So 2015 has come and gone in almost a blink of an eye. And right now, 2016 is already upon us even as I am writing this post in a comfy cafe sipping on my ice-cold coffee and reflecting on what 2015 has meant to me.
2015 was probably a year of both ups and downs. There are definitely many things to be thankful about. Some of these include good health, advancement in career (and pay), seeing new places, enjoying new experiences, and having a great family (nevermind the occasional quarrels and fights). Indeed, I consider myself blessed. And I am still learning the art of contentment even though it still eludes me from time to time. So 2015 has really been a lot more positives than there has been negatives.
Investment-wise, 2015 probably has not been that good. A couple of my investments are losing money still and this is probably where I ought to spend more time and reflect to learn from my various mistakes. One of these mistakes is probably the blind pursuit of yield in some of my investments and that has proved detrimental since the risk was priced in but all I saw was the high yield. The lesson learnt is not to chase yield blindly especially when picking dividend stocks.
Nevertheless, despite my mediocre stock-picking skills and woeful market timing, I have seen my household networth surpass the $1 million mark. Of course this does not put me anywhere the high networth category since that is still way short of the USD$1 million in investible assets. But I know that goal should be achievable (God-willing).
Some thoughts on this is that my networth is largely tied to property so that is something to be mindful of. Also, most of this is probably not due to my efforts. Besides being a good saver and having a relatively okay salary, the rest probably boils down to being born in the correct family, having opportunities that jumped at me, etc. In fact, after much consideration (and as tempted as I am), I don't think there is any practical advice that I can offer anyone to assure them of reaching this milestone the way I did.
The negatives of 2015 probably boils down again to career decisions that need to be made and what awaits me for the future. I don't think I can say that I jump out of bed each day looking forward to the day. There are some changes that I yearn for in life (e.g. more free time and space, traveling, new experiences, etc) and I know these issues will probably need some confronting in the near future especially since I foresee a busy year ahead at work.
2016 is probably going to be a challenging year ahead. Probably not financially but emotionally. But I trust that God will see me through it.
Showing posts with label Financial Freedom Thoughts. Show all posts
Showing posts with label Financial Freedom Thoughts. Show all posts
Two Ideas That Will Change Your View About Investing Forever
One day, when I was taking a shower (now readers know where all my inspiration comes from!!), I reflected on my years of working, investing, conversations with friends/family/colleague and tried to distill what were the two most important ideas or messages that I should tell anyone who was getting started on investing/retirement planning/personal finance.
You see, in Asia or in Singapore, personal finance is still pretty much a taboo topic. It isn't the best lunch conversation topic (unless one is talking about the latest stock picks and how who and who made a million bucks from some investment). But people in general tend not to reveal their own investments, savings, etc, etc. Money is almost like a taboo topic that is not discussed.
I have heard and read about so many ideas but I think these are the two most revolutionary ideas that will perhaps change the perception or philosophy of investors:
Idea #1 - Investing is for Income
I don't really recall when this idea struck me or came into my head. It might have been a book I read or when I was just thinking about retirement planning in general. But the key idea to investing is not to "earn a million dollars" or to "buy a big house", etc. Well, those are the material things that people want and I guess it is easier for people to relate to some kind of physical possession or numerical value to determine that they have reached financial freedom. However, this is probably misguided.
For most people, becoming a millionaire seems to be the ultimate goal. However, if you dig deeper and ask them why they want to be a millionaire, it is probably due to the pre-conceived idea that with a million dollars, they no longer have to work and can retire in peace. That probably explains why many people buy the lottery. The idea of having a big house is also related to the very simplistic idea that "if I own a big house, I must be rich, just like people on TV/movies. If that is the case, I no longer need to work". While these physical possessions gives many people a financial goal to strive for, at the end of the day, if you drill down deeper, you know that reaching these arbitrarily set goals probably does not put one in a better stead to achieve financial freedom.
At the end of the day, it boils down to cashflow. Give a big spender a million dollars and let him retire at age 30. It is possible that the million dollars can be spent even before his lifetime and he will have to return to work. And that probably explains why many lottery ticket winners end up becoming bankrupt or broke again. So the idea is cashflow. And the idea is that all that you are investing for is not for a big house or for a million dollars, but it is for the sole purpose of income. It is the common Chinese saying : " qian sheng qian" or "using money to grow more money".
When one invests, the million dollar goal (or two million dollar goal) is actually so that you can start drawing down on that sum of money during your retirement years. That is how most financial planners will actually work out how much you need for your retirement. They take the age you intend to retire, and the expected life expectancy, and calculate your monthly expenditure to indicate what is the $X dollar value that you need in retirement funds. But so many people forget that the $X dollar value is meant to provide them with income when they stop working and stop drawing an income.
So at the end of the day, all investing is for the sake of income. Nothing more and nothing less. That is the sole goal of investing. You are basically trying to build up a stockpile of cash that you can tap upon when you are not drawing any money. If you have $10million dollars invested in an instrument that gives you a 10% per annum yield, you will have $1million in income to spend every year. That is as simple as it gets. If you put that $10million in a bank with 0% interest, what you draw down on that bank account every month is basically income while the original value of your bank account just gets depleted month after month.
This idea is "revolutionary" because not many people I know of think or speak of investing in that sort of way. They always speak of investing as some sort of arbitrary goal or just about making more money from the stock market. If you realise that investing is about income, you will realise that building up that income is just one side of the story. What you as an individual will also need to manage is your monthly expenditure so that it does not exceed your monthly income. And isn't that all there is to personal finance. No wonder we hear the frequent maxim: "Spend less than you earn". Because even when you retire, you also need to spend less that you get in income.
Once this idea is firmly implanted in your head, it will then help you better strategise how you want to go about building up that income stream for your retirement years. For some people, it could be just a bank account. For others, it might be bonds or dividend yielding stocks/REITs or businesses or even rental income from property.
Here is where the 2nd idea then comes in a little much easier....
Idea #2 - If You Intend to Work for the Rest of Your Life, You Don't Really Need to Invest
I know that this idea will probably draw a lot of flak from some readers who will still think that it is important to invest. What I am alluding to is the hypothetical situation of a person who has no intention to retire and whose life expectancy is say at age 80. Effectively, a financial planner who does his calculation will realise that there is no investment product he can offer this person especially if the person is willing to live within his means.
If one is able to work till death and still draw an income, then you literally will not have the need to set up a retirement fund. However, there is of course all the unexpected events that life can throw at us. Illness, retrenchment, disabilities, etc, etc can all potentially strike us even if we intend to work for life. So at the end of the day, one will still need to prepare for such unforeseen scenarios either through investing/savings/insurance.
I don't intend to retire, but I still invest. And the reason I invest is just in case there comes a day when I am forced to retire.
You see, in Asia or in Singapore, personal finance is still pretty much a taboo topic. It isn't the best lunch conversation topic (unless one is talking about the latest stock picks and how who and who made a million bucks from some investment). But people in general tend not to reveal their own investments, savings, etc, etc. Money is almost like a taboo topic that is not discussed.
