SG Smart Money

Sunday personal Finance Post: 20 May 2018

2018-05-19T20:46:00.003-07:00

The Sunday Straits Times Section on Personal Finance is one of my favourite sections.

It's one of the must-rads as it throws light on how people manage their finances, their wins and losses which makes for a pretty educational read. It makes me a voyeur, gives me some purview and insights to how people mange their finances and gives inspiration for growing your money.

With May the dividend paying month for most stocks after they have reported their results for December and Q1 of 2018, I hope there will be more news reports of how people manage their returns from their stocks or dividends.

In particular, I love stories from blogs like

Singapore Stock Investing by AK
LadyYouCanbeFree.com

They are very inspirational people who have grown their small acorns to a huge Oak tree that is giving them dividends that can support their subsistence.

Of late, I find myself coming back to the question of how to save $100,000 in 7 years. With an income that has seen no raises for the past 8 years, it becomes even more important to grow whatever income I have.

I really need to cut down on expenses especially Grab rides that are eating into my budget. Food at fancy restaurants that are eating into my budget too. And the great nemesis is my credit card expenses that are really eating into my expenses and budget. I must remind myself that less cab rides and more plane rides to motivate myself to save more and grow.

Next I need to consolidate my reits and stock purchase and seriously track my dividends.

I really hope I can also reach the stage of AK and LayYouCanBeFree

Free Gift From SGX-Stock Screener

2014-10-04T03:19:00.000-07:00

Hello Everyone,

I amd writing this from the Montigo Resort Batam.
A pretty nice report and will share the photos of the resort with you all later and why this place is such a great deal if you want a short getaway from work.

Anyway, here's a great free gift from SGX-A free stock screener

Where you can access the latest company data such as search for companies based on

Total Market Cap
Total Revenue
P/E Ratio
Dividend Yield
Industry.

This is a great initiative by SGX as this allows you to find the latest company information and the latest from the various stock counters in SGX. So if you are looking for information on particular industries, then you can use this screener to look for companies that you want to invest in.

Previously, you have to subscribe to special subscription stock information before you can access this information. Now all these is available for no cost online.

You can access this at
==> www.sgx.com/stockfacts

Appreciate this free gift.

Importance of Insurance Coverage

2013-12-04T17:57:00.001-08:00

Recently I have seen friends meet with rather serious medical conditions.
The first thought that comes to mind after enquiring about their well being is whether they have sufficient medical insurance coverage. The key question on my mind is

Is he covered with sufficient medical insurance?

In Singapore where medical cost is sky high, having sufficient medical coverage is important.
If you have sufficient medical coverage it may mean the difference between

Having a choice as to which doctor you can seek treatment from
The kind of room and facilities for rehabilitation
Having a dedicated medial team instead of a rotating medical team
Long wait versus a shorter wait.

Insurance coverage can subsidize a bulk of the medical cost without the expenses blowing your budget or wiping out your entire savings.

I think the base coverage most Singaporean should have are

Enhanced hospitalization plan in addition to Medisave and Medishield.
Term life insurance or whole life insurance if you have dependents
Insurance that covers critical illnesses

This is usually what happens if someone is admitted to the hospital
Base deposit that varies between $1,000 to $3,000 depending on whether you are staying in a government hospital, government restructured hospital or private hospital.
Then the cost of the medical procedure plus medical instruments and facilities during the period you are staying in. This amount can be offset against the deposit and the balance can be settled in cash/cheque or credit card when you are discharged.
Thereafter the amount you have paid will be reimbursed by the insurance company after adjusting firm has confirmed that your condition is insured by your medical insurance.

Having some cash on hand is important for situations like this besides it being a chest for your opportunity fund.

Well, after experiencing a few cases, it has made me more grateful for what I have and to treasure the people around me.
With Christmas just round the corner, I will be sharing my upcoming Christmas holiday in HongKong/Zhuhai & Macau with some budgeting done as well.

Book Review-The Millionaire fastlane-Crack the Code to Wealth and Live Rich for a Lifetime

2013-11-04T17:56:00.001-08:00

Book Review-The Millionaire fastlane-Crak the Code to Wealth and Live Rich for a Lifetime by MJ DeMarco

This is a self-help book that aims to help you achieve financial freedom faster that the defined
retirement age of 60-65 years of age.

