Net Worth Update Aug 2025 | SGD1.95m Breakthrough

In August 2025, my net worth hits a S$1.95 million breakthrough driven by record highs in my stock markets investments and consistent CPF/salary savings.

Net Worth Breakdown:

Safe Heavens (62%)

CPF (34.7%): CPF constitutes the bulk of my net worth and foundation of my retirement savings. It is a low hanging fruit tree that we should not ignore.

Cash and war chest (17%): Liquid reserves strategically stashed in fixed deposits and Fullerton cash funds earning around 2.0% p.a. provide me some peace of mind and security for unexpected expenses or investment opportunities.

Bonds (9.7%): A balanced portfolio of low-risk Singapore Savings Bonds and Astrea Bond ensures stability and provides steady source of passive income. I was allotted $11k of Astrea 9 PE Class A-1 bond early this month to bring my bond allocation to closer to 10% of my net worth.

Retirement Savings (16%)

SRS (11.5%): A tax-deferred savings account holding a supplementary source of retirement savings. My SRS funds are invested in $30k of SSB and 6 local stocks - Comfortdelgro, DBS, OCBC, Keppel DC Reit, Keppel Reit and Wilmar. Recently, I have stashed away all the idle SRS funds into Fullerton SGD Money Market Funds to yield ~2% p.a. instead of meagre 0.05%.

Insurance (4.5%): A Prudential whole life insurance plan and other savings plans will provide me with 6-digit lump sum payout after my retirement while offering continual protection for peace of mind. I have also upgraded my MediShield life to integrated shield plan for private hospital coverage.

Equities (23%)

Stocks and Reits (22.5%): A real estate-focused portfolio of stocks and Reits provides long-term dividend income and stability. This financial asset class is riskier, more volatile and sensitive to interest rates but offers me the opportunity to indirectly own diversified portfolios of industrial, retail and commercial properties locally, and around the world for consistent passive income.

The Pursuit of FIRE

Net worth is more than just numbers—it is a snapshot of our financial health calculated by subtracting liabilities from assets. In the context of FIRE (Financial Independence, Retire Early), net worth becomes a critical compass. It reflects not only what we own and owe, but how close we are to reaching financial freedom.

By building passive income streams and increasing net worth, we move toward a point where our investments and savings can cover our living expenses without active work. This is often referred to as the “FI Number”—the amount of net worth needed to sustainably fund your lifestyle, typically based on the 4% rule or similar frameworks.

But the pursuit of FIRE is not merely a race toward early retirement. At its heart, it is about reclaiming control: of our time, our choices, and the way we experience life. It’s about creating flexibility—to work if we want to, to take breaks when needed, or to explore passions full-time.

This journey is a deliberate investment in security. As our net worth grows, so does our buffer against life’s unpredictability. We gain confidence to navigate challenges without the looming pressure of financial instability. Financial independence empowers us to design a life we do not need a vacation from, with space to breathe, to live, and to thrive.

The recent resurgence of stock markets hitting new highs has accelerated my pace of surpassing the milestone of SGD 1.95m. I am looking forward to hit SGD 2m milestone in the coming months and $36k annual passive income by end of this year.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.

Thanks for reading.

With love and peace, 

Qiongster

The "Anti-Budget" Method: How I Saved More by not Budgeting

Let's be honest, budgeting sucks.

There, I said it.

For years, I dreaded the thought of it. Spreadsheets, categories, tracking every single dollar and cent – it felt like financial shackles, designed to highlight all my spending sins rather than empower me. I would start strong, meticulously logging every peanut and every subscription, only to fall off the wagon a few weeks later, drowning in guilt and a chaotic mess of unchecked transactions.

Sound familiar? You're not alone.

Most personal finance advice screams, "You must budget!" But for many of us, traditional budgeting is about as enjoyable as a root canal without anesthesia. It's rigid, time-consuming, and often leads to feelings of deprivation, not financial freedom. We're told to track every cent, but what if that very act makes us resent our money journey?

What if I told you there's a better way? A way to save more, invest more, and feel more in control of your money, all while spending less time obsessing over every single purchase?

Welcome to the Anti-Budget Method.

Why Traditional Budgets Fail Us (And How the Anti-Budget Fixes It)

Before we dive into the "how," let's pinpoint why the conventional budgeting wisdom often falls flat:

 * They're Too Restrictive: Cutting out all enjoyable spending can lead to rebellion. When you feel deprived, you're more likely to splurge later, undoing all your hard work.

