Interview with Matthew Seah (Part 1): Financial Freedom.

I learned from Robert Kiyosaki that in order to gain financial freedom, we have to be free of debt, able to provide for ourselves and to prepare for a future without having to work for money. 

Many people always find themselves short of cash at the end of each month and it is difficult for them to save any money.

To avoid this problem, I pay myself first by saving a portion of my income before spending any money. At the end of the month, if there is any spending money left, it will add to my savings.

Being prudent with money is something I strongly believe in since young as my mother always advocates the virtues of saving money. My Edusave bursaries and scholarships during my school days all went into my savings account.

Now, I have several accounts and not just one. They are:

Account 1: Emergency fund.

This is money which can support my current lifestyle for at least a year in case something untoward should happen.

Account 2: Opportunity fund.

This is money to take advantage of any investment opportunities in a market crisis.

Account 3: Investment fund.

This is money available to invest on a regular basis. To reduce commission and fees as a percentage of a transaction, I tend to invest only after accumulating more than $9,000 in the investment fund.

Account 4: Gifting fund.

This is money set aside for buying gifts, donating to charities and making offerings.

Account 5: Excitement fund.

This is money put aside for holidays.

As passive income from my investments increases, I will be able to set aside more of my total income for investments. One day, when my investments are able to generate the desired level of passive income, I will set aside 90% for charitable causes, keeping only 10% for my own expenses. This is my goal.

So, how should young people go about increasing our wealth to reach the goal of financial freedom?

We need to seek the right financial education or get a mentor who has walked the path with good results since financial education is not available in school.

If young people have a low level of financial literacy, there is a good chance that their families do too. Therefore, they should not seek financial advice from their family members. Actually, it is not uncommon to meet people who think that investing in stocks is synonymous with gambling. This is due to a low level of financial literacy.

Investing in stocks is like being in partnerships with businessmen. Instead of starting our own businesses and hoping to succeed, we can shorten the time to success by being partners with successful entrepreneurs at the helm and stand to share the profits from their success.

Time is the most valuable resource that any person has in investing because wealth from investing grows by compounding. So, young people have a distinct advantage. Start young.

Related posts:
1. Robert Kiyosaki: 2 are better than 1.
2. Teaching young children financial literacy.
3. Interview with Matthew Seah (Part 2): Value Investing.

Multiple Streams of Income.

In the comments section of an earlier blog post regarding buying properties with little or no money down, a reader, SC, highly recommended the following books by Robert G. Allen:


Click image to buy.
Free shipping.


Click image to buy.
Free shipping.
Allen researched hundreds of income-producing opportunities and narrowed them down to ten surefire moneymakers anyone can profit from. This revised edition includes a new chapter on a cutting-edge investing technique.

Show more

Show less

Apparently, Robert G. Allen, whether directly or indirectly, is the guru of all the gurus out there and it is said that he charges US$10k to US$25k for personalised coaching.

I am not willing to pay US$10k to US$25k but what about buying both books for less? I enjoy a bargain and I enjoy reading. So, what to do? ;)

Related post:
Be a real estate owner the easy way (3).

Bought another book from BetterWorldBooks.

I have blogged about BetterWorldBooks a few times before and the good that they are doing. Everytime we buy a book from them, we are helping to do good for the environment and helping the needy.

Recently, I learned from a good friend how to do screen captures. Hey, don't laugh. Regular readers should know that I am not the most IT savvy person on the island.

Anyway, I bought a book from BetterWorldBooks just now and here is the screen capture:

Click to enlarge picture.

 

If you are thinking of buying a book or two, consider making the purchase from BetterWorldBooks. Buy used books, enjoy lower prices and help the environment!

"Your purchases also help fund non-profit organizations changing the world through education and literacy."

Your purchases will also enjoy free shipping worldwide.



Click on image to visit BetterWorldBooks.

Thank you.

Related post:
Donate a book to the needy!

Returns of 15% per year invested!

