The 2012 Cheerfulegg Review

Credit: http://www.flickr.com/photos/joka2000/80198350/sizes/m/in/photostream/All the blogs in the world are reviewing 2012 at the moment. In summary, the world didn’t end, Obama got re-elected, the Euro crisis didn’t blow up, and most importantly, Singapore saw a record number of sex scandals. And they said Singaporeans don’t have enough sex.

So I thought it’d be a good time to do a little personal review of my own. I got this idea off Chris Guillebeau’s framework on annual reviews, which he cites as probably the best decision he’s made in terms of working towards multiple goals simultaneously (He’s probably one of the most successful bloggers around, so there’s definitely something going on there).

So this post is the first of a 2-part series on annual reviews. In this post, I’ll review 2012 and what it meant for cheerfulegg.com and for parts of my own life. I’m basing it off Chris’ methodology, and if you haven’t done a 2012 review of your own yet, I highly recommend that you give it a try.

It involves answering 2 questions:

  1. What went well this year?
  2. What didn’t go so well this year?

Yeah, I know it sounds like one of those corny-ass “After-Action Reviews” that your company is so fond of doing – I thought it was pretty lame when I first read it too. But after spending an entire day reflecting on it, I got pretty surprised by the results.

So – enough preamble.  Let’s get started.

What went well this year?

(Please don’t take this section as a bragfest. I try to be as objective and transparent as possible in any reflection and including both the good and bad stuff)

*I grew and developed cheerfulegg.com to a level that I’m pretty happy with for its one-year existence. It’s probably one of my proudest accomplishments of 2012. An idea of what this blog has managed to achieve in the past year:

  1. 71 new posts, to grand total of 77 posts since it started in Dec 2011.
  2. A post that got featured on WordPress’s Freshly Pressed section, generating a record 16,000+ views for that month, and 220+ WordPress followers.
  3. A brand new “cheerfulegg.com” domain name
  4. A cheerfulegg VIP list, which grew to 85 subscribers within a couple of months
  5. Being accepted on blog aggregators theFinance.sg and PaperBlog.com

* I developed, followed, and refined a personal finance system. Writing a book about it really helped because it forced me to solidify the ideas. It isn’t perfect yet, but it’s at a point where I’m about 80-90% satisfied. Will be sharing more of it in some publications that I’m working on.

  1. I apologize if some of you were confused by my previous posts about multiple saving and spending accounts, sometimes with different names and purposes, etc.  It was all part of a process of trying it out and making improvements to make the final version simpler and more effective for everyone. Sometimes I just had to write about it here in order to crystalize the idea.

* I successfully achieved my saving and investing goals, entirely thanks to a system of automation I set up to take care of everything.

* I introduced fixed income and Singapore asset classes into my portfolio, adding a further level of diversification. Contemplating if I should add gold in the coming year (Its historical real returns aren’t the best, but it might be a good diversifier. Check out this blog for more details. I’m still thinking about it though).

*The markets have also been pretty kind to my portfolio this year, which was really encouraging for my first full calendar year in sticking with a passive, indexed-based investment style, which has worked out pretty well thus far.

 What didn’t go so well this year?

* I severely underestimated the effort required to write a book. After spending the best part of August – November writing for three nights a week, I had a 82-page first draft, which was about 60% of my planned book. And I hated it.

It’s not terrible, but it certainly fell short of the vision I had for it as something fresh, engaging and different from the other “how to get your personal finances in order” books.  I’m still going to finish writing it, but I’m now humbled by the effort and the dedication a project like this requires. In the meantime, I’m headed back to the drawing board and I’m only going to ship it to you once I’m satisfied with it.

* I attempted to start some freelancing projects, which pretty much fell through because I couldn’t find an idea that suited me, or that I had enough time for.

* I got fatter this year. Fareals. A combination a dropping metabolic rate, a new job rotation that required me to sit at my desk for longer hours, and my focus on cheerfulegg.com and the book resulted in some serious weight gain. An exercise plan for 2013 is definitely in order. I also definitely didn’t sleep as much as I would have liked.

* I made a conscious decision to give up dance, at least for now, even though it was my entire life just 2 years back. I’ve been pursuing it as a passion for 12 years now, but I really  want to pursue new adventures with this blog and the book. With a full-time day job, it’s pretty much impossible to commit to writing AND dance at the same time after office hours. Still though, I get that twinge of longing whenever I watch YouTube videos.

