My target monthly $3000 per month. i think how individuals manage their financial start by defination of wealth which will affect the strategy & approach. Below are my defination.
Defination of Wealth : To acquire Assets the generate income
Wealth is make up by 3 basic building components:
1) Income
2) saving
3) investment
Every component have its function & strategy. And each component must be build in sequence in order to create a substainable wealth. I also believe, wealth is generate by this 3 components in an endless loop, even when you are not actively working, u will be very safe to retire.
1) Income Strategy
Very few of us are elite & high flyers, like everyone i am an average joe, but there is way to increase income.
1) Getting a qualification & good grade: A no brainer, although many people highlight paper & grade dont define how successful you are in the future. But it give you a head start when just graduated , for higher starting pay. (Me: NTU 2nd-upper)
2) Side hustle: Basically dont be too choosy, Most important can fit into your schedule.
Starting a side buisness: Need to learn new skill & spend $$$ to invest in equipment/tool. May or may not work. (Me: event photography, dessert bar, event organisation (small scale), had build a customer base so is quite consistant income, but covid disrupted it.) Lesson learned: you may need to keep trying, when failed you loss $$$, but you just need 1 success to recover everything.
Moonlighting: been a home tutor during undergrad, honestly dont feel is good $$$ looking back. Currently, part-time food delievery on bicycle, fitter and feel $$$ is better than any part time job because freedom to work as much as i want. With that i can just support family without touching my full time job salary. Think it will be my long-term filler job, once my buisness back, to fill up any unused time to earn money.
3) Rental: If you dont mind privacy. Rental is a good option. Get marry, get a BTO. Take bank loan, max loan tenture. Buy 5room. Rent 2 room another $1k+. Mortgage deduct from CPF, u get cash, positive cashflow. If u still single faster get marry.
2) Saving Strategy
Daily expenses: Basically need to cut down on fast food. Personally i dont go starbuck or bubble tea unless people treat me. Learn how to cook at home.
Cut liability: Dont own car waste money, is for convience only, unlike other country their car can drive till got holes, SG car only 10yr rental from govt.
Saving basically want to build 2 things: Emergency Fund & Opportunity Fund aka warchest
3) Investment Strategy
Basically i invest around 70 - 80% of my full time job salary. As my Emergency fund is done. 30% - 20% to warchest.
currently 70% growth (US stock), 30% dividend (sg stock) Now focusing on capital growth. When retirement may switch 20% US stock. Target 1 million capital latest by 15years.
By nature i am an income investor, but capital not enough so no choice need to invest in US stocks. I love passive income. I love cashflow rather then selling stock to cash out $$$.
My target monthly $3000 per month. i think how individuals manage their financial start by defination of wealth which will affect the strategy & approach. Below are my defination.
Defination of Wealth : To acquire Assets the generate income
Wealth is make up by 3 basic building components:
1) Income
2) saving
3) investment
Every component have its function & strategy. And each component must be build in sequence in order to create a substainable wealth. I also believe, wealth is generate by this 3 components in an endless loop, even when you are not actively working, u will be very safe to retire.
1) Income Strategy
Very few of us are elite & high flyers, like everyone i am an average joe, but there is way to increase income.
1) Getting a qualification & good grade: A no brainer, although many people highlight paper & grade dont define how successful you are in the future. But it give you a head start when just graduated , for higher starting pay. (Me: NTU 2nd-upper)
2) Side hustle: Basically dont be too choosy, Most important can fit into your schedule.
Starting a side buisness: Need to learn new skill & spend $$$ to invest in equipment/tool. May or may not work. (Me: event photography, dessert bar, event organisation (small scale), had build a customer base so is quite consistant income, but covid disrupted it.) Lesson learned: you may need to keep trying, when failed you loss $$$, but you just need 1 success to recover everything.
Moonlighting: been a home tutor during undergrad, honestly dont feel is good $$$ looking back. Currently, part-time food delievery on bicycle, fitter and feel $$$ is better than any part time job because freedom to work as much as i want. With that i can just support family without touching my full time job salary. Think it will be my long-term filler job, once my buisness back, to fill up any unused time to earn money.
3) Rental: If you dont mind privacy. Rental is a good option. Get marry, get a BTO. Take bank loan, max loan tenture. Buy 5room. Rent 2 room another $1k+. Mortgage deduct from CPF, u get cash, positive cashflow. If u still single faster get marry.
2) Saving Strategy
Daily expenses: Basically need to cut down on fast food. Personally i dont go starbuck or bubble tea unless people treat me. Learn how to cook at home.
Cut liability: Dont own car waste money, is for convience only, unlike other country their car can drive till got holes, SG car only 10yr rental from govt.
Saving basically want to build 2 things: Emergency Fund & Opportunity Fund aka warchest
3) Investment Strategy
Basically i invest around 70 - 80% of my full time job salary. As my Emergency fund is done. 30% - 20% to warchest.
currently 70% growth (US stock), 30% dividend (sg stock) Now focusing on capital growth. When retirement may switch 20% US stock. Target 1 million capital latest by 15years.
By nature i am an income investor, but capital not enough so no choice need to invest in US stocks. I love passive income. I love cashflow rather then selling stock to cash out $$$.