I have heard and read about so many ideas but I think these are the two most revolutionary ideas that will perhaps change the perception or philosophy of investors:
Idea #1 - Investing is for Income
I don't really recall when this idea struck me or came into my head. It might have been a book I read or when I was just thinking about retirement planning in general. But the key idea to investing is not to "earn a million dollars" or to "buy a big house", etc. Well, those are the material things that people want and I guess it is easier for people to relate to some kind of physical possession or numerical value to determine that they have reached financial freedom. However, this is probably misguided.
For most people, becoming a millionaire seems to be the ultimate goal. However, if you dig deeper and ask them why they want to be a millionaire, it is probably due to the pre-conceived idea that with a million dollars, they no longer have to work and can retire in peace. That probably explains why many people buy the lottery. The idea of having a big house is also related to the very simplistic idea that "if I own a big house, I must be rich, just like people on TV/movies. If that is the case, I no longer need to work". While these physical possessions gives many people a financial goal to strive for, at the end of the day, if you drill down deeper, you know that reaching these arbitrarily set goals probably does not put one in a better stead to achieve financial freedom.
At the end of the day, it boils down to cashflow. Give a big spender a million dollars and let him retire at age 30. It is possible that the million dollars can be spent even before his lifetime and he will have to return to work. And that probably explains why many lottery ticket winners end up becoming bankrupt or broke again. So the idea is cashflow. And the idea is that all that you are investing for is not for a big house or for a million dollars, but it is for the sole purpose of income. It is the common Chinese saying : " qian sheng qian" or "using money to grow more money".
When one invests, the million dollar goal (or two million dollar goal) is actually so that you can start drawing down on that sum of money during your retirement years. That is how most financial planners will actually work out how much you need for your retirement. They take the age you intend to retire, and the expected life expectancy, and calculate your monthly expenditure to indicate what is the $X dollar value that you need in retirement funds. But so many people forget that the $X dollar value is meant to provide them with income when they stop working and stop drawing an income.
So at the end of the day, all investing is for the sake of income. Nothing more and nothing less. That is the sole goal of investing. You are basically trying to build up a stockpile of cash that you can tap upon when you are not drawing any money. If you have $10million dollars invested in an instrument that gives you a 10% per annum yield, you will have $1million in income to spend every year. That is as simple as it gets. If you put that $10million in a bank with 0% interest, what you draw down on that bank account every month is basically income while the original value of your bank account just gets depleted month after month.
This idea is "revolutionary" because not many people I know of think or speak of investing in that sort of way. They always speak of investing as some sort of arbitrary goal or just about making more money from the stock market. If you realise that investing is about income, you will realise that building up that income is just one side of the story. What you as an individual will also need to manage is your monthly expenditure so that it does not exceed your monthly income. And isn't that all there is to personal finance. No wonder we hear the frequent maxim: "Spend less than you earn". Because even when you retire, you also need to spend less that you get in income.
Once this idea is firmly implanted in your head, it will then help you better strategise how you want to go about building up that income stream for your retirement years. For some people, it could be just a bank account. For others, it might be bonds or dividend yielding stocks/REITs or businesses or even rental income from property.
Here is where the 2nd idea then comes in a little much easier....
Idea #2 - If You Intend to Work for the Rest of Your Life, You Don't Really Need to Invest
I know that this idea will probably draw a lot of flak from some readers who will still think that it is important to invest. What I am alluding to is the hypothetical situation of a person who has no intention to retire and whose life expectancy is say at age 80. Effectively, a financial planner who does his calculation will realise that there is no investment product he can offer this person especially if the person is willing to live within his means.
If one is able to work till death and still draw an income, then you literally will not have the need to set up a retirement fund. However, there is of course all the unexpected events that life can throw at us. Illness, retrenchment, disabilities, etc, etc can all potentially strike us even if we intend to work for life. So at the end of the day, one will still need to prepare for such unforeseen scenarios either through investing/savings/insurance.
I don't intend to retire, but I still invest. And the reason I invest is just in case there comes a day when I am forced to retire.
Debt Free!
So I sat down and worked out the numbers. Added up all my cash and liquid assets (i.e. stocks & unit trusts). Looking at the number, I suddenly realised its meaning. The number I was looking at was larger than the outstanding loans and debts that I have. In other words, if I were to liquidate all my shareholdings today and add that to the cash that is sitting around in the family's bank accounts, I will have sufficient money to pay off all my debts (e.g. housing loan, etc) right here, right now, with some cash left to spare. That means I can become debt free!!!!
This was perhaps never really a surprise to me. I sort of knew that God had blessed me with many good things. For one, I have enjoyed good health in my adult working life and was able to work almost continuously despite some job switches here and there. I am also a saver as I do not spend on unnecessary things. I eat at restaurants and stuff. But that is about all that I spend on. In my early years, I also managed to save quite a fair bit of money. God also has blessed me with some positive returns on my investments. So I sort of knew that I would become debt free much earlier than most people.
And yet, the realisation that I can be debt free does not necessarily mean that I want to be debt free right now. Having the money to pay off all my debts does not mean that I should go ahead and do so. After all, interest rates are very low here in Singapore. But then again, there is this difference between bad debt and good debt.
So the decision has come. Should I pay off all my loans and become debt free? Or should I continue to hold on to my debt and carry on investing? Decisions, decisions...
Anyway, to celebrate the occasion, I open a bottle of Hoegaarden (which reads original belgian wheat beer) to celebrate. And the next thing I do is to log into blogger to type this post and schedule it for publishing.
This was perhaps never really a surprise to me. I sort of knew that God had blessed me with many good things. For one, I have enjoyed good health in my adult working life and was able to work almost continuously despite some job switches here and there. I am also a saver as I do not spend on unnecessary things. I eat at restaurants and stuff. But that is about all that I spend on. In my early years, I also managed to save quite a fair bit of money. God also has blessed me with some positive returns on my investments. So I sort of knew that I would become debt free much earlier than most people.
And yet, the realisation that I can be debt free does not necessarily mean that I want to be debt free right now. Having the money to pay off all my debts does not mean that I should go ahead and do so. After all, interest rates are very low here in Singapore. But then again, there is this difference between bad debt and good debt.
So the decision has come. Should I pay off all my loans and become debt free? Or should I continue to hold on to my debt and carry on investing? Decisions, decisions...
Anyway, to celebrate the occasion, I open a bottle of Hoegaarden (which reads original belgian wheat beer) to celebrate. And the next thing I do is to log into blogger to type this post and schedule it for publishing.
Random Thoughts
Have been busy lately so have not been finding much time to write anything new. And not that there is anything new that I can contribute in terms of financial knowledge to the already booming community. There are so many high quality articles on newspapers, magazines, blogs, etc where one can find information about investing and personal finance that it is making me re-think what is my purpose in maintaining this blog and whether it is still worthwhile to put in time, effort and energy into something where my contributions are perhaps not worth mentioning. After all, there are so many other ppl who are much more knowledgeable and who write much better than me.