 Possible goals for next year

I’ll talk more about these after I’ve finalized my plans for 2013, but 2 things that are definitely in the works are:

* Going back to the drawing board to redefine the book, interviewing people to really understand them and coming up with fresh, new ideas. Check out my room wall at the moment:

Ideation

* I now know that this is going be an ongoing process, and it might take several months or more than a year before I see some results. However, this isn’t going to stop me from shipping some stuff out for everyone who’s been waiting patiently for it.

* In the interim, I’m working on pushing out 2 mini-products in 2013 – which are a lot less complex, but still pretty damn awesome. Stay tuned for those 🙂

Happy 2013 everyone!

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3 Lessons From A Pair of Leaky Goggles

So last week, I decided to go swimming after like a 5-year hiatus. Yeah, I blame my ever-increasing waistline.

I’m the kind of guy who needs to wear goggles – I don’t get how people can open their eyes underwater and not get blinded by all the crap that’s in there. Anyways, I couldn’t find my old pair of goggles, so I decided to pick up a pair from this ratty little store (which was inexplicably blasting Flo-Rida songs at 10 in the morning) before driving to the pool.

The goggles were cheap, somewhere to the tune of 2 bucks. I drove away from the store feeling like I got a helluva bargain.

The first thing I noticed was that the straps were ridiculously hard to adjust. Describing them as “tight” was an understatement – it would’ve taken a brain surgeon with tweezers and a microscope to undo them. Also, they were really low-quality. I would have been able to make a better goggle strap with a pair of rubber bands.

I decided to just screw it and force them onto my head, making my skull feel like it was slowly being crushed by a boa constrictor. Also, the goggles were leakier than the Titanic. By the time I’d done half a lap, there was a complete ecosystem of coral life in front of my eyes. On the bright side, I was learning how to open my eyes in water.

After about 2 laps of swimming with a constricted head and water-filled eyes, I felt dizzy so I stopped and pulled the goggles off. And then one side of the goggles just COMPLETELY FELL OFF. I couldn’t believe it – my goggles were disintegrating before my very eyes.

I had enough. I got out of the pool, threw my goggles in the bin, and went home in disgust. I’d done a grand total of 2 laps.

Three lessons I’ve learnt from this episode:

  1. Never trust any store that plays Flo-Rida songs at 10 in the morning.
  2. Cheap doesn’t necessarily mean good. Always do your research before you buy, and opt for long-lasting and high-quality even if it costs a little more. (However, some people may misread this and automatically assume that “expensive = good”. This isn’t necessarily true either especially when it comes to unit trusts, mutual funds, financial advisers and ETFs).

But really, the most important lesson would be:

3. Always strive for high-quality.

It’s often tempting for me to rush through a to-do list by doing the bare minimum for each task. But I’ve always found that it’s usually a bad idea – the work gets compromised, my boss tells me to do it again, and it becomes the equivalent of a pair of crappy rubber-band-boa-constrictor-leaky goggles.

Instead, I’ve come to approach work in a totally different manner these days by just focusing on just three important tasks a day: two tasks in the morning, a slot to answer emails after lunch, and then one last task till the end of the day.

That really helps me to zero in my focus on what’s truly important, allowing me to really kick ass to produce the highest quality work I can offer. I do this even if it takes a little longer to accomplish ’em. The downside is that I don’t get to complete a lot of my other, less important, tasks, but I’ve found that they usually take care of themselves after awhile 😉

It doesn’t just apply to work – I’m trying to approach the blog and the book in the same way too. That’s why I take a whole week to write a blog post. That’s why I’m spending hours and hours researching on nuances just to write one paragraph in the book. That’s why I have hour-long conversations with friends to test ideas out. My goal is to make it so absolutely freakin’ awesome that it would easily trump the pants off any other personal finance book out there.

So I encourage you to do the same. If you’re going to do something – a report for your boss, a product for your customers, or a gift for a friend, make it high-quality. Don’t worry if it takes a little longer – that extra hour you take to craft it will be totally worth it. Start forming the habit to NEVER settle for mediocrity.

