Financial Goals Moving Forward

Hi, to whoever out there came across this profile. Hope it relates to you in small little ways on this journey to Financial Independence. There will be a few big updates to my goals, as well as a little more about my profile that led to the decisions.

1. Update on my Milestone

Seeing the following chart really brings a smile to my face.

Bought financial companies, given how SG has a reputation as the Switzerland of the East, with the banks constantly reaching out to the growing SEA region as well as India/China. Another huge factor is the dividend yield. Most stable reits have shot up like crazy! Namely

1. DBS - 5%
2. Hong Leong Finance - 5.8%
3. OCBC - 4.4% (Low considered to the rest, but will accumulate due to the weakness, with there being more upside in the LONG RUN, yes that is the game I am playing in my investing game, and not to spot short term potential winners by entering and exiting trades frequently. I want it to be so boring, and when I suddenly realize it 5 years from now, I hope to get an epiphany (WOW, you mean I endured through all that and have gotten a little result to be proud of?)

That is the power of Compounding there, my friends.

With this, my projected yield next year will be close to 4k, which I calculated would cover about 80% my fixed expenses which I term as,

1. Household Telco & Internet Bills - About $150 each month
2. $75 savings plan - Most NSFs will relate to this, your first time in life earning a little bit of money and someone coming to tell you it can grow to a large amount (though now I understand it is really bullshit to me)
3. Transport - $100 each month
4. Credit Card Annual Fees - $200 (accumulate miles to see the world!)
5. $45/month sponsorship for a life in Africa - Hope his life really changes through the opportunity for education, which sometimes, we really take for granted in SG
6. Term Plan - $900 (It is really important in this journey that we take care of our downside before planning for our upside)
7. Hospitalisation rider - $250 (just Government would do, I dont need to enjoy the luxuries)

Will continue to deploy more from my warchest when the opportunity arises and hopefully the market gets weaker (sneaky thought, LOL)

2. Qualify to become DBS Treasures Client ($350k) by 35

6 years from now.

Not that I really want to be a treasures client, but this next goal is really lofty in comparison to how I thought as I grew up. No way will I think that it is possible in the past. (More on why I think so in the next point).

My first $100k, which was accumulated last year, was really miraculous in its own ways, and I am betting on more lucky breakthroughs in the next 6 years.

In the short term, it will be
- $200k by 32 years old (3 years time)

At the moment, with my salary (not considered high compared to most Singaporeans at my age), I can achieve it if I live a super frugal life, but I decided someday that life should not be that way. We must spend on decisions/experiences that one day when we grow old, we will not think back and say (I wished I gave it a try when I was younger and see how things turned out, and one big thing is on Travel. Not extravagant ones at this stage though). My project stint in China last year really opened up my eyes to the outside world, and now being in Philippines also taught me something different. The trade off for these experiences is that I will potentially earn lesser then my friends who are in the Public Sector, or pushing for jobs that are based in SG (which typically comes with acceptable bonus, comfortable position or jumping around constantly to keep getting higher pay). My company is really stingy with bonus/increments, but I still choose to stay because I get to be posted to overseas projects.

I still want to experience the outside world, and in someway, it is chaotic as compared to how SG operates, which makes me appreciate this small little island I proudly call home. I have not been in SG for the 2 consecutive years during National Day, and for the first time this year, I really felt so patriotic watching the parade via youtube, and being so emotional inside for the many good things that happened in my life on this safe island.