In this book, MJ talks about his inspiration of trying to achieve financial freedom when he encountered a young man who drove the latest Lamborghini to the refuel at the gas tank where he was working as a student.

This chance encountered changed his life and he began on his quest to achieve financial freedom.
fast forward 15 years later, he made his wealth in real estate and other online businesses to be able to live the life he desired.

He has a forum which he has created a community to help others along in his quest for financial freedom.

What is different about his teaching is that he teaches you to find opportunities to create great amounts of cash flow in your business. After you have amassed huge amounts of cash flow, you use that money to invest in fixed security instruments that give you a monthly yield, things like bonds, annuities, preference shares, fixed deposits and money market instruments that gives you guaranteed dividends every quarter or half yearly.

These instruments only work if you have massive amounts of cash to invest.
So for instance if you have $100,000 in an instrument that gives you an annual
return of 5%. So if you were to work out the math,

$100,000 at 5% gives you $5,000 annually that gives you $1250 per quarter if the distribution is quarterly. Since there is no capital gains tax in Singapore yet, the amount of money you received
is essentially tax-free.

Now imagine if you can double ,triple or put in ten times the the amount of initial investment, this is what will eventually enable you to be financially free living off just your investments.

So if you have $1M at 5% gives you $50,000or $12500 per quarter or $4100 per month.
This amount is sufficient if you are a frugal for a small family without a mortgage.

So this is a book I recommend to

People who aspire to start their own part-time/small business
People who want to earn an extra income online
Small business owners
Blog shop owners.

Another unBudgeted Trip to Malaysia

2013-11-04T17:44:00.000-08:00

This year I seem to have travels on my cards.
There are some unbudgeted trips that tends to throw
my budgeting and personal finance off my planning.

This year, I find it difficult to save much due to
my constant travels and last minute trips.

This trip is a 3D/2N trip to Kuala Lumpur
to attend a cousin's wedding.

Here's the breakdown of the trip expenses

Air tickets
AirAsia: SG-MY: S$121.00 ( for 2 pax)
JetStar: MY-SG: S$89.04 (for 2 pax)
Shuttle bus to the city: MYR: MYR$56.
Ang Bao: MYR$320-400

For accommodation, I will be staying at my auntie's house
so that saves me about MYR$250 per nite for a hotel in the
city centre.

So for the rest of the trip, I expect to spend on

Jogoya Buffet Lunch which I have been wanting to try when I am in town.
2 b'fast, 1 dinner.
Miscellaneous.

Will update you all once I am back. For this trip, I am budgeting S$500 including my air tickets

so that leaves me with S$300= MYR$766.00

Annunities

2013-10-20T18:32:00.000-07:00

Of late, I have been thinking of retirement planning. Perhaps, in part being influence by the ads by Manulife on the MRT and in part, coming to the realization that I am getting older every year.

I am exploring two plans, one gives a fixed sum of $xxx amount once you reach 60 and another pays out $xxx per month when you reach 65 and when you are 75, it gives you a 25% increment to factor in for inflation. Once you reach the payout age of 65 years old, you can get a lump sum payout in addition to the monthly payout of $xxx per month.

So the plans are like

	Company A	Company B
Years	26 years	16 years
Payout	Lump sum payout of $12,000 @ age 65.	Lump sum @$6000at age 55
Lump sum	Age 65 onwards $12000 + $500/mth Age 70 :$625/mth Age 75-80: $781/mth Every 2 years payout of $300-$500 Total premiums paid :$433.80 x 321 = $135345.56 Annual: $5054.10 x 26 = $131406.60 Additional maturity bonus at age 85.	Age 55 onwards $6000+($500 x 12 x 15 years) = $96000 Maturity reward of $228,432 at age 70.
Monthly Premium	$433.80 x312 months.	$597.29 x $192 $7167.48/year
Total Payout till 80	$126,360 + $3000 = $129,360	$324432.

I am wondering which should I choose. Should I choose one that pays out till age80 or one that pays out early. But what's going to happen after the insurance expires?

How to Travel in Japan for less than S$150 or US$115

2013-10-04T18:10:00.000-07:00

This is a follow-up to my previous post on an trip to Japan that has not been budgeted.
In this post, I will reveal my actual figures versus the estimates from my previous post.
If you are interested in reviewing the budget from the previous post, you can refer to this
(Budgeting for an unbudgeted trip).