 * They're Time-Consuming: Who has hours each week to categorize receipts and reconcile accounts? Life happens, and these tasks often fall by the wayside.

 * They Breed Guilt: Every deviation from the budget feels like a failure. This negative reinforcement makes you dread looking at your money, perpetuating a cycle of avoidance.

 * They Focus on Scarcity: Traditional budgets often highlight what you can't spend, rather than what you can achieve. It's a mindset of limitation.

The Anti-Budget flips this on its head. Instead of focusing on restricting your spending, it focuses on prioritizing your financial goals first. It's about building a robust financial foundation on autopilot, so you can enjoy your life without constant financial anxiety.

The Core Principle: Pay Your Future Self First (Automatically!)

The genius of the Anti-Budget lies in its simplicity. It's built on one foundational principle: automate your savings and investments before you spend a single cent on anything else.

Think of it like this: your future self is your most important bill. Just like you pay your rent or mortgage, you need to pay your savings, investments, and debt repayments first. Once those essential "future self" payments are made, the rest of your money is guilt-free spending money.

No more categories. No more tracking every last cent. Just freedom.

How I Implemented the Anti-Budget (And You Can Too!)

My journey to the Anti-Budget wasn't an overnight revelation. It was born out of frustration with my own budgeting failures. Here's how I put it into practice, step-by-step, and how you can adapt it for your own life:

Step 1: Define Your Financial Goals (The "Why")

Before you automate anything, you need to know what you're saving for. Is it an emergency fund, a down payment, retirement, or paying off high-interest debt? Being crystal clear about your goals gives your money purpose.

 * My experience: I started with an urgent goal: building a six-month emergency fund. Once that was solid, my focus shifted to maximizing my retirement contributions and saving for a future home. Your "why" will drive your "how much."

Step 2: Calculate Your "Future Self" Payments (The Automation)

This is the most crucial step. Figure out the total amount you need to save and invest each month to reach your goals.

 * Emergency Fund Contribution: How much do you need to add each month to reach your target?

 * Retirement Savings: Are you contributing enough to your 401(k), IRA, or other retirement accounts? Aim for at least 15% of your income, if possible.

 * Debt Repayment (beyond minimums): If you have high-interest debt (credit cards, personal loans), factor in extra payments to accelerate your debt freedom.

 * Specific Savings Goals: Saving for a vacation, a new car, or a big purchase? Include those contributions.

Add all these up. This is your "Future Self Payment."

 * My experience: I sat down with my income and goals. For example, if I wanted to save $500 for an emergency fund, contribute $700 to my 401(k), and put an extra $300 towards my credit card debt, my total "Future Self Payment" would be $1,500.

Step 3: Automate Everything (The Set-It-And-Forget-It)

This is where the magic happens. Set up automatic transfers for your "Future Self Payments" to go directly from your checking account to your savings, investment, and debt accounts the day after your paycheck hits.

 * Direct Deposit Split: If your employer offers it, direct a portion of your paycheck directly into your savings/investment accounts.

 * Automated Transfers: Set up recurring transfers from your checking account to your designated savings and investment accounts on specific dates.

 * Automated Debt Payments: Set up automatic payments for your debt, but also set up extra automatic payments for the amount you calculated in Step 2.

The key is to make it non-negotiable and invisible. If the money leaves your account before you even see it, you can't accidentally spend it.

 * My experience: When my paycheck landed on Friday, my automated transfers for savings, investments, and extra debt payments would kick in on Monday morning. By the time I even thought about discretionary spending, that money was already working for me. This removed the mental burden of "should I save this?" – the decision was already made.

Step 4: Pay Your Fixed Bills (The Non-Negotiables)

After your "Future Self" payments, cover your essential fixed expenses. These are the bills that are generally the same every month and are necessary for living.

 * Rent/Mortgage

 * Utilities (electricity, water, gas, internet)

 * Insurance (health, car, home)

 * Loan payments (student loans, car loans – minimums only, as extra payments are covered in Step 2)

 * Subscriptions (Netflix, gym, etc. – though it's always good to audit these regularly!)

Automate these too, where possible.

 * My experience: I set up auto-pay for all my fixed bills to avoid late fees and missed payments. I knew exactly how much money was left in my checking account after these were paid.

Step 5: Spend What's Left (The Guilt-Free Zone)

Here's the fun part. Whatever money remains in your checking account after Steps 3 and 4 is your guilt-free spending money.

Want to buy that new gadget? Go for it. Splurge on a fancy dinner? Enjoy it. Go on a shopping spree? If the money's there, it's yours.