To achieve my goal, here is what I set out, assuming there is 0 increment and I do not get laid off in the next 6 years

1. Save $30k each year (for next 3 years, it will hit $200k)
- Helped by incoming Dividends, and at this stage, I hope that by 32, I can hit $8k in dividends
- Reason is I decided that I will continue to deploy my warchest over the years when the opportunity arises, rather then horde a huge amount of warchest, so that the power of incoming dividends increases every year.
- If the fixed expenses do not increase, the extra $3k out of the $8k can help to cover half of my monthly money spent on food alone, which will be a huge help on the road to FI
2. From 32 to 35, it will be $50k each year
- Hopefully, by now, I will have $10k dividend each year, and progressively move up to $12k, which is $1k each month on average, something that I used to dream about 1.5 years back when my dividends for that year was only 2-3 hundred. But now that I can see about $4k next year, $12k seems so much easier.
- $30k (salary) + $10k (dividends) leaves me with the extra $10k, which I will leave room for the random things that might happen to me over the years (strike TOTO? Secure a better job? I dont know)

Just for the record, this $350k is personal, in other words, if I get attached/married, etc, I still intend to have this milestone (again this requires another miracle) despite all the potential expenses. Because there are many uncertain things, and there is a likely chance the following things might happen over the next 6 years

- Pay more school fees for knowledge (intend to get Specialist diploma from NTU, with some credits available to former students)
- Get attached?
- Purchase a HDB?
- More travelling experiences?
- Something terrible happening at home?

3. More about myself and why $350k is something I never dreamed about growing up

I grew up in an orphanage, and since young, there was absolutely nothing I could call my own. The things were all shared. Even the clothes, since sometimes you will find out that another kid was wearing your clothes (dang!).

Total value of my possessions when I left the place at age 13 = Literally $0

In secondary school, junior college, I would receive monthly help for my meals, tuition, and which were enough to get by. I remember eating maggi mee most of the time, which now I really feel is unhealthy. I worked a little while waiting for my JC to begin, and used that money to custom build a PC, which is really one of my joys. And also before NS, but spending on frivolous things, or spreading it out so that I could live a little more comfortably for the next couple of months.

Total value of possessions just before NS = PC + maybe $500 in savings

In NS, with the pay, there was a little more social activities, as well as giving back through an organisation I joined. Still had no concept of saving money and seeing it grow over time, so again money would be spent at on random things, like random trips and I don't really recall there being at least $2k in savings. Life in university began and I took up more tuition jobs, however, majority of it went into the organisation too for whatever relevant reasons that were justified then. Getting a $75/month savings plan, as well as investing in a good phone at that time iPhone, it was at a period whereby iPhones generally would not lag in the long run, but Android phones would show vulnerability after a few months of using)

Total value of possession after NS/Uni = Better PC, good phone, less then $2k in savings too

Next came the working world, whereby money started coming in, though I made a huge mistake in joining the financial services industry ( i still loathe myself at times thinking back), which delayed my official entry into the working world where my skills will be properly recognized.

So in summary, it is a life with almost no possessions, while my friends will experience overseas family trips, good food during festive occasions like CNY, majority having cars at home, getting a HP earlier then me, gameboy/playsation, etc. My education of the things of this world really started late, and that was why travelling was never really part of my life (till I experienced the magic of it last year), nor was obtaining the skill of driving a car. It was a natural progression for my friends to get their driving license at at the age of 18, since they were exposed to being in one from young, which I obviously did not. Till this day, I still have not obtained a car license, only realizing how late I am to knowing that this is a very good skill, given how I still aim to have more overseas exposure over the next 2-3 years at least. Their exposure of proper family settings, etc have also given them a better headstart in this life, while I tend to find that I am more introvert, and hate social occasions, which are actually good if we want upward mobility in the working world. My friends posses the skills of small talk and I certainly am not good in it. Another thing is since I grew up with nothing, every extra thing now feels good, and it makes me so satisfied that I do not really have the hunger to go for more (being easily satisfied, which is a bad thing as my friends are always having the mindset of getting more things (like starting a business, jumping to another job)). So moving to another job is rather hard for me, unless I really become very unsatisfied with the opportunities here. Being protective of what I have now, is a boon as well as a bane

So if you manage to read through all these, you can get a better sense of why $350k is something I never imagined I would own one day, given how I am used to owning almost nothing valuable since young

At the end of the way, why set all these goals? It is simply so that my next generation will have a better life than I had

Bye for now and good luck to your own goals too!