When is the last time you bought a lottery ticket and thought to yourself: ‘I am going to stop working if I win the grand prize’. How do you know that the prize money is enough to sustain your retirement lifestyle?Have you ever wondered how much money …
Author: Max Finance
Few months back Max wrote a post to discuss the things to consider before transferring our CPF money from OA to SA savings. Essentially, the post discussed that if the transfer is made earlier, the power of compounding at the higher interest rate will …
Just before end of 2016, Max did a voluntary cash top up of $7k to his CPF-SA savings. As you can see from the dates of transfer, the transfer was a decision at the eleventh-hour. The transfer is split into two transaction ($3.8k + $3.2k) due to t…
The CPF Retirement Sum Scheme is one of the CPF schemes for us to utilize the money in our CPF. In fact, in my opinion, it is the most important CPF scheme as it will determine the ‘fate’ of the savings we painstakingly built up throughout the working …
Followers of this financial blog would know that Max has been working on the Financial Independence Model (FIM) since the beginning of 2017. In a nutshell, the FIM is designed to help individuals compute their personalized FI age, based on basic financ…
Let’s dive straight in. Have you ever wondered how long we have to work before having enough to sustain the kind of (family) lifestyle for the rest of our life?Do you have know whether the amount of savings in your CPF is sufficient for your expen…
Achieving financial independence (FI) is the dream of many working adults. We dream of lying on the bahamas beach sipping watermelon juice. We plan to devote our time to charitable acts. We want to chase our passion, to do the things we love, instead o…
One of the key aspect to achieving early Financial Independence is to optimise the returns of your wealth. However, many people focuses primarily on building up their cash bags and neglect the other bulk of their savings, the CPF.Although our CPF savin…
Are you kidding me? 31%?
In fact, you (very likely) have more CPF than cash savings
So, how does that affect me?
- CPF investment scheme: investing OA and SA account
- Transfer savings from OA to SA account
- Voluntary cash top up to SA account
Better don’t touch my CPF leh
2016 will be a critical year in my life as I began to take a more active approach to achieving my financial goals. Let’s analyse evaluate how I fare for savings and set new goals for 2017.
Income – Evaluating my source of money
- Salary – 67.4%
- Bonus – 30.5%
- Benefits – 0.9%
- Others – 1.1%
Analysis of income
Quick reminder to self is to maintain a positive working attitude and to grab opportunities as they come along.
At the same time, I should really start seeking alternate income to supplement this main income stream. One area is my investment journey which I have embarked on in 2016.
2017 goals for income – increase by 5%
Possible source of additional income to hit this milestone are from the annual increment (est. 2-3%), hopefully higher bonus from better work performance, and from new sources of income (no concrete plans yet ><).
Expenses – Where did my money go?
- Fixed – 35%
- Lifestyle – 30%
- Subsistence – 23%
- Others – 12%
Subsistence expenses includes the ‘must-have’, like lunch/ dinner, groceries, hand phone bills, transportation, and Wifi + cabled TV subscription (I know some of us may not agree that cabled TV is a subsistence expenses).
Lifestyle expenses, on the other hand are the ‘good-to-have’, including spending due to personal expectation in certain quality of life (e.g. dining at restaurant) and possession (e.g. to have the newest phone model).
The rest of the spending are collectively classified under Others, such as contribution of wishing (e.g. wedding red packet), donations, treats for friends and families, etc.
Analysis of expenses
2017 goals for expenses – reduce by 5%
Did I hit my 2016 goals?
- Semi-financial independence by age 35;
- Financial independence by age 40