I'm glad that the cost fall within the budget and some were actually lower than the cost I have budget for.

Here's a run-down of all the cost. The main cost that I factor in a travel budget are

Accommodation (Mix of hostels, home-stay, ryokans)
Transport(Trains, taxis, buses, coaches)
Meals(rice balls, instant noodles, restaurant meals, fast -food,snacks)
The figures quoted below are all in Singapore Dollars where I reside. So it will be lower if you convert the entire cost into U.S Dollars. Hence the USD 115.

ACCOMMODATION
Destination	Days (Stay) Nights		Lodging		J Yen	S$
Tokyo	2	2	Kimi Ryokan Tokyo		7875Y	103
Hokkaido-Biei-Furano	2	2	Cress Guesthouse-Biei		10000Y	131
Sounkyo Onsen+Daisetsusan	1	1	Resort Pension Yamanoue @ Sounkyo		8800Y	115
Hokkaido-Sapporo	2	1	Sapporo City		S$68	68
Mt Fuji-Hakodate	2	1	Mt Fuji		3900Y	51
Tokyo	4	3	Shinjuku Washinton Hotel 3-2-9 Nichi Shinjuku Shinjuku-ku Tokyo Ph:81 33343-3111		$252.20	252.2
					Total	720.2

TRANSPORTATION
From (Source Station)	Mode	Dep	To (Destination)		Jyen	S$
Haneda Airport to Kimi	Limo Bus	Haneda	Ikebukuro West Station		2000	26
Ikebukuro to Kimi	Taxi	Ikebukuro	Kimi		1070	14
Kimi	Limo Bus	Haneda	Haneda-Flight to Sapporo		1200	15
Kimi to Hotel Metropolitian for Limo Bus	Taxi	Haneda	Haneda-Flight to Sapporo		710	9.1
Air Ticket to Sapporo(return)	Place	Haneda	New Chitose Airport (CTS)		21600	283
New Chitose Airport to Sapporo	Train	New Chitose Airport	Sapporo		1040	14
Sapporo to Asahikawa	Train	Sapporo	Asahikawa		RP (4170)	-53
Asahikawsa to Biei	Train	Asahi	Biei		RP
Biei Furano Round Pass	Train	Furano	Furano		5400	71
Biei-Furano	Train	Biei	Furano		RP	RP
Furano-Biei	Train	Furano	Biei		RP	RP
Furano 1-Day Tour Twinkle Bus Tour	Bus	Furano	Furano		1000	13
Sounkyo	Train/Bus	Biei	Sounkyo Onsen/Daisetsusan		1920	25
Sounkyo	Train/Bus	Takikawa	Sapporo		1920	25
Asahikawa	Train	Sapporo	Sapporo		RP (4170)	-53
Sapporo	Train	New Chitose Airport	Tokyo		1040Y	14
Haneda Airport	Kawaguchi 5th Station	Haneda	Mt Fuji		2400Y	31
Kawaguchi Sta.	Bus/Monorail	Gotemba	Gotemba(Outlet Mall)		~~1470~~	19
Gotemba	Bus/Train	Gotemba	Shinjuku		~~1630~~	21
Shinjuku	Bus	Haneda	Flight back to SG		1200	15
Several Taxi Trips	Taxi				5000	65
Subway Trips	Subway				3000	38
					Total	658.1


MEALS
Date	B'fast	Lunch	Dinner	To (Destination)	Snacks	Jyen	S$
20-Sep-13	N.A	N.A	Flight	Ikebukuro West Station	N.A		0
21-Sep-13	Rice balls+coffee	Bento	Dinner @Ootoya	Kimi	N.A	5440	70
22-Sep-13	N.A	N.A	Dinner provided@Biei	Haneda-Flight to Sapporo	Autumn Festival	2050	26
23-Sep-13	B'fast provided	N.A	Dinner provided@Biei	Haneda-Flight to Sapporo	Tour	585	11
24-Sep-13	B'fast provided	N.A	Dinner provided@Accomodation	New Chitose Airport (CTS)	N.A	0	0
25-Sep-13	B'fast provided	N.A	ramen@ramen Village	Sapporo	N.A	975	13
26-Sep-13	B'fast provided	N.A	Instant noodles	Asahikawa	350	170	7
27-Sep-13	Instant Noodles	N.A	Tendon	Biei	200	605	10
28-Sep-13	Instant Noodles	Cake	Dinner Treat	Furano	495	105	8
29-Sep-13	Bread	N.A	Dinner @Yoshinoya	Furano	750	1190	15
30-Sep-13	Instant Noodles	N.A	Katsu Don	Biei	600	1605	21
			Drinks from vending machines	Furano		1200	15
						Total	196

What I realized

Try your best to have at least breakfast included in the cost of the accommodation. This saves you both time and money. You do not have to do the morning roll call to get everyone to be on time, norning breakfast at the time of accommodation normally does the trick.
If you have both breakfast and dinner provided at your place of accommodation as is the case with our minshuku at Biei(Will post updates on accommodation at Biei soon. Best place to stay at Biei), you can often save much more and control your cost, leaving you with more Yen for shopping, snacks etc.
You can see from the actual cost that the biggest bulk of our budgets were taken up by transport which includes an internal flight from Tokyo to Hokkaido. Within Hokkaido, I think it is better to drive as the fuel cost is less than individual coach/bus trips.

What is not included in the cost

Two Onsen trips. One was included in our accommodation at Sounkyo, the other at Mt Fuji which we paid 900 Yen.
Overweight baggage cost of $212. Yes, for our first trip, we were over weight by about 14 kg and over weight baggage at SQ is expensive.

Takeaway

Japan is a well organized country and runs on clock-work efficiency. Belying that clock-work efficiency is a culture that is always prepared. I find that Japanese are always prepared when they meet you or when they need to be in front of people or guest.
They seem to have a planning culture and it is relatively easy if you do your research before you depart to connect on trains and buses to your destination.
Japan need not have to be expensive if you can live in relatively inexpensive places, dine where the locals do and learn a bit of Japanese before you leave. Otherwise, it's useful to download a Japanese app.
I find this trip of great value for money and it is one of the best trips I have ever planned for and travelled to especially as I don't speak the language. But be careful who you choose as a travel companion as you can see that I skipped most lunches not out of choice but travelling with a shopaholic who constantly asks you if they should buy multiples of the same items when it is cheap and takes a 'hella' of a day.
I might have more time to sample the local food if I had travelled with another. But would have spent more on food.

Budgeting for an unbudgeted trip

2013-08-19T19:48:00.002-07:00

In May, on a whim, I deiced to plan for a trip to Japan.
Without much thinking and consideration of my finances,
I booked the air ticket as there was an offer on Singapore Airlines
for a return trip ticket from Singapore to Tokyo (Haneda).

In this and subsequent posts, I will be putting up my proposed budget for the trip,
hopefully, I don't blow this budget.

This is a budget that I have drawn up after checking out all the websites.
Well, this is my first trip to Japan and i realized that Japan goes by a Honor system.
Most places do not require you to pay via credit cards or transfer the payment to secure your booking. They will hold the room for you and you settle the payment when you arrive.

So I wonder if most Japanese business function on a cash flow accounting system instead of a double-entry system. But that is a story for another day.

ITINERARY
Destination	Days (Stay) Nights		Lodging	J Yen	S$
Tokyo	2	2	Kimi Ryokan Tokyo	7875Y	103
Hokkaido-Biei-Furano	2	2	Cress Guesthouse-Biei	10000Y	131
Sounkyo Onsen+Daisetsusan	1	1	Resort Pension Yamanoue @ Sounkyo	8800Y	115
Hokkaido-Sapporo	2	1	Sapporo City	S$68	68
Mt Fuji-Hakodate	2	1	Mt Fuji	3900Y	51
Tokyo	4	3	Shinjuku Washinton Hotel 3-2-9 Nichi Shinjuku Shinjuku-ku Tokyo Ph:81 33343-3111	$252.20	252.2
				Total	720.2

TRANSPORTATION
From (Source Station)	Mode	Dep	To (Destination)	Jyen	S$
Haneda Airport to Kimi	Limo Bus	Haneda	Ikebukuro West Station	1200	16
Ikebukuro to Kimi	Taxi	Ikebukuro	Kimi	2500	33
Kimi	Limo Bus	Haneda	Haneda-Flight to Sapporo	1200	16
Monorail to Airport	Monorail	Haneda	Haneda-Flight to Sapporo	720	9.5
Air Ticket to Sapporo	Place	Haneda	New Chitose Airport (CTS)	21600	283
New Chitose Airport	Train	Biei	Biei	1040	14
Biei Furano Round Pass	Train	Furano	Furano	5400	71
Sounkyo	Train/Bus	Biei	Sounkyo Onsen/Daisetsusan	1920	25
Sounkyo	Train/Bus	Takikawa	Sapporo	1920	25
Asahikawa	Train	Sapporo	Sapporo	4170	55
Sapporo	Train	New Chitose Airport	Tokyo	1040Y	14
Haneda Airport	Kawaguchi 5th Station	Haneda	Mt Fuji	2400Y	31
Kawaguchi Sta.	Bus/Monorail	Gotemba	Gotemba(Outlet Mall)	1470	19
Gotemba	Bus/Train	Gotemba	Shinjuku	1630	21
Shinjuku	Monorail/Bus	Haneda	Flight back to SG	1200	630
				Total	1263


Total so far including accomodations and transport now amount to close to $2000.

Here's an estimate of the break down of the cost though cost might vary depending on the season you are travelling. I will be travelling in September of this year and hopefully I can stay within a budget of
S$3000.00 including personal expenses and gifts.

I had previously spent only S$1100 for a two week trip to New York and Boston and hope to stay within a budget. The above 2 week trip involves bunking in with a friend for 2 weeks in Boston and staying at a 3-star mid-town hotel in New York City that is within walking distance to the Lexington Subway. However the $1100 includes transport, meals personal expenses only andit excludes air ticket from SG to New York City.

Leave me comments on tips on how to save during my Tokyo and Hokkaido trip.
I will appreciate any tips you can offer and will write up about it when I return after using your tip.
Might also send you a gift if my budget allows.

How toSave $100,000 in 7 Years

2013-08-19T19:22:00.000-07:00

I had originally written this article under another blog but realized that it fits into this blog theme on SG Smart Money. Hence I have decided to shut down that blog and just concentrate on this one.-
==================================================

How to Save $100k in 7 Years

This is my first post in Blogger and I am inspired to create this blog after coming
across this article in the Straits Times, dated 7 July 2013 article.

In this article, it shows how a young fresh grad, just straight out of school can save $100,000 in 5 years.

This article also assumes that

You save 50% of your take home pay
You are single
You have cheap hobbies

You are willing to make some sacrifices.

However, this article does not take into account the various 'milestone' events that can thwart a youngster's 'best laid plans' such as

Student loans
Weddings
Honey moons
New house
Any other 'catastrophic' events.

After reading this article, I am inspired to safe $100k within the next 7 years.
In the next 7 years, I will be 40 and this is the goal that I want to reach at 40.
I am also hoping that combined with investments, I can exceed this goal.

This is what I aim to to

1) Save 30% -50% of my take-home pay
2) Invest 60% into REITs and dividend paying stocks.
3) Start a part-time venture

I am also looking for a tracking chart to track my progress.

Creating Your Money Ladder

2013-08-19T19:21:00.001-07:00

Money Ladder

I am currently reading a book titled
"The Story of Rich" .

Rich in this story is about a small business owner who successfully sold his small business for an 8-figure amount and is waiting to retire.

However with the amount of money coming to his hands, he is pondering how to plan for it.

This book is part parable, part-non-fiction and how-to book on personal finance.

There is a particular chapter where the author mentions about creating a money ladder.For instance, if you have $400,000 of savings, you might want to split them into 4 portions.

First $100,000 is used as emergency cash and is placed in a fixed deposit account.
The next $100,000 can be invested in high growth shares for greater yield
The next $100,000 can be invested in dividend playing stocks
Last $100,000 can be invested as an opportunity fund.

In this way, one can ensure that they have sufficient cash when they need to use in an emergency and not have to compromise on growth in a stock market.

I realized that this plan may work if you have lots of cash upfront but i am thinking of this works if you have limited funds like $40,000?

Here's how I would split the $40,000

$10,000 in emergency funds
$10,000 small companies and high growth stocks
$10,000 dividend playing stocks like blue chips and REITs.
$10,000 in bonds.

What do you think?
Is this type of assets allocation effective or only works for those with a large 'war chest'?

Money Ladder

2013-07-14T09:00:00.000-07:00

Money Ladder

First $100,000 is used as emergency cash and is placed in a fixed deposit account.
The next $100,000 can be invested in high growth shares for greater yield
The next $100,000 can be invested in dividend playing stocks
Last $100,000 can be invested as an opportunity fund.

$10,000 in emergency funds
$10,000 small companies and high growth stocks
$10,000 dividend playing stocks like blue chips and REITs.
$10,000 in bonds.

What do you think?
Is this type of assest allocation effective or only works for those with a large 'war chest'?

How To Save $100K in 7 Years

2013-07-14T08:59:00.001-07:00

How to Save $100k in 7 Years

You save 50% of your take home pay
You are single
You have cheap hobbies

You are willing to make some sacrifices.

However, this article does not take into account the various 'milestone' events that can thwart a youngster's 'best laid plans' such as

Student loans
Weddings
Honey moons
New house
Any other 'catastrophic' events.

How to Allocate Your Money for Investing

2013-05-17T10:17:00.000-07:00

I am recently researching into various ways to allocate one's funds for investing.

There is a book -"I Will Teach You To Be Rich" with an accompanying Blog with the same name at
http://www.iwillteachyoutoberich.com/blog/

advocates allocating your funds this way

Short-term account

This is money that will e spent within the next 12 months.

So if you were to save about 10% of your monthly paycheck, you may need to allocate a percentage of that 10% into the three accounts. Take for example, a person who saves $1000 per month, he may need to allocate $300 to his short-term account to pay for forthcoming expenses like an upcoming wedding gift, travels in the year or for some 'unexpected ' expenses that may come up.

Mid-term account

This accounts is allocated for funds that will be needed within the next 3-5 years.

Your mid-term account is an account which will help you grow your wealth as well.

Since these are funds you only need within the next 3 to 5 years, you can use these funds to invest in bonds, preference shares or currencies to earn higer interest.Again, you may allocate 30& of your savings to this account.

Long term savings

Long term savings as the terms suggest is allocated to funds that you will need only 10 years or more down the road. You can afford to invest in equities, preference shares, REITs and other investment vehicles that have a longer investment horizon but yield higher returns. Your long term savings are used for a down payment for a house, your desired vacation with your family, etc, etc etc.

This is another method of allocating your savings besides the investment approach used in the previous post.

How to Start Investing

2013-05-11T21:21:00.000-07:00

I realized that most people have it backwards when it comes to investing.

To me, investing is supposed to be a tool to help you build your wealth and not a 'stumbling block'.

Hence in order to invest, one has to have one's finances sorted out first.That includes making sure that your basic needs such as

day-to-day expenses are sufficient
insurance needs are fulfilled
emergency cash cushion is in place.

If you already have the above 3-pillars in place, then now'e the time to start to consider on investing in order to build greater wealth.

Here are the steps to take before you begin investing

Sort out your finances
Figure out how much you can invest monthly.
If the amount is too small per month, you may like to combine cash from several months before investing. Alternatively, you can also invest in DRIPS or fractional amounts until you have built up sufficient amount to purchase the whole lot.
Split the funds for investing into a separate account.

How to allocate your investment funds

This is what I have read from the book Value Investing for Women" which I find useful here in terms of the allocation of funds for investing.

Split up your investment funds into 3 accounts and label a) 30% into a Financial Freedom Account b) 30% of the funds are allocated when a mini-crisis happens c) 40% of the funds are allocated for buying when a crisis event happens.

Investing in D.R.I.Ps

2011-05-22T06:45:00.001-07:00

Lately, I have been contemplating in investing in D.R.I.Ps of companies such as Wall Mart, MCD, Exxon Mobil etc etc.

However I am wondering if one can do so from Singapore. Will opening a USD stock trading account allow me to do that?

Ithink I need to research more on this.

Early retirement: AT 35

2011-05-17T22:16:00.000-07:00

Fancy retiring at age 35?

This is a guest post I read over at http://earlyretirementextreme.com/when-to-retire-try-age-35.html

This is an informative blog which details how the writer working as a researcher was able to retire at a young age by saving 75% of his income. He has since retired and has 25 years of living expenses stocked up. Imagine a 25 year worth of emergency savings.

This blog has other posts and plans by guest bloggers on their on-going plans to retire early.

Really worth checking out if this is one of your plans to retire early.

