Sunday, 8 November 2015

Taking the Easy Way Out

The past few days has set me thinking about why I ended where I am now; A below-average salaried worker struggling to achieve financial independence.

I became extremely demoralised after realising that most of my peers (especially my fiancee!) are earning at least 30% more than me. I got even more despondent when I read about how bloggers around my age have amassed much more wealth than me!

Thoughts just ran wild in my head as I pondered about why I am earning significantly less. Finally, I realised why.

"Life had offered me choices and I always took the easy way out.".


All my life, I have been taking the easy way out and not the path that rewards me the most. I was always being plain lazy and have set low standards for myself. When life posed challenges, I aim to achieve the minimum requirements as I wanted to put in as little effort as possible. Eventually, I just failed to challenge myself in life and have fallen into a life of mediocrity!   


Education

Well, let me starts from my primary education. In primary school, I was consistently one of the top performers in class all thanks to my mother. She had a very effective way of teaching me and getting me to do my homework via the CSB method (Caning, Shouting, Beating).

Hence, it was no surprise that I was a top student because I was putting in the effort!

Slowly, my mother grew weary of teaching me (the nightly shouting and caning sessions can be exhausting). Moreover, she was not highly educated and she did not have the capability to guide me in my studies once I progressed beyond Primary 4.

Without her watching over my studies, I started to slack and I was no longer submitting my homework on a regular basis. Within 1 year, I have fallen behind in class and was no longer a top student.

During PSLE, I was even watching TV programs the whole day before my exams. Luckily, I managed to obtain a rather respectable PSLE result and life presented me with my first major choice!

Do I choose to go to a top school further away, without my close friends and where standards will be higher? Or do I choose a neighborhood school closer to home where most of my close friends will also be entering?

I could have choose the top school instead which might have presented me with a tougher but more rewarding journey in life.

Instead, I chose the neighborhood school as I could sleep more without all the travelling. How immature. The easy way out.

In secondary school, I had total freedom from my mother and a free rein over my own studies! I became even lazier and was consistently the weaker students in class. All I wanted was to get promoted to the next level every single year. Hence, I studied just enough to pass my exams every time.

When it comes to my education after "O" level, I took the easy way out again. I decided to select a polytechnic education as I heard that it'll be more fun. I could have study harder and scored well enough to take the JC-University route. However, since I choose the easier polytechnic route, I studied just enough during my "O" levels to scrape through and enter the polytechnic.

During my polytechnic education, I scored extremely well during my 1st semester despite aiming to pass my exams only. I could have still enter the university if I manage to maintain the standard.

However, I took the easy way out once again.

I decided to put in less effort in my studies since it seems easy to score well.

And that is how I ended up where I am now. Aged 27 years old, armed with just a diploma with sub-par results, and struggling in my part-time studies to earn my degree.

And I am certainly aware that what I am doing is only just sufficient to catch up with some of my peers who have put in the necessary hard work in their education, and hence, earning at least 30% more than me now.

Even if I have completed my part time education, I will still be earning less compared to some of them who have degrees from the more reputable schools.

Education is indeed important. A tad too late for me to realise it:(


Career

Beside my education, I took the easy way out in my career too. 

During one of my previous job stint, I was rather looked upon favourable by my boss. Moreover, I was learning a great deal in my work. While promotion was not a certainty, a career there does look promising. However, I found the workload heavy. 

When I was "promised" an opportunity to earn more in a sales related position, with an increase of a measly $130, I jumped at the opportunity. 

Fast forward 2 years later, and I have returned to my former job. To my great disappointment, I realise that my former colleagues from 2 years ago have progress well in this company, while I am back to square one. 

The irony. And they say job hopping is a good career move. 

I guess all these events are part of life. However, I resolve never to let mediocrity ruin my life any more further.

Step one: I shall strive to complete my part-time degree as soon as possible, with respectable grades. 

Step two: Continue to give my best in my current job, and not quit unless the other position offer at least 25% more.

Step three: Continue to put away at least $600 and all my bonus for my investment portfolio. 

Step four: Start up a new project to start a new business (some sorta delivery/transportation business)

NEVER EVER LET MEDIOCRITY EXIST IN YOUR LIFE. Set high standards for yourself or you will live to regret.
 

Sunday, 1 November 2015

Portfolio Updates: October'15

I shall start off this blogpost with some rants.

Gosh, I have missed out on purchasing the VWRD at my target price of USD$66.63 due to the delay in setting up my Standard Chartered settlement account.

When I managed to get the account set-up, the price had already rose to $68.40. In my anxiety to purchase the VWRD as soon as I can, I made a blunder of purchasing S$6000 worth of VWRD instead of S$4000 for my first tranche.