As Faith Jegede proclaims in this awesome TED talk, “The pursuit of normality is the ultimate sacrifice of potential. The chance for greatness, for progress, and for change, dies the moment we try to be like someone else.”

Never settle for “normal”. Get out there, and create something amazing.

Help Me Pick My Title (And More)

So everyone I meet these days has been asking me how my book writing’s been going. So I’d just like to let everyone know right now that it’s been friggin’ awesome.

I blame peer pressure. It started out as a spur-of-the-moment declaration at an Awesome Anonymous meeting to write a small, simple ebook. It has since grown into plans for a full-fledged, analogy packed, complete guide that aims to change people’s lives (or at the very least, get their finances sorted out so they can focus on changing their own lives and the lives of others).

I’m so psyched that I’ve spent at least 3 nights a week working on the book for the past 3 months or so. I’ll blog more on my progress in the weeks/months to come, but first, I’ll need your help to help me decide on 3 things: The title, the subtitle, and the pitch.

I came up with these after going through the results from the recent survey, but I would love to hear your thoughts. Do they stand out for you and make you want to read more? Do they sound as scammy as “How to Get Rich By Becoming Wealthy Making Big Money in Real Estate”? If you saw the title in a bookstore, would you pick it up and/or buy it?

I’ve been blogging free financial advice for close to a year now, and I hope that I’ve helped you out at least a tiny bit in your personal finances. So I’d be super duper grateful if you could take 5 minutes to help me out too. 🙂

This is really important to me, so be brutally honest. Let me know if this is awesome, or if you have a totally different idea on how I should approach this. Leave a comment, or you can email me at cheerfulegg@gmail.com.

Ok, Let’s do this:

The Title

I’d like the title to be something eye-catching and different from the other sleazy investment books out there. I couldn’t really think of a better title other than the subcaption of my blog: Hatch a Rich Life. The word “hatch” is meant to speak to people who’re just starting out in their personal finances, while “rich life” is the eventual goal.

The Subtitle

I’ve got three options for the stuff that’s supposed to go with the main title. I.e:

Hatch a Rich Life: _____;________

Deciding on the subtitle might help if you take a look at the pitch first to get an idea of what the book is about (scroll down). And yes, I know that I use the word “sexy” and “awesome” a lot. I just wanted to convey that the book is targeted at an audience who’s a little cooler than crabby 50-year old men who spend all their time quibbling about “call options” and “stock warrants”. Not that I have anything against 50-year old men..

Subtitle 1. Build A Simple, Sexy, Self-Run Personal Finance System in 5 Weeks

Subtitle 2. A Personal Finance System For Young Sexy Singaporeans

Subtitle 3. A Simple, Sexy, Self-Run Personal Finance System for Young Singaporeans

Pitch

Think of this as what you’d read on the inside flap of the book. I’ll be using this to tell people what the book is about, and why it’ll be awesome for them.

Imagine waking up on a sunny Saturday morning to find that your robot slaves have been working hard for you while you slept. They’ve built up your savings account, paid off your credit card bills, saved you money in taxes, and invested your money into your early retirement portfolio, all without you lifting a finger. With your system taking care of all that boring “financey” stuff, you can now focus on taking over the world, cooking breakfast for mum and dad or… going back to sleep. Life is good.

Forget arbitrary financial advice and random stock tips. Hatch a Rich Life is a 5-week program to master your money and turn your financial life into a system – a simple, low-maintenance system that will put you way ahead of your friends on the path to a rich life.

I’ll cover the surprising truth on why most young Singaporeans are getting poorer every day. I’ll reveal exactly what you should save for and the most effective way to do it. You’ll discover the freedom of spending on the things you love without feeling guilty. You’ll learn how to dominate Wall Street professionals when it comes to investing. And finally, you’ll learn how to integrate everything into a set of autopilot systems that won’t take more than 15 minutes a year to maintain – leaving you time to focus on living an awesome, rich, life.

That’s It For Now!