The amount of emails that I get are also way too many for me to reply and track (so sorry if I have not been responding). I am too busy to attend any events, market products or liaise with people to exchange links/post guests postings. Ask any blogger and I am certain they will tell you this is like doomsday for any blog. But this approach has served me pretty well thus far. I know blogging is about building a community but I don't really have that much time on my hands.
Because I have been "dry" on new things to write, I have started reading quite a fair bit. Just finished a book by David Bach on the Automatic Millionaire.Homeowner.( I read another of his books previously on the Automatic Millionaire which is sort of summarised here) It was really easy to read and I skipped all the parts that were not really relevant to me so managed to finish the entire book in less than a day.
It was written in 2005 before the subprime crisis but the main idea is that we should all aspire to own our own homes rather than rent a home since owning a home is a way to automate savings simply by forcing oneself to save. Of course, that is assuming that your home value does not drop drastically along the way.
Another idea that I like is that one should try to become a landlord and rent out your house. It has always been something that I have thought of doing.
The last takeaway I had from the book was the idea of bi-weekly mortgage payments. The concept is to make more mortgage payments (or pre-payments) so that you pay less interest on the mortgage loans. Of course, I am certain many people disagree with this approach as they will cite low interest rates in Singapore as a very good reason to stretch out your mortgage loans as long as possible.
Just a quick and short sharing.
The amount of emails that I get are also way too many for me to reply and track (so sorry if I have not been responding). I am too busy to attend any events, market products or liaise with people to exchange links/post guests postings. Ask any blogger and I am certain they will tell you this is like doomsday for any blog. But this approach has served me pretty well thus far. I know blogging is about building a community but I don't really have that much time on my hands.
Because I have been "dry" on new things to write, I have started reading quite a fair bit. Just finished a book by David Bach on the Automatic Millionaire.Homeowner.( I read another of his books previously on the Automatic Millionaire which is sort of summarised here) It was really easy to read and I skipped all the parts that were not really relevant to me so managed to finish the entire book in less than a day.
It was written in 2005 before the subprime crisis but the main idea is that we should all aspire to own our own homes rather than rent a home since owning a home is a way to automate savings simply by forcing oneself to save. Of course, that is assuming that your home value does not drop drastically along the way.
Another idea that I like is that one should try to become a landlord and rent out your house. It has always been something that I have thought of doing.
The last takeaway I had from the book was the idea of bi-weekly mortgage payments. The concept is to make more mortgage payments (or pre-payments) so that you pay less interest on the mortgage loans. Of course, I am certain many people disagree with this approach as they will cite low interest rates in Singapore as a very good reason to stretch out your mortgage loans as long as possible.
Just a quick and short sharing.
Financial Freedom, Being Debt Free and Quitting My Job
Today, I asked myself 3 questions:
How long more do I need to achieve financial freedom?
When will I become debt free?
How long more must I work at my job?
After so many years of working, it seems that I am no where closer to my goal and dream of financial freedom (where my passive income will surpass my monthly expenditure). I did a quick calculation and estimate my passive income to be slightly around $2800 per year. That is much less than what I thought I would have achieved 3-4 years ago when I first started out on this journey. It seems that I will still be taking a long time to reach my true goal of financial freedom. Over the years, my monthly expenditure has also crept up slightly. This can only mean one thing: I NEED TO WORK HARDER AT MY GOAL!
Being debt free of course is one of the things that I look forward to. It simply means having more disposable income to play around with. Of course, if you manage to borrow cheaply, it does not make sense to pay back the loans if you can get a higher rate of return compared to the interest you are paying on your debts. However, I don't know...perhaps it is just psychological. But being debt free is something that I hope to achieve. Well, at least I mean clearing my bad debts (e.g. car loan). Good debt is still welcomed.
Well, the last question that I asked myself is really related to the first 2 questions. When I can quit my job is probably the day I am certain that I have attained financial freedom. It is not that I hate my work or anything. It is just that I feel I can be doing so much more with my life and time then having only remnants of my time to give to my family and friends.
I want to work for the rest of my life. But I don't want to have to work for a living (a.k.a having a job).
Time to get down to business.
Buy a 2nd Property or Buy REITs?
Should one buy a 2nd property or invest in Real Estate Investment Trusts? I have been thinking about this for sometime. The minimum occupation period for my HDB flat is almost up. That means that I can actually sell my flat in the open market pretty soon. At the same time, I really love the place where I am staying at now. So it is going to be a tough decision.
The remaining mortgage on the HDB flat is now $238,000. Market value based on a similar size flat sold at the opposite block is estimated at $600,000. Bought the flat for slightly over $300,000. Currently monthly mortgage loan is $1096. Right now, I have been thinking about the following few options. Family's gross monthly income is around $5600 (really average!).
Option 1 - Sell the HDB and Buy a Private Property
This will mean selling the HDB flat, giving it up and buying a new private property. It is going to be difficult as I will have to buy a private property that is less than $1mil I guess. If I can only take 35% loan based on family's gross monthly salary, that means the maximum monthly mortgage loan that we afford is around $1900+. As we are still paying for the car we bought, it probably means that we can only afford a mortgage loan of around $1,400. I don't think the banks will be willing to land us to much. I figure that means we can only borrow around $350k (pls correct me if I am wrong). Selling the HDB and buying a private property also means that this does not count as my 2nd property and I am not obligated to set aside the 50% minimum sum in both my wife's and my CPF account. We can probably use the gains from selling the HDB to pay for the private property.
End of the day: I am probably saddled with more debt but have effectively upgraded to a more expensive property. There will be less money to spend as I have to pay more each month for mortgage.
Option 2 - Keep HDB flat, Buy a Private Property to rent out.
This is option 2 which I have been thinking about and which I am leaning towards. But it seems almost impossible to do this. This is because of the following reasons:
1. No money in CPF-OA to pay for it. Will have to use all cash to pay for the downpayment. Even if all assets (stocks + bank accounts) are liquidated, I figure that we only have slightly over $220k. Not too sure how much the bank will actually lend us for the 2nd property but I guess it is around 60-70%.
2. Will also have to rely on cash to pay for the monthly mortgage. That is impossible considering that existing HDB loan is already $1096. It means I can only get around $800 per month more in mortgage loan. Will also have to repay off the car loan so that I can borrow the $800 per month more in mortgage loan for the 2nd property. That leaves very little options for me as I won't be able to find such a cheap property that only costs $800 per month!
Option 3 - Keep HDB and Buy REITs.
REITs are easily liquidated. I also collect dividends. This seems to be a very feasible option with little downside.
Option 4 - Sell HDB and Buy 2 Pte Property
Lately, I came across this strategy which advised to sell 1 property and buy 2 properties. In this manner, you can rent out 1 and stay in the other. Not too sure whether this strategy will work at all cos it will probably mean that I have to buy 2 really small pte property.