 * No Categories: Forget tracking specific spending on groceries, entertainment, or dining out. As long as your "Future Self" is paid and your bills are covered, you're financially secure.

 * Flexibility: Some months you'll spend more on clothes, others on experiences. The Anti-Budget allows for this natural ebb and flow of life without making you feel like a financial failure.

 * My experience: This was incredibly liberating. Instead of stressing about whether I was over budget on "entertainment," I knew that since my core financial goals were handled, the remaining money was for me to enjoy. This significantly reduced my financial stress and actually made me more mindful of my discretionary spending, because I wasn't just blindly spending within a category – I was spending what was truly left over.

Who the Anti-Budget Is For (And Who It Might Not Be For)

The Anti-Budget is a fantastic approach for:

 * People who hate traditional budgeting: If you've tried and failed, this might be your saving grace.

 * Those overwhelmed by financial tracking: It simplifies money management significantly.

 * Individuals who struggle with guilt around spending: It redefines "good" spending habits.

 * Anyone looking for a more relaxed, yet effective, approach to personal finance.

 * Those who are already somewhat disciplined about their overall finances but struggle with the minutiae of traditional budgeting.

However, the Anti-Budget might not be the best fit (at least initially) for:

 * Someone deep in high-interest debt with very little disposable income: You might need a more granular, temporary budget to dig yourself out.

 * Individuals who consistently overspend their entire paycheck: The "spend what's left" model relies on you not going into overdraft. You might need to build discipline first.

 * Those who have no clear financial goals: Without a "why," automation is meaningless.

The Unforeseen Benefits of the Anti-Budget

Beyond the obvious benefit of simplified money management, the Anti-Budget brought some unexpected positive changes to my life:

 * Reduced Financial Stress: Knowing my future was secured on autopilot brought immense peace of mind. I no longer dreaded checking my bank balance.

 * Increased Financial Confidence: Seeing my savings and investments grow consistently, without constant effort, was incredibly motivating.

 * Mindful Spending (Ironically): While I wasn't tracking categories, I became more aware of what I was spending my remaining money on. I found myself naturally making more conscious choices about discretionary purchases.

 * More Time and Energy: The hours I used to spend budgeting could now be dedicated to hobbies, learning, or simply relaxing.

 * Enjoying My Money More: When I did spend, I enjoyed it guilt-free. There's a huge difference between spending with anxiety and spending with pleasure.

Common Pitfalls to Avoid

Even the Anti-Budget isn't entirely foolproof. Here are a few things to watch out for:

 * Underestimating Your "Future Self" Payment: Be realistic about how much you need to save to hit your goals. Don't skimp here.

 * Not Adjusting Over Time: As your income or goals change, revisit and adjust your automated payments.

 * Ignoring Your Bank Balance Completely: While you're not tracking categories, still keep an eye on your account to ensure no fraudulent activity or unexpected large expenses crop up.

 * Forgetting to Audit Subscriptions: Even with the Anti-Budget, it's good practice to periodically review your recurring subscriptions and cancel any you no longer use.

Ready to Ditch the Dread and Embrace Financial Freedom?

The Anti-Budget isn't about ignoring your finances; it's about optimizing them. It's about designing a system that works for you, rather than against you. It's about realizing that financial health doesn't have to be a constant struggle of restriction and deprivation.

If you're tired of the budgeting hamster wheel and ready to experience a more liberated approach to your money, I urge you to give the Anti-Budget a try.

Start today. Define your goals, automate your future, and then, truly enjoy the rest of your hard-earned money. You might just find that by focusing less on the daily grind of budgeting, you end up saving more, stressing less, and living a richer life.

Disclaimer: This article is for informational purposes only and is not financial advice. Readers should conduct their own research and consult with a financial professional before making any investment decisions.

Thanks for reading.

With love and peace, 

Qiongster

Why DBS, now at $50.74, is still cheap?

  

In my previous article in Nov 2024, we explored why DBS (SGX: D05), even at a price of $42.40, was a compelling "cheap" buy for long-term investors. We highlighted its robust financial foundation, its position as a "dividend powerhouse," and its strategic focus on growth. Fast forward to today, and the market has affirmed that view, with the stock price now comfortably trading above the $50 mark, reaching new all-time highs.

This surge isn't just about market momentum; it's a reflection of DBS's continued strong performance and strategic resilience. The bank recently announced a solid second-quarter profit of S$2.82 billion, beating consensus estimates and demonstrating its ability to deliver amidst a dynamic economic environment.

What's driving this performance?

