Did you miss some stuff AK shared on Facebook in July?

I don't blog as much as I used to but I am actually still quite active in Facebook.

As I started being active in Facebook pretty late as a blogger, I think many of ASSI's readers don't follow me on Facebook. They probably use other means to follow my blog. After all, I have been blogging for almost 6 years but I have been active in Facebook for only about 2 years.

So, from now, I think I will try to share periodically in my blog what I share on my Facebook wall. However, if you think you might get to read something profound, you would probably be disappointed.

The stuff which I post on my Facebook wall which don't appear in my blog are usually nothing cerebral. They are just stuff for fun and laughter most of the time.

See for yourself:

AK is honest, isn't he? ;p

Oh, a bonus pic, from a few days ago:

In case you didn't get the joke, read this:
http://www.channelnewsasia.com/news/singapore/breadtalk-temporarily/2028008.html

BreadTalk on Tuesday (Aug 4) said it has “temporarily stopped selling” bottled soya bean milk touted to be "freshly prepared" after an employee was caught repackaging ready-made soya bean milk into plastic bottles. The move comes after a photograph published by alternative news site Redwire Times sparked a firestorm online. “This ‘freshly prepared’ soya bean milk from BreadTalk always tasted very familiar, but somehow I couldn’t figure out why until now...

Hope you enjoyed this light hearted blog post.

HAPPY SG50. :)

Related posts:
1. Seven money habits of mine. See habit no. 1.
2. How to recession proof your life?
3. Green is not just the colour of money.

What makes an undervalued and thoughtful gift?

UPDATE:
I remember some people of rather limited imagination calling me a cheapskate after reading my blog post. Well, at least I did not "re-gift".

"HAPPY HOLIDAYS AND MAY ALL YOUR PROBLEMS BECOME SOMEONE ELSE'S."
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I know someone who orders canned green tea at coffee shops all the time. He says it is a healthier option compared to carbonated soft drinks. 

Well, I told him that canned green tea has lots of sugar too and that they are not necessarily much healthier alternatives. (AK can be very sensible about food too, you know.)

Anyway, for his birthday, I gave him a box of green tea. I told him that he just needs to bring a tea bag a day to work and he would be able to save $30 a month from not ordering canned green tea during lunch! His office has a hot water dispenser, I am sure.

Definitely a healthier alternative with lots of anti-oxidants and no sugar too!

When I told a friend what I did, he said I was a cheapskate! 

Oh, dear. Why did he say that? Actually, did you think the same way? 

Now, now, you can be honest with AK. I promise to listen.

Anyway, I told him it was a $80 gift! That puzzled my friend. He wondered if I bought some atas green tea from Japan. 

No, of course I didn't buy expensive green tea from Japan.

Then, what did I do? I explained:

Well, that box of green tea (which is a product of Japan, by the way) costs me a bit more than $5.00 and has enough tea bags to last about 2.5 months. 

So, the recipient of the gift is going to save $75.00 in those 2.5 months assuming that he pays $1.50 for a can of green tea during his lunch breaks (i.e. 50 days x $1.50).

Genmaicha.

In fact, if the habit grows on him, he would continue to save money during his lunch breaks forever.

The gift might not be costly but it is worth a lot more than it looks. 

It is an undervalued and thoughtful gift from AK. 

Remember the difference between price and value?

Well, I hope my friend appreciates it.

Related posts:
1. The price of convenience.
2. Genmaicha.

SATS, er, SAF must get AK to be a food ambassador!

When I first enlisted in the Singapore Armed Forces, combat rations were made up of canned sardines, canned chicken curry, canned baked beans, hardtack biscuits and chocolate bars.

When I went back 4 years later, combat rations came in army green packets and the variety was amazing! The packaging was strong and practical too.

We would leave the packets on the bonnets of 3 tonners and they would heat up under the Sun. Simply tear open the packets, pour out the contents into mess tins and we would have really yummy (almost gourmet, I feel) and warm meals.

I brought home a packet of red bean soup then and my mom loved it! My mom is very critical when it comes to red bean soup and she loved it! So, it must have been really good.

