It looks like I am heading for a personal economic recession, if my financial records are held to be accurate and reliable.
A quick read-up on Wikipedia revealed that recession, or otherwise called economic downturn, is defined as “a period when GDP falls (negative real economic growth) for at least two quarters.”ยน It is noted that “some economists prefer a definition of a 1.5% rise in unemployment within 12 months”, but that indicator may not be applicable for my personal financial records, since I am not looking into being unemployed anytime soon.
Am I heading towards a recession? My financial records are telling me so. I discovered that for the past three months, I have personally registered deficit budgets for each month. In December 2009, I registered a deficit of RM 493; in January 2010, deficit of RM 734; in this month alone, it stood at RM 1,813 and growing. Obviously there are justified reasons for the excess of expenditure over income, but if we hold on to the recession indicator, it’s already a quarter of negative (personal) economic growth.
It could not be helped that some of my budgeted items have been completely spent just a lil’ bit a month after the first half of the financial year. I have busted my clothing, home electrical, home kitchenware, and travelling budget; while my personal care (ah the cost of vanity!), food dining, social responsibility, and computer budgets are running wild.
I am not complaining of not enough money, because I know that my current salary is more than enough to support my living. What caught me in this possible recession is my lust for perfection – in terms of look, health, happiness, and living – while wanting to have it as fast as it possibly could have come. It looks like I need to put some brake on my past-paced life, for I need to enjoy what I have now.
Come July this year, I am looking to see if I manage to turn the tide on my financial standing and gain considerable savings out of it – I have a PS3, a new LCD TV, and a sound system listed in my wish list for this year. 