No Income Tax to Pay but must pay for Carpark

No Income Tax to Pay
Just finished filing my family's income tax.

After accounting for all the tax reliefs, rebates and stuff, my family has $0 in taxes to pay for the year! Perhaps its also because we don't earn that much in the first place.

Carparking
The only downside to the start of April 09 was the need to renew my carparking.

I renewed it for 3 months at a price of $270. Very expensive. That is equivalent to $3 a day!

Perhaps it is time to get a landed property so that I do not need to pay for parking.

Stock Purchases

Added 6,000 shares of Hongguo @0.125
Hope the bull market does not return too soon so that I can collect more stocks/REITs on the cheap.

P.S : To the team at SG Dividends, I have included a link to your site.

Cheers,
Financial Freedom

Networth Update for Mar 09

Added Pengrowth Energy Trust

Updating my passive income portfolio.
PenWest Energy Trust had a dividend cut to US$0.15 per unit. Also added Pengrowth Energy Trust into my portfolio. It gives US$0.10 per unit.

My updated portfolio for passive income for 31 Mar 2009 is as such:

1. 12,000 x Ascott REITs (DPU = 4.28 per half) = $85.60 per month (decrease in DPU)
2. 17,000 x First REITs (DPU = 1.94 per qtr) = $109.93 per month (increase in DPU)
3. 1000 x Suntec REITs (DPU = 2.858 qtr) = $9.52 per month
4. 3000 x NOL (estimate 8 cents per year*) = $20.00 per month
5. Maybank iSavvy Deposit = $8 per month
6. 50 x PenWest Energy Trust = $11.00 per month
7. 100 x Pengrowth Energy Trust = $15.00 per month

Total avg monthly passive income = $259.05 (Mar 09)

Financial updates for March

This is a short post.

Just to remind myself that I added 6000 x Hongguo at $777.73 to my existing share portfolio.

In addition, opened a Citibank step up interest account to earn up to 1% interest for my deposits. Will take 12 months to step up to that 1% interest though.

Making an effort to update my monthly income and expenditure to this blog too.

My income for Mar 09 inclusive of bonuses and CPF contributions = $16, 381.

Hope to update my expenditure for the month of Mar 09 too.

First US Stock for my Dividends Portfolio

Updating my passive income portfolio

My updated portfolio for passive income for Mar 2009 is as such:

1. 12,000 x Ascott REITs (DPU = 4.28 per half) = $85.60 per month (decrease in DPU)
2. 17,000 x First REITs (DPU = 1.94 per qtr) = $109.93 per month (increase in DPU)
3. 1000 x Suntec REITs (DPU = 2.858 qtr) = $9.52 per month
4. 3000 x NOL (estimate 8 cents per year*) = $20.00 per month
5. Maybank iSavvy Deposit = $8 per month
6. 50 x PenWest Energy Trust = $13.50 per month

Total avg monthly passive income = $246.55 (Mar 09) versus $224.59 (Oct 08)

Thoughts on Financial Freedom, Success and Happiness

Of Financial Freedom

I started this blog in August 2008. The main purpose of this blog then was to chronicle my journey towards financial freedom. After much thought on deciding what financial freedom meant to different people, I decided that financial freedom for me would be simply to allow my monthly passive income to exceed my monthly expenditures.

However, I have come to realise that while this might mean financial freedom in the pure income and expenditure department, it does not necessarily mean that I will become financially "free".

What do I mean?

It means that I could actually have passive income that is greater than my monthly expenditure but still not be contented with what I have. Thus in that sense, financial freedom will become an endless pursuit, a chasing after the wind, where I will just crave for more and more money.

Financial freedom is thus also about the state of my mind. Am I contented with what I have today? Will i be contented when my monthly passive income exceeds my monthly expenditure?

Only when one is contented can one then achieve financial freedom in the true sense of the word.

Of Success

What is success to me? Is it driving a nice big car? Living in a bungalow?

I have decided that true success is being able to contribute back to society - to be able to use one's labour for the benefit of others.

True success is also about not being bothered by how others view you. Why try so hard to impress people you don't like?

Of Happiness

One can be rich and still be not happy. Thus, riches is not the path to happiness.

Instead, happiness is found in having the basic necessities, having close friends and family, and having the freedom to do what you want when you want and not be bogged down by deadlines/meetings/last minute work assignments.

Conclusion

March 2009 marks a turning point in my life as I have become much clearer about what it means to be financially free; and also what success and happiness is all about. Previously I had a vague idea in my head what all these was about but I guess that the more I conversed with people, the clearer my thoughts on this matters became.

This breakthrough in my thinking was only made possible by deep reflection, talking to close friends and also preparing to switch my job.

Singapore Inflation for 2008 is 6.5%

So Singapore's Consumer Price Index (CPI) for 2008 climbed to its highest in 28 years. That is a whopping 6.5% !

What this means is that my money in the bank is basically being wiped out by inflation.

With a paltry < 1% bank deposit rate, the bank deposit rates are simply not sufficient to combat this high inflation.

But in reality, what are the prices that have truly gone up for my household?

I will say one word "Petrol". The prices of petrol has simply gone up so much.

Pumping a 95 octane fuel cost almost $1.40++ per litre. If I remember correctly, the highest grade of petrol used to be that price like 7 years back when I first started driving.

Other than petrol, I don't think my household has seen a significant increase in any other item.

Electricity bills did go up a bit during the end of the year but we managed to cut down on our air-con usage and stuff.