Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
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Time really flies! It really does not feel like I have been a shareholder of Old Chang Kee since October 2011 but it is true! I have been a shareholder of the company for more than a year now. Today, I made a decision to sell half of my shares in Old Chang Kee. Why not hold? Well, it has more than doubled from my buy price.
The decision is not based on TA since it is such a thinly traded and volatile stock. The decision is more based on FA as I feel that although it is a great company with characteristics similar to See's Candies which Warren Buffet likes so much, valuation is now rather rich.
Then, here comes the interesting part. Why have I chosen to sell at 57c or higher? Why not 55c or 56c? For those of you who think that AK is a savvy investor with profound insights or thoughts, this could change your mind (hahaha..). Well, my entry price was 26c a share. A doubling of the share price would see 52c a share. Old Chang Kee recently announced a 5c dividend which is payable sometime next month. So, 52c + 5c = 57c. Tadah! Rocket science at its best.
Why not sell all my shares then? Well, apart from the 5c bumper dividend declared, I really don't know why Mr. Market is so into Old Chang Kee suddenly. Could there be something brewing that is more delicious than the comfort fast food that Old Chang Kee is famous for? Being minority shareholders, we are usually slower in getting any type of news, if at all. So, I am keeping half of my shares (which are free of cost now) just in case.
We are familiar with excuses. We hear them all the time and, sometimes, we also make some. I am being honest. Yes, sometimes, I make excuses. "I cannot save money because I don't make much." Heard this before?
We have to earn money and save money. Basically, that is the way most of us start building up our wealth. For those lucky enough not to have to do that, skip to the next step which is to invest. Of course, there are those who are extremely lucky who don't need to invest but if you are reading my blog, I don't think you belong to this group of people.
Anyway, this blog post is off the cuff and if you have friends or family members who are not saving money, justifying their inaction by saying they make too little, send them the link to this blog post or share this in any social media, whichever you find easier. Now, this may sound jaded as I have said it before many times and that is we should run our lives like we would run a business! We must try to contain costs and increase revenue!
Contain costs? Yes, what do we spend our money on? Are they needs or wants? If they are wants, cut them immediately. Mercilessly. If they are needs? Are there any cheaper alternatives which do the job just as well?
If we were always going to Starbucks et al for our coffee fix, we could start by bringing a packet of 3 in 1 coffee mix to work every day. That's coffee too and I think that would set us back by 20c a day instead of $5 (I don't know how much Starbucks coffee costs and this is just an educated guess)! Doesn't sound too difficult, does it?
Don't brush it off! Savings add up especially if we do it in every aspect of our lives! The worst type of costs is the type we really have great difficulty escaping from due to bad decisions leading to long term commitments. Can you think of some?
Here goes. Just because our friends or family members have a car (or two) or a condo (or two), it does not mean that we should have them too. Just because our friends or family members are married and have two or three children, it does not mean we should do it too. Always think carefully, plan ahead before making such huge commitments. They could really haunt us later on, otherwise.
For anyone, especially those who have trapped themselves into huge, longer term expenses which they cannot easily escape from, who says they cannot save money because they don't make much? Ask what is the logical thing to do? Increase revenue! Increase revenue? Yes, find ways of making more money. Unless we are severely handicapped mentally or physically, there is no excuse for not being able to make more money in a country like ours where opportunities abound! Often, people are just lazy or picky.
There are a few well known bloggers who are private tutors by night. I even know a blogger who was a DJ by night! I know someone who helps out in his family's chicken rice store on weekends and I have a friend who sells her cakes and cookies to friends who appreciate them. In case you are wondering, all of them have day jobs and have about the same amount of free time as any other person with a day job, everything else being equal. They have a choice on what they would do with their free time just like anyone else. Please choose and choose wisely.
Once we are on this journey of containing costs and increasing revenue, we should naturally be saving money. A pertinent question to ask is how much should we save? Personally, I have been asked that before by many people and I always tell them that if they do not feel that they are sacrificing something in the process, they are not saving enough. Remember the Starbucks coffee example earlier?
We can do it!
Of course, "sacrifice" is a subjective concept. Someone might think that sacrificing Starbucks coffee for coffee from a neighbourhood coffeeshop is enough. Well, there is still savings, I reckon. I am not dogmatic when it comes to details. It is the concept that I want to share. It is the spirit I wish for every person to embrace.
Perhaps, what is most important to remember is this: If we are not rich, don't act rich! We have to work harder to save money because we are not rich! If we act rich when we are not, we will never be rich! For more blog posts on the topic, please refer to the right side bar and look for the box titled "Wealth Creation: Earn and save."
"When you do these things, people assume you are an intelligent, important and responsible person."
I guess I know why some stock market gurus like to show off their expensive purchases now.
This could interest you:
The Richest Man in Babylon & the Magic Story: Two Classic Parables about Achieving Wealth and Personal Success The Richest Man in Babylon is a story of Arkad, a person of humble origins who became the richest man in Babylon. Discover the attitudes and behavior that bring wealth and happiness. The Magic Story is a story about Jay who saw how his once struggling friend became a man of achievement. Find out how his friend did it.
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