This is taken from an email sent to me this morning:

 

Invest into one of the hottest investment sectors in London's city centre, without buying a unit outright from just $62,850 (£41,308)*. Our Secure Exit Strategy™ allows you to invest into exclusive pre-construction projects, for up to maximum of just 5 years, with complete protection of funds and no ownership commitment.

Invest early into this exclusive central London Hotel project with maximum 5 year exit strategy and contractual returns of 15% per year invested.

Urban Villa - Aldgate, London is a renovation hotel project in the heart of the capital. Due to its superb location, Urban Villa Aldgate is already proving to be one of our most popular projects in the UK to date.

 

Too good to be true? Any thoughts?

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.

Have money must also have a heart.

This is a snippet taken from a chat I had over at Bully the Bear this evening:

Have money must also have a heart.

Related posts:
1. Count our blessings.
2. Make more money and do good.
"The people who receive love are the ones who are just pouring it out all the time." Warren Buffett.

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.

SingHaiyi: The next big thing?

I received a message from a 25 year old reader, asking for my opinion on SingHaiyi. I thought it would be interesting to share his message here (with his permission) to see if we could gather the opinions of readers on the matter. Here is his message:

I have read your website on fundamental analysis some time ago. I must say I am still quite a newbie in stock markets and have less than a year of experience

I did learn a few things from your website which I am thankful for, like how to determine the health of a company judging from the balance sheet. I managed to pull off a few positive short-term investments (Interra Res) all thanks to your clear and precise explanation of the ratios.

I did make a few bad investments too, such as in Noble Group. But by the time I realised, the only choice was to 'average down' or eventually cut losses.

The purpose of sending you this message is to seek your opinion on SingHaiyi. I have thoroughly looked through this company's financials. The unaudited statistics seem promising, except for the Debt/Equity ratio, which is > 1. I understand that this company is another penny stock, and undergone major restructuring in recent times. Then again, I have used much effort in researching the history of the key directors in this company (Gordon Tang, Chan, Neil Bush) and they do have impressive records of running their businesses. The only thing I am concerned about, is whether they will be able to pull SingHaiyi off as the 'next big thing'.

All comments are appreciated.

Related post:
The Balance Sheet.

Read:
SingHaiyi Group in final negotiations on US real estate projects.
This will be for the purchase of an existing office building and a residential development site.

Invest in Japanese real estate: Saizen REIT and Croesus Retail Trust.

Over the weekend, I spoke with a friend who told me that his uncle is interested in investing in properties in Japan. Actually, he is not the first person to talk to me about the subject. Two other people spoke with me in the last 3 or 4 weeks expressing the same interest.

Ever since Prime Minister Shinzo Abe launched "Abenomics" in order to break the country out of vicious deflation which has lasted some 20 years, there has been renewed optimism that Japan could finally grow its economy once more. Although some might claim that Japan has joined USA and Europe in devaluing currencies, Japan has claimed that it is only bringing its currency down from an over valued position to a value that is more in sync with the current value of the US$.

Against the S$, the JPY has come down more than 20%. So, not only is Japan once again a less expensive destination for holiday seekers from Singapore, together with early signs of economic growth, it has also become a more attractive investment proposition.

Therefore, it should come as no surprise that some in Singapore should be looking at investing in Japanese real estate now. Indeed, anecdotal evidence shows that American and Chinese investors have already started doing so.

However, unless we have a lot of money and we have someone whom we can absolutely trust in Japan, I would caution against investing directly in Japanese real estate. It is complicated for foreigners to actually own a piece of real estate in Japan and we also do not have access to housing loans in the country. So, 100% cash down is required.

If we are really interested in investing in Japanese real estate, be it for rental income or possible capital appreciation, there are options right here in Singapore. Regular readers would have guessed the answer.

Off the top of my head, Saizen REIT is currently trading at about 20% discount to NAV even after the JPY has weakened so much against the S$. Gearing level has increased to 39%. At 18.7c a unit and a more conservative estimate of a 1c annual DPU due to the much weaker JPY, we are looking at a distribution yield of 5.35%. 

I do not think we can do better than this by directly buying an apartment in Japan without any leverage. The theoretical non-leveraged yield of Saizen REIT is about 3.85% and it is truly passive income compared to being a landlord of an apartment.