Wise folks out there. Any advice on all the options???
To Cultivate Generosity and Love Simplicity
I read a book by John Stott about some Christian perspectives about wealth and I had some reflections about the matter which I thought might be useful to share.
How to be content in life is really not about chasing riches or wealth.
Being content in life is really about learning how to live simply or to love simplicity. Truth be told, many of the pleasures in life can actually be enjoyed without paying a single cent. Sometimes, the night sky with all the stars is enough to take my breath away compared to watching a zillion movies. Living simply also means being happy with the simple things in life like the MRT ride to work, the cup of coffee, a quiet rest at night, a nice bath, etc.
Loving simplicity is however not enough. One ought not to hoard wealth to the extent that he puts his trust in them. After all, you never know whether you will wake up with it or whether you might even wake up the next day. Another part about managing wealth is really about learning how to give your money away according to your means. The money that you have can be given to good causes rather than just to satisfy your own desires. After all, what can one do with so much money if you don't even know whether you will live past a certain age.
So cultivate generosity and love simplicity. Be content with the food and clothing you have. Give generously to the poor.
Living Within Your Means
Most people have heard about "living within your means" but how many people actually practise it?
I have just discovered that it is very hard to live within one's means. As one climbs up the career ladder, or as one ages, one feels obliges to spend more on certain stuff. This can range from food, clothing to holidays even.
It is difficult to live within your means when everyone else is spending like there is no tomorrow. It is difficult to live within your means when friends and colleagues are always nearby and offer a good comparison of the things that you have versus what you do not have.
In fact, I am almost certain that it is not your absolute income that makes you happy. Rather, it is your relative income that makes one satisfied.
The simple lesson: Stop comparing and live the life that you really want to. Comparing gets you no where and only makes you desire for the things that you do not have. The reason why we fail to live within our means is because we keep comparing and our expectations go up. We expect to be able to own certain luxury goods that we could easily do without.
I have failed in this area too many times. This entry is just a reminder to myself and to readers to Live Within Your Means.
I have just discovered that it is very hard to live within one's means. As one climbs up the career ladder, or as one ages, one feels obliges to spend more on certain stuff. This can range from food, clothing to holidays even.
It is difficult to live within your means when everyone else is spending like there is no tomorrow. It is difficult to live within your means when friends and colleagues are always nearby and offer a good comparison of the things that you have versus what you do not have.
In fact, I am almost certain that it is not your absolute income that makes you happy. Rather, it is your relative income that makes one satisfied.
The simple lesson: Stop comparing and live the life that you really want to. Comparing gets you no where and only makes you desire for the things that you do not have. The reason why we fail to live within our means is because we keep comparing and our expectations go up. We expect to be able to own certain luxury goods that we could easily do without.
I have failed in this area too many times. This entry is just a reminder to myself and to readers to Live Within Your Means.
Being Contented Helps You Save Money
There are many ways to save money. I know of probably 1001 ways to save money and I am pretty sure that most people know how to save money too. But I guess there is an underlying reason why people do not save money. It is because they have not learnt contentment.
Being contented with the things that you have in life is one of the first steps when it comes to saving money.
Whenever I spend money, I realise that I can actually save money if I curb my WANTS and simply be contented with the little things in life. This is probably true for many of us and it's perhaps the reason why we are constantly buying new things and upgrading our cars and stuff.
Learn to be contented and you will find that you can save alot more money without much effort.
Lessons from Silas Marner
Silas Marner is a book written by George Eliot. I just finished this short story which I felt was a wonderful read. In this story, the life of Silas Marner is told.
Silas lives as a lonely waver near the village of Raveloe. He works hard and gains gold and reputation but shuns humanity for it treated him badly once. One night, his stash of gold is stolen and in its place, Silas finds a gift that is more precious....
The way George Eliot wrote this book was wonderful. The way she stringed together words were also perfect in my opinion. What is even more amazing is the way she uses the character of Silas to show the tendency to hoard money amongst human beings. Certain good quotes from the book as follows:
"Do we not wile away moments of inanity or fatigued waiting by repeating some trivial movement or sound, until the repetition has bred a want, which is incipient habit? That will help us to understand how the love of accumulating money grows an absorbing passion in men whose imaginations, even in the very beginning of their hoard, showed them no purpose beyond it."
"His life has reduced itself to the mere functions of weaving and hoarding, without any contemplation of an end towards which the functions tended."
George Eliot has indeed hit many money hoarders right where it hurts. Too often, we treat our work and the accumulation of wealth as the entirety of our lives without giving thought to what purpose they serve.
The end of the story is a sweet ending and I shall not reveal it lest some of you might want to read the book.
Keep Counting and Let's See Who Has More
I remember waiting at a crowded bus stop once and saw a beautiful convertible car pass slowly by. It was one of those peak hour jams where the bus stops were really crowded and the buses themselves were also packed. I could not help but notice quite a few people at the bus stop stare enviously at the person driving the convertible.
It was then that I remembered something. It is very common for people to become unhappy when they focus on the things they do not have in life.
I was reminded through a fellow blogger's posting that it helps to count your blessings. Instead of focusing on the things that you do not have in life, why not focus on the things that you have in life?
Counting my blessings
1. I have a great family.
2. I have a healthy body (thus far though I have put on quite a lot of weight lately)
3. I have spare cash.
4. I have a HDB flat. Though I only own 22.5 square metres of it (based on the amount of mortgage loan I have paid off).
5. I have a car. Another few more years to paying off the debt.
6. I have friends.
7. I am ALIVE!
Keep Counting your blessings to see how fortunate you are.
It was then that I remembered something. It is very common for people to become unhappy when they focus on the things they do not have in life.
I was reminded through a fellow blogger's posting that it helps to count your blessings. Instead of focusing on the things that you do not have in life, why not focus on the things that you have in life?
Counting my blessings
1. I have a great family.
2. I have a healthy body (thus far though I have put on quite a lot of weight lately)
3. I have spare cash.
4. I have a HDB flat. Though I only own 22.5 square metres of it (based on the amount of mortgage loan I have paid off).
5. I have a car. Another few more years to paying off the debt.
6. I have friends.
7. I am ALIVE!
Keep Counting your blessings to see how fortunate you are.
How Many Pratas Can You Eat?
Just the other day, the family was out eating some prata.
The wife actually had some words of wisdom to impart to me.
Wife: " I like eating prata."
Me: "Me too."
Wife: "What I like about prata is that both the rich and the poor can enjoy it."
Me: "Oh...okay.."
Wife: "Yes. Even if you drive a big car or you are poor, you still can afford prata."
Me: "That is true. And there is only so much prata we can eat."
How true it is indeed!
Roti prata is really cheap Indian food in Singapore. And whether you are rich or poor, you can enjoy this food. But at the end of the day, there is only so much prata that you can eat in one seating. So what if you have lots of money? You can't possibly eat a lot more prata than the person sitting next to you.
