Windfall

Well, sad to say, i did not turn into an instant millionaire following my previous post - 12-million Hong Bao draw.

I did have a consolation 'prize', as my company announced the year end incentive award (or bonus). So with the windfall (well, being able to keep my job is already good enough for me!), any bonus award can really be considered a bonus.

As with any windfall received, adequate planning is required, otherwise it will all be squandered away. Many stories on the net about people spending their inheritance within a month!

So i took the opportunity to plan out what to do with the excess amount that i will receive, and came to the conclusion - money will never be enough. No matter how much i have, i will be able to find ways to fill it up.

I will sock away 40% to my household account, and build up my emergency cash. 

The emergency cash is in line with my resolution for 2016. See Goals 2016. Given the current economic climate recently, i guess it is better to be conservative on my part to increase my buffer.

I will also take the opportunity to replace my fixed assets, namely my laptop, which has been with me for the past 6 years. 

Other non-savings expenses include allocating the bonus to my annual travel plans, as well as other expenses like giving a bonus to my family as well.

My regrets in coming up with this budget? I did not manage to allocate to 2 categories:

(1) Increasing my personal war-chest. I guess that would come with my monthly salary instead.

(2) Accruing for the tax on this bonus. Again, it would have to come from my regular budget.

What about you? I hope you have had a windfall recently as well. :) and please do share with me how you intend to allocate them.

12 million Hong bao draw

Would you be buying a dream by 'investing' in a lottery ticket for the $12 million Hong bao draw?

*correction - should be $13.9 million instead!

Some financially savvy folks are saying that they might as well save the money and invest it for the long term, since that is a more sure-win bet.

Me? I won't hesitate to admit that i would be one of those buying a hope and a dream. To me, that amount won't cost me my financial freedom, at the most, it's only the cost of a lunch.

And are the odds really stacked against me? 

We can say it is 50/50, since there is only 2 outcome - either we strike, or we don't. [Just kidding!]

Singapore pools kindly disclaimed that  the odds of winning the jackpot is 1 in 13,983,816.

Odds of winning Toto 

Given the winning prize is $13.9 million, what's the payoff? 

The payoff for a $1 dollar bet would be is [1/13986,816]*13,900,000, which is approximately close to 1!

Why wouldn't i buy a dream with $1?

Of course, assumption is that there is a sole winner (although in such cases, there are usually multiple winners, and the prize money are split a couple ways)

This is a post made in jest - no way am i encouraging people to gamble!

Happy New Year!

Wishing everyone a prosperous new year!

May the year of the Monkey bring great health and wealth to you.

What is the monkey's abilities?

Monkeys are agile, quick and very nimble. My wishes for us is to be as agile and nimble as the monkey. When the opportunity comes (or we are already in a time of opportunity), be agile and nimble to take advantage of it to have many prosperous years ahead.

And of course, stay healthy! For health is indeed wealth.