What about Croesus Retail Trust? It is now 96c a piece. Before the launch of "Abenomics", I was pessimistic about the retail sector and, consequently, shopping malls in Japan. In its 2011 report, Starhill Global REIT's  management said as much although not in the same words.

However, anecdotal evidence shows a revival in the Japanese retail sector since the launch of "Abenomics". As inflation returns to the Japanese economy, the people no longer defer purchases in the hope of lower prices in a deflationary environment. Consequently, this means brighter prospects for Japanese shopping malls.

At its IPO price of 93c a piece, it projected a distribution yield of 8%. However, the Trust's gearing level of 48% based on the appraised value of its properties is much higher than Saizen REIT's current gearing. Of course, gearing will magnify gains. Nonetheless, the theoretical non-leveraged yield of Croesus Retail Trust is 5.41%.

With a brighter outlook for the Japanese economy and retail sector, Croesus Retail Trust is beginning to look attractive as an investment for income.

In conclusion, with Japan's fortunes seemingly turning up, there will be an increasing level of interest in investing in Japan and real estate will be a natural consideration. We don't have to look too far to benefit from the improving fortunes of the country.

Related posts:
1. Croesus Retail Trust
2. Saizen REIT: Refinancing.

"REITs that buy apartments benefited from a shortage of new supply and a stable number of tenants in a nation where less than half of Japanese under the age of 40 own their own home. Japan has accelerated efforts under Prime Minister Shinzo Abe to end deflation and boost the world’s third-largest economy, including measures to revive the property industry, which has been struggling since an asset bubble burst two decades ago. The government has a target to increase assets owned by REITs by 40 percent by 2020. "
(Source: Japan Apartment Real Estate Proving Best: Riskless Return)

Tough times ahead for F&B industry.

The rapid influx of foreign workers up till the last General Election caused strains in our society in many ways and the PAP government learned the hard way that Singaporeans were unhappy.

Singaporeans "dealing with the strain on infrastructure resulting from the influx of foreign workers, had signalled that they were prepared to trade off a bit of growth in return for a reduction in immigration.

"Any elected government has to, at the end of the day, take into account and work according to the wishes of the people," Mr Shanmugam, Minister for Foreign Affairs and Law, said.

"... some of the service sectors, like restaurants, are feeling the pinch... "

(Source: The Business Times Weekend, July 6-7, 2013)

There could be pockets of relative strength in the F&B industry in Singapore and I believe Old Chang Kee is one such company.

Companies which run restaurants requiring big floor areas for diners, teams of waiters and waitresses, cooks and washing staff will face stronger headwinds over time.

Related posts:
1. Old Chang Kee: Almost 70c a share.
2. Soup Restaurant: Almost fully divested.

"In the financial year ended March 31, 2013, Tung Lok sunk deeper into the red with a net loss of $3.17 million... "

(Source: Tung Lok plans 2 for 5 rights issue, The Business Times Weekend, July 6-7, 2013)

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?

Sunday brunch.

It has been a while since I got to wake up late at 9am on a Sunday. So, no breakfast for me!

I had brunch instead today:

Porridge.

 +

 

Anchovies and peanuts.

 =

 

One of my favourite combinations. Bon appetit.

A fresh grad and $100K by 30. (A fast track to wealth building!)

I have been spending more time on Facebook lately. It requires less work than blogging and with real time people to people interaction, it is somewhat addictive. 

For someone who does not go out much to meet people, Facebook is appealing to me. I think I have discovered another time guzzler.






Well, this morning, my Facebook wall (Is that what it is called?) was abuzz with comments on an article in papers. 

It is an article on how it is possible for a fresh graduate to have more than $100k in net worth by age 30.

See the chart:

Click on chart to enlarge.

Anyway, judging by the amount of activity this article has generated in Facebook, this is an interesting topic for many people. 

It is about money and how to make big money from money. $100k is no loose change. So, I am not surprised.






There is a fair bit of scepticism as to how it is possible to do something like this. Well, read the 
assumptions. 

