Unveiling my Live Rich Life Free Net Worth!
My net worth has surpassed SGD900k for the very first time and hit the HIGHEST in my life.
This is after the latest CPF contributions for Jan 2020 and having collected Feb's paycheck.
I include CPF numbers into computation of my net worth because I still believe the numbers are my illiquid assets.
I also included the surrender value of my whole life insurance, endowment plans and savings plans into my net worth.
As I do not own car or property yet, I have no loans and my very low liabilities are due to some credit cards debts only.
I understated the value of my Supplementary Retirement Scheme Account (SRS) by accounting for only the amount contributed to SRS. Though I only contributed $55.9k in the past few years, the portfolio has actually surpassed $68k.
I have always been adopting a conservative slow and steady approach towards investing. I used to trade and do not keep any long positions. Less than 30% of net worth is invested in the stock market and I have a high proportion of cash in fixed deposits and savings bonds. I do not dare to hold above 50% investment position. I still believe that Cash is King and by holding war chests of cash, we can well prepare ourselves in times of emergency or capture good opportunities in times of crisis. I will continue to be slow and steady in my investment journey but I know that I am still very far behind in terms of achieving full financial freedom. The journey is tough and rugged but it is definitely not impossible!
In 2020, I intend to grind it out and march towards achieving a net worth of SGD 1 million. I will continue to live frugality and simply. Being a millionaire means nothing much actually in today's world however, psychologically it will be a morale booster and will give me the confidence to take on riskier investments for higher returns since I can well afford to lose. Coming from a low income family, the desire to achieve this millionaire feat was a dream and if I could reach this milestone, would be a mini achievement for myself.
Moving forward, I am tempted to buy a car and/or a property to contribute to the economy. I have applied the Toa Payoh BTO today to try my luck and making a step forward in property purchase.
Besides the pursuit of wealth, it is also important to stay healthy in the face of Covid-19 virus and also exercise regularly to keep fit.
Thanks for reading!
With Love & Peace,
Qiongster
18 comments:
Respect! Looks like you're on track for FIRE@40!
Still got a long way to go.....
Jia U. U can do it.
Thanks
Hi Chiongster, I'm super interested in your JOURNEY to get to here. I'm 30 years old and I only have about 10% of the assets you have -- just hoping there's someway I can reach your amount when I hit 35 hahaha but it's gonna be tough ): thanks!
It is not easy. Having to make many sacrifices to live frugally and save up, while slogging to earn an above median income. For eg. I seldom dine in restaurants..go for short trips in Sea instead of long Europe or Japan holidays. Buying a refurb laptop instead of a new macbook.. Taking public transport instead of getting a car... Switched to a cheap Huawei phone instead of IPhone 12 that I flipped off for profit.
Thanks Qiongster for your response! While I think there’s merit in being frugal, the maximum value is your income. At the moment, even if I save 100% of my income (unrealistic), I wouldn’t be able to get the results you have here! Just curious if you’re in a specific professional industry that nets you a higher income, or if you’ve been investing aggressively on the side, etc. I’m considering career shifts or starting a side business if that’ll help, but it’ll be nice to know from someone who’s done so well!!! Appreciate your candid response on your frugality :)
Relying on savings from income alone is not enough. We can start building an investment portfolio that yields enough to first cover basic expenses. i.e a $50k portfolio yielding 5% that gives $2.5k a yr or $200 a mth to pay off some off you bills. Slowly, your savings rate will increase and you have more to invest then your portfolio grows, then your dividends increase and your savings rate increase. The good money cycle goes on. I am working in the IT industry and is lucky to earn above avg mid 4 digits income which is not considered high. By leveraging on compounding effect and high savings rate, you will be amazed how fast your net worth grows.
During times like now, you should diversify your portfolio and move your riskier assets to safer assets. However, I do not think you should have too much in cash as that just means profit loss. At the same time, you must have sufficient savings to survive should anything happen to you or your investment. As long as you know what you are doing, you basically lower your investment risk.
Thanks for your valuable advice. I will consider that in face of a looming recession and bad economy.
How old are u if u don't mind me asking? :)
This is awesome. Jiayou! :)
Thanks. All the best to your investment journey too!
Hi qiongster, how do you allocate your monthly income in order to save so much in cash and equity?
Also do you mind if i ask how much do you roughly make annually?
I save more than 85% of monthly income. My annual income is low 6 figures.
Is the cpf portion OA + SA ?
All 3 accounts
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