Anyway, a friend who went for reservist training recently told me packets and packets were thrown away as none of his fellow soldiers consumed any of the combat rations, preferring to simply dump the food packs in the rubbish bin at the end of the exercise.

It really pains me to think that so much perfectly good food is going to the landfills. All the resources that went into producing, transporting and storing the food are wasted. Of course, it is also a waste of precious tax-payers' money.

I do not understand why people would throw away perfectly good food:

Potato, cheese and sausages.

Black pepper mushroom noodles with sausages.

Baked beans, corn, cheese and sausages.

To readers who are still serving our country either as active servicemen or reservists in the military, please don't waste food. Please don't throw away your combat rations.

Like what my mother used to tell me when I was a boy, "Think of the many less fortunate people who do not have enough to eat."



Finally, for a bit of trivia, do you know that there is a company called Singapore Food Industries (SFI)? I used to be a shareholder. They are the people who supply combat rations to the Singapore Armed Forces. I rather liked the regular and good dividends which they paid.

Soldiers have to be fed and MINDEF is a good paymaster. 

Unfortunately, SFI was bought over by another company, SATS. 

Yes, interesting bit of trivia, isn't it?

Related posts:
1. AK71 gets recognition from the government!
2. SATS: A nibble while learning from Rusmin Ang.

Yum cha sek jiu with AK.

Quick upload:

One week old banana in the fridge.

Chinese tea.

Would you like to guess how much did my tea break cost?

What did you have for tea break?

How much did it cost you?

With that, HAPPY NATIONAL DAY!



Related posts:
1. Afternoon tea break with AK.
2. What did you drink for tea break?
3. Think we can't save $400,000?
4. Lunch made with love.
5. Gourmet sandwich by AK Deli!

AK says good-bye to another old friend.

Feeling sad.

A shirt which I have had for more than 10 years, maybe 15.

After the latest wash in the machine.

This is one of my favourite shirts and I liked it so much, I bought two that time. Time to let go.





I remember wearing this shirt to meet a fellow financial blogger 3 or 4 years ago. 

I was still very new to blogging and he was very encouraging. 

His fiancée then could tell that it was a shirt from Giordano!





Maybe, I should go shopping for another shirt.

Related post:
Parting with an old friend.

What did you drink for tea break?

Got to try something new for tea break:

New arrival in the office pantry.

Smells good. Tastes yummy too.

What did you drink for tea break? Not something with stars and costs many bucks, I hope. ;p

Related posts:
1. How I earned $9,216 with a mug?
2. Think we can't save $400,000?

Congratulations to DBS Westgate!

After breakfast, I went for an early morning stroll in the mall. I like early visits to the malls when they are pretty quiet and I usually leave by 11am before it gets a bit more crowded and noisy.

Saw many bouquets outside DBS Bank. So, I went and kaypoh a bit.

Wah! All the big names in finance!

Er, how come no bouquet from Muddy Waters har? Why har?

Hmmm...

Hmmmmmm...

Anyway, this was my breakfast:

Atas nasi lemak and atas barley water. $6.50.

Related posts:
1. Gourmet sandwich by AK71 Deli!
2. Atas and healthy lunch!
3. A meal with numerous benefits.
4. $2.00 breakfast and $1.00 dinner.
5. AK71 bought healthy lunch.

Partnering Mr. What and Miss. How.

I was inspired to write something to provide some light reading for the weekend after reading some stuff on Facebook this morning.

It is not just what you say but how you say it.

It is not just what you ask but how you ask it.

The "what" determines the content.

The "how" determines the response.

When we have something to say or to ask, think of the manner in which it could be delivered. Think of the "how".

Of course, the "how" is probably tied to our motivations.

Do we wish for a positive outcome or do we wish for a negative outcome?

If there is a mismatch between our motivations and the outcomes, then, there is something wrong with the "how".

So, how do we deal with this? What?

What we want to do is to be more mindful of the "how".

We should always pay more attention to the ladies.

Of course, I am just talking (and later reading) to myself as usual.