This is a lesson about contentment. Be contented with what you have. At the end of the day, there is only so much food you can eat and there are only so much clothes you can wear. All the money in the world can buy you more food, but how much food can one possibly eat?
As if to prove a point, the wife managed to gulp down 4 plain pratas whereas I only managed to finish 2.
The wife actually had some words of wisdom to impart to me.
Wife: " I like eating prata."
Me: "Me too."
Wife: "What I like about prata is that both the rich and the poor can enjoy it."
Me: "Oh...okay.."
Wife: "Yes. Even if you drive a big car or you are poor, you still can afford prata."
Me: "That is true. And there is only so much prata we can eat."
How true it is indeed!
Roti prata is really cheap Indian food in Singapore. And whether you are rich or poor, you can enjoy this food. But at the end of the day, there is only so much prata that you can eat in one seating. So what if you have lots of money? You can't possibly eat a lot more prata than the person sitting next to you.
This is a lesson about contentment. Be contented with what you have. At the end of the day, there is only so much food you can eat and there are only so much clothes you can wear. All the money in the world can buy you more food, but how much food can one possibly eat?
As if to prove a point, the wife managed to gulp down 4 plain pratas whereas I only managed to finish 2.
The Grass is Greener on the Other Side
The grass always seems greener on the other side. Doesn't it feel so?
Where you are right now in life, you always feel that someone out there probably has a better life than you.
That's perhaps the reason why people change jobs, migrate, get divorced, have children, move houses and more.
The greener grass syndrome can perhaps be accounted for because of the following:
1. We fail to see how green the grass is on our side.
2. There is perhaps more shit on the other side, and that is why it looks greener.
Failure to be Contented
We fail to be contented as human beings. We always want more and more. God gave Adam and Eve all the trees to eat from in the Garden of Eden. Yet, they chose to eat from the one tree out of ALL the tress that they were commanded not to eat from. The rest is history.
As a man, the failure to be contented can be due to many factors like peer pressure, ambition, wanting to look GOOD infront of others, and many more. Society places a lot of pressure on us and if parents or parent-in-laws are not understanding, they might place this pressure on you to "succeed" in life by getting a bigger house, nicer car and perhaps a better paying job.
Driven by these pressures, we fail to be contented with the little that we have and start to strive and focus our attention on the things that we do not have.
This is one of the reasons why the grass is always greener on the other side.
There is simply more fertiliser...
The reason why someone else has a higher paying job is perhaps because the job has a lot more stress, pressures and work that comes with it. This in turn results in companies willing to pay good money for people to fulfill the role.
So even though the grass is indeed greener, it simply comes along with a lot more fertiliser or should I say crudely, shit.
And with this greener grass comes the added responsibilities, the need to have your handphone on 24/7, the mindless churning of papers and reports, responding to emails during the weekends or simply working OT. There are sacrifices to be made and we all must be aware of it.
The Lesson
I guess the lesson is simple. We must learn to be content with what we have yet continue to strive to become better human beings. Knowing that with a bigger house probably comes greater stress and responsibility should make us think twice before jumping at the next job offer or migrating to far away countries just to chase after some idealism.
Where you are right now in life, you always feel that someone out there probably has a better life than you.
That's perhaps the reason why people change jobs, migrate, get divorced, have children, move houses and more.
The greener grass syndrome can perhaps be accounted for because of the following:
1. We fail to see how green the grass is on our side.
2. There is perhaps more shit on the other side, and that is why it looks greener.
Failure to be Contented
We fail to be contented as human beings. We always want more and more. God gave Adam and Eve all the trees to eat from in the Garden of Eden. Yet, they chose to eat from the one tree out of ALL the tress that they were commanded not to eat from. The rest is history.
As a man, the failure to be contented can be due to many factors like peer pressure, ambition, wanting to look GOOD infront of others, and many more. Society places a lot of pressure on us and if parents or parent-in-laws are not understanding, they might place this pressure on you to "succeed" in life by getting a bigger house, nicer car and perhaps a better paying job.
Driven by these pressures, we fail to be contented with the little that we have and start to strive and focus our attention on the things that we do not have.
This is one of the reasons why the grass is always greener on the other side.
There is simply more fertiliser...
The reason why someone else has a higher paying job is perhaps because the job has a lot more stress, pressures and work that comes with it. This in turn results in companies willing to pay good money for people to fulfill the role.
So even though the grass is indeed greener, it simply comes along with a lot more fertiliser or should I say crudely, shit.
And with this greener grass comes the added responsibilities, the need to have your handphone on 24/7, the mindless churning of papers and reports, responding to emails during the weekends or simply working OT. There are sacrifices to be made and we all must be aware of it.
The Lesson
I guess the lesson is simple. We must learn to be content with what we have yet continue to strive to become better human beings. Knowing that with a bigger house probably comes greater stress and responsibility should make us think twice before jumping at the next job offer or migrating to far away countries just to chase after some idealism.
Financial Freedom Thoughts
Sometime ago, I wrote a post about James Sun. He is a young guy who made his millions from an initial $5000 investment in eBay and other stocks like Intel, etc.
Today, at the age of 32, he has accomplished so much more than I have accomplished in my entire life.
This got me thinking about the journey that I am taking and it makes me wonder whether I will actually achieve it.
Being more aware of my mortality these days, I must admit that I could pass on before any of my dreams have been accomplished. And all will be left of me is this blog.
Of course, it is my hope that this blog will live on long after I do to spur people on to achieving financial freedom, abandoning the rat race and truly contemplating about their purpose in life. When one is caught up in the rat race, it is sometimes impossible to think of one's higher calling in life.
I am listing down ten of my dreams that I hope to accomplish. It is my wish that I can accomplish all these before I die but if I don't, hopefully somebody out there will be inspired by this list of mine and go on to accomplish great things in life.
So here are my ten big dreams:
TEN DREAMS OF MY LIFETIME
1. To Achieve Financial Freedom (Passive income greater than expenditure)
2. To Travel the World
3. To live behind a business of lasting impact and help to people
4. To live in a big house by the lake with lots of books
5. To drive a nice car (BMW 5 series)
6. To play the piano
7. To study overseas in a good university
8. To write a book
9. To build a good stamp collection/art collection
10. To start a charity organisation
How long will I take to achieve my dreams? Do I go about achieving them simultaneously or should I priorities and focus on one big dream at a time? Will I ever achieve all these dreams in my lifetime?
2 Different Economic Lives
I was overseas and walking down a marina where boats and yatches were berthed.
A security guard stood there ensuring that no one trespassed the gates which even a 5 year old could easily climb over.
The scenery was surreal. Calm and peaceful. Two children around the ages of 5 and 7 were feeding some fishes in the marina. The water was clear and I could see the fishes swarmed to them as they tossed the bread to them.
The white boats and yatches were parked neatly in rows. I couldn't help but notice that they were all white in color and that there were people actually living in them.
