Wednesday, October 21, 2015

Migrating to Wordpress

Hi Everyone!

I will be moving to wordpress for a new start (also try out wordpress) so do linked me up if you want to. I have linked some of the blogs that I have followed. So if you want to linked each other up, do comment on this post or you can comment on my wordpress (any post will do)

Thank You

The link to my wordpress:

If you want to link me up:

Thank You

[Final Decision] Change of Plan

Change of plan! I decided to go for a condo instead of HDB. The reason is because my girlfriend and I has been thinking that we should go for condo if we want to shorten the time to get our second property for rental yield. 

In the past few months, we have been contemplating on whether to go for HDB (resale) or go for private property. We got the result, which is going for condo instead because of various reason that we should go for.

First reason: shorten the time to get our second property - because my girlfriend currently owns a condo, so she can sell her condo to purchase another condo for rental yield. (2 to 3 years later after we have higher income and higher savings to get a better/bigger condo)

Second reason: Prevent selling at a loss - because the property market isn't going very well and we guess that next few years, the property price will drop slightly which will result in loss or just a bit of profit which is not the optimal result that we would like to see.

Third reason: Restriction - because if we purchase a HDB we will need to wait for 5 years in order to purchase second property. Secondly, we will need to wait till 35 years old in order to opt for single program, whereby either me or my wife can take off the name under the HDB flat and purchase the second property. If we do not choose this path, we will need to pay 10% stamp duty, which is too much and not really that worth it.

Understanding that there might be risk in purchasing condo as well!

First Risk: Deplete my savings after I make my down payment (should be around $130k to $145K), we aiming for cheap condo either next year or in year 2017 (like high park resident).

Second Risk: Got fired from my job - which is why my wife and I will wait for few years later when we have sufficient savings in order to purchase the condo, as my wife  and I will bear the condo installment (in the case I got fired). If not, I will pay for the installment by myself.

Third Risk: Interest rate increase, this one really no choice, we need to include the possible of interest rate increase into the calculation.

So these are the reason and risk that we have consider in order to come to this conclusion. So what do you think?

Saturday, October 10, 2015

Financial Freedom

Hi Everyone!

Below is my video that I created on Financial Freedom. This video is for beginner and also my aim as well.

This video shows my spreadsheet that I am using to keep track of my own finance and spending.

Friday, October 9, 2015

SGX dividend is in! Raise my year end goal!

Hi Everyone!

SGX dividend is in today! For those who have bought SGX shares before 30 Sep 2015, you should have receive it today! Of course, the share price raise and jump to $7.5++, that's awesome! I am waiting for the October/November dividend :)

So now to the main part of this post, previously I have mention that I will try to hit $68K by the end of this year, if you can remember (if not is okay). I will be increasing my year end target from $68K to $70K.

Although is a $2K jump from the previous target, I think hitting 70% of my ultimate target this year when I turn 27 years old will be a good goal. Certainly I would hope that I can save more, but I will set 70% for now.

So my target by the end of 2015 is have $70,000 cash + stocks (Excluding CPF).

Sunday, October 4, 2015

Just created UOB One Account Today!

Hi Everyone!

Today I just create UOB One Account and will be fully utilize it next month because I still need to wait for my UOB one credit card and have to make GIRO arrangement for three phone bills. So I will have to wait till November before I make any move.

The below is the illustration on what I am going to achieve.

I will satisfy the credit card portion and the 3 Giro transaction criteria in order to get the maximum amount of interest that I will get. This will give me 2.432% without including the rebate. It is better than OCBC 360 as OCBC 360 only gives 2.2% (Max) by fulfilling 3 criteria. 

So, am I going to close my OCBC 360 account? 

My answer is NO. The reason I am not closing this account is because I am greedy, I want the best of both world. for OCBC 360, I will try to get more bills to pay as now I have 3 telephone bills, one internet bill and one credit card bill. So I will need just one more, probably OCBC credit card bill in order to fulfill the 3 transactions. Adding to that, I will still be crediting my salary to OCBC 360. 

As I mention in my goal, I aim to have $100K cash, but I won't be focusing so much on stocks because I will need the money in two years time. So most of my cash are in banks which gives me 2% interest per year on average. 

Of course, I have set some cash for stocks because I want to generate more passive income (as much as possible) in order to hit $2400 per year.

Getting around $1.4K from UOB and around $400 from OCBC (basic projection, might be more or might be less, depending how much I invest in stocks). Dividends I hope to get around $600 in order to hit my target.  

Saturday, October 3, 2015

Target for Monthly Expenditure 2015 and Cash Saving Target for 2015

Hi Everyone!

I understand that I was suppose to create one post per month but after reading some blogs, I felt that I should have some short term target in order to make sure that I am going to the correct saving path.

So I shall split them into expenditure and 2015 final goal!

I am to spend around $970 per month, I understand that it is very very little, but for me, this is my personal goal.

So this is how I am going to spend my money:

1) Food - $12 per day, assuming 30 days - $360
2) Transport - $150 per month
3) Bills - $120 per month (phone bills and internet bill)
4) Entertainment - $200
5) Others -  $40
6) Mum allowance - $100

Total of $970

Food - will be spending my breakfast, lunch and dinner for 30 days (very straight forward)

Transport - MRT, Bus and sometimes taxi fare

Bills - All the bills that I was responsible to pay (at the same time this is also my allowance for my parent)

Entertainment - weekend expenses can be reduce because I will try to spend less on this area

Others - emergency fund, in case if there is 31 days in the calendar month, it will be activated for food and travel expenses

Mum allowance - For now is $100 because I pay for the bill as well to support the family. Also I have set aside some of my saving (not included in the target I have shown) in a DBS account.

Will report the result on 1st of Nov 2015

For my target, I hope to achieve 68% of my target. which means $68,000 <- 4k more to go! Hope I can achieve this target by the end of this year.

Shall see whether I can get the target.

Friday, October 2, 2015

Starting Off a New Start

Hi Everyone!

It's been a long time since I have write any post here. The reason is because of my busy schedule and a change of a new working environment. Yes, I have change my job.

So now I have some spare time to write some post which will write down my progress for investing.

As stated on the right side of the blog, the total passive income that I have earned this year (until September) is more than $2000!

This is certainly amazing and still got three months left. The leftover passive income that I can look forward for is 3 months of interest by OCBC 360 and SGX dividends, which provides the estimate of around $250++.

This year is a starting year so there is still a long way to go. Next year is a brand new year, which I aim to get around $2400 passive income which gives me around $200 per month extra!

Now, there is a twist in this scenario for next month whereby I have enough funds to move my money from OCBC to UOB account one. So the reason why I would do that? Let me do a calculation for you

Lets say if I have $60000 in my ocbc 360 account and I shift $51000 to UOB account which left 9000 in ocbc account.

Action need to be done -> Salary and bills to OCBC, credit card and bills to UOB.

$51000 -> $1216 per year
$9000 -> $153 per year

Total $1369 per year

However, if we put all in ocbc account

Action need to be done salary, credit card and bills to OCBC

$60000-> $1320

So you can see the difference, $49 more per year. But certainly, if you have more income coming it will be better to have two account (total up to $11000 earning safe interest)

With the month income just from this itself is around $114 per month. Which is quite good for me, extra $114 per month which is good, not including my dividends.

So next year, I am to get $200 per month for my passive income and also my target cash saving for next year before December would be $80000 to $85000.

So I have around $20000 more to go before I hit that target and we do a simple calculation, it would mean $1667 per month in order to hit this target.

That's my update. Do check out my updates next week as I promise, I will do a write up every month to keep my reader update about my status.