Wednesday, March 30, 2011

My Passive Income (Month of Mar 11)


CPF(OA): $215 (from interest and dividends)
Cash: $1785 (from dividends and other passive incomes)
Total: $2000
Target: $3200
Achievement: 62.5%

There are no changes in my passive income 1 and 2.

For passive income 3, there is an increase as I have bought 2 more lots of Singtel shares this month.

For passive income 4, there is an increase of $22. However since it is still in the building stage, I will be expecting it to go up and down. In my post "Forget about achieving Financial Freedom if you do not have perseverance or refuse to learn.", I have mentioned that it will take time and effort to build up passive income.

Saturday, March 26, 2011

How much debt do I have? (Mar 11)


In Jan 11, I had recalculated my total debt which is totally from the mortgage loan of my flat to be $29K. The calculation is based on using the outstanding housing loan amount minus away my total family CPF OA amount.

Today I have recalculated my total debt again, and the total debt has greatly reduced by $4k to $25k. The big reduction is contributed mainly from the bonus and the dividends from my shares. In my last post, I mentioned that I wanted to reduce my total debt to $0 within the next five years and I think it is achievable in less than five years.

Sunday, March 20, 2011

What do I hope to achieve in the next 20 years?

Currently, I have managed to generate a passive income that covers 61% of my expenses and my net debt has reduced to $28,000. The below are what I wanted to achieve in the next 20 years:

Next 5 years
I hope to generate a passive income that covers 80% of my expenses and my net debt to be reduced to $0.

Next 10 years
I hope to generate a passive income that covers 100% of my expenses.

Next 15 years
I hope to generate a passive income that covers 120% of my expenses.

Next 20 years
I hope to generate a passive income that covers 150% of my expenses. I hope to retire by then if possible.

Sunday, March 13, 2011

I am spending more than $100 per day.



I had posted in this blog a few month ago that my expenses have amounted to $3200 per month. That means that I am spending more than $100 per day. I have listed all types of my expenses and sorted them according to greater amount first.

As you can see that on top of the list, I am spending about $27.42 per day just for my one kid. This is more than one quarter of my total expenses. Food and Insurance are ranked 2nd and 3rd, and their total amount is about one third of my total expenses. Housing loan is ranked 4th, which is about 12% of my total expenses. Other items are less than 10% of my total expenses.

Sunday, March 6, 2011

Ten reasons why I don’t want to invest in private property.

I have been thinking whether I should invest in private property in the future. After giving some thoughts on it, I realized that it is not a wise choice for me to make. I have listed ten reasons why I am not interested in investing in private property.

1) Buying and selling Stamp fee (these add up to a huge amount)

2) Illiquidity (cannot be sold easily)

3) Cannot be diversified (can only buy one, cannot do averaging)

4) Need to leverage (definitely need to take loan)

5) Maintenance fee (this will take away money each month)

6) Agent Commission (can be a huge amount)

7) Finding Tenant (difficult to find a good tenant that will take good care of your property)

8) Unpredictable Loan interest rate (interest rate may increase when market picks up)

9) Cannot grow in size (definitely the size of the property cannot increase)

10) Unpredictable events (you can never know what will be built beside the property)

Have you started your journey towards financial freedom?

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