Related post:
To let go or to hold on to a position?

Kopi with Song StoneCold: Getting value out of everything!

Song StoneCold says:
I decided to embark on my path to financial freedom about 5 years ago. So, what inspired me to get started?

I discovered that no matter how hard I worked I would still be a stinking rat in the rat race. Looking at some of my colleagues carrying balls and backstabbing each other just to get a promotion and increment of about $200 bucks truly disgusted me.

Then, I reached a ‘tipping point’ and decided enough was enough! I needed to get out of the rat race!

I started reading thousands of books and attended thousands of seminars. Ok, ok . Maybe just a few hundred books and a few hundred seminars. All these were on investing and financial planning.

To cut a long story short, every single financial planning book advocated living with a budget, recording every single transaction, being frugal and bla bla bla.

Well, some even tell you to forgo Starbucks coffee! Now, imagine the money you can save after the compounding effect! Gosh! 

(AK's comment: Gosh! Talking about me, are you?)

Nevertheless, I decided to give budgeting a try. I tracked every single transaction, everyday. I tried to save money here and there. I was frugal and I seldom bought any luxury items or had a good meal at restaurants. What was the result?

PAIN!

I realized that it was not what I really wanted.

I want to have a decent lifestyle even before I am financially free, not a lifestyle of frugality, not to live by the ‘suffer now and enjoy later’ mantra’. I want to occasionally enjoy my caramel frappacinno at Starbucks!

Something happened 3 years ago that reaffirmed my thinking. My late aunt passed away at the age of 40 leaving behind a large sum of money for my uncle. She had been frugal all her life to the extent of dividing a packet of chicken rice for lunch and dinner.

In short, she tried to save every single cent possible. She didn’t even buy coffee at the neighbourhood coffee shop, much less from Starbucks. Mind you, she was not poor at all. She was earning a decent monthly salary.

In the end, my uncle used all the money and spent it on another woman. My late aunt's pain became his gain. Sad story. Lesson learned for me.

1) No point being too frugal. We need to enjoy life once in a while and use our money wisely 

2) Suffer now and enjoy later may not happen. Life is unpredictable and at any time we may just say bye bye before we can enjoy life. What is the point of being the richest man in the graveyard?

I am not going to splurge on everything but I decided that to keep a balance is the way to go. I need to enjoy my life while building my wealth through investing. Having investments which generate cash flow will give me passive income while growth stocks will give me capital gain. I will enjoy my life NOW and not later.

After some trial and error, I found that to achieve this I just need two simple steps. 

1) Get value out of everything.

2) Just ask.

It is possible to have a decent lifestyle if you make some small efforts. Below are some of the examples of how I managed to have a decent lifestyle

1) I have many credit cards from different banks. Now if you are poor in financial discipline please don’t try this. This is only for people who pay off their bills every single month. There are many ways different credit cards can give you quality perks. 

For example, Citibank Dividend Card not only gives you cashback for everything you spend on, it even gives you FREE travel insurance when you book your flights using the card. It offers you 10 percent cash back for your Starbucks purchases too.

Then, Maybank's Family and Friends’ card offers you 5 percent cash back at Watson and Guardian. These are the places we will spend money at anyway. So, why not get a better deal. Find credit cards that suit your lifestyle and apply for them. Just make sure you pay them in full every month.

2) If you are a bookworm like me. You can borrow books from the public libraries instead of purchasing them. Recently, I discovered that we can borrow ebooks from the library too. It is hassle free and reading ebooks from my iPad feels so good. If you need to buy a physical book, try bookdepository.com. It offers free shipping worldwide. 

(AK's comment: If you do not mind pre-owned books, they are usually cheaper to buy. Betterworldbooks also ships globally for free and every book you buy helps to promote literacy for the poor.)

3) Once in a while, if you decide to buy a luxury item, just wait for a discount. Be patient!

More often than not, there would be a discount in any shop sometime in a year. I usually wait for the Great Singapore Sale to buy the expensive items that I want. Use your credit card during this period and it often offers more discounts and perks.

