0

My Kinda Savings This 2014

What’s your kind of savings on 2014?  Are you planning to save money on mortgages, insurance or credit cards?

I’m Saving Money on Mortgages

I just got my new studio condo turned over to me.  Naturally, I’d be saving money on mortgages.  I bought the unit bare and I need to hire a contractor to carry out the finishing works to make the unit livable.  And that finishing works would cost me money, maybe as much as PHP 200,000 (1 USD = 42 PHP).  That’s a lot of money and I’m being cautious with committing to spending that much money on the finishing works.  My cash flows needs to be planned very well, especially now that I’m starting to invest in the stocks market.

Proceed with Caution

My condo situation is a bit tricky and if I’m not careful, I could lose a lot of money.  Currently, I am renting a condo with a one-year contract and a monthly rental of PHP 12,000.  The contract ends on September 2014.  For my new condo, I started my monthly mortgage of PHP 9,000 just this month.  From here onwards, my condo-related expenses, for my new condo and the condo I’m renting combined, is PHP 21,000 monthly.  This expense is excessive because I only need one condo.  I should either stay in my new condo or stay in the condo that I’m renting and find a tenant for the new condo.  Here are some options that I’m thinking about:

Find a Tenant for the New Condo

Spend about PHP 200,000 for the finishing works of the new condo.  Find a tenant who will rent the new condo for at least PHP 9,000 monthly.  One negative aspect of this option is I would spend a big amount of money which I could have used as capital for my stocks trading and possibly helped me make more money.  On the other hand, one positive aspect of this option is I won’t have to worry about the monthly mortgage for the new condo because of my rental income.  This would bring my condo-related expenses to just PHP 12,000 monthly.

Do Nothing

Leave the condition of the new condo as it is.  This way, I won’t be spending for the finishing works which costs PHP 200,000.  However, I would continue paying out of my pocket for the PHP 9,000 monthly mortgage of the new condo.  On the up side, I’d be able to use the PHP 200,000 in stocks trading to make more money and on the down side, I’d be paying PHP 9,000 monthly for a new condo that I do not  use, and that to me seems a lot like money down the drain.

Negotiate with my Landlord

Spend PHP 200,000 for the finishing works of the new condo.  Negotiate with my landlord to let me get out of the one-year contract sooner.  This move can save me PHP 12,000 monthly but it also means saying goodbye to my PHP 200,000 as additional capital for my stocks trading.

My financial goal is to make my first one million pesos in 2014.  Which of these three options do you think will let me reach my financial goal sooner?

The Role of Saving Money

Whichever option I take, saving money plays an important role in reaching for my financial goals because without adequate money, I won’t be able to take any of the three options.  Saving money has always been a big part of my life.  For instance,  I’ve been needing to buy myself  a pair of gym shoes and it’s taking me a lot of time deciding on what shoes to buy and for how much.  I’ve visited a lot of shops but I haven’t bought a pair of gym shoes yet.  I want to make sure that I’m getting the best bang for my buck when I finally buy a pair of gym shoes.  I have big plans for my finances and I need to be very careful with how I spend my money.

I hope your financial situation isn’t as tricky as mine.  I hope, too that you make saving money one of your top priorities this 2014.  If you happen to be Canadian, you may visit #MyKindaSavings and win $500 by telling us what you’re looking to save money on in 2014.  Go  and get that $500 now!