Big mistake.

We should never be hasty in our investment lest we make bad decisions. Much less a novice mistake like the one I just committed.

Lesson learnt.

Anyway, here's a look at my portfolio at the end of Oct'15:















Portfolio updates for the month of October'15:

  • Purchase 500 additional shares of STI ETF at $2.84 apiece. This brings the average price down to $3.23 for my total shares of STI ETF.

  • Kick start my purchase of VWRD by purchasing 60 shares at USD$68.40 (S$95.96) apiece.

  • $600 in cash was injected into the portfolio. 

  • No dividends received for the month of October'15.
     

Actions I will take for November'15:

  • In the event that the price of STI ETF drop to $2.84, which is a 20% drop from the 52weeks high of $3.55, I will make an addition purchase of about $3000 worth of STI ETF. 

  • In the super unlikely event that the price of STI ETF drops to $1.988, which is a 30% drop from the last purchase price of $2.84, I will make another purchase of about $3000 worth of STI ETF. 

  • If the price of STI ETF does not drops to $2.84 but remains below $3.00 until the last week of November, I will make additional purchase of about $2000 worth of STI ETF.

Moving on to my plans for world domination the rest of the equities markets beside Singapore, these are the actions I will take for the month of Nov'15.

  • Continue my purchase of VWRD by investing my second tranche of S$5000 when the price of the VWRD drops to USD$54.72, which is a 20% drop from my last purchase price of USD$68.40.   
 
  • The third and last tranche of S$4000 will be vested when the price of VWRD drops to USD$38.30, which is a drop of 30% from the last purchase price of USD$54.72.

  • In the event that the VWRD does not drop to my target price of USD$54.72 and USD$38.30, the second tranche of S$5000 and the final tranche of S$4000 will be vested by the end of March'16 and the end of June'16 respectively.

Tuesday, 20 October 2015

Portfolio Updates: September'15

A very late update once again. Have been feeling fatigue due to the recent change in job. Hopefully, once I am use to the workflow, I will be able to spare more time with this obscure blog of mine:(

Anyway, September was a very quiet month for me in terms of my market activities as most of my attention and energy was spent at work.

My plans to purchase shares of a "global ETF", the VWRD, was also delayed as the brokage, Standard Chartered, has not granted me access to my online brokage account despite me waiting for several weeks. Looks like I have to give them a call soon. 

No wonder their commision charges for trading is the lowest amongst all brokage. Gosh, their inefficiencies!











Portfolio updates for the month of September'15:

  • $600 in cash was injected into the portfolio. 

  • Received dividends from the following counter which was injected into the portfolio:
         - Saizen Reit - $175.80 


Actions I will take for October'15:

  • In the event that the price of STI ETF drop to $2.512, which is a 20% drop from the previous purchase price of $3.14, I will make an addition purchase of about $2500 worth of STI ETF. 

  • In the super unlikely event that the financial market implode and the price of STI ETF drop to $1.7584, which is a 30% drop from the last purchase price of $2.512, I will make another purchase of about $2500 worth of STI ETF. 

  • If the price of STI ETF does not drops to $2.512 but still remains below $3.00 until the last week of September, I will make additional purchase of about $1500 worth of STI ETF.

Aside from my plans for the local market, I will also be making the following moves in the global market by investing in the global ETF, the VWRD:

  • The first tranche of $4000 will be vested immediately ONCE I HAVE OBTAIN ACCESS TO MY ONLINE BROKAGE ACCOUNT FROM STANDARD CHARTERED. Wondering if I can claim some freebies from them since their delay has cause me to miss purchasing the VWRD at my target price :(

  • The second tranche of $4000 will be vested when the price of the VWRD drops by about 20% from the last purchase price, or by the end of March'16; depending on which comes first.

  • The third and last tranche of $4000 will be vested when the price of VWRD drops by about 30% from the last purchase price, or by the end of June;16; depending on which comes first.

Sunday, 27 September 2015

Portfolio Updates: August'15


And I thought July was exciting....

August 2015 turned out to be an even more exilarating month for me as I hit two major 'milestones'.

  • August 2015 is the first time I witnessed the local stock market crash by more than 20% (3549.85pts to 2808.31pts) while I'm still vested in the market😪.

  • August 2015 is also the first time I witnessed my overall portfolio sinking into the red😭.

Oh well, the recent market downturn is not to be unexpected. After all, the signs have been out there since last year; Greece crisis, overheated Chinese equities market, upcoming interest rate rise by the Fed, etc.

So with the recent upheavals in the market, my portfolio has shrunk correspondingly. However, I also recognise that this period represent a good buying opportunity for me to average down.