If you want to attend a concert or seminar, just Google. There will surely be people who are selling their tickets at a lower price because they cannot attend the event due to some reason. Compare prices in shops and Google to check online.

When you are travelling, you can buy items from the transit area of Changi Aiport. I bought my iPad Air there and saved on the GST of 7%. Many shops in Changi Airport in the areas open to everyone offer waivers on GST too. 

These steps will save you tons of dollars while you continue to enjoy your purchases.

4) Car related expenses. I have no loyalty when it comes to petroleum companies. Which company offers the best price will get my business. This could be through some credit card tie-ups or discount coupons, for examples. Sometimes, loyalty doesn’t pay. We need to get value out of everything.

5) You can still watch movies at the cinema but do it during weekdays. It is much cheaper. You could get discounts with some credit cards. One credit card even offers you free popcorn.

6) Eat at your favourite restaurants during lunch instead of dinner. Lunch is generally cheaper. Again use credit cards to get better offers. Try to have only ice water. Drinks are the most marked up items in the menu. They are not worth it.

Next step is to just open your mouth and ask! You will be surprised how much money you can save by just asking for a discount, free samples, annual fee waivers from credit cards etc. There is no harm asking. If we don’t get it, just look for another shop and move on.

There are so many ways and these are just a few.

What I am trying to say is that it is possible to live a good life at discounted prices.

In the stock market, we look for under-valued stocks. Here, we look for under-valued items. One of my favourite quotes from Warren Buffet is this:

"Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down." - Warren Buffett.

Let us all enjoy a good life while we build our wealth at the same time.

Related posts:
1. 7 money habits of AK's.
2. Free shipping globally!
3. A modern day good life.
4. To be a happy peasant.
5. How rich is rich?
(... do not forget that being happy is more important than the pursuit of money. If we can be happy every day of our lives, we are truly rich.)

An appeal by AK for funds.

Regular readers know that I believe in being charitable and I have revealed before that I support 6 charities in Singapore. My favourite charity is still "Singapore Children Society" and has, increasingly, taken the lion share of my donations.

I recently received an appeal letter from another charity which I support and there was a little hand written section which moved me and I would like to share it here with you:

We might feel that what we have is not enough but if we have extra money which we are able to invest with, we are fortunate indeed compared to the poor and the needy.

So, if you have a charity that you like, please make a bigger donation this festive season. Just $10 more will make a big difference if everybody thinks the same way.

If we don't yet have a habit of being charitable, why not start today with a donation to the "Singapore Children Society"? We can make an online donation on their website: here.

Let us bring some cheer to the less fortunate in our midst. We can do it and, so, why not? Thank you.

Related post:
Have money must also have a heart.

To let go or to hold on to a position?

We can either make statements of fact or opinions. They are quite different from one another although sometimes people mix them up. This is just something that happens naturally in daily life.

"Today's temperature is 30 degrees Celcius." This is a statement of fact. It could be either right or wrong.

"This is a nice day." This is an opinion. There is no right or wrong.

How could these be mixed up?

Well, to me, it might be a fact that the weather is nice but to someone else it might not be. We could have a debate until the cows come home on who is right but it would be an exercise in futility because there is simply no right or wrong to this.

Of course, we can make statements of fact or opinions about anything under the Sun, including people.

"This person is 1.7m in height." This is a statement of fact.

"This person is short." This is an opinion.

In the land of the Vikings, 1.7m might be short for a guy but in PNG, 1.7m might be considered tall.

Now, when we start saying things about people, we have to be a bit more careful because it could get sensitive. I know people who are vertically challenged who are very sensitive to being called "short".

So, I try to be careful about what I say about people. I don't want to be hurtful. The best is not to say anything at all. If I have to say something, I try to make sure it is positive. If it is not, I try to be diplomatic.

Sometimes, I might slip up. If the other party should be diplomatic enough to let it go, then, I should be grateful and let it slide. I might even think of how to make it up to the other party in future.

Why force anyone into a corner? When any regular guy with an iota of pride is forced into a corner, what is going to be his natural reaction? Should we be surprised by the answer?

