Mar 25, 2014

Cory Diary : Contemplating Retirement

Retirement has been in my mind for a long time. If i make that move there is no turning back. Two key concerns in the back of my mind.

Net Worth Hurdle

First to lose is the monthly income. In addition to that, bonuses which always pull my net worth a mile. Will I be able to stomach possible decrease psychologically ?

Left is the investable net worth chart captured over the years.What can we understand from the annualized return rates compared to investment return rates.

Social Hurdle

The connection with colleagues.What can i do so that my experiences will not be lost. How can I continue to be relevant to the society ?

23 Mar 2014

Mar 16, 2014

Cory Diary : Expenses worth to manage ?

Cab fare per trip S$10 may amount to S$5000 annually. Bus/MRT maybe 20% of that amount. Makes sense to save always ?  If you have important preparation or meeting that day or next, may want to consider taking cab to give you the edge mentally, time and energy to be prepared to advance your career. Be aware of cab addiction.

Saving in Bank
S$200K in bank doing nothing ? Normal saving rates 0.05%. 0.55% fixed deposits amount to S$1000. Split it to smaller amounts and draw them for emergency. That's take very little effort to earn considering internet age of banking today.

Food court still ok for most. Well, home cook maybe better. Do checks on satisfaction, skill, time, sourcing, water and energy costs. If you have a housewife, kids and grands at home that's make perfect sense. A working wife may badly need the rest time and energy.

Do you visit restaurant often ? Daily cost says $20 delta more. That can amount to $7000 annually for one. Go once a while is refreshing though.

If you are addicted to Starbuck, a cup a day can cost you S$2000. Why not try home make or neighborhood coffee-shop or food court. I know i know. Feeling is different. Taste maybe different. Is it a lot better ? You can save S$1500 easily.

I like to do a lot of approximations. S$12000 easy saving on the plate. Probably a lot more for two.

Here's the Math - If your annual income is 100K, that's 12%. However if your annual saving is 30K. That's 40% of your annual saving.

If your combined income is just 70K, assumes same expenses, there's no room for saving which is real for some people. Then, S$12K saved is golden. I am sure there are few other things we can skim but the point is ... do you get the point ?

Not convince, how about the opportunity cost without those saving compounded :)

16th March 2014