First up, let's have a look at my current portfolio before I bare out my plans for September'15 ☺️











Portfolio updates for the month of August'15:

  • Purchase 1000 additional shares of STI ETF at $3.14 apiece. This brings the average price down to $3.308 for my total shares of STI ETF.

  • $500 in cash was injected into the portfolio. 

  • $595 obtained via an educational bursary was injected into the portfolio.

  • Transferred $3000 cash to my trading account (Philip MMA) in preparation of future shares purchase.

  • Received dividends from the following counter which was injected into the portfolio:
         - STI ETF - $73.50 
         - Lippomalls REIT - $109.50 
         - Fortune REIT - $144.04 
         - Starhill REIT - $51.60

Actions I will take for September'15:

  • In the event that the price of STI ETF drop to $2.512, which is a 20% drop from the previous purchase price of $3.14, I will make an addition purchase of about $2500 worth of STI ETF. 

  • In the super unlikely event that the financial market implode and the price of STI ETF drop to $1.7584, which is a 30% drop from the last purchase price of $2.512, I will make another purchase of about $2500 worth of STI ETF. 

  • If the price of STI ETF does not drops to $2.512 but still remains below $3.00 until the last week of September, I will make additional purchase of about $1500 worth of STI ETF.

And this is it for the actions I will take for the local Singapore market. Starting from September 2015, I will allocate a portion of my portfolio to the global market. For my first baby step, I will look into purchasing the Vanguard All-World ETF (VWRD).

Basically, the VWRD is an ETF that replicate the performance of all common stocks in developed and emerging countries; which means that the VWRD comprises of common stocks (Apple, Macdonald, etc) that are listed in the various major stocks markets. 

Hence, by being vested in VWRD, we are essentially investing in most of the major corporations in the world while diversfying our risk across the different geographical locations and industries sectors.

Once my settlement account from Standard Chartered Bank has been set up in the coming weeks, I will proceed to invest in the VWRD. About $12,000, split into three equal tranche, has been allocated for the purchase of VWRD. 

  • The first tranche of $4000 will be vested immediately since the current price of VWRD is below USD$66.63, which is 10% below the last high of USD$74.03. This 10% difference provided me with a margin of safety for the purchase.

  • The second tranche of $4000 will be vested when the price of the VWRD drops by about 20% from the last purchase price, or by the end of March'16; depending on which comes first.

  • The third and last tranche of $4000 will be vested when the price of VWRD drops by about 30% from the last purchase price, or by the end of June;16; depending on which comes first.

With that, I have reached the end of my sharing. 

Let us take a deep breath now and brace ourselves for the upcoming turbulence✈️!
 




Monday, 3 August 2015

Portfolio Update: July'15


What an exciting month July has been; with the Greek crises and the tumble of the Chinese market.

Unfortunately, with my limited knowledge and lack of guts, I did not make any major move in the market. However, what I can do is to monitor the market closely and strictly adhere to my plans stated in this blogpost.

On a more upbeat note, I can see that my portfolio is growing and I have also fulfilled all my financial obligation for my upcoming wedding banquet. Hence, I anticipate a greater amount of savings in the coming months:D











Portfolio updates for the month of July'15:

  • Purchase 600 additional shares of STI ETF for $3.36 apiece. This brings the average price down to $3.42 for my total shares of STI ETF.

  • $6250 in cash was injected into the portfolio. This sum of money was from my annual job performance bonus.

  • $4000 cash was withdrawn from the portfolio for use in my upcoming wedding banquet. The price of love is not cheap:(

  • $1372.28 cash was withdrawn to pay for my school fees. Tertiary education is not cheap either. Especially if you are the one paying for it and not your parents :(:(

  • No dividends was received.

Actions I will take for August'15:

  • Should the price of STI ETF drop to $3.18, which is a 10% drop from its last high of $3.54, I  will make a purchase of about $3000 worth of STI ETF.

  • In the unlikely event that the price of STI ETF drop to $2.54, which is a 20% drop from the previous purchase price of $3.18, I will make an addition purchase of about $3000 worth of STI ETF. 

  • In the super unlikely event that the financial market implode and the price of STI ETF drop to $1.78, which is a 30% drop from the last purchase price of $2.54, I will make another purchase of about $3000 worth of STI ETF.
 
  • If the price of STI ETF does not drops to $3.18 but still remains below $3.30 until the last week of August, I will make additional purchase of 600 shares.

  • Lastly, I will be on the lookout to purchase equities with growth potential. These growth stock will constitute 10% of my equities portfolio as per my asset allocation planning for year 2015 (refer here)   

Monday, 20 July 2015

Goals Review and Setting - Mid 2015

Hello to all fellow peons working hard to attain financial independence!

