In April my portfolio crossed the equally magic and meaningless SGD 300,000 mark. It has been roughly four years after deciding to take care of my finances and I consider this a nice success! Read more for the details…
Portfolio update
In April my portfolio increased by SGD 35,053 or 13.1% to SGD 301,998 (=USD 225,958). Fresh investments of SGD 30,884 and capital gains of SGD 4,169 contributed. For the first time I broke the SGD 300k barrier, just 10 months after the 200k.
What I found interesting:
• Time to reach 100k: 26 months
• Time to reach second 100k: 14 months
• Time to reach third 100k: 10 months
Compound interest is real, but the salary also grew nicely during that time.
Investments vs. plan
Thanks to the bonus I invested SGD 30,884 which was significantly more than the plan (SGD 26,000).
Portfolio allocation
All on track…
Dividends received
SGD 939. Unfortunately I will not be able to grow these, as I had to switch to an European Broker because of the PRIIPs regulation, as explained in my last post.
The most important rule for financial success: Living below ones means
I think in my company most people use their yearly bonus for consumption, I guess I am one of the few people who silently invests most of it. Most people immediately match their lifestyles to their salary.
Story time
Recently I talked to one of my friends who was given a cushy delegation package, including a SGD 7,000 / month housing budget for her family of four, together with a very high salary. The friend then found her “dream house” costing about SGD ~7,800 / month and pays the extra ~SGD 800 out of pocket. Over the four years of her expat assignment this decision will cost SGD 38,400. On top of that she “had to” throw away her old furniture, because it “does not match the style of the new house”…
A few minutes later she told me how expensive the move was and that she had the equivalent of SGD 350 left in her bank account…
Different priorities I guess.
In Europe I also enjoy company paid housing, but I stay within the (high) housing budget. I bought hardly any furniture, since I chose an apartment with many built-in-cupboards. My friends were amused when I showed them my stylish wardrobe solution:
Minimalism is not for everyone of course and there is no right way to live. If my friend enjoys her new “dream house” everyday, whom am I to judge?
My goal is to retire from the corporate 9-5 world at the age of 45 by the very latest, so I have decided to only spend money on things I really care about. How about you?
Wow, going over such a generous housing allowance is anathema to me. But every one finds their joy in different places.