More Free Time Now

After quitting my job, I found that I have a lot more free time to play around with.

However, it still does not seem that I am putting my time to good use. Too often, I spend my time procrastinating or just doing unproductive things.

Perhaps it is time I pick up some serious time management skills.

On the passive income portfolio end, I purchased 10000 shares of Suntec REITs last week.

I heard a story about a guy who owned 3 properties and when the valuation of his properties went up, he basically refinanced them while doing a upgearing to release the equity in it thus getting about 800k in cash. He then used this money to buy into REITs. Imagine the kind of passive income he is drawing now on top of the rental income from his property!

Don't Run the Rat Race

Since young, I have always heard this phrase : " Don't run the rat race."

It is only now, 27 years of age, that I finally think I understand what this phrase means.

After working for a number of years, I suddenly realised that I was actually running the rat race! I was working hard at my job, looking for my next promotion, next pay raise. I was also constantly comparing myself with others and checking out what cars they were driving, where they were living, what sort of restaurants they go to, etc , etc.

All these resulted in me neglecting other aspects of my life - spiritual, social, emotional.

Getting Out of the Rat Race

At the turn of 2008, while I was doing my own personal reflection, I realised that I had hardly grown as a person be it in terms of character, knowledge, etc. Yes I did grow but I would not say that the growth was great. Again I compared myself to my peers and saw how some have actually leap frogged past me in terms of qualifications, knowledge in specialised fields, promotions, pay, etc.

I also noticed one thing. I looked at my bosses' lives and did not admire what they were going through. Little family time, weekends spent doing work and going through reports, lots of pressure from the bigger bosses above... I asked myself: " Do I really want to be like them?" The answer was a simple "NO."

It was then that I decided that I needed to get out of this rat race - badly. This rat race was consuming my life. As Lily Tomlin puts it: "The trouble with the rat race is even if you win it, you're still a rat."

I stopped listening to my bosses' "encouragement" to take on more responsibilities so that I could get my next promotion, pay raise, bonus, etc, etc. I told myself that I would no longer run a race that was so meaningless. I would instead run a race that I set out for myself. A race that at my dying bed, I would know was worthwhile for my family, friends, loved ones and myself. Simply, a live that was well-lived and worth living. All things I placed in the context of that final day when I lie at my death bed and ask myself: "Was it worth it?".

A lot of things are simply not worth it. Working long hours and missing dinner with loved ones. Working over the weekends. Getting so tired that I had no time to spend with friends.

For those of you who know, one of the race that I have set for myself is to achieve financial freedom (i.e. earning more in passive income than my expenditures). My spendings and investments have also taken a turn as I now see everything in terms of what will increase my passive income and what I can do to decrease my monthly expenditure.

This blog chronicles my journey. I have journeyed for 1 long year already. Everyday, I am getting closer to my goal. I have also learnt tremendously from fellow forummers and bloggers.

Thank you for accompanying me on this journey. The race is still on and I challenge you to take part in this race too.. the financial freedom race.

$1590.38 in Dividends & Passive Income for May 09

This month was another bountiful month for me similar to Feb 09.

The breakdown is as follows:

1. Stock Dividends = $1553.50
2. Canroys Distribution = $15.88
3. Other income = $21.00

This brings the grand total to an amount of $1590.38.

Raking in the Money

Decided to cash out of some stock positions to realise the gains that I have. They are not alot and are nothing to be proud of since I am still actually sitting on paper loss on my other shares.
Also bought into Ascendas REITs

Below are my trading activities for today:

1. Sold 6000 Hongguo at $0.255 (Remaining left 24,000 Hongguo shares)
2. Sold KepLand @$2.27 (Remarks : Bought @1.96, Sold the rights for $755 plus gains of $270, not bad)

3. Bought Ascendas REITs (3000 shares @$1.37)

As you can see, I am really a small small fish in a big big sea. The quantity that I trade is very little so I really need the stock price to move up a lot before I can make a gain.

Stock Dividends Received for 26 May 09

Received the following stock dividends:

1. $66.72 (KingBoard stocks)
2. $750 (Innotek)

Total Dividends received for today = $ 816.72

Liquidated My Stocks and Rights

I decided to liquidate my stocks in Pengrowth Energy Trust and also my rights for KepLand.

Reasons being this:

1. The amount of shares I own in Pengrowth Energy Trust was only a mere 100. The price had risen to give me a returns of greater than 25%. Also, the dividends that I received were not substantial enough to warrant UOB Kay Hian from deducting $5 for postage and handling fees.

2. KepLand had recently declared dividends of $0.08 per share. To subscribe to the rights, I would have to pay slightly over $1. This would set me back by $1000 which is not too good for my current cash flow. On top of this, Pac Andes has also recently announced that it will issue rights too. This is a scary thought....are all the companies I own starting to issue rights now to gain more money to boost up their books? What happened to all the passive income I am supposed to get from dividends?

Therefore, I liquidated my 100 shares of Pengrowth Energy Trust and my 900 nil paid rights of KepLand.

Total amount I will get from the sale of both should amount to $1800

Aren't My Stocks Supposed to be Assets?

Robert Kiyosaki mentioned in his book "Rich Dad, Poor Dad" that assets put money into your pocket while liabilities take money out of your pocket.

It was with this in mind that I started to acquire more of these assets (e.g. stocks) instead of frivolous stuff like clothes, accessories, electronic devices and stuff.

These stocks I own have been paying me quarterly and yearly dividends. Thus, they have been putting money into my pocket over the years.

However, two stocks that I have recently declared "rights' issue. For the uninitiated, that basically means that the company is issuing me with more shares and I have to pay for them if I intend to exercise my "rights" or either forfeit them and see my shareholdings in the company diluted.

What an irony. These assets are now taking money out of my pocket! All the dividends that I have earned from them are like useless.

If they are so cash strapped, why did they even declare dividends in the first place over the years?

Didn't they foresee this coming? Why weren't they more prudent in calculating the amount of dividends that they were giving out over the years?

So now instead of owning assets, I am like owning two businesses which are asking me to pump in more money into them. I can't tell whether these are assets or liabilities just yet.

*Big Sigh*