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Investors eat crusty bread with ink slowly for peace of mind.

Saturday, January 18, 2020

Older readers will remember an older blog of mine which asked

"How to have peace of mind as an investor?"

In that blog, I suggested that we should

"Eat bread with ink slowly."

Using mnemonics, it stood for:

1. Emergency fund.

2. Borrowings.

3. War chest.

4. Income.

5. Sizing.

If you cannot remember the details or if you are new to my blog, you might want to read the blog: HERE.

Actually, there is something missing from the list and I have been thinking of doing an update for a while but long time readers of my blog know that I have such a busy life.

This week, in fact, I have spent tens of hours adventuring in a new world.

Yes, a new world.

It is likely that I will spend hundreds of hours in this new world in the coming months.

It is an ARPG this time which is quite different from the MMORPGs like Neverwinter and Guild Wars 2.

ARPG stands for action role-playing game.

The name of this ARPG?

Path of Exile.

Once Mod 18 in Neverwinter goes live on 21 January, I will be busy adventuring in Avernus, the first layer of the Nine Hells of Baator.

Path of Exile and Guild Wars 2 will provide me with alternative worlds to adventure in each time I wait for new Mods from Neverwinter.

I can never be bored in retirement as I enjoy adventuring in such fantastic worlds.

The amazing thing is that I don't have to pay a single cent (and I don't) in order to enjoy these larger than life adventures.

Some people say:

"Aiyah, you can do this because you are rich mah."

This might sound a little sour but, to be honest, they are right.

We want to be financially free so that we do not have to exchange the most precious resource we have (i.e. time) for money anymore.

Why do many average income workers find this impossible?

Do you believe me if I were to say it is not because they make an average income?

If you are a new reader or if you don't remember, read this blog:

Average income workers have a choice to be rich.

To be richer, learn to be better savers first.

This brings me to the crux of the blog or in this case, the "crust".

"Eat crusty bread with ink slowly."

Using mnemonics again.

The letter "C" in the word "crusty" stands for CPF.

I have said in many blogs before that having a rather significant safety net allows me to invest the way I invest with peace of mind.

My CPF savings is a very big part of this rather significant safety net.

In fact, I said that the CPF would continue to be an important part of my passive income strategy even after I had made $1 million in dividends from my many investments in equities and trusts.

Now, when was this?

This was back in October 2016.

The AK passive income strategy after making $1 million.

So, to have peace of mind as an investor, not only do I eat bread with ink slowly, I choose to eat crusty bread with ink slowly.

1. Emergency fund.

2. CPF.

3. Borrowings.

4. War chest.

5. Income.

6. Sizing.

I rather like this update.

Definitely sounds complete now.

Sounds a bit more yummy too.


Don't you think so?

Related post:
CPF is all we need unless we are very rich.


Siew Mun said...

At 55, CPF OA+SA is cash and generating cash income after setting aside FRS. That is a paradigm shift not many have realised.

WTK said...

Hi AK 71,

Is that a need to eat the bread in the first place?

The gist is "peace of mind" in anything in which one likes to do.


AK71 said...

Hi Siew Mun,

It is absolutely unfortunate but true.

AK71 said...

Hi Ben,

Of course, I am just talking to myself here.

What people choose to do after eavesdropping on me is up to them.

"Eat crusty bread with ink slowly."

Don't eat bread?


People are free to ignore "E" and "B" (i.e. "eat" and "bread") at their own risk.

Of course, I wonder if they know what these actually stand for?

john said...

Hi ak, haven’t seen you talk to yourself about singnet for a while. It was one of your biggest investment. Care to talk to yourself about it ?

The Dreamzola Traveller said...

I think for some people the first step to become a saver is the toughest. Some of mindset of the people are so entrenched that I can't even convince them to learn to save the money that was spend unnecessary.

Spending 12k on a Rolex Watch, and yet complaining not enough money to pay household expenses just doesn't make any sense. He could have not buy that watch and save himself from financial dire. The answers I get despite my numerous advise were 'bo bian le, not earning enough money,' or 'Toto no luck le.'

I don't know how to help them liao.:(.

AK71 said...

Hi John,

Singnet? I don't thing I have ever said anything about Singnet before. ;p

If you meant SingTel, I don't really have anything new to say.

Just holding on to my remaining free of cost investment in SingTel to collect dividends for now. :)

Sell into the rally and stay invested.

AK71 said...

Hi The Dreamzola Traveller,

A $12,000 Rolex watch>

What about this?

Buy a $500,000 watch after 3 years of work.

Mind boggling! O_o

Sometimes, there is really no help for it.

Sometimes, people have to suffer hardship to learn.

Forced selling due to financial hardship.

Are you sometimes forced to be extravagant?

We can only help people who want to be helped.

Save 100% of our take home pay!

The Dreamzola Traveller said...

Buy a $500,000 watch after 3 years of work.

OMG! That's....half a million! How many average worker can see that amount of cash in a lifetime........


AK71 said...


Some people were actually encouraging him.

That's an even bigger OMG! :o

They thought it would spur him to make even more money.

Well, he wouldn't be left with any other choice since he would be totally broke after buying that overpriced sun dial. ;p

I say shame on those who were encouraging him and good luck to him.

FinanciallyFree said...

Hello AK, regarding mindset, would it be better to adopt a more aggressive portfolio and size my portfolio to more growth stock instead of safe dividend paying stocks?

AK71 said...

Hi FF,

Oh, it is never my way or the highway.

If you have the ability and willingness to take on more risk and more volatility, go ahead.

This blog is about having peace of mind as an investor and not everyone is able to or willing to take on more risk and more volatility. ;)

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