February 21, 2017 Reflection (Personal Finance)

In the previous blog post, I addressed the three banks I researched for our Savings Account assignment. These three banks were Bank of America, Chase, and Wells Fargo. As I wrote in the previous post, I think that I'm going to be choosing BofA. The reason for this is that it's convenient: when I turn 18, my minor's savings account will be converted to a regular one automatically. BofA is also the bank that my parents use, so they know more about BofA than about other banks; I know that it works for them.

In addition, I'll earn a 0.01% interest with 0.01% Annual Percentage Yield. So far, according to my February budget, I have about $50 saved up. Because I will need $25 as a minimum opening deposit, I'll be using half the amount I've saved to open the account. I can't wait to go to the US after interim! Even though I'll be missing class (and definitely missing out on some new financial insights), I will be able to set up my account and get started saving.

I think setting up an account in the US and starting to save there is a great idea. I won't be able to access that money while I still live in Singapore. (Well, I suppose I can, but it wouldn't be very convenient). Because of that, the money I deposit will have sat for a little bit. Besides, I don't think that when I move there for college, I will withdraw that quickly.

February 9, 2017 Reflection (Personal Finance)

Personal Finance is such an applicable subject. I really enjoyed the savings account exercise - it was really helpful. Of course, without doing the research, how will we know which bank and savings account works for us? I looked up US banks, because when I go to the US for college it will be most useful. The banks I researched were Bank of America (BofA), Wells Fargo, and Chase.

When I visit the US after Interim, I'm planning to head to BofA to set up my savings account. I chose BofA because it is the most convenient, and also because it has the most attractive benefits. I only need an initial amount of $25 to create my account, and I have saved more than that through budgeting. Speaking of, budgeting is really helping. I set a very lofty goal for myself by cutting my spending by half. I spent $300 in the month of January, and so am trying to spend only $150 in February.

(This is also because my dad only gave me $150. He wanted to see how long I'd last.)

It's not easy. I spent almost a $100 this week alone. It seems like I'm spending on average $80 a week, which multiplied by 4 weeks gives $320. There are some things that I can definitely cut back on (taxis, etc.) but also some things that I need to continue spending money on. Taxis are the biggest sink of money, I'm finding out. I've taken 2 cabs in the past week and the cab total has already become over $40.

In the event that I can't reach my goal of $150 a month, I'll set my goal back a little bit - maybe to $250. Keeping my fingers crossed, though! Hopefully I can become thriftier as time goes on.

February 7, 2017 Reflection (Personal Finance)

There's something so relaxing about reading for 25 minutes. I've started reading a new novel - The Name of the Rose by Umberto Eco. It's essentially a murder mystery taking place in a 14th century monastery. Eco writes in long sentences, and while the words he uses aren't difficult, there's something about the way he writes it that forces me to pay attention, or I'll miss something. The book explains a lot about Christianity during the 1300s, and while I normally don't like overly religious books, I'm enjoying this one. Perhaps it's because one of the main characters, though a monk, doesn't allow his religion to drive all his actions. 

By the way, Mr. Bisset, could you get a couch? It was kind of uncomfortable to sit in that chair when reading. I'm slouching and sometimes the way I sat made my back hurt. If not a couch, maybe a sturdier chair with armrests?

Anyway. I got my parents to give me the total amount of money at the beginning of the month! I recalculated, accounting for a couple of new factors. At the beginning of our month, my family still had a car. But because the car's 10 years were up, it was sent to the junkyard at the beginning of our budgeting period. When I calculated the total for the month, I multiplied by two the amount I'd spend in 2 weeks (which was how long we budgeted for). Because of that, it made it seem like I'd spent twice as much on cabs as I actually had. Now that we don't have a car until the end of the school year, I think I'll be able to spend a lot less taking the school bus and public transport.

February 3, 2017 Reflection (Personal Finance)

Today's class had a lot of discussion, and it's this kind of discussion that keeps me continually interested in personal finance. We started by examining two points from an article - these two points stressed the importance of reading and using time wisely. I completely agree with the first point. Reading allows us to learn new things, think critically, and open up our minds. I'll admit, the past few years haven't really been a good time for me to read, which is why I really enjoy our fifteen (today's 20) minutes of reading every class.

As for the second point, I agree, but to an extent. Of course, using time wisely allows us to effectively use it. Just like money, we should make sure our time is going to the things that matter. However, there's something about the argument of the internet being a distraction that I don't completely agree with. Obviously removing the productive aspect of the internet leaves nothing but distractions, and so I'm left to wonder what the point of the internet is when one isn't doing work.

