~~Towards Barista FIRE~~

This will be a relatively short post, just to update on the transactions for the month. For the month of August, it was a jittery month.  For a large part of the month, the markets were anticipating the FED to cut interest rates in September, and the probability of it materializing was near 100%.  However, markets were thrown with a set of much hotter than expected PPI numbers, which meant that the tariffs-linked inflation is creeping in.   However, even with such unfavourable news, the US market decided to largely ignore it, and continue with its slow and steady uptrend.  It seems cautiously optimistic, but at the same time, the jitters and uneasiness may mean that cracks are happening beneath the rise. I do not really know what to make out of the numbers, as all these reports and numbers were out of my control.  I can only do what I could, which is to remain invested and hope for the best.  My US Portfolio, although small in percentage terms, remain...

One would have probably heard the saying before - “Compounding is the eighth wonder of the world. He who understands it, earns it.  He who does not, pays it.”  This quote has been repeated endlessly in the personal finance world, and for good reason. But here is the truth.  Compounding is not a get-rich-quick strategy.  In fact, in the early years, it can feel like watching paint dry- boring, slow and unmotivating.  You put in the effort, you save diligently, you reinvest your dividends, and for the longest time, it seems like nothing much is happening.  I have written a similar, but simpler post when I first started blogging back in 2022, where I noted 3 main factors affecting the compounding effects, namely time, yield and capital. The Key Factors That Influence Compounding’s Power 1)     Time This is the biggest multiplier.  The longer your money stays invested, the more time each dollar has to grow on top of previous growth.  ...

Recently I came across a YouTube video titled " How to Bankrupt the Middle Class in One Day ", and it definitely caught my attention.  After viewing this video (in Chinese), I see many learning points I can incorporate into my financial journey, and hence I decided to write this post as a record for myself.  To do this better, I went to look for the summary of the classic literature, "The Necklace" by Guy de Maupassant.  Summary of "The Necklace" For those unfamiliar, the story follows Mathilde Loisel, a middle-class woman unhappy with her modest life.  She dreams of wealth, glamour, and admiration.  When she gets invited to a high-society ball, her joy turns into distress because she lacks a fancy dress and jewelry.  Her husband sacrifices his savings to buy her a dress, and she borrows a glittering necklace from a wealthy friend.  The ball is everything she dreamed of, until disaster strikes.  She loses the necklace.  Instead of confessing...

As a dividend income investor, my investment focus has always been directed towards sustainable and reliable dividend income.  I am not in this game for flashy short-term capital gains or speculative plays.  I invest in dividend-paying stocks because I want to build a consistent income stream that grows over time and supports my financial goals, especially as I inch closer to Barista FIRE. That is why dividend yield plays a central role in my stock selection, and just as importantly, in my sell decisions.   ** Before I get any objections, I would like to highlight that dividend yield is just one of the factors that help me decide whether to sell or not.  There are other very important factors like payout ratio, profitability of the business, dividend growth and other metrices like price to earnings and price to book ratios.  However for the purpose of this write up, I will only be discussing how dividend yield impacted my investing decisions. ** ...

Back in June 2023, I wrote a blog post titled " Which Is More Essential in Personal Finance – Cash or Cashflow? ", where I explored the age-old debate between the value of having cash on hand versus the importance of generating cashflow.  At the time, I concluded that both cash and cashflow are equally important, but still leaned slightly towards the security that cashflow provides, especially amid market volatility and rising uncertainty. Two years have passed since then.  Along the way, my investment journey has matured slightly, my financial goals became clearer, and most importantly, I found a firmer footing on the path toward Barista FIRE, which is aiming to begin my progressive semi-retirement in phases starting next year with a part-time income and a more robust investment portfolio generating passive income.  Now, as I reflect and prepare for this next life phase, I have a stronger conviction: cashflow is more important than cash, especially for someone approachi...