2022 Update

Dividends Update

The year has flashed past so quickly and soon we will enter the last quarter of the year.

On financial goals matter, I have restarted my initial dividend play to increase the passive income. It is certainly enticing to see the amount grow. An encouraging note is that the projected total amount for 2022 will cross the 6k mark, which translates into an average of 500 per month. A mini milestone to cross!

This amount is far off the goal set a couple of years back in the 'Goals by end of 2022' (10k). There is still a good 4 months. Most likely, I will miss this goal, but on the bright side I am making stock purchases and expanding the portfolio with the goal in mind to cross the 12k mark by end of next year. 

Fingers crossed, I will hit it within the next 6 months depending on the market conditions!

Current thoughts

Once the 1k per month goal is achieved (depending on how soon it is,) I have every intention to start saving up for a house purchase when I reach my mid 30s.

It will be a bonus to be able to increase the dividends payout amount (depending on how much buffer I have in saving that capital)

Assumptions

Cost of house: 500k

Down payment: 15% which is equal to 75k

Targeted amount to save for purchase: 50k cash (with remaining from CPF to settle the peripheral fees)

Any extra cash beyond this will be channeled into increasing the dividends!

Final closing

Unless there is a special bull run towards the end of the year such that the investment portfolio value goes up, there is every chance I will not hit the 300k mark. A huge part of this reason is that I have been making the effort to prioritize experiences in life ever since the covid restrictions started to loosen up.

At this stage, I am certainly enjoying this liberal lifestyle and certainly have had more adventures! It will likely not stop, especially with visiting the surrounding countries around.

So for budgeting next year, I will make adjustments for the overall final amount targeted for end of the year.

Tempting

Private or HDB?

Recently the idea of purchasing a private property came across my mind. Took the chance to read up and understand the various considerations and websites available to view house prices. 

It is really tempting to pay for the down payment and begin to think I could enjoy the facilities (pool, gym, balcony). Over time, I weighed the pros and cons of the decision and it is slightly tilted to the side of going for a HDB with the aim of keeping costs and loan premiums low. 

It is daunting (at least to me) to have to take up a loan and be stuck with it for the next 20-30 years, with so much uncertainty on what lies ahead even in 3-5 years time. I guess the mind has not been conditioned to think of accepting debt as I have been building up a sizable saving (not alot, but important thing is I am making progress to build a safety buffer for any mishaps).

Therefore, a HDB is less risky and in terms of valuation, it is way more attractive per square feet. 

Will there be a regret as I continue to wait until the right age to finally purchase the home at a more expensive price in the future?

On Finances Goal by end of 2022

I have been tracking and setting up a goal offline on the total net worth (cash + investment portfolio). There is a high chance of hitting the 300K mark and I have set it as a goal.

It is another milestone and something I could not even fathom since the beginnings this journey of personal finance and reading up all the finance blogs with bloggers having 6-7 figure portfolios. 

Fingers crossed on being able to increase the take home pay as my experience grows to build a bigger retirement nest egg :)

Hope everyone out there will have a smooth journey in the remaining months as well!