One could argue that the purpose of the internet when one isn't working is entertainment. My question stands as such: after a productive day at work (using the internet), what's wrong with using the internet as a method of relaxation? From the article you showed us this morning, Mr. Bisset, it seemed like there were compelling statistics that showed nearly 70% of people using the internet recreationally. Here's where critical thinking comes into play, too. While I'm inclined to believe the study, it's hard to do so when I don't even know what the study is. Who was the audience of that study? How can we be sure that the 70% of people waste their time on the internet without using it productively as well? Who conducted the survey? What was the sample size?

Speaking of stats, when you asked students in class today about using Facebook as a method of networking, I'll argue that the sample space isn't representative of most students. Many of us are second semester seniors with more time to spare. Plus, Facebook was meant to be a general example.

I think it's impossible (and incorrect) to generalize use of the internet as inherently wasteful of time. To which you might say, Mr. Bisset, that not all internet use is wasteful, which brings me back to my earlier point: either something is a waste of time, or it is not. I've found that these two attributes are often mutually exclusive. Once you remove the productive parts of the internet, of course you're going to be left with the distracting, time-consuming part of it. 

It might just be because I'm a child of the internet age that I'm defending my use of it, but I also have another question: when relaxing, when doing something "meaningful" for self-betterment, why can't I use the computer? For example, I tend to browse the personal finance subreddit. I love to write, so I write. I keep in touch with family on social media; I talk to people at Caltech on Facebook because I think it's worth me knowing who I'll be living with when I go to college. I listen to fictional podcasts on the bus home. All of this is not work-related, but it's still productive. And I'm still using the internet recreationally.

And I'm sure that when you made your statement, it wasn't directed at every one of us; it was merely a generalization. Which, in itself, isn't right (and I'm sure you'll agree). I'm guilty of wasting time on this internet. I'll be the first to admit it. But I think labeling my generation's use of a valuable resource as a seduction is inaccurate, and frankly a little insulting. I think I speak for most of my peers when I say that none of us want to end up living in our parents' basements.

Anyway, this turned into a blog-post thrice as long as it needed to be, but I wanted to get my thoughts down. I'm eager to see your response!

February 1, 2017 Reflection (Personal Finance)

We got back our quizzes today, and I know how to correct my mistakes. A few hours after I turned in our quiz from last class, it suddenly hit me how to do the last problem. I'm disappointed that I didn't get it right when I was taking the quiz, but at least I know how to do it now. As for the other question I got wrong, I should have trusted my judgement. I was inclined to choose the right answer (although, I must confess, I didn't know why) but chose a different one instead. I like this exercise of correcting my mistakes, because it means that in the future, I'll know the right answer. But most importantly, I'll know why it's the right answer.

After correcting our quizzes, we discussed budgeting. I really liked the idea of asking my parents for a fixed amount of money per month and then not asking them for money again. It will force me to budget properly as well as know how much I spend. Speaking of budgeting, I don't think the way I've been doing it this past month will work out. I'm continuing up until January 31 to remain consistent, but starting from next month I'm going to change the way I budget. I hope that's okay, Mr. Bisset! Still trying to figure out which way is best for me.

January 25, 2016 Reflection (Personal Finance)

Today's class followed much of the same routine as our previous classes, but for one difference: a quiz. We began, as usual, with silent reading. I made progress with the novel I'm reading. It's taken quite the turn for tragic, and I'm stuck in between the difficult feelings of wishing to continue and wishing to stop. I think I'm going to continue, just to see what happens.

Next was going over the article. When I was reading it over the weekend, one phrase that I highlighted seemed to stand out over the rest. You owe it to yourself to make sure your money is going to the things that matter to you. In a society as materialistic as that one we're living in, it's important to make sure that my money is going to the right things, and not just to frivolous things. Spending on things that matter, things like healthcare, is what is important.

When it came to the quiz, I was confident on the first side but not so confident with two questions on the back. We'll see. I'm glad we get to make it up at least.

January 23, 2017 Reflection (Personal Finance)

Today's agenda was similar to the past few PF classes we've had. First, we looked at the article we read for class about compounding, discussing what we found interesting and important. I found myself participating more this class. I definitely feel like I've become more accustomed to and comfortable with the class, its people, and the format of our discussions. We talked about investing early, and about how once we'd invested some, we'd learn that it might become less complicated.

After working on the article, we started talking about budgeting. Mr. Bisset passed out a handout -- a letter to give to our parents. The letter had information regarding what we needed to do for the rest of the semester -- manage our own budget. Every day until May, we need to record what money we spent. One thing that I noticed was that I already don't do a lot of the examples Mr. Bisset gave us to save money. I bring my own lunch, rarely take taxis, and don't have a data plan for my cellphone. This is definitely important because I'll need to be extremely aware of what I'm spending. I'll have different categories from most of my classmates, but I suppose that's part of the challenge!