Expenses. T-bill. SSB. DBS, UOB and OCBC.

It has been more than a week since my last blog post.

Things have settled into a new normal for me.

In this new normal, my expenses have increased by 3x or 4x.

UOB should be very pleased with me as I exceed the $500 minimum spending required on the ONE Card by a large amount to get extra interest on my savings in the ONE Account.

The increase in expenses is going to be part of the new normal and not transitional, I suspect.

Fortunately, my passive income is buffered which means I am able to absorb the current higher expenses.

Crossing fingers that things do not worsen.

I am still not sleeping well but, fortunately, I am able to take refuge in virtual worlds.

This has saved me many years ago from going into a depression and it still works for me today.

Just spending time alone and being focused on things that have nothing to do with the real world.

Escapism?

Call it what you want but it works.

In a YouTube video I made not too long ago, I said that I could feel apathy setting in when it comes to money matters.

I can say that apathy has definitely set in.

It is next to me now, watching me as I pen this blog.

Apathy says, "What are you doing?"

AK says, "Listen to me, Apathy, you are just a guest. You should try not to get too comfortable."

Brave words.

Writing is therapeutic to me and I am just talking to myself which helps to calm my mind as I try to make sense of things.

Anyway, soldiering on.

1. T-bill yield dropping.

In the last auction, T-bill yield declined to 3.34% p.a.

It could have been worse, I suppose.

Anyway, I got my non-competitive bid filled.

Using cash, 3.34% is still better than what a regular savings account pays.

Of course, if we can get 4% p.a. like we get with the UOB ONE Account, we should maximize that first to $150,000.

With T-bill yields declining and this goes for interest rates in fixed deposits too, high yield savings accounts should have priority when parking our extra money.

There is, of course, the added benefit of liquidity.

I also use my CPF OA money to buy T-bills but I might stop doing this because the break even cut-off yield for 6 months T-bill is 3.33% p.a. in case we lose another 2 months of CPF OA interest.

I would just transfer the money from CPF IA to CPF OA when the T-bills mature.

One less thing for me to juggle.

So, it isn't a tragedy.

2. Singapore Savings Bonds.

10 year average yield on Singapore Savings Bonds is also declining. 

I bought some SSB offered last month.

That had a 10 years average yield of 3.22% p.a.

This month, the offer is for an average yield of 3.1% p.a.

It is still above the 3% average interest I would get for doing voluntary contribution to my CPF account, although not by much.

I think I will give it a miss.

Another less thing for me to juggle.

Yes, again, not a tragedy.

3. DBS, UOB and OCBC.

Things seem to have settled down for the stock prices of our local banks.

They have recaptured their supports.

DBS at $35.

OCBC at $14.

UOB at $30.

Mr. Market might have come to terms with the eventual weakening of net interest income as interest rates decline.

However, like I have said many times before, our local banks have other sources of income and they are likely to continue growing as they retain about half of their earnings.

This means that even for people who paid higher prices for stocks in DBS, OCBC and UOB, eventually, their investments will become much more valuable.

For me, being paid while I wait is not a bad thing.

Still, do not throw caution to the wind.

The world is not in a good place now.

So many things have gone wrong and could get worse.

We are fortunate to be in Singapore but we are not shock proof.

Mr. Market could go into a depression suddenly, without warning.

That is when we roll out our war chests.

Remember what I always say.

Don't be overly optimistic.

Don't be overly pessimistic.

Be pragmatic.

Be prudent.

Be patient.

If AK can do it, so can you!