I striked up a conversation with the security guard. He was tanned and looked smart in his iron pressed white uniform. Bearning a moustach, he looked pretty friendly and smiled at me as I approached.
"How much to park the boat there?" I asked
"Don't know." he shook his head as he replied in his rather broken english. It was clear that he was not good in the language.
A brief silence and then he said: " Maybe ...3000. Yes , 3000 one month"
He did not seem like he knew the answer but felt obliged to give one anyway.
"Do they need to be members or anything?" I asked further
"Yes..yes..members..., only boat berth pass holders allowed in." he replied, clearly echoing the words on the sign that was placed on the gate to warn any trespasses.
Hoping to bring the conversation further, I asked : "And these people stay in their boats? Where do they come from?"
"Everywhere...they come here and park.... then they go off." He replied.
"Boy..where do you come from??" the security guard directed this question to the 7 year old boy feeding the fishes just below.
"Singapore." the boy replied.
"Where is your daddy" the security guard asked.
"My daddy is at home. Our mummy brought us here." the little boy replied as he continued feeding the fishes.
Another brief moment of silence....
"So where are you from?" the security guard turned and asked me.
"Singapore" I replied.
"Same as that boy." he pointed to the little boy, as if I had not overheard their conversation.
I smiled politely at the security guard as I turned to leave.
Beyond the marina stood houses that had the most spectacular view of the sea. The sun was rising and it was getting hot. The day had just begun for the security guard as he continued to walk around the rather empty marina.
So different are the economic lives of the security guard and the seven year old boy. One is much younger but perhaps has experienced a lot more things compared to the security guard who probably has never left his country before.
At this point, I am just amazed at how different and far apart their two worlds are. One is here on a holiday in a million dollar yatch while the other will most probably never make a million in his entire life.
It is not because one is cleverer or smarter or more hardworking. It is simply the country they were born in and the opportunities that were presented to them.
A security guard stood there ensuring that no one trespassed the gates which even a 5 year old could easily climb over.
The scenery was surreal. Calm and peaceful. Two children around the ages of 5 and 7 were feeding some fishes in the marina. The water was clear and I could see the fishes swarmed to them as they tossed the bread to them.
The white boats and yatches were parked neatly in rows. I couldn't help but notice that they were all white in color and that there were people actually living in them.
I striked up a conversation with the security guard. He was tanned and looked smart in his iron pressed white uniform. Bearning a moustach, he looked pretty friendly and smiled at me as I approached.
"How much to park the boat there?" I asked
"Don't know." he shook his head as he replied in his rather broken english. It was clear that he was not good in the language.
A brief silence and then he said: " Maybe ...3000. Yes , 3000 one month"
He did not seem like he knew the answer but felt obliged to give one anyway.
"Do they need to be members or anything?" I asked further
"Yes..yes..members..., only boat berth pass holders allowed in." he replied, clearly echoing the words on the sign that was placed on the gate to warn any trespasses.
Hoping to bring the conversation further, I asked : "And these people stay in their boats? Where do they come from?"
"Everywhere...they come here and park.... then they go off." He replied.
"Boy..where do you come from??" the security guard directed this question to the 7 year old boy feeding the fishes just below.
"Singapore." the boy replied.
"Where is your daddy" the security guard asked.
"My daddy is at home. Our mummy brought us here." the little boy replied as he continued feeding the fishes.
Another brief moment of silence....
"So where are you from?" the security guard turned and asked me.
"Singapore" I replied.
"Same as that boy." he pointed to the little boy, as if I had not overheard their conversation.
I smiled politely at the security guard as I turned to leave.
Beyond the marina stood houses that had the most spectacular view of the sea. The sun was rising and it was getting hot. The day had just begun for the security guard as he continued to walk around the rather empty marina.
So different are the economic lives of the security guard and the seven year old boy. One is much younger but perhaps has experienced a lot more things compared to the security guard who probably has never left his country before.
At this point, I am just amazed at how different and far apart their two worlds are. One is here on a holiday in a million dollar yatch while the other will most probably never make a million in his entire life.
It is not because one is cleverer or smarter or more hardworking. It is simply the country they were born in and the opportunities that were presented to them.
Counting My Money
I can't sleep. I am worried about my finances.
So I am up now counting my money in all the places that I have. Sometimes I forget that I even have such money lying around.
Cash:
1. POSB Savings : $6200
2. Maybank : $17,000
3. Citibank: $6300
Stocks
1. Singapore: $72,000
2. US Stocks: $8000
3. Unit Trusts: $4000
Semi-liquid Funds:
1. Investment Linked Plan 1 = $37500
2. Whole Life = $15,000
Okay...now I feel so much better..Can sleep again =)
So I am up now counting my money in all the places that I have. Sometimes I forget that I even have such money lying around.
Cash:
1. POSB Savings : $6200
2. Maybank : $17,000
3. Citibank: $6300
Stocks
1. Singapore: $72,000
2. US Stocks: $8000
3. Unit Trusts: $4000
Semi-liquid Funds:
1. Investment Linked Plan 1 = $37500
2. Whole Life = $15,000
Okay...now I feel so much better..Can sleep again =)
Which Is Your Best Income Source?
I was recently at the library when I stumbled upon Sean Toh's 4 Steps to Financial Freedom.
It was a pretty easy to read book and in it, I was reminded of the Rich Dad Poor Dad book that I read when I was in the Army and later on in university....
After reading Rich Dad Poor Dad and his advice to increase my income sources, I embarked on a journey to increase my portfolio and passive income so as to achieve financial freedom
Based on Rich Dad Poor Dad, one can earn an income throught the following methods:
1. Earned income
2. Portfolio income
3. Passive income
Earned Income
This is basically income which you earn using your sweat and toil be it at the desk or in the field growing tomatoes. Earned income is what most people are familiar with and many people stick to this source of income for their entire lives.
In my opinion, earned income is perhaps both Overrated and Underrated at the same time.
There is nothing wrong with focusing on this income source ALONE if you are certain that it will keep increasing and there will not be a day when this income will vanish and disappear.
Unfortunately for most people, earned income is no longer something that is guaranteed especially with the amount of retrenchments, compulsory retirement age and outsourcing that is taking place to countries like India and China.
On the other hand, some rich and well-to-do people get rich just be earned income alone. They get good jobs and get promotions and get paid higher salaries year after year.
I quit my $5K per month job this year and have thus suffered heavily in terms of my earned income. I find that I have less money to pour into my portfolio of stocks to increase my portfolio income which is what we will discuss next.
Portfolio Income
Porfolio income is earned from dividends that comes from one's stock or bond portfolios. Dividends are basically cash that is paid out to shareholders. The amount of dividends serves as a constant stream of income based on the porfolio of one's stocks.
I know of people who are able to earn sufficient portfolio income to retire because they have amassed a large portfolio of stocks that pay healthy dividends each year.
I started out collecting real estate investment trusts (REITs) because of their high dividend yields. Hopefully, this source of income will continue to rise over the years especially if I managed to re-invest whatever dividends I receive.
