30 April 2015

This month STI ended up 40.38, or 1.17% compared to end of March. Market has been quite volatile. Interesting news to note: US economic data seemed not very good, and the Fed may push back the date to hike interest rate. China economy is slowing down, but the stock market is red hot, with many "Da Ma"(大妈）opening trading accounts and push the market up. In my opinion, this is a sign of bubble forming up and is not good. Singapore corporate earnings are mix, with the banks doing very well in the past quarter. Oil price rebounded a little and so are the related counters.

My portfolio performed very well this month. Its value rose 2.3%, beating STI performance. I bought into QAF this month. I received some shares from Global Investment Limited through scrip dividend scheme this month. I also received some shares from Boustead Project this month (spin off from Boustead). As the counter started trading at 88 cents, I treat this as the buy price in my record. The fund was treated as dividend from Boustead for record purpose.

In previous years, April was normally a month with low passive income. This month, I start to received dividend from a UT (this one pays dividend quarterly) and this boost the income. With the extra dividend from Boustead (in species) the total passive income this month amounts to S$17,500!

Below are my top 30 share holdings as at 30 April 2015. SIA Engineering entered the list, replacing FCT. YZJ moved up a few positions due to price increase.

1	ComfortDelGro
2	SPH
3	DBS
4	OCBC Bank
5	Ausnet Services
6	Sembcorp Ind
7	Metro
8	ST Engineering
9	SGX
10	Starhub
11	Frasers Comm Tr
12	CapitaLand
13	CitySpring Trust
14	OUE
15	AIMSAMP Cap Reit
16	CapitaComm Tr
17	YZJ Shipbldg SGD
18	United Engineers
19	Nikko AM STI ETF 100
20	Mapletree Log Tr
21	Ascendas Reit
22	SingTel
23	SIA
24	Global Inv
25	Sing Inv & Fin
26	SATS
27	SingShipping
28	Lippo Malls Tr
29	SIA Engineering
30	Sembcorp Marine

Route towards Financial Freedom - Breaking down the target into smaller goals

When I started my journey towards financial freedom some years back, I started to record my monthly expenses to see how much I need in passive income to cover these expense. The first finding was scary. The expenses and potential expenses (e.g. medical expenses for aging parents, eventual overseas studies cost for kids etc...) made me feel that I would never reach the state of FF. It seemed to be a number too big to achieve.

Then I started to breakdown the expenses into smaller groups:

1. Essential living expenses - Daily expenses that will stay in any stage of life - food, clothes, utilities bills, telecom bills, property tax, children allowances etc.

2. Children education cost - Essential, but will disappear when they graduate.

3. Allowances for parents - Essential, and will stay as long as they live.

4. Church tithing and offering - Essential, may reduce when retire.

5. Car - nice to have luxury, can downgrade to BMW(Bus, MRT, walk) eventually.

6. Income tax - Must pay now, will disappear after retirement.

I set my first goal to have passive income covering item 1, which was relatively easy to reach. After I hit my first goal, I then worked towards item 2 & 3, and then 4. It took a few years but I finally reach 4. When my passive income was able to cover items 1 to 4, I realised that I was more or less financially free!

Breaking down the target into smaller goals has a few advantages:

1. Smaller goals are easier to achieve, hence the journey is easier psychologically.

2. Success boosts morale, and inspire one to move on.

3. With the breaking down of target, one can separate the needs and wants, and not overly plan.

Happy investing!