Happy New Year 2012

    Each year, I make some resolutions or goals which I want to achieve and have a look at them every few months to see whether I have achieved them or not. I have been doing this for about 10 years already and its an effective way to see whether I have actually improved my situation, personally, financially, as a  leader, father, friend and husband and colleague. One of the things life experience gives you is that you are ultimately the recipient of the decisions you make - most of the time. On the occasions when life throws you a 'curve ball' you have to adapt and try to hit it as best as you can and not strike out. That's life. Some people have it easy, when they have a wealthy family, and have intelligence, looks and seem to live a charmed life. Many have to sweat through the daily grind just to take home a basic pay. There is no such thing as fairness, unfortunately, so the more adaptive you are to the situation, the better your chances of making the best of it.

      I had 3 setbacks or 'curve balls' thrown at me in 2011, 2 personal and 1 businesswise. My dear mother passed away on 8th January 2011, my son had to struggle with promotion in college and my company was axed from certain territory in a key product. It would be easy to blame people or God for all of these, but God helps those who help themselves. Rather than get angry with the situation, get even and take each happening as a life experience. Many a times, we cannot predict the unfortunate event or even the 'good luck' that befalls us, so its best to be 'adversity adaptable' and be ready for the challenges and curve balls life throws you. Anyone can react to having 'good luck' or winning the lottery, once in a blue moon. Everyone can spend money, few can actually create value and earn money. Even fewer can earn and save money for retirement as the costs of retirement go up exponentially every 3 to 5 years.   

       Perhaps it was OK to say, lets save $1 million and I can afford to retire at 55 and live till 75, thats 20 years spending of $50,000 per year for 20 years, providing the fact that there might be unexpected health issues which require major surgery which will wipe out $250 K from my insurance. Because, I am talking about improving standards of living and quality of life, that the costs of living decently escalate. Say a person retires at 55 and lives till 85 (quite possible now). Given that he has adequate insurance to cover for health and hospitalisation costs, that is a whopping 30 years. For $50,000 per year, that is a sum total savings of $1.5 million IN CASH.  Many people will say, OK, I will sell my house, say 10 years time, and cash out and move into a smaller place, perhaps public housing, and attain the cash of say $1.5  million, plonk out $500 K for a HDB flat and problem is solved. Maybe NO, there will be a surplus of people who will be selling the private property at that time, and prices may actually DROP.

Scary scenario of hundreds of thousands of aging baby boomers selling their property in 10 to 15 years time and finding out that the golden years, actually, they have little or no money left.   But then again, thats 10 to 15 years time. We are living in the present right ?   RIGHT or WRONG, its a financial life choice you and I have to make to ensure that our golden years are indeed, golden, with the help of money, not too much, but enough.   

     " Be prepared" -  the Scouts motto is the best attitude to adopt in  uncertain times. Stay focussed and stay the course, and we'll be on track again. Seize the day my friends. Have a  Life Plan, Do it, Check it and Action on it . Fine tune it along the way.  Have a healthy, happy and successful 2012.