(I just collected a few hundred dollars in dividends for the month of November but it seems that this money will now be used for a short holiday trip instead of being reinvested...am I being wise?)
Passive Income
This can come from book royalties, renting out of houses, online income, etc. The magic of this income is that it requires little or no effort on your part and that is why it is termed "PASSIVE" income.
With this sort of income, you will be able to continue doing your daily job while earning an additional income that comes in day after day without you needing to working for it.
I started out some blogs to increase my online income as a source of passive income. I have been able to earn quite a steady and decent stream of income using Google's Adsense. Lately, I have been exploring Amazon's Associates Program too. Hopefully, this will start contributing to my passive income for the year 2010.
Conclusion
I am not on track to achieving my goal of $400 per month passive income. I admit that I have failed and that I will have a much higher and steeper slope to climb for year 2010 where I should hit a passive + portfolio income of $600 per month. May God Be With Me.
What are your income sources? Which source of income provides you with the biggest income? Are you focusing only on Earned Income while neglecting your portfolio income and passive income?
It was a pretty easy to read book and in it, I was reminded of the Rich Dad Poor Dad book that I read when I was in the Army and later on in university....
After reading Rich Dad Poor Dad and his advice to increase my income sources, I embarked on a journey to increase my portfolio and passive income so as to achieve financial freedom
Based on Rich Dad Poor Dad, one can earn an income throught the following methods:
1. Earned income
2. Portfolio income
3. Passive income
Earned Income
This is basically income which you earn using your sweat and toil be it at the desk or in the field growing tomatoes. Earned income is what most people are familiar with and many people stick to this source of income for their entire lives.
In my opinion, earned income is perhaps both Overrated and Underrated at the same time.
There is nothing wrong with focusing on this income source ALONE if you are certain that it will keep increasing and there will not be a day when this income will vanish and disappear.
Unfortunately for most people, earned income is no longer something that is guaranteed especially with the amount of retrenchments, compulsory retirement age and outsourcing that is taking place to countries like India and China.
On the other hand, some rich and well-to-do people get rich just be earned income alone. They get good jobs and get promotions and get paid higher salaries year after year.
I quit my $5K per month job this year and have thus suffered heavily in terms of my earned income. I find that I have less money to pour into my portfolio of stocks to increase my portfolio income which is what we will discuss next.
Portfolio Income
Porfolio income is earned from dividends that comes from one's stock or bond portfolios. Dividends are basically cash that is paid out to shareholders. The amount of dividends serves as a constant stream of income based on the porfolio of one's stocks.
I know of people who are able to earn sufficient portfolio income to retire because they have amassed a large portfolio of stocks that pay healthy dividends each year.
I started out collecting real estate investment trusts (REITs) because of their high dividend yields. Hopefully, this source of income will continue to rise over the years especially if I managed to re-invest whatever dividends I receive.
(I just collected a few hundred dollars in dividends for the month of November but it seems that this money will now be used for a short holiday trip instead of being reinvested...am I being wise?)
Passive Income
This can come from book royalties, renting out of houses, online income, etc. The magic of this income is that it requires little or no effort on your part and that is why it is termed "PASSIVE" income.
With this sort of income, you will be able to continue doing your daily job while earning an additional income that comes in day after day without you needing to working for it.
I started out some blogs to increase my online income as a source of passive income. I have been able to earn quite a steady and decent stream of income using Google's Adsense. Lately, I have been exploring Amazon's Associates Program too. Hopefully, this will start contributing to my passive income for the year 2010.
Conclusion
I am not on track to achieving my goal of $400 per month passive income. I admit that I have failed and that I will have a much higher and steeper slope to climb for year 2010 where I should hit a passive + portfolio income of $600 per month. May God Be With Me.
What are your income sources? Which source of income provides you with the biggest income? Are you focusing only on Earned Income while neglecting your portfolio income and passive income?
Think and Grow Rich
Today, I was reminded on the importance of thoughts and how it can affect our actions. You see, I was reading through the book written by Napoleon Hill, Think and Grow Rich.
Napoleon Hill's book is indeed a classic. I once speed read through it a long time ago and realised that I have forgotten most of what I have read.
(I do not know why but sometimes I get a sense of guilt reading this kind of books. You know the feeling like I don't want to be caught by anyone reading this books which are "frown upon" by some. I do not know why I get these kind of thoughts but I guess that people are just very against these kind of Get Rich books that are out in the market and are totally skeptical of its contents.) - Its the same kind of guilt feeling when I am afraid that others find out I am not holding a normal 8 to 5 job
Anyway, upon reading it again, I discovered new gems within this book.
Firstly, it taught me that I ought to share with others what I learn through reading the book. In this way, it will help to reinforce whatever I have learnt.
Secondly, it said that I ought to read and chew on the book slowly instead of devouring it in one entire sitting.
The lesson that I gleaned from the book today was about DESIRE. Do we really DESIRE the things that we pursue. DESIRE is such a strong word that when it totally consumes us, it translates to ACTION.
Do I truly DESIRE to earn $10 per day using Adsense?
Do I DESIRE to travel the world and be a full time blogger?
Do I DESIRE to earn a passive income that surpasses my monthly expenditure?
What am I willing to give in return for these DESIRES?
Just some food for thought.
Napoleon Hill's book is indeed a classic. I once speed read through it a long time ago and realised that I have forgotten most of what I have read.
(I do not know why but sometimes I get a sense of guilt reading this kind of books. You know the feeling like I don't want to be caught by anyone reading this books which are "frown upon" by some. I do not know why I get these kind of thoughts but I guess that people are just very against these kind of Get Rich books that are out in the market and are totally skeptical of its contents.) - Its the same kind of guilt feeling when I am afraid that others find out I am not holding a normal 8 to 5 job
Anyway, upon reading it again, I discovered new gems within this book.
Firstly, it taught me that I ought to share with others what I learn through reading the book. In this way, it will help to reinforce whatever I have learnt.
Secondly, it said that I ought to read and chew on the book slowly instead of devouring it in one entire sitting.
The lesson that I gleaned from the book today was about DESIRE. Do we really DESIRE the things that we pursue. DESIRE is such a strong word that when it totally consumes us, it translates to ACTION.
Do I truly DESIRE to earn $10 per day using Adsense?
Do I DESIRE to travel the world and be a full time blogger?
Do I DESIRE to earn a passive income that surpasses my monthly expenditure?
What am I willing to give in return for these DESIRES?
Just some food for thought.
Buy a Property or Invest in REITs?
I have always wondered whether it is better for a person without much money or capital to invest in a property or to invest in real estate investment trusts. (Please read here if you have no idea what a real estate investment trust is)
Let's assume that a person has $100,000 in spare cash and is earning a decent salary.
With $100,000 he could pay a 20% downpayment on a $500,000 condo. He could easily rent out this condo for $2500 to $3000 per month. Excluding the estimated $1500 mortgage loan he will have to pay every month, he can potentially receive up to $1500 in rental income if he chooses to buy a property.
