. Here is an updated breakdown of my expenditures up till day 9 of the trip:

• $188 – Two tickets to New Year’s party
• $75 – Random spending money
• $18 – Movie Tickets
• $80 – Spending Cash
• $20 – Subway Costs
• $14 – NYC Lunch
• $20 – Spending Cash
• Total – $415

I haven’t broken down “spending cash” because it would be a very long list of small things like hot dogs, drinks, tips etc. Keep in mind I have also been paying for two people in many places.

General Account: $2,118

Business Balance: $2,416

Spending Account: $385

Investment Account: $1,035

Permanent Savings: $5,260

Stock Portfolio Value: $8,118

Credit Card Balance: $0

Total Assests: $19,332 (+ $900)

My next short term goal is to:

Make $11,000 by April 31st, 2005.

This means I must make an average of:

• $2,750 per month
• $687 per week
• $98 per day

This goal is more than double my last 4 month goal, so something about my income must change. I must either work more, make more money from my online business or create a new income stream. I plan to do all three.

OUCH. New York for two weeks left an $825 dent in my wallet. Not working also threw off my monthly income by a bit, but I made a $913 profit from my online business to counteract that.

Also, I am now only reporting usable, liquid assets of mine. I will still report my business balance account which holds funds I owe, but I will not consider it an asset.

These last few days have been harsh on stocks, so my longterm holdings are not doing so hot. I have also transfered all the money I owe for my business to the business balance account. I like keeping my business 100% debt free, which is not great looking for balance sheets, but I like having no liabilites for now.

General Account: $423

Spending Account: $82

Investment Account: $860

Permanent Savings: $5,300

Stock Portfolio Value: $7,810

Total Assests: $14,475

Credit Card Balance: $0

Business Balance: $4,392

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So far my financial year is not off to the right start, but I am changing that soon!

At the rate I’m going, my goal of generating $11,000 will not be met by May 31st. I need to change something, and fast.

My online business is making money, and I will start working again in two days. I will also start pursuing making some money from Resumite. These three sources of income might cut it, but I need MORE.

I need to get into high gear and start making some more money!

I bought Fortune Brands (FO) at $76 yesterday, in light of recent earnings, it has jumped to the $79 range.

I plan to hold onto this stock for years to come, and add to my position at times…so far it is off to a great start!

The price will slightly drop after all the earnnings hype goes away, but in the longrun I have a lot of faith in Fortune Brands.

Here is a one week chart of FO:

I am at a loss in my longterm portfolio right now. Just a few months ago I had a nice profit, but things went awry for the Syntel (SYNT) and Dynegy (DYN) stocks. I’m not worried, because I’m holding all of these (except for Syntel) for 3+ years.

Here is a snapshot as of 01-24-2005 of my longterm portfolio: