Portfolio Review (February 2025)

Review of my Portfolio (28/02/2025)

Total unrealized profit: + 21.5%

YTD performance: - 3.3%

Added in February

Goal 1: ( $ 16,069.90 / $ 80,464) ⚔️

Growth Portfolio: MSFT

Dividend Portfolio: C38U, HMN, C2PU, D05, U11, United Global Durable Equities

Sold in February

SK6U

Portfolio Weightage

Dividend Recieved

Goal 2: ($ 1,362.43 / $ 17,117) ❤️

Dividend recieved in February = $ 1,018.15

3 Simple Things to do to Increase Income

• Everyone can become a millionaire; the question is how long do you take.
• The goal of the game is to accumulate as much wealth as possible while young, so we can enjoy our freedom in our prime.
• The prerequisite to become hit a million early is to be able to increase our income.

• Increasing our income is much more effective than cutting expenses.

• Most people would usually recommend acquiring new skills and becoming a more valuable asset to the company.
• Having spent decades in the corporate world, I don't believe it is the most efficient way.
• Because it is beyond our control when come to pay rise or promotion, top position are limited, competition are strong being skillfull is not enough.
• Most of the time, skills, effort and income dont really correlate.
• The key to freedom is to build multiple stream of income and progressively increase income from non-employment sources.

1. Take the least resistant path.

• We spend 17% of our time working, 33% sleeping, leaving us with 50% free time. How we use that free time will determine our future.
• After you have a stable job, focus on starting a side hustle. Consider becoming a YouTuber, content creator, online seller, tutor, or even a food delivery rider.
• Something that will not give you too much stress and you don't mind doing but also pay you.
• The specific side hustle isn't crucial; just do something and get the momentum started.
• We must constantly ask ourselves, "What other options do we have?" and don't be afraid to try it out.
• Only we know what kind of side suited ourselves as it depends on individual personality.

• The objective is to maximize earnings within our capabilities in the shortest time frame with minimal resistance.

2. Use Other People Money

• In Singapore, to purchase public housing, couples typically need to be married. Unmarried individuals must wait until they are 35 years old to be eligible.
• The primary risk of delaying a home purchase is being priced out of the market.
• Staying single will lose out.
• Most of our salaries cannot keep up with the raising housing price if we only work a normal job, but the government is still able to made BTO affordable.
• The first pot of gold is usually from our house, but whether to ultilise it depend on individual.
• A smaller flat might seem attractive due to lower upfront costs. However, a 5-room HDB is more ideal for long-term family needs, with a 4-room flat being the smallest that should be considered. This avoids the hassle and expense of upgrading in the future.
• Common room rentals range from $800 to $1500 depending on location and size.
• A 5-room or 4-room flat can potentially generate $1600-$2000 monthly with both common rooms rented out, effectively making the mortgage payments free.
• Rental income provides financial comfort, though it won't make anyone rich.
• Rich will get richer, buy the biggest house you can afford then rent it out.

3. Build a Income Scaling Machine

• There are only 2 vehicles: (1) Buisness and (2) Investing. For average people, investing is a more accessible path.
• Dividend investing primarily focus on income generation.
• The primary advantage is the regular, predictable cash flow it provides. Companies that pay dividends distribute a portion of their profits to shareholders, creating a consistent income stream.
• This income can be particularly valuable for those seeking to supplement their current income.
• In addition, during market downturns, dividend income can provide a cushion, helping to offset losses in portfolio value.
• The consistent cash flow can also provide a sense of stability during volatile times.
• Dividend investing excels at generating consistent cash flow, making it attractive for income-seeking investors.
• While Index investing excels at capturing broad market growth, making it suitable for long-term investors.

Conclusion

• These three simple actions help us hedge against career stagnation and mortgage risks, while also compounding our cash flow.
• Combine with proper budgeting, it is possible to achieve 100% saving rate for our full time job income with surplus cashflow.
• This strategy is most effective for low to middle-income workers, as the side income can potentially exceed their monthly salary with relatively quick result.
• In Singapore, non-employment income, such as business profits, often allows for certain tax deductions, which can effectively reduce your taxable income. Furthermore, dividends received from Singaporean companies are typically tax-free, providing another significant advantage over salary income, which is fully taxable.
• With cash on hand everything will become easier.