~~Towards Barista FIRE~~

Previously, I wrote about how compounding is the 8th wonder of the world.  When used wisely, it is the magic that helps me grow wealth quietly in the background, as long as I give it sufficient time, inject a big enough capital, and manage a sufficiently decent yield.  However what people often ignore, forget or dismiss, is how compounding does not discriminate.  It is just a force, and it can just as easily work against one, as it can work in one's favor. In my own journey, I have seen both sides of compounding. On the positive side, compounding has helped my dividend portfolio grow.  Every reinvested payout plants a seed that continues to bear fruit.  But on the negative side, I have also experienced how a property with negative cashflow quietly chips away at my finances.  Month after month, it drains resources that could have been building my future.  People often say mortgage debt is “good debt”, but I have come to realize that if it does not p...

From time to time, people have asked me how I managed to build up my current portfolio size, especially when I often say I have always had a relatively low active income.  More questions actually popped up after I wrote the post where I decide to liquidate my US Growth Portfolio to pay off my mortgage in Malaysia.  To be very honest, the journey was not glamorous, nor was it the result of overnight success.  It was a combination of discipline, patience, keeping expenses low, and a few key decisions (and saddening privileges) along the way.  This post is written with much emotions, as it openly shares my entire financial journey along the way, filled with ups and downs, and scars in life.  Please be kind towards my financial mistakes, as I know very well I am far from being perfect. Early Days – Humble Beginnings I started working in 2007 at a Japanese engineering firm with a starting pay of SGD 2,400 per month.  It was not much, but it was the reality of ...

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.  ...

As 2025 unfolds, savvy investors in Singapore are watching closely as a combination of macro-economic shifts unfolds: T-bills' interests are softening, the Singapore Savings Bonds (SSB) are offering declining yields, high-yield savings accounts like UOB One and OCBC 360 are trimming their headline rates, and the much-loved Central Provident Fund (CPF) Special Account (SA) for individuals aged 55 and above has officially closed. With these traditionally safe, fixed-income options becoming less attractive or obsolete, the big question on my mind is "will this wave of capital now turn towards the Singapore stock market, particularly into high-dividend plays like REITs and bank stocks, and push their prices higher"? Why I Think More Liquidity May Enter the Market And Boost Dividend Stocks 1)      The Income Substitution Effect With the erosion of “safe” passive income options like T-bills, SSBs, and high-yield savings accounts, income-seeking investors, especially retir...

After discussing about how I perceive mini-Retirements in my previous post , and looking at my current circumstances and regrets in my financial journey, I find that time is actually one of the most critical factor in personal finance.  The way one manages financial decisions early in life can significantly impact financial security in later years.  Whether it is leveraging the power of compounding interest, tackling debt before it spirals out of control, or making smart investments, time can either be an ally or an adversary.  Below are some key examples of personal experiences of how time plays a crucial role in financial well-being. 1)      Early Central Provident Fund (CPF) Contributions: The Power Of Compounding Interest One of the best financial moves a young working adult in Singapore can make is to aggressively contribute to their CPF accounts, particularly the Special Account (SA), as early as possible.  I came to realize this only recently ...

This post is written based on personal opinion and circumstances, and it is definitely not applicable nor suitable for everyone.  It is just to record my personal thoughts and actions moving forward, and it is definitely not any form of financial advise. The Central Provident Fund (CPF) is Singapore’s most well-structured social security system.  Besides providing Singaporeans and Permanent Residents (PR) a reliable way to save for retirement, CPF also offers attractive benefits like guaranteed returns of between 2.5% to as high as 6% (depending on the account and age band of individual) and tax relief.  Personally, I love how the CPF system works, but being a self-employed person since 2015, I did not benefit from employer's contribution of 17% to my CPF account in the past 9 years.  However, as I believe the CPF system is a reliable and a technically risk-free system that works like a guaranteed-bond, I religiously contribute 37% of my annual net trade income to al...