If the stars align the way they should, then, wonderful things would happen.

In Economics, when we say "ceteris paribus" which means "everything else remaining equal", it shows how changing a variable will affect results. So, for certain arguments to hold water, certain assumptions must be made.

So, how useful then is such an article? Is the article realistic?

Personally, I have suffered scepticism at the hands of others in my almost 4 years of blogging about personal finance and investment as well. So, I am not surprised by some of the reactions to the article.

What I want to say is that it is doable but it might not be easy. All of us have different circumstances and it is harder for some than others to save (and not for want of trying). Some might be luckier than others. 

Yes, we have to be honest here. Luck plays a part.






I will look at the article as something to inspire young working adults on what is possibly achievable if we are willing to give it a go and not cling on to every word (and number) in the article in an attempt to ridicule or discredit. 

Be inspired and I have no doubt that we will all become richer for it.

Source:

Is it possible to have $100k by 30?

The Straits Times.

Related posts:
1. Retiring a millionaire is not a dream.
2. Wage slaves should be fearful.
3. Wealthy nation cannot afford to retire?

REITs: For those who have paid higher prices.

Investing in REITs is as close to investing in real estate as is possible for small retail investors. We might not own whole buildings or entire units in a building, nonetheless, we have to employ a real estate investor's mentality when investing in REITs.

Like any other investments, could we see values plummeting to zero in real estate? Some people would say no. However, I would say, theoretically, yes. 

When would that happen? Simply, when there is no demand for real estate. Now, realistically, will that happen in Singapore?

If the answer is "no", then, there will always be value in real estate here.

Some friends and readers are worried because the unit prices of S-REITs have retreated some 20% from their highs. 

Well, for anyone who bought at the highs, there must be some feeling of anxiety especially if they invested more money than they should have. However, panicking and selling when prices plunge to a low isn't going to help make things better, or is it?

A fellow blogger said that, on hindsight, we should have sold at the highs and bought back at the lows. Hindsight is a wonderful thing. It is always right, isn't it? 

Some might say that hindsight is practically useless. I would say that it is how we look at it.

We always say that we should learn from experience. Now, isn't experience in the past and isn't looking at experience hindsight? 

So, hindsight is not useless if we learn from it.

I will say that the current distribution yields of S-REITs are still more attractive than any income investments I can think of that has a similar level of risk. 

Of course, the biggest risk in any investor's mind is the risk of capital loss and with rising interest rates in future, everything else remaining equal, S-REITs' unit prices could come under pressure.

It is difficult, if at all possible, to find an investor in this world who has not lost any money in investing. 

If we have not used any money that we cannot afford to lose in our investments, then, we can be more philosophical about the losses. 

However, if we cannot be or do not want to be philosophical, we have to think of our options.

Option 1
We could cut our losses. This would mean believing that either the income producing investment is no longer able to produce the income that it has been producing. (It could also mean believing that the market price of the investment is going to decline even more significantly in future.)

Option 2
Stay invested. This would mean believing that the income producing investment is still able to produce the income that it has been producing or even more. (It could also mean believing that the market price of the investment has stabilised or could even appreciate.)

For people who have not overpaid for their investments, of course, option 1 would be more a question of protecting any capital gains. For pure income investors, this entire blog post could possibly be just an academic exercise.

I thought long and hard on how to write this blog post in as neutral a tone as possible but at the same time making sure it is not a useless fence sitter. I can only hope that I have succeeded.

Related posts:
1. S-REITs: Are we asking the right questions?
2. Be cautious while climbing the S-REIT tree.
3. Never lose money in real estate and REITs?
4. 2012 full year passive income from S-REITs.

Low budget (and healthy) dinner.

This was what I had for dinner just now:

Home cooked. Healthy for the body. Healthy for the wallet. Delicious too.

Related post:
AK71 bought healthy lunch!

Old Chang Kee: Almost 70c a share.

On 30 May, I mentioned that Old Chang Kee's shares at 56c a piece were not expensive and that with a PER of 11.29x, I thought Old Chang Kee fairly valued.