Okay, that’s pretty much it for now. Again, please be brutally honest and let me know if this is something that speaks to you. Is this what you’d like to read about? Leave me a comment / email me. I’d love to hear from you 🙂

Using Systems to Dominate Learning (And Anything Else)

The MIT Challenge

Recently read a guest post by blogger Scott Young, who stunned the world by doing the impossible. Scott completed MIT’s notoriously difficult Computer Science curriculum, which usually takes bright MIT students four years to finish, in one year. Watch the TED talk on his MIT Challenge here:

To do this, Scott adopted a carefully constructed learning system that let him compress the concepts of a 4-year education into a short span of time. This wasn’t simply a matter of cramming for exams. Scott not only passed all the exams but also completed all the programming projects, which require a deep understanding of the material. How did he do it?

First, he watched all the lectures online to get a birds-eye view of the material. By watching the video lectures at 1.5x-2x the normal speed, he managed to go through a semester’s worth of lectures in a couple of days.

Next, he spent a lot more time developing insight and drawing connections. He’d first take a piece of paper and write the concept that he was trying to understand at the top. He then wrote out his own explanation, as if he was teaching it to someone else. When he came to a gap in his knowledge, he’d go back to the textbook or find it online. In this way, he systematically filled in all the knowledge gaps until he had a deep, complete, understanding of the material.

Third, he went through practice problems with the solution key in hand. He’d check his work question-by-question, getting immediate feedback for every question he did. Compared to other students who might have to wait weeks before they got back their graded assignments, Scott’s system gave him a tight feedback loop which dramatically improved his effectiveness.

As Scott wrote in a guest post describing his journey: “…the method you use to learn matters a lot. Deeper levels of processing and spaced repetition can, in some cases, double your efficiency (emphasis mine). Indeed, the research in deliberate practice shows us that without the right method, learning can plateau forever.”

In short, Scott wasn’t studying harder; he was using a system to study smarter.

The Power Of Systems

Scott’s MIT Challenge forms the premise of the book I’m currently working on: That adopting the right systems can help you to achieve much, much more than the average individual.

You can use systems to create a desirable habit, deliver happiness to people, get fitter, be more productive, negotiate better.. pretty much anything you want to achieve in life.

Most people don’t know how to improve their own lives because they rely solely on “trying harder”. How many of us make New Years resolutions to go to the gym more often, only to fail miserably before February comes around? How many of us resolve to be more productive at work, but end up online shopping and Facebook stalking before lunchtime? And how many of us resolve to saving and investing more this year, only to have all our extra cash wiped out by a year-end vacation?

Instead of trying harder, applying systems is infinitely more effective. Here’s why:

1. Systems remove the need for “willpower”

The trouble with willpower is that it’s easy to lose steam. We burn out. John Tierney, coauthor of Willpower: Rediscovering the Greatest Human Strength, describes willpower as a finite resource that runs out just as easily as a fuel in your car tank. Systems, on the other hand, take control away from you. They force you onto a certain path so that you don’t have to use willpower. It sounds counterintuitive, but we’re more likely to be successful at something when we are willing to hand over control to a system.

2. Systems are much simpler to follow 

If you’re trying to lose weight, think about the barrage of information out there on weight management. Hundreds of articles and blogs give handy “tips” and nuggets of advice, but they’re often conflicting and confusing. A system, on the other hand, is based on rules. Step 1, 2, 3. Go to a personal trainer and he’ll tell you exactly what you need to eat, how to exercise, and all that jazz. You don’t have to think – all you need to do is stick to the system, and you’ll succeed.

3. Systems are smarter

Think about Scott Young’s system for accelerated learning. It’s a simple formula, but it’ll save you a lot of time and effort when it comes to studying. Think about how much easier it is to set up a GIRO standing instruction that automatically helps you to save every month, instead of putting in time and effort to “save harder”. Finding the right system can help you to do things a lot more efficiently and effectively than most people.

Viewing the world from a systems perspective

Systems are effective, more so than many of us realize. That’s the premise of this blog, as well as the upcoming book. So far, I’ve showed you how to use systems to improve your savings and investments, find the right types of insurance, and spend more efficiently on the things you love. The book will delve a little more deeply into the psychology of saving, spending and investing, and will describe more detail on the systems that will help you tackle your personal finances.

You start to see things differently once you look at life from a systems perspective. Large challenges suddenly don’t seem so daunting anymore, and possibilities start to open up.  Are there any problems that you’re currently stumped by, but could possibly be solved by applying a system? I’d love to hear from you, even if you haven’t found a solution yet. Leave a comment, or send me an email at cheerfulegg@gmail.com.

Cheers 🙂