Budgeting for Your Future

If you observe my posting times, its usually when the sun is up (SG timing that is), its mainly because my house keyboard is anti-typing, but I kept it around because its small and doesn't take up space.

Anyways to my main point: Budgeting for your Future as titled.

Ask yourself: When you are budgeting for your "future", where does this "future" stops?

For most people, its till the wedding, most people plan their wedding and honeymoon, they always forget to factor in the flats and most importantly, renovation. Which is why, banks do not need to come up with wedding loans, they only need to come up with loans to pay your renovation. Never forget this critical point. The whole idea of this post hinges on this.

For the financial kiasus, their future ends the moment their children dies of an ripe old age. It's a little extreme but you get my point what I'm comparing here.

For me I work backwards and I consider these few things in order of somewhat importance:
- Down payment + Option fees + 1st till 5th month's loan payment.
- Furniture + Appliances
- Renovation
- Honeymoon
- Engagement Ring + wedding gifts
- Wedding (photoshoots and banquet inclusive)
- Wedding bands

This broadly covers the things I'll be paying for till about 6 months after I've gotten the keys to my flat.
The breakdown 
Down payment + Option fees + 1st till 5th month's loan payment.

• Reason why this is important is because this is the most expensive thing you are going to spend your money on. This is what your parents is asking you to save money for. 
• THIS MONEY INCLUDES YOUR CPF MONEY
• I put there first to fifth months but it should cover 6 months because your option fee of $2,000 is going to be used for one month's payment. First 6 months should cover your from keys getting till moving in. You do not want to be seeing your money fly out that quickly when you are also paying for renovation and appliances, etc
• This is basis a $300,000 flat. If you can afford a $600,000 flat as your first apartment, better set aside more as option fee reimbursement is not going to help much.

Furniture + Appliances

• The silent killer, I feel renovation can be kept to a minimum if you are strapped for cash, but furniture and appliances cannot do without. You can don't hack the wall to expand your hall, but you cannot have a house without an iron and ironing board (I do not believe in those vacuum cleaner type, they don't iron collars and cuffs)
• Its better to fully stock your furniture and appliances when you move it because it makes the home a more cozy place. Imagine yourself without a washing machine for 1 month because you cannot afford it this month, you will subconsciously loathe the place. 
• For bed and sofa, go for quality and comfort over price. You can buy an ikea side table for awhile, but bed frame must be sturdy for at least 5 years.

Renovation

• This is a very gray area for me as I do not really know how much I have to set aside until I do it. I'll just put out a substantial sum for this just in case, if any remains, I have more cash for furniture and stuff. 
• I have read outside that its much cheaper to individually engage contractors for each components rather than an Interior Decorator, I do not know how true is this, but I believe Interior Decorator is just someone you hire to oversee your renovation, either you put in the elbow grease or pay someone to do it.
• Think about your lifestyle in this flat 5 - 10 years from now, if you do not see yourself in this flat 10 years from now (aka moving out), keep the renovations to the minimum
• I also include kitchen cabinet, stove and sink as part of the renovation
• For 4 rooms, I personally feel there is not much hacking you can do, yet it is versatile enough to deal with most generic family size. 

Honeymoon

• Europe. Paris. Florence. Most importantly, be happy and do not be a miser overseas, you work hard for it, don't go overseas and say things like "this chocolate sells cheaper in Singapore".

Engagement Ring + wedding gifts

• Guys, get your wife-to-be something she will like yet the design will be evergreen. Diamonds are forever, not the design of ring it came with. Just think whether will she wear this ring and look appropriate when she is 60 years old.
• Girls, I know this isn't a tradition, because no weddings are marketed to men. Think, your husband-to-be has forked out a huge amount of cash to make you look good, apart from the good time in the bed room, maybe you could get a little something for him as well. I think the best of all would be a mechanical watch (not battery operated quartz), but a really good watch. Think rolex/grand seiko/omega/patek if you are that rich. Engrave his name at the case back and make it his life-time memorabilia. He may even pass on the watch to his children in future. 
• Including in the Si Dian Jin 四点金 in this portion as well because it is only bought once.

Wedding (photoshoots and banquet inclusive)

• This is very low ranking on the list, second last to be exact, reason being, despite being very important, end of the day, you must understand that it is merely to glorify your woman and impress others. End of the day, there is nothing impressive with a $50,000 wedding and you end up being unable to afford your house and reno.
• No wedding photoshoot is about the guys and no wedding dinner is about how well dressed the groom is. The clothing with the colours, price, detail and impracticality is the gown. If you look into tailoring, you could keep that good grey/navy suit for other events after your wedding.
• Banquets for me, the mindset is this, basis 25  tables, if I throw a wedding at a Chinese restaurant, it may set me back $1000 a table, but a 4 - 5 star hotel could be starting at $1500 nett a table, I already have savings of  $12,500 right off the bat. That could cover for a good 2 nights (1st night for resting, 2nd night for procreation) stay at Fullerton Hotel and still have enough for that Europe honeymoon plus a little top up.
• I planned this portion without factoring ang bao money as you should not rely on people to pay you to treat them food. 

Wedding bands

• This is last for me  as I feel, this wedding band thing could be bought over and over again throughout your marriage
• You could get a new set every 5 or 10 years, to somewhat renew the marriage and provide various significance and milestones to the family.

Maybe you have an idea of how things should be and your order of importance is different. But this is just my point of view that even my wife-to-be don't necessarily see eye-to-eye but is accepting of it because of the surrounding principles and practicality to my future plans. 

But most important thing of all is, do not jump into the water without first finding out if there are sharks in it. Many couples get together because of love but fall out due to money, do not take money matters lightly. Sad to say, if you get married not to start a family of your own, it might not be the best course of action to take. 

(photo credit: today online)

Starting a family should be the main reason for getting married, not the outcome of being married to one another...