Tuesday, August 12, 2008

Financial Freedom (Goal 2022)

My definition of financial freedom would be to simply have sufficient passive income (income that I do not need to work for) that would cover my monthly expenditure by the age of 40.

Simply put :

Financial freedom = Passive Income > Monthly Expenditure

That is a total of 14 years to achieve it. Hopefully I will achieve it by the 31 Dec 2022.

The purpose of achieving financial freedom is to give me the flexibility to pursue things that I enjoy doing and value in life. The goal of achieving financial freedom is just one of my many goals in life.

I intend to achieve this through the following steps:

1. Increase my monthly passive income to S$200 by end 2008. (S$2800 per month by 2022)
2. Reduce my monthly expenditure to below S$2800
3. Pay off all debts (HDB 4 room flat, car) or attain a debt level that combined with my monthly expenditure would not exceed S$2800

This blog serves as a journal to chronicle my journey and I hope that you would learn as much from it (be it from my failures or successes) as I would from the entire process.


  1. This comment has been removed by the author.

  2. thanks for putting this blog bk! it's encouraging to find a singaporean doing the same.

    i'm bearing a similiar passion towards financial freedom, although in the short term i'm determined to clear my university loan.

    do you mind if i link your blog to mine?

  3. Sure Mister Qian. Go ahead. I welcome links anytime =)

    Sorry that I deleted your previous post as I thought it was spam.

  4. Hi bk,

    Just saw your comment on my blog. Sure, let's exchange :)

    Wondering about your goal--have you taken into account inflation? 2800 in 2022 may not be enough to cover your expenses anymore, especially if you include kids, etc.

    Just my 2 cents :)

  5. The key to your dream is leverage and compound interest and earnings. I would initially invest for growth before trying to make any passive income from the sharemarket as the process would just take too long. Sacrifice for a bit and then enjoy for the rest of your life.

    But if you already have the money, then thats a different story. Try checking out buy write funds. Not sure if you have it in Singapore but here in Oz,im getting close to 12-15% pa in dividends and maybe 1-5% in capital growth pa. By reinvesting the profits, your portfolio would sky rocket in no time. Do some research with warrants as you can pretty much double the number of shares you buy with the same money invested if you just bought the shares alone. With warrants, you do get the full dividend amount as if you owned each individual share. So, its like buying half a property and getting the full rent every month. However there are many risks involved with them as they are a time instrument. If the share does not hit your strike at a particular time, you can lose all your money. So pretty much, try and squeeze as much as you can from your invested dollar but do it safely and resposibly :)There are just so many ways to make income from the market. Options is another great way to earn an income and with the right strategy, it can be done even more safely than buying a share portfolio outright. You can even create a synthethic portfolio without having to risk so much money.

    To make income from the market isnt difficult, you just need to know what to do and use leverage to magnify your profits while finding ways and strategies to minimise your risk. But of course the real key to financial freedom is to spend less than what you earn and use the spare money wisely to further enhance your financial freedom.

  6. Yep. Keeping monthly expenses lower is one of my goals too. Thanks for the great comments!

  7. do away with the car, and u will enjoy more freedom.

  8. Sell your car and live in a 3 room HDB flat.
    There's more freedom to be enjoyed.

  9. tks for sharing and your sharing is much appreciated!


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