Posts
I blog about the importance of having an emergency fund from time to time.
More importantly, we should have an adequate emergency fund.
However, there is another fund that I don't blog about as often.
The last time I blogged about it could have been many years ago.
So, unless you have been following my blogs for many years, you might not have heard of it.
I called it "convenience cash."
I like to keep cash at home which is able to cover around two months worth of routine expenses.
This is because in case I am unable to withdraw cash from my bank accounts for an extended period of time for some reason, I have some cash on hand.
Of course, things have changed a lot in the last 10 years and, especially in the last 2, so many things have gone digital.
So, is there still a need to keep so much "convenience cash?"
Now, I suppose I have to say I still do it really because I am mental.
Anyway, the amount of "convenience cash" I have at home, without me knowing, has grown to be quite a sizeable amount.
See my "convenience cash" in 2014:I don't like going to the banks, if I can help it.
So, all the birthday and CNY red packets I received from family members and also money people paid me whenever I helped them buy stuff just got stashed in a drawer.
Today, I opened that said drawer to "deposit" my CNY red packets and I just thought of taking a tally.
OMG!
I have more than $10K in cash stashed away.
With interest rates so high now, I could possibly get $400 in interest payment if I were to place the money in a 1 year fixed deposit which pays 4% p.a.
$400 can sustain my lifestyle for a week easily!
I know OCBC is offering 4.08% p.a. for 8 months FD but they need a minimum of $20K placement.
Not enough.
CIMB only needs a minimum of $10K for their FD promotion.
So, I checked CIMB for the latest rates, being the first day of a new month.
OMG!
CIMB's promo rates have reduced drastically!
6 months FD now pays 3.7% p.a. instead of 4% p.a.
12 months FD now pays 3.5% p.a. instead of 4.2% p.a.
Sadness.
How like that?
What is a retiree like me to do?
I decided to "tikam" 6 months T-bill instead.
Hope to get a cut-off yield of at least 3.9% p.a.
Will try $5K for the T-bill closing today and another $5K for the T-bill closing on the 15th.
If you are new to my blog and wondering if you should do the same, please take note that I am doing this because I already have a significant exposure to equities.
Don't anyhow follow social media influencers.
(Hint, hint, nudge, nudge, wink, wink.)
See:
My largest investments (4Q 2022.)
I have always said that having a meaningful exposure to fixed income is a good idea because it reduces risk and volatility in our portfolio.
However, fixed income paid relatively poorly until recently.
Fortunately, in Singapore, we have the CPF which, to me, is akin to fixed income and it offers reasonably attractive interest rates.
So, the CPF was my preferred tool to maintain a meaningful exposure to bonds until recently.
This year is the first year I am not making voluntary contributions to my CPF account.
Money went to Singapore Savings Bonds in 4Q 2022 as they pay better than the CPF and do the same thing the CPF does for me.
See:
Oh dear, I am beginning to ramble.
This is supposed to be a quick blog about my money counting adventure at home and what I plan to do with the money.
Yes, AK is an adventurer and not only in Neverwinter and Teyvat!
Anyway, I should stop.
If you want to know what I think we should do before we start investing our money, I have many related blogs on the matter.
You might want to start with this blog:
If you are more advanced, read these blogs:
Gambatte!
Bloggy Award