Today, Old Chang Kee's shares hit a high of 69c before closing at 67.5c. It is now 20.5% higher than where it was on 30 May and 160% higher than my entry price.

At 69c, PER is 13.9x. This does not sound cheap to me. However, chatting with someone who is vested in Breadtalk recently led me to wonder if I have been too conservative in my valuation of Old Chang Kee's stock.

Breadtalk's full year EPS in 2012 was 4.263c. At 90c a share, its PER is more than 21x! Even though its EPS improved some 14.8% in 1Q 2013, annualised, we could still be looking at a PER of more than 18x. If we were to compare with Breadtalk, Old Chang Kee seems relatively cheap.

Assuming that Old Chang Kee's EPS stagnates, to reach a PER of 18x, its stock would have to trade at 89c per share. Is that going to happen? Your guess is as good as mine.

Related post:
Old Chang Kee: More free curry puffs on the way.

NeraTel: Is there no telling how high it could go?

The share price of NeraTel broke 65c resistance yesterday and it has been rocketing up since. A friend told me that I have done it again! Honestly, I think Lady Luck's the one who is working hard here. I am just lucky.

Last month, I increased my investment in NeraTel by about 10x, recognising its strong numbers and also its attractive dividend yield. At 60c, a 4c dividend represents a yield of some 6.67% which is pretty decent. Even at 63c, 4c gives us a yield of some 6.35%.

Technically, it is quite easy to see from the chart why I accumulated at 60c to 63c. The counter seemed to be basing in that range.

The new found strength in NeraTel's share price probably has a Myanmar connection. Two of NeraTel's customers, Telenor and Ooredoo, won contracts in Myanmar and have 9 months to commence operations. They will have to open up project tenders soon and NeraTel has a good chance of winning the tenders. OSK DMG has a target price of 79c for the counter.

What is my plan now?

I really have to examine my motivation for investing in NeraTel. When I first bought in at 40.5c, it was primarily for the attractive dividend. Recently, I increased my exposure to the counter with a slightly better understanding of the company, still liking the numbers and the attractive dividend.

Even if its share price should hit 79c, dividend yield is still a reasonably attractive 5.06%.

However, I suspect that Mr. Market is now pushing up the share price of NeraTel based on expectations. So, although I do not think NeraTel's shares are expensive even now, things could get bubbly if this continues. Traders chasing the breakout must do so knowing the risks.

Breaking a many times tested resistance at 69c on the back of high volume is very bullish. However, parabolic movements in prices are usually unsustainable and we could see a pull back as price tries to find support.

69c could be the resistance turned support and, for anyone who is thinking of buying on weakness, that is probably a price to watch out for.

In the meantime, to all fellow NeraTel shareholders, if we would like to divest partially (or fully) to lock in gains, there is certainly nothing wrong with taking profit. However, I would ask that we look once more at our motivations for being vested in the counter to be sure. In any case, congratulations!

Related post:
Which stocks have I been accumulating in June 2013?

Fish and chips, good and cheap!

I saw my colleague having fish and chips a few days ago and it looked really good. I gave in to temptation and had a very good lunch of fish and chips today too!

 

Bought from the canteen. $5.50 only! Good value for money. I like.

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.





----------------------------------------------------------------------------

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.

The secret to avoiding financial ruin.

We hear these two lines all the time:

"It is so easy to spend money."

AND

"It is hard to make money."

Perhaps, we should also remember these two lines:

"If we are not careful, it is easy to get into debt."

AND

"It might be really hard to get out of debt."






So, what is the secret here? Don't get into debt!

When I was a secondary school boy almost 30 years ago, $1m was a lot of money and during a class discussion, I asked how was it possible to spend all that money? The teacher looked at me like I was some alien and my classmates laughed at me.

Well, a HDB 3 room flat in D4 in those days cost only S$50,000 or so. Cars were much cheaper too. Of course, prices have shot through the roof by now. However, back then, I seriously could not think of how anyone could spend all that money with ease.

I remember always tracking the interest rates offered by the banks on our savings in those days and how I would shift my savings from one bank account to another to get the highest interest rates possible. 

