~~Towards Barista FIRE~~

Do you ever feel like your money disappears as soon as it hits your bank account?  You are not alone, because I definitely feel the same way.  In a world of constant advertising and subscription services, it is easy to let spending run on autopilot, pushing our long-term dreams further and further away.  However what if you could turn the situation around?  What if you could tell your money exactly where to go, ensuring that every dollar is working towards the life you truly want?  The secret lies in two powerful steps: creating a realistic budget and strategically trimming your lifestyle expenses.  In the previous post, we discussed why and how to create a personal budget.  In this post, we can look at how to trim down expenses in our journey to financial freedom. I know many people will take the word "cutting expenses" with a negative connotation, as it seems like restricting one's spending till one has no opportunity to enjoy the little luxuries in...

Do you ever feel like your money disappears as soon as it hits your bank account?  You are not alone, because I definitely feel the same way.  In a world of constant advertising and subscription services, it is easy to let spending run on autopilot, pushing our long-term dreams further and further away.  However what if you could turn the situation around?  What if you could tell your money exactly where to go, ensuring that every dollar is working towards the life you truly want?  The secret lies in two powerful steps: creating a realistic budget and strategically trimming your lifestyle expenses. I know many people will take the word "budgeting" with a negative connotation, but it is important to understand that budgeting is not about deprivation.  It is, in the longer term, about empowerment.  It is about aligning your daily habits with your biggest goals. The Foundation - How to Create a Budget That Actually Works A budget is not a financial con...

Dividend investing often feels simple - buy solid companies, collect steady income, and enjoy financial freedom one dividend at a time.  However when it comes to measuring how well your portfolio is performing, it may not be so straightforward.  One of the most debated questions among dividend investors is should one evaluate one's portfolio based on yield on cost (YOC) or yield on market value (YOMV)?  Both metrics tell a story about your income, but they tell different stories, and depending on your goal, one may matter more than the other. Understanding the Two Metrics 1)      Yield on Cost (YOC) Yield on Cost = Annual Dividends per Share ÷ Purchase Price per Share YOC measures how much dividend income one receive each year relative to the price one originally paid for the stock.  For example, if a dividend investor bought a stock at SGD 10 and it now pays SGD 1 in annual dividends, the YOC is 10%.  Even if the stock has risen to SGD 20 to...

I have been tracking my income and expenses all the way since 2008.  However, all these while I have only been recording, but did not evaluate and analyse my expenses all these years.  Since I have the intention to begin my first phase of Barista FIRE next year, I think it is time for me to analyse my expenses, so I can estimate the minimum amount of part-time active income I will need to achieve next year in order for my cashflow to be healthy. Looking back at my expenses from 2022 to 2025, I am quite surprised at how my spending pattern evolved over these few years (and probably I have underestimated my expenses all these years).  I have always believed that being mindful about expenses is the foundation of financial independence and not just earning more, but also learning to live well within my means.  However, reality may be a little different from expectations.  Probably it is time for me to be more mindful of my spending. Four Years Of Data: The Story Be...