1. A resilient business model: While many were concerned about the impact of falling interest rates on net interest margins (NIM), DBS has shown its ability to look beyond this. The bank's CEO has emphasized focusing on net interest income (NII), which continues to grow due to higher loan and deposit volumes. This demonstrates a robust business model that can thrive even when a key metric like NIM faces pressure.

2. A "dividend powerhouse" that keeps on giving: The original article noted a quarterly dividend of 54 cents per share. DBS has since raised its quarterly dividend to 75 cents (comprising 60 cents ordinary dividend and 15 cents capital return dividend), further cementing its status as a top choice for income-focused investors. Furthermore, the bank has extended its dividend guidance, promising an additional 24 cents per share for the next financial year, a strong signal of management's confidence in future earnings.

3. Growth beyond Singapore: The bank's strategic initiatives, such as its expansion into Malaysia and its focus on wealth management, continue to bear fruit. The strong performance in fee and trading income, coupled with a healthy non-performing loan (NPL) ratio, showcases a well-diversified and stable financial institution.

4. Bullish analyst sentiment: The market's positive reaction to DBS's recent earnings report has been accompanied by a series of target price upgrades from analysts. This renewed bullish sentiment is a testament to the bank's strong fundamentals and positive outlook.

Is DBS still a buy at $50.74?

While the share price has moved significantly, the core arguments for investing in DBS remain valid. Its strong capital position, consistent profitability, and commitment to rewarding shareholders with a high dividend payout make it a standout in the banking sector. Here's a breakdown of the numbers that support this view.

1. A High and Growing Dividend Yield

At the current price of S$50.74, DBS offers a compelling dividend yield. The bank recently declared a quarterly dividend of 75 cents per share, which includes a 60-cent ordinary dividend and a 15-cent capital return. On an annualized basis, this translates to a forward dividend yield of approximately 6.2%. This is a significant premium to many other blue-chip stocks and well above the bank’s historical average. Moreover, management has signaled its confidence in future earnings by extending guidance for an annual step-up of 24 cents in its core dividend for the next financial year.

2. Exceptional Profitability and Capital Strength

DBS’s valuation is backed by its superior financial health. The bank consistently delivers a high Return on Equity (ROE), which recently stood at an impressive 18.2% for the second quarter. This is a testament to its operational efficiency and effectiveness in generating profit from its capital. Furthermore, its balance sheet remains exceptionally strong, with a Common Equity Tier 1 (CET1) ratio of 14.8%, well above the regulatory requirements. This robust capital position provides a solid buffer against market volatility and supports its ability to pursue strategic growth and shareholder returns.

3. The Intrinsic Value Argument

While the stock price has surged, various valuation models suggest it may still not be expensive.

 * A Discounted Cash Flow (DCF) analysis by Alphaspread pegs the intrinsic value at $63.38 per share, suggesting the stock may still be undervalued by about 20%. Gurufocus valuates DBS much higher at $76.62. Simplywall.st's fair value of DBS is at $75.70. 

 * Analyst consensus paints a more mixed picture, with 12-month price targets ranging from a low of S$39.48 to a high of S$57.20, and an average of around S$50.61. This average is very close to the current price, indicating that for many analysts, the stock is fairly valued, but not overvalued. Citibank has raised its target price for DBS conservatively to $56.50 from $48.10. Goldman Sachs has a 1 year price target of $57.20 for DBS.

Of course, no investment is without risk. While DBS's earnings have been resilient, the global economic environment and potential for heightened volatility remain factors to watch. However, for a long-term investor with a focus on stable, high-quality companies, DBS continues to represent a solid foundation for a portfolio and might continue to rocket to greater heights.

If we have no position in DBS, it would be harmless to consistently nibble small quantity of eg. 10 to 100 shares monthly as part of dollar cost averaging strategy. However if we already own positions in DBS, we could wait for a pullback before adding on to DBS investments. As long-term investors, we need to be patient. I added DBS earlier this year at $45.68 followed by another bargain scoop at $38.08 after the global tariffs fears.

On the back of macroeconomic factors such as economic recession fears, global political landscape uncertainties and interest rate noises, DBS stock price as the top constituent of Singapore's Straits Times Index can be very volatile. At above $50, the margin of safety is much lower compared to if we were to invest in DBS earlier in the past few months to past years when its stock prices hover between $30 to $40+. As we have witnessed several times in the past, DBS share price could plunge or tank heavily by more than $2 or 5% a day whenever noise or bad news hit due to macroeconomic factors or global uncertainties, incurring huge losses or even margin calls if our purchases are on margin or borrowed funds.