"Time in the market is more important than timing the market" is one of those slogans you hear very often in personal finance circles that it almost feels cliché.  However, like a lot of these nuggets of wisdom, it holds serious weight when you unpack it, especially when you think of investing with a Barista FIRE mindset like myself, where the goal is financial independence with part-time work to supplement your lifestyle. As such, let us take a look into why focusing on time in the market is so crucial, and why trying to time the market can be a dangerous distraction. 1)     The Power of Compounding Over Time Investing is often compared to a marathon, not a sprint (traders may not agree but I belong to the clan of long-term investing).  When I invest consistently over time through dollar cost averaging (DCA), I am giving my money the chance to grow, not just linearly, but exponentially, thanks to the power of compounding (for dividend investors like myself, t...

This piece is inspired by AK71 once again, who has recently released this video saying that he is considering liquidating his entire portfolio.  He is having such thoughts because his portfolio is sufficiently big enough to be placed into safer instruments like T-Bills or Fixed Deposits to eliminate/ minimize any market volatility to the portfolio, and this amount is more than sufficient to last him his lifetime.   So will I do the same thing?  I am not in the situation to comment on that, because my portfolio is way too far away from this ideal situation, and moreover everyone's situation is different.  If I ever own a portfolio the size of his to be able to Fat FIRE, I think I may probably consider doing something similar, but there may be some factors I personally need to evaluate and assess.  Since my portfolio is significantly smaller, I did think of complete liquidation of all my assets before, but with the help of geo-arbitrage.  I am a Malaysi...

This will be a relatively short post, just to update on the transactions for the month. For the month of July, it is a rather muted month.  After the release of the better than expected June CPI numbers in early July, the markets had a short burst, and it kind of fluctuate around, waiting for more directions from the earnings of the various top companies.  To start the ball rolling, JP Morgan released an impressive earnings report for the quarter that boosted it's share price to near term highs.  Last week, the big Techs also released positive earnings, especially Google, that is lagging others like Microsoft and Apple.  Generally, the earnings brought about a slight run up, with the exception of Microsoft which saw it's share price corrected after a huge rally earlier. In addition, we have to deal with another rate hike this month.  Will this really be the last, it's anyone's guess.  Personally I do hope that it is the last, as any higher interest rates i...

In the recent video by The Fifth Person, they interviewed the famous local blogger (and budding YouTuber) AK, author of A Singaporean Stocks Investor (ASSI) .  In his blog and in this interview, AK revealed that his portfolio has compounded and delivered an annual dividends of SGD 200K in 2022!  This is definitely eye-popping, a source of envy and admiration, and an inspirational figure whom I wish to follow. That is a goal that I would can only wish to reach, but currently it is definitely far-fetched, especially when my annual dividends is just 10% of that amount, and I am already planning to Barista FIRE in 3 years time.  Personally, aiming for 20% of that amount in annual dividends sounds more realistic and achievable to me.  However reading his blog and 'listening' to what AK says to himself is an enjoyment.  He has always preached his investing philosophy of 3P's, being prudent, patient and pragmatic.  In addition, his advice for investors with the m...

In June, an article in The Straits Times shook the finance blogger/ YouTuber sphere.  In the article titled " Moving from financial stability to financial abundance takes Singaporeans 32.3 years: Study ", it shares the report done by wealth manager St James's Place who did a study on 1,000 affluent Singaporeans aged between 24 to 64 with minimum annual household income from SGD 70K to above SGD 250K.  In the report they concluded that it will take about 32.3 years for Singaporeans to progress from financial stability, financial security, financial flexibility, financial freedom and finally, financial abundance.  After the release of this article, many financial bloggers and YouTubers like Kelvin Learns Investing and Josh Tan- TheAstuteParent posted their perspectives on this matter.  With respect to the study, I would like to highlight that the study is skewed to only include affluent Singaporeans and those with annual household income below SGD 70K are not include...