Now, when I look back, my efforts were pitiful since my savings were so little but an extra S$50.00 a year in interest collected mattered so much to me then. Those were hard times.





Some will again say that I have a peasant mentality to wealth building, but I know myself and I rather be a happy peasant.

Increase our income, reduce our expenses and don't get into debt. 

Do all these and we might not become filthy rich, of course. Do the opposite, however, and we are in for financial ruin.




Related posts:
1. To be a happy peasant.
2. From rich to broke?
3. If we are not rich, don't act rich.
4. Today's millionaires.
5. Not enough money to be married.

AK71's Facebook.

There are great artists in this world and there are great IT brains too.

I am really slow when it comes to IT stuff and I know bloggers like Drizzt (InvestmentMoats) and LP (Bully the Bear) who have kindly tried to influence me to become more IT savvy at one time or another have probably given up on me. Friends and colleagues too have found out what a dinosaur I am.

Which one is AK?

Blogging is something I do for fun and I don't want to feel any pressure to learn new stuff. Otherwise, blogging becomes stressful and when something becomes stressful, it is no longer fun.

Anyway, I think I might have moved up the IT ladder today as I have included a "Follow AK on Facebook" button in my blog's left sidebar. This is after receiving questions from readers on whether I have a Facebook account.

I do have a Facebook account. I started one a few years ago at a friend's recommendation to build up readership numbers for my blog but I didn't do much to it or with it. I still don't.

Anyway, try the button and let me know if it works:

If it doesn't work, I will need to seek help.

They were just showing off their wealth!

I was out the whole Sunday. I left home at 9am to meet a friend for breakfast. Then, I went to the gym before meeting another friend for lunch. After that, I went shopping before taking a break at UOB, reading all the periodicals I bought the night before.

In the evening, I went to Vivo City where I had dinner at the food court before doing a bit more shopping. I hardly do any shopping usually but I was looking for some things. Well, I found the stuff I was looking for in MUJI and Franc Franc. Yup, they were household items.

It is good to spend a whole day outside once in a while because I spend too much time cooped up at home. My Taiwanese friends call me a 宅男 which is not a compliment as I discovered. Anyway, being me, I couldn't help observing people and overhearing the kind of things they said.

While walking past the front of Hilton Hotel, a youngish couple drove into the driveway and parked their car alongside the Jaguars, Mercedes Benzs and BMWs. They were driving a bright red Ferrari with three exhaust pipes. Very impressive looking.

A little boy and his dad saw this too and as they walked past me, I heard the boy saying something about the car being nice. The dad told the boy, "They are just showing off."

Although I think that a Ferrari is not a very practical car for Singapore's roads, there are people who have lots of money and which car they drive is a matter of personal choice. I don't think it was appropriate for the dad to say what he said to the boy. In fact, it sounded a bit sour to me.

Perhaps, he could have responded by saying that it was indeed a nice car but it wasn't very practical to have cars like that in Singapore. He could go on to explain why. 

Would not such a response be more educational?

Related post:
Change to become richer: need or want?

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?

What a visit to NTUC Fairprice could teach us about investing in stocks?

I have blogged about how to explain to sceptical family members that investing in the stock market is not the same as gambling. I have blogged about how soon should we start the next generation on investing and I have also recommended a book to this end.

These topics are evergreens. 5, 10 or 20 years later, we will still have people facing these issues, I don't doubt. To deal with these issues, it helps if we are more creative. Using examples from our daily life and using language free from financial jargon will probably see positive results.

For example, I would explain to my niece that when we see good value for money, we buy. So, seeing two 1kg packets of rolled oats selling at $6.95 instead of the usual $9.90, I bought right away. It was almost automatic. I didn't really have to think.

How sure was I that it was a good deal? Well, I probably consume more oats than the average Singaporean. I have oatmeal for breakfast everyday and sometimes for both breakfast and lunch. So, I know the price of rolled oats quite well. This is within my "circle of competence", so to speak.