Buying a house

2011-01-17T20:35:00.000-08:00

Recently I have been contemplating buying a HDB 3-rm versus a 4-rm flat due to the new changes.

Property tax for owner occupied 3-room flats have been reduced to almost $0 as compared to a 4-room flat. Details can be found at http://www.iras.gov.sg/irasHome/page.aspx?id=11166.
Subsides are also higher if you qualify to purchase a 3-room flat.
Conservancy charges may be less depending on the neighborhood.
Price per square feet is also comparably lower as compared to 4-room flats if you factor in all the related costs.

I am really not sure if there are some things I have missed out such as potential as an investment property 5 years later, rental yield etc etc. So still contemplating this plan.

Any readers have any suggestions or comments?

7 Money Tips for 20 somethings

2010-12-11T17:33:00.000-08:00

Are you someone who is just fresh out of school and have been receiving your paycheck for the past few years?

How do you plan and organize your money so that you will have sufficient to meet your needs as well as plan for a nice vacation every now and then?

Here's a great article on Yahoo that teaches you 7 tips to better manage your money.
20-something Money Tips

To add a few more pointers to this.

Build up a portfolio of dividend paying stocks that you can eventually use to offset against daily expenses. For instance, I know of someone who has been buying dividend paying stocks for the past 7 years and now has enough dividends of about $24,000 annually to pay off for basic expenses.
Plan a percentage for tithing and charity. Giving to charity has surprising effects and many good things do happen to you out of the blue.This has been my personal experience.
Split your savings into 3 bank accounts, one for saving, one for investing to grow your wealth and another for tithing.

Do you have these 5 Bad Money Habits that are wreaking a havoc on your Personal Finance?

2010-11-13T20:51:00.000-08:00

5 Bad Money Habits You Should Try To Break - Yahoo! Singapore Finance

The above are Five Money Habits that would wreak Havoc on your Personal Finance if you don't break it.

Check it out!

How to Beat Inflation with ETFs

2010-11-12T20:47:00.000-08:00

These days I am reading a lot more on Yahoo Finance as their lineup on Personal Finance and investing news is really fast and up to date especially with local Singapore Investing climate.

I am currently reading on hedges against inflation when I chanced upon this article on ETFs investing.

ETF stands for Exchange-Traded-Funds and there are several ETFs in Singapore

1) STI ETF which tracks the STI Index.

2) iShares

3) Poems also has good introductory seminars for ETF investing.

This is a great article and a good way to hedge against inflation

Here's the article http://sg.finance.yahoo.com/news/ETF-Basics-How-to-Invest-in-usnews-3529016804.html?x=0

How to Save a Third of Your Income and how to grow it

2010-11-09T17:43:00.000-08:00

October seems to be the month that throws spotlight on personal financial issues and corporate finance as companies begin to post their third quarter results.

Both on MSN Mney and Yahoo, we find articles on savings and investing.

One particular article I find online seems to strike a chord with most with inflation raging and wages rising in incremental levels, this article is on "How to Save a Third of Your Income"

In this article, the author of the book Generation Income shares

How to save a third of your income with little sacrifice.
How to grow that income
How to make savings automatic.

I like to add my own ideas of what to do with the one-third of income you save.

First one-third will go towards a savings account for long term savings such as purchasing a property, emergency cash etc.
Second one-third will go towards investments to grow your wealth
Third one-third will allow you to share your wealth to Tithe.

I have seen people who investing the second one-third of their income in substantial dividend producing stocks and used that income either to reinvest in stocks to build a larger portfolio for retirement or used their dividends to pay off their mortgage payment. There are also couples who live off dividend payments and used it for their basic living expenses.See this article on "Investment Strategy returns Dividends"

SG Smart Money

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I had originally written this article under another blog but realized that it fits into this blog theme on SG Smart Money. Hence I have decided to shut down that blog and just concentrate on this one.-==================================================How to Save $100k in 7 Years

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Do you have these 5 Bad Money Habits that are wreaking a havoc on your Personal Finance?

How to Beat Inflation with ETFs

How to Save a Third of Your Income and how to grow it

I had originally written this article under another blog but realized that it fits into this blog theme on SG Smart Money. Hence I have decided to shut down that blog and just concentrate on this one.-
==================================================

How to Save $100k in 7 Years