We will very likely save ourselves and others a lot of angst if we are more careful with what we say in the first instance.

Tea with AK71: The kindness of strangers.

There is a small part of an email a reader sent to me very recently which I feel like sharing but at the same time, a little corner of my mind tells me that maybe I shouldn't.

The reason why I feel like sharing is because it is something that the boy scout in me has always believed in. I feel that if we can make a positive difference in the lives of others, why not? 

If we can show some consideration to others and make the world a better place, isn't that a good thing? 

In our pursuit of wealth, we should not forget to extend a helping hand to those in need if we can.

The reason why I think I shouldn't be sharing is because I am afraid that I might be accused of self-promotion once again.

Then, I remember something a fellow blogger, SMOL, told me: "Be the mountain!"

Photo taken on a trip to Japan.

Here it is:

"We live in a dog eat dog world these days, and every where I look I see the ugliness of the human spirit. People 你争我夺。People 笑里藏刀。 So it's quite rare and heartening to see that there are people around - willing to share knowledge and help readers. And because of this, I don't just see a rotting world anymore-  I retain a bit of optimism for the future, a bit of belief in the human spirit, a bit of love for the world."

I am not ashamed to say that, reading this, I was almost moved to tears, especially in the state that I was in.

It is easy to become hard and cynical as we grow older in today's world. We lose our youthful optimism and trusting nature. 

It is hard to believe in the kindness of strangers and for some reason it is more so in Singapore and places like Singapore (example, Hong Kong).

Well, if we find it hard to accept the kindness of strangers, perhaps, we can be kind strangers to others instead. I dream of the day when the kindness of strangers will stop being a strange thing.

How should I end this blog post? Let me borrow from a quotation another reader sent to me and that is we should all "err in the direction of kindness."

Tea with AK71: Mind your language.

Once upon a time, I was a teacher but I had never seen anything like these:



Click to enlarge image.

So, which one tickled you the most?

Tea with AK71: Car is SO big again!

Again.

One day, someone might do something more drastic than just taking photos like I did.

Related post:
Wah! Your car is SO big!

Tea with AK71: Wah! Your car is SO big!

Some people drive big cars:

So big that a single parking lot is not enough.

The inconsiderate, selfish and idiotic people like this driver are why the world is in such a mess!

KNS!

Tea with AK71: Laughter is the best medicine again.

Absolutely wicked!



I fell off my chair AND rolled on the floor laughing, thanks to Matthew Seah!

Related post:
Laughter is the best medicine.

A university degree in 10 days!

I saw an advertisement on Facebook that promised a university degree in 10 days. It was in the sponsored section.




Like that also can. Facebook must hide face.
The shady site: quickdegreesnow.com

That Facebook does not screen advertisers (aka sponsors) unsettles me.

You have to watch this! Photoshop Live!

This is really good! I was smiling throughout!

You have to watch this:





Related post:
How to get free bus rides any time, any day?

Tea with Matthew Seah: OCBC Blue Chip Investment Plan.

I am constantly looking for people who are good writers and who have a savvy for investments. 

Some of you might remember reading an article about a young investor in the most recent issue of The Sunday Times. 

Matthew Seah is only 25 but what he has achieved is far more than what I did at his age.

I discovered the following Monday that I had actually been chatting with him for a few days already and that he is also a regular reader of my blog, having commented in a few of my blog posts before as well. 

I could not reconcile the Matthew who commented in my blog posts with this Matthew whom I have just started chatting with recently because I always thought he would be much older.

Well, I always say that I am a frog in a well. 

I just discovered (again) how small my well is.

I asked Matthew if he would like to do a blog post for ASSI and he kindly obliged, choosing to write a piece on OCBC Blue Chip Investment Plan. 

This blog post shows how logical he is in his approach and how sound he is in his ideas. 

I certainly hope that this is the first of many blog posts in ASSI to be penned by Matthew.