Extending this example to the stock market, when prices of stocks we are familiar with or within our circle of competence fall to levels which offer good value for money, why do people hesitate to buy? Obviously, there is fear that prices could fall further. Then, what if prices did not fall further?

I blog continually about the importance of having a war chest. However, what is also important is having a reliable stream of income, passive income preferably.

If our war chest is smallish, it could get exhausted quickly. So, we will need a constant stream of income to fill it up. This is why investing for income is so relevant and, indeed, important.

Know people who think that investing in the stock market is too esoteric a subject? You might want to share AK's story about his circle of competence with packets of rolled oats which offered value for money.

Related posts:
1. Investing in the stock market is gambling!
2. If AK71 can cook, so can you!
3. At what age to start investing in stocks?
4. Let your child have fun and a head start in life.
5. Teaching young children financial literacy.

Return the money, Kitty!

And I thought Hello Kitty was the only money grabbing kitten in this world,





I enjoyed this video. Made me smile.

Hope it made you smile too.

Related post:
McDonald's Hello Kitty.

Repairing my Tag Heuer watch.

I had to send my Tag Heuer watch for repairs because one hand was free wheeling.

According to the service centre, I must have dropped the watch before and watches don't like to be dropped. They are like living beings, I guess.

Anyway, after seeing the repair bill, I decided that I don't like to drop watches too!

$130. Ouch!

LVMH gave me a nice drawstring bag.

At least this is less expensive compared to my dad's Rolex which cost almost $800 to repair when he dropped it a couple of years ago.

The lesson to learn from these incidents is not to buy expensive watches!

Buy a cheap $40 Casio. Break it, throw it away and buy another!

What? You have a weakness for watches (like I do)?  Oh, dear. Good luck to both of us.

Related posts:
1. My CASIO watch.
2. Vintage ROLEX watch.

McDonald's Singing Bone Hello Kitty (aka Black Kitty).

People have gone crazy (once again) over the Hello Kitty plush toys sold at McDonald's.

This is something which I don't understand and probably never will.

You know what is even more difficult to understand? People paying $50 for a "collectible" Hello Kitty plush toy in the "black" market!

Collect them all?

Well, apparently, there is a black color Hello Kitty which is supposedly a limited edition. To me, it looks like Hello Kitty went for an x-ray and got a really bad overdose of radiation!

Anyway, whatever's your poison, right?

Pssst... Ever wondered where these toys were made in, who made them, how much they were paid and what were their working conditions? I wonder.

Don't pay inflated prices for N95 masks.

No smoke without fire. Er... unintended pun on the haze. Anyway, the stories are true. What stories? Stories of profiteering.

All businessmen are out to make money. There is nothing wrong with money making, is there? If there is no money to be made, why go into business?

However, to profit obscenely by taking advantage of a crisis that affects the entire nation, to me, is just a nauseating idea.

This was the official statement issued by CASE just a few days ago:

It has come to the attention of the Consumers Association of Singapore (CASE) that some retail outlets in Singapore have increased the prices of face masks, especially for the N95 face masks during this haze period.

CASE understands that many retailers have run out of stock of face masks due to the high demand for the masks. As such, some retailers may try to profit from the situation by selling face masks at a higher price. There have also been cases where individuals have brought face masks in bulk and resold them to the public at a profit.

CASE urges all suppliers and retailers to remain transparent and abide to the regular recommended retail price. They should not take advantage of the plight of consumers and inflate prices in this critical period of time.

Additionally, CASE advices consumers to exercise caution when purchasing face masks from unknown brands or retailers online. Such masks may not provide adequate protection from the haze. Consumers should also be wary of retailers taking advantage of the situation to sell face masks at unreasonable prices. They should stay vigilant and shop around instead of paying inflated prices at the nearest store.

 With the haze situation having improved temporarily, we have time to shop around for reasonably priced N95 respirator masks. The haze is likely to return with a vengeance when the wind direction changes again.


Say "NO" to profiteers!

Related post:
Buy 3M N95 respirator masks for less.

My two boxes of 3M N95 8210 masks.
Things will worsen in the coming weeks according to NEA.
Be prepared.