It is time to do a mid-year review of my goals for 2015.

Let us have a look at my progress, revise my goals and determine which are the goals that require more efforts from me. 

And here goes my mid-year goals review for Year 2015!


Goal - Increase Monthly Dividends Income to $150  

Progress:
My monthly dividends income at the end of June'15 is only $38.45Even if I account for the dividends I will receive for the rest of the year, I highly doubt that I will achieve my target of receiving monthly dividends of $150.

Review:
My initial goal of obtaining $150 in monthly dividends will be revised downwards to $120. Reason being that in order to increase my dividends income, I have to
  1. Purchase more equities that gives out dividends; OR
  2. My current portfolio of equities will have to increase their dividends yield.  
However, instead of purchasing high yielding dividends equities, I sold part of them in Feb'15 as per my asset allocation strategy (read here). This will slightly reduce the amount of dividends I will receive for Year 2015.

Additionally, I do not foresee my current portfolio of equities to significantly increase their dividends yield.

Hence, in view of the above factors, my goal for my monthly dividends income has been revised to $120.


Goal - Get Through My Studies Without Failing  

Progress:
Thanking my lucky stars because I almost failed one module!

Luckily, I passed all my modules for my first semester (Jan-Jun'15). For the upcoming semester (Jul-Dec'15), I will be taking 3 modules.

After that, I will just be 2 modules away from graduating!

Review:
I have to admit that I could have put in more effort in my studies. If I had done so, I would not be so close to failing one of my modules.

Hence, this blog post will serve as a reminder for me to BUCK UP and stop being a LAZY ASS!

 

Goal - Posting At Least Two Blog Post Per Month

Progress: 
I have posted 9 blog post from Jan'15 to June'15. This means I am 3 blog post short of my target of putting up 2 blog post per month.

Review:
Once again, let me confess that my laziness is causing me to fall behind my target. This goal is one of the easiest to achieve and therefore I MUST NOT FAIL!

I will squeeze out 24 blog post by the end of the year no matter what!




Goal - Make New Friends With Two People Having Interest In Financial Literacy

Progress: 
True to my nature of being a socially awkward member of the online community, I failed to make any friends online.

Yup. Zero friend.

Review:
To address my lack of activities and effort in making friends online, I will put into actions the 2 following plans:
  1. Create an account at the forum, Hardwarezone, to participate in online discussions. The ultimate aim is to start a thread myself and invite people to throw questions at me regarding financial matters.
  2. Start posting constructive comments on other financial blogs that I follow.
Hopefully, by the end of the year, I will start chatting with friends with interest in financial literacy on a regular basis:D


Goal - Career Advancement In My Regular Job

Progress: 
My boss told me during my appraisal that my performance was excellent and he is very please with me. BUT he feels that I am not ready for the next level yet as I am with the company for only a year #@$!@#$%@!%

Hence, he told me to wait and he is sure I will be promoted some day. Yup, that is his exact words.

What a load of crap! He might as well not say anything cause what he said infuriates me.

Review:
Nonetheless, there is nothing much I can do except to continue delivering excellent performance while bidding my time to complete my studies.

Hopefully, once I have graduate next year, I will have been promoted. If not, I hope my newly acquire degree will be put to use in opening more doors in my career.

Thursday, 2 July 2015

Portfolio Update: June'15

Hello my fellow-peons-who-are-not-born-rich-but-want-to-be-rich!

Another quiet month has gone past and now it is time for my regular monthly portfolio update.












Portfolio updates for the month of June'15:

  • Purchase 300 additional shares of STI ETF for $3.39 apiece. This brings the average price down to $3.46 for my total shares of STI ETF.
  •  
  • $1000 cash was withdrawn from the portfolio to be transfer to a joint saving account with my fiancee (had to do it in order to get a peaceful night sleep >.< )

  • Transferred $3000 cash to my trading account (Philip MMA) in preparation of future shares purchase.

  • No dividends was received.

Actions I will take for July'15:

  • As per my May'15 activity, I will make additional purchase of 300 shares if the price of STI ETF continue to stays below $3.50.

  • If the price of STI ETF drops below $3.40, I will make another additional purchase of 300 shares.

  • Should the price of STI ETF drop to $3.18, which is a 10% drop from its last high of $3.54, I  will make a purchase of about $3000 worth of STI ETF. 

  • Lastly, I will be on the lookout to purchase equities with growth potential. These growth stock will constitute 10% of my equities portfolio as per my asset allocation planning for year 2015 (refer here)   

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