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The Business Times reported on 25 Jun 2013 that,

“OCBC Bank announced today the launch of the OCBC Blue Chip Investment Plan ("the Plan"), a regular investment plan that allows retail investors to purchase Straits Times Index (STI) stocks for as little as S$100 a month.

Investors can use cash or, funds from Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) accounts to invest in one or more stocks from a selection of 19 Mainboard STI stocks and one STI Exchange Traded Fund (ETF).

OCBC Bank also saves first-time investors the hassle of opening securities trading and Central Depository (CDP) accounts by buying the stocks on their behalf on a pre-determined date every month.

The 19 stocks were selected as they are included in the CPF Investment Scheme (CPFIS) from the entire portfolio of 30 blue chip stocks in the STI.”

For more details, see: OCBC Blue Chip Investment Plan

This investment plan is targeted at young working adults who do not have a lot of cash to buy one lot (1,000 shares) of blue chip. One lot of blue chips can cost somewhere between $600 (Golden Agri) to $43,000 (Jardine C&C). OCBC has kindly left out those STI components that are fairly affordable, stocks valued less than $1, as they cost less than $1,000 per lot to purchase.

This investment plan employs the Dollar Cost Averaging technique where you invest a fix amount each month, regardless of the share price.  Dollar Cost Averaging allows you to buy more when the price is lower, and consequently less when the price is higher.

Investopedia does a good job of explaining this technique: Dollar Cost Average.

What should a young working adult buy?

I am assuming the a young working adult to be enthusiastic, ambitious , full of drive. Thus, he/she would not have much time to do any due diligence when it comes to investing. He/she would not want to add more stress to his life by trying to beat the market. Trying to beat the market requires lots of control over your emotions, which might not be easy for a young investor who has not experienced the greed associated with rising prices, nor the fear associated with falling prices.

As such, I recommend investing only in the Nikko AM STI ETF. Investing in Nikko AM STI ETF would allow you to own all 30 STI components at once, hence eliminating the hassle of choosing the individual counter. Investing in the ETF also allows sufficient diversification to weather financial shocks to some extent.

The components of STI are reviewed semi-annually by FTSE Group to ensure that non-performing companies are replaced. E.g. NOL was removed from STI and replaced by IHH on 13 Sep last year. By investing in Nikko AM STI ETF, you can be sure that you are investing in the best 30 companies (or perhaps the 30 better than average companies) listed on the Singapore Stock Exchange.

While the Investment plan may be good, you should also consider the charges involved.

The charges involved are as follows: 

Click on pic to enlarge.

So the charges involved for investing each month is 0.30% or $5 per counter, whichever is higher. It might seem difficult to understand, but here’s a chart to help you.

Click on pic to enlarge.

As you can see, the fees are pretty high, at 5% when you invest $100 per month ($5 is higher than the 0.3%, thus the fee incurred in this case is $5). However, the costs involved is greatly reduced to an optimal 0.30% when you invest $1666.67 per month (In this instance, 0.3% is also $5) or more.

What this would mean is before you can even make any money, you will need to pay OCBC a fee of up to 5%. Whatever that is left will need to grow by 5.3% before any profit can be made (after paying 5% fees, you have $95 left. In order to get back to $100 using $95, the returns needs to be 5.3%). This kind of charges are the same when you open any other trading accounts, but the fees incurred may vary.
 

I feel that any fee below 1% of your invested capital is manageable as long as you are really holding for the long term. Hence please invest at least $500 per month if you are taking up the OCBC Blue Chip Investment Plan, and invest only in Nikko AM STI ETF for sufficient diversification.

See also:
1. POSB Invest-Saver Account.
2. Dollar Cost Averaging and expected returns.

Visit Matthew's blog:
Compounding for a better future.

Related post:
Inflation adjusted retirement income plan.

How to get free bus rides any time, any day?

A few days ago, the Singapore government started a year long trial offering free rides on MRT trains to commuters who journey into 16 stations before 7.45am on weekdays. What about those who take buses? So unfair!

Well, want to get free bus rides any time, any day? Watch the video and be amazed:





This gives "riding on a bus" a new meaning, don't you agree?