My Passive Income (Month of Mar 12)

Total Passive Income(Cash): $1792
Target: $3000
Achievement: 59.7%
For passive income 1 and 2, there is no changes.
For passive income 3, there is an increase as I have bought some shares this month.
For passive income 4, there is no changes.

Decision on what to do with excess CPF OA savings.

In my recent post, I had listed four options on what to do with the excess CPF OA savings after clearing off the housing loan. All the four options have their own advantages and disadvantages. After thinking about it for about two weeks, I decided to choose option 1 first and keep option 4 open for the future.

The reason why I choose option 1 first is because part of the OA savings can be used to buy selected shares whereas SA savings cannot. By increasing the savings in the OA account, I am ready to use this saving for investment either in shares or property for the next economy down turn.

Spending a lot of money for the past one year

My family had decided not to go for a holiday last year as there were many natural disasters (flood, earthquake etc) that had occurred in many places.

With this extra "budgeted holiday money" ($10k), I have bought the following things or services:
1) Netbook $650 (Aug 2011)
2) XBox 360 with kinect $500 (Oct 2011)
3) Epi-Lasik Treatment $4000 (Dec 2011)
4) 50" Full HD Plasma TV $1150 (Feb 2012)
5) MacBook Pro 13" $2000 (Mar 2012)

Total: $8300

My next purchase: 2 x iPhone 4S plus battery cases (April 12).

Please note that I am not a super saver to the extent that I will save every dollars and cents. Money that is budgeted to be spent, I will spend it without any hesitation.

What to do with the excess CPF OA savings after clearing off the housing loan?

As I will be having enough OA savings to pay off my housing loan this year, it is now a good time to think of what to do with the monthly excess OA savings. I have listed down four options and will spend some time to think which the best option is to take to aid my retirement planning. Feel free to comment on my following options.

Option 1: Do nothing with the monthly excess OA savings.
Leave the excess OA savings untouched to earn interest (currently at 2.5%).

Option 2: Transfer half the monthly excess OA savings from to SA.
Transfer half of the monthly excess OA savings to SA to earn interest (currently at 4%). Leave half of the monthly excess OA savings untouched to earn interest (currently at 2.5%).

Option 3: Transfer all the monthly excess OA savings to SA.
Transfer all the monthly excess OA savings to SA to earn interest (currently at 4%).

Option 4: Invest on a private property.
Buy a private property and use the monthly excess OA savings to pay for the monthly mortgage loan.

How much debt do I have? (Mar 12)

In Dec 11, I had recalculated my total debt which is totally from the mortgage loan of my flat to be $14K. 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 it has reduced by another $3k. In my post on "What I hope to achieve in 20 years?", I mentioned that I wanted to reduce my total debt to $0 within the next five years, Based on my conservative estimation, I think it is achievable before the end of this year.