He will be getting a decent 18% rental yield based on his intial $100,000 investment. In addition, the rental income is paid monthly compared to a REIT's quarterly or semi-annual distributions. However, to invest in a property, a large amount of capital is needed for the downpayment. You also need to worry about obtaining a bank loan especially if the property is your 2nd property.
With a REIT, he will only be able to manage around 6% to 10% yield. He however needs a much smaller capital. With the REIT, he does not need to worry about tenants, collecting rents and stuff.
He can also diversify his money across various REIT sectors like serviced apartments, retail, industrial, malls and office space. Thus, his returns should be much more stable. He will have less to worry about in a certain sense.
I still believe that investing in property is much more profitable than investing in a REIT. However, REITs provide diversification oppurtunities, are more liquid, and much less cumbersome to manage.
Just my 2 cents
Read Related Articles:
1. Investing in REITs
2. Investing in Rental Property
Let's assume that a person has $100,000 in spare cash and is earning a decent salary.
With $100,000 he could pay a 20% downpayment on a $500,000 condo. He could easily rent out this condo for $2500 to $3000 per month. Excluding the estimated $1500 mortgage loan he will have to pay every month, he can potentially receive up to $1500 in rental income if he chooses to buy a property.
He will be getting a decent 18% rental yield based on his intial $100,000 investment. In addition, the rental income is paid monthly compared to a REIT's quarterly or semi-annual distributions. However, to invest in a property, a large amount of capital is needed for the downpayment. You also need to worry about obtaining a bank loan especially if the property is your 2nd property.
With a REIT, he will only be able to manage around 6% to 10% yield. He however needs a much smaller capital. With the REIT, he does not need to worry about tenants, collecting rents and stuff.
He can also diversify his money across various REIT sectors like serviced apartments, retail, industrial, malls and office space. Thus, his returns should be much more stable. He will have less to worry about in a certain sense.
I still believe that investing in property is much more profitable than investing in a REIT. However, REITs provide diversification oppurtunities, are more liquid, and much less cumbersome to manage.
Just my 2 cents
Read Related Articles:
1. Investing in REITs
2. Investing in Rental Property
Thoughts on the Sweat Debt
I woke up early around 7am. After some reading, checking on my adsense earnings and serving out my food in Cafe World (a game in Facebook), it was time for breakfast.
We went out to eat again.
For me it is always the same food stall but I simply adore the food. The hustle and bustle of the market just makes the food taste so much better. I ordered a cup of $0.70 coffee from the coffee shop. The uncle gave me a knowing look. I was his regular customer afterall.
After eating breakfast, it was time for a family walk as we walked around the neighborhood and did some grocery shopping.
Back home, we spent our time reading the newspapers.
I was just reading this article on the Straits Times which talks about the 'Sweat Debt'.
A global management consultancy firm (Hay Group) actually says that workers are feeling increasingly frustrated especially if they have undergone wage cuts and stuff.
A poll showed that 29 per cent of employees felt frustrated while 35 percent feel detached. Only 16 per cent felt effective in their jobs.
I am not too sure how the survey was conducted but it seems that a total of 64 percent are either frustrated or detached from their work.
That is a huge number of people who are totally not involved in their work. If work takes up such a huge amount of our waking hours, isn't it worthless to pursue something that we do not enjoy and which we have no attachment to?
Too many people work simply because they need the money to survive. They work for money. And yet they claim they are not a slave to money. How can that possibly be??
If they are doing something they do not enjoy for the sake of money, aren't they a slave to money?
Too many people sacrifice lots of their time and effort on earned income. They have not explored the potential of passive income from online sources, businesses and stuff.
And then I looked at myself and realised what a different life I am living from the rest of the people around me! It is 12 noon and here I am writing about the events that have happened to me in the morning =)
When others are dressed in their office attires rushing off to work, I am dressed in my bermudas and slippers going for my breakfast. I sometimes give an almost apologetic look to those whom I meet in the elevator and it seems that they look at me scornfully (especially those who have seen me so many times before).
This also got me thinking deeper about pursuing my dreams and goals that I have set for myself and how I should reward myself if I achieve them.
I am still very much like others working for a living. The only difference is that I hope to be financially free by earning passive income that is greater than my monthly expenditure.
For a start, I have been trying to earn more money using online sources. My daily earnings from online sources currently amount to less than $5 a day.
If I am able to hit the $10 a day earnings in online income, I will buy myself a PlayStation 3 which I always wanted.
Once I hit the $100 a day earnings, I will buy myself a Mont Blanc Pen
Once I hit the $200 a day earnings, I will go on a short holiday trip to Europe with my family.
We went out to eat again.
For me it is always the same food stall but I simply adore the food. The hustle and bustle of the market just makes the food taste so much better. I ordered a cup of $0.70 coffee from the coffee shop. The uncle gave me a knowing look. I was his regular customer afterall.
After eating breakfast, it was time for a family walk as we walked around the neighborhood and did some grocery shopping.
Back home, we spent our time reading the newspapers.
I was just reading this article on the Straits Times which talks about the 'Sweat Debt'.
A global management consultancy firm (Hay Group) actually says that workers are feeling increasingly frustrated especially if they have undergone wage cuts and stuff.
A poll showed that 29 per cent of employees felt frustrated while 35 percent feel detached. Only 16 per cent felt effective in their jobs.
I am not too sure how the survey was conducted but it seems that a total of 64 percent are either frustrated or detached from their work.
That is a huge number of people who are totally not involved in their work. If work takes up such a huge amount of our waking hours, isn't it worthless to pursue something that we do not enjoy and which we have no attachment to?
Too many people work simply because they need the money to survive. They work for money. And yet they claim they are not a slave to money. How can that possibly be??
If they are doing something they do not enjoy for the sake of money, aren't they a slave to money?
Too many people sacrifice lots of their time and effort on earned income. They have not explored the potential of passive income from online sources, businesses and stuff.
And then I looked at myself and realised what a different life I am living from the rest of the people around me! It is 12 noon and here I am writing about the events that have happened to me in the morning =)
When others are dressed in their office attires rushing off to work, I am dressed in my bermudas and slippers going for my breakfast. I sometimes give an almost apologetic look to those whom I meet in the elevator and it seems that they look at me scornfully (especially those who have seen me so many times before).
This also got me thinking deeper about pursuing my dreams and goals that I have set for myself and how I should reward myself if I achieve them.
I am still very much like others working for a living. The only difference is that I hope to be financially free by earning passive income that is greater than my monthly expenditure.
For a start, I have been trying to earn more money using online sources. My daily earnings from online sources currently amount to less than $5 a day.
If I am able to hit the $10 a day earnings in online income, I will buy myself a PlayStation 3 which I always wanted.
Once I hit the $100 a day earnings, I will buy myself a Mont Blanc PenOnce I hit the $200 a day earnings, I will go on a short holiday trip to Europe with my family.
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