(Disclaimer: This article is for informational purposes only and is not financial advice. Readers should conduct their own research and consult with a financial professional before making any investment decisions.)

Thanks for reading.

With love and peace, 

Qiongster

Why I Subscribe to the Astrea 9 PE Bond

 

The financial world can often feel like a series of exclusive clubs. Private equity, with its high barriers to entry and institutional focus, has always been one of the most exclusive. That's why when the Astrea 9 PE bond was announced, it immediately piqued my interest. This series of bonds, designed to give retail investors a foothold in private equity, felt like an open invitation. After a deep dive into the details, I've decided to subscribe, and I want to share the reasons behind my decision.

Accessing Private Equity with Confidence

For me, the primary appeal of the Astrea 9 bond is the opportunity to gain exposure to private equity in a structured, relatively low-risk way. Instead of needing a massive amount of capital to invest directly in a single fund, I can get a small, diversified piece of a large, mature portfolio. This particular portfolio is made up of investments across 40 different private equity funds, which significantly spreads out the risk. It's a way to participate in a market that's otherwise out of reach, but with a layer of safety built into the structure.

The Allure of a Predictable Income Stream

In an era of market volatility, finding a reliable source of income is a key goal for my portfolio. The Astrea 9 Class A-1 bond offers a fixed interest rate of 3.4% per annum. For me, this isn't just a number; it's a predictable, semi-annual income stream. Currently, 3.4% p.a. is higher than the Singapore savings bond yield of 2.1% and bank fixed deposit rates of below 2% p.a. This stability is a cornerstone of my investment strategy, providing a steady return that isn't dependent on daily market fluctuations. It's about building a portfolio that works for me, generating consistent cash flow that I can count on.

Prioritizing Investor Protection

As a cautious investor, the structural safeguards of the Astrea bonds are a major selling point. The bonds have a priority of payments mechanism, meaning that bondholders are first in line to get paid from the underlying portfolio's cash flows. There are also reserve accounts that are gradually funded to ensure there's cash available for eventual bond redemptions. These features give me a level of confidence that is hard to find in other corporate bonds. It’s an investment where the issuer has gone the extra mile to protect bondholders.

The Interest Rate Step-Up Feature

The mandatory call date at the end of five years is a key feature that provides both an exit opportunity and a potential benefit if the bond is held longer. If the issuer, Azalea Group, chooses not to redeem the bonds on this date, the interest rate for the remaining term steps up by 1.0% per annum. This step-up serves as an incentive for the issuer to redeem the bonds, but if they don't, it provides a significantly higher yield for bondholders as compensation for the extended duration.

Favorable Credit Ratings

The Class A-1 and A-2 bonds are expected to be investment-grade rated by Fitch (A+sf and Asf, respectively). These ratings indicate a high degree of creditworthiness and a strong capacity to meet financial commitments. Compared to many corporate bonds that are also available to retail investors, these ratings are often a notch higher, reflecting the robust structural safeguards and the quality of the underlying portfolio.

A Strong Track Record of Prior Issuances

The Astrea series has a history of successful redemptions and credit upgrades. Previous Astrea bonds, such as Astrea III, IV, and V, have been fully redeemed on or before their respective mandatory call dates, and some have even seen their credit ratings upgraded over time as their portfolios matured and reserves grew. This established track record provides a level of confidence in Azalea's ability to manage the product and fulfill its obligations to bondholders.

Exposure to a Well-Vetted Portfolio

The private equity funds that back the Astrea 9 bonds have been carefully selected by Azalea Group, which has a long-standing expertise in this area. This means retail investors don't have to perform the complex due diligence required to vet individual PE funds. The portfolio is diversified not just by geography and sector, but also by fund managers, reducing the risk associated with any single manager.

My Choice: The SGD-Denominated Class A-1

While the USD-denominated Class A-2 bond offers a higher interest rate, I've chosen to stick with the SGD-denominated Class A-1. My primary reason is simple: I want to avoid foreign exchange risk. My financial life is in Singapore dollars, and a stable, local currency-denominated income stream is more valuable to me than a potentially higher return that could be negated by currency movements. For my personal goals, the stability and fixed rate of the Class A-1 bond made the most sense.

My decision to apply for the Astrea 9 bond is a strategic one, based on my desire for diversification, stable income, and robust investor protection. It's a unique product that aligns perfectly with what I'm looking for in my portfolio.

There it goes.

Thanks for reading.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.

With love & peace,

Qiongster