.::. Productive Years .::.

I was reading this article on Bloomberg sometime back. It says that the first 10 years of one’s career would determine the amount of wealth one can make. It makes sense doesn’t it? If you start with a low salary, increment will be slow and people always benchmark your pay based on your last drawn pay. Some may get promoted quickly with some luck, but the odds are against the majority of us. Basically, what it says is that after 35, chances of your pay increasing significantly is very low. This corresponds with the well-known fact that it becomes a lot harder to find another job after you hit 40s. Of course there are always exceptions and outliners, but this probably holds true for majority of us normal people. 

This has triggered a string of thoughts, with the backdrop of across-the-industry job cuts in O&G where I’m currently in. The struggle is real. It can be very unsettling and uncomfortable seeing people you see everyday disappear just like that. We get immediate dismissal here. Get called into a meeting, and someone will inform you that you’re dismissed with immediate effect and you are not even allowed to go back to your desk to pack your stuff or bid your team goodbye. HR and your manager will pack your things for you and escort you out. That’s it, the people you see everyday will just become a memory. People disappear, leave without saying goodbye and come to work not knowing if today will be their last day at work. It doesn't help that they don't do it all at once, and news simply keep coming from everywhere, all the time.

It makes me very sad, though life goes on and people move on. Afterall, a job isn’t everything and losing a job isn’t the end of the world, for most of us anyway. Looking at these unfolding makes me even more wary and determined to work towards financial freedom. Despite being able to survive for easily a year without a job, I really don’t appreciate any setbacks to my retirement plans. I’m most afraid of increasing monthly fixed expenses. As it is now, daily household expenses and insurance comes up to quite a tidy sum of fixed expenses. I can’t imagine how things will become with kids and I can’t understand how people cope with a home with car and maid plus kids. If fixed expenses come up to a few grand a month, how does one save and how long can they survive if they lose their jobs?

It’s so easy to project an increase in salary over the years and correspondingly upgrade your lifestyle. What people don’t seem to take into account into the whole equation is the increasing risk of losing a job as one ages. One may earn more when they are 40s and in a managerial role, but also has a higher risk of losing the job when there’s a downturn and find it harder to find a similar-paid job. Even for civil servants with relatively secured jobs or professionals with specialized skill, one mistake or accident and they may lose their jobs.

Some people tell me not to plan or worry, live a day as it comes. Really? I can’t. I need to work towards my goals to feel secure and fulfilled. I know what it feels like to not have enough money and worry about the next paycheck. It’s not something that I would like to go through again this lifetime. I want to know that I can have the option of not spending my time working for money when I am in my 40s and can instead choose to do something I love with my time, regardless of how much I make. I can imagine spending my time teaching and volunteering, spending time with children and animals, playing music and doing yoga.

I can’t imagine how people could say that they want to continue working for corporations and do not want to retire. It may be great if one really love the job so much, but what I see alot is fear, that they do not know what to do with their free time and themselves. They’ve become so used to the routine of work-life and letting work dictate most of what they do with their time (and life) till they have forgotten how it feels like to spend time doing what they really want or like. Maybe they have forgotten what they wanted and it’s easier to continue a routine without having to give much thought to it.

I always talk about retiring, and people are always shell-shocked and ask what am I going to do? Oh my, there are so many possibilities! These are the same people who tell me that they have ‘no time’ to learn a new instrument that they have always wanted, no time to cook for their families because they have ‘no time’.

For now, I can continue dreaming and work towards the day when I can finally be free to do whatever my heart desires.

.::. Remembering LKY .::.

It has been the talk of the town and seen an amazing outpouring of love for a man who built Singapore. It was really heart-warming to see a divided Singapore coming together during such times. Despite divided political inclinations, I believe most of us Singaporeans see and appreciate what this man has given us.  I do have mixed feelings though. From the love and pride for Singapore, I feel sad that a great man who has built Singapore have left. Part of me feel lost and somewhat worried about Singapore’s future, but another part of me is looking forward to changes that could make Singapore a better place. Perhaps more compassionate and less economically driven by productivity, less like a corporate and more like a family or a place where people feel it’s home. We are no doubt very lucky, but in many ways I wished that we could have done more for our people, especially those who were left behind as we chugged forward.

Revisiting LKY’s life, there’s so much to learn from this man. No man is perfect, but I believe that he has done his best given the circumstances and there’s so much to learn from him.

1.       Love and monogamy

I think this is absolutely underrated in today’s society that places much focus on success at the workplace and amount of wealth. A good and loving marriage is seldom in the spotlight as life’s successes. Moreover, most capable and high-profile people usually crave for power and attention with resultantly common extra-marital affairs and scandals. The love he shared with his wife is so precious. If you ask me, life wouldn’t be in vain as long as one have loved and was loved deeply. Anyone who’s capable of such love over a lifetime can’t be that bad a person.

2.       Determination and faith

This man dedicated his life to building Singapore. His determination and faith is imprinted all over Singapore and how we have evolved over the past 50 years. Simply looking at Singapore today speaks volumes about his determination and faith as we defy everyone’s expectations to become one of the richest country despite having zero natural resources.

3.       Consistency

He is known for being consistent in everything he did. His days were a routine revolving around work, family and exercise. Despite his heavy workload, he always had time for exercise and family, keeping a healthy work-life balance. When asked about his secret to longevity, he said to exercise and eat less but healthily. He was constantly improving himself and keeping himself updated with everything that was going on. Anyone can have goals and many have great ides, yet how many could persist and consistently work towards what they believed in?

4.       Frugality

His frugal ways are extinct in today’s generation. Just look at our elitist MPs who drives cars which are worth more than HDB flats and indulge in all the luxury that you can think of. Many of our leaders today are born with a golden spoon in their mouth and had a very smooth journey in life. How can they really understand how is life really like for the less-privileged in Singapore? Many of them have private sector careers and worry more about how they look rather than focusing on serving the people. LKY was a man who wore the same clothes for years till they had holes and never cared for luxury items. If you were like him, all you think of is probably how to improve things or to tweak plans for Singapore as you take in the developments in the world daily. There will be no time for luxury or fashion! This was a man who truly understood the people then and set out to meet the peoples’ basic needs, building a country where people can be safe, with means to bring up families in a comfortable home in a clean and green city. If Singaporeans were as frugal as him, there really wouldn’t be much complaints. If we did not expect to go on holidays, do not expect much shopping and luxury items, had home-cooked food and took the public transport – how many of us will still struggle to survive and own a HDB? Even kids staying in rental flats have iPhones these days!

5.       Opinionated

He was a man who stood for his beliefs and spent his life defending them. He had very strong opinions and arguments, he always made his points and was able to substantiate his opinions. He never deviated and had something to say to rebut what others’ had to say. He had such clear thoughts that are so closely weaved together. I remember reading his book as a teenager and his thoughts were enlightening although I might not always agree and wouldn’t be so sure that it’s a good idea to be so forthright about it. He is always so pragmatic. What he said about the cost of sustaining an old person despite available technology and the dwindling fertility of women after 35 left a mark on me. He always looked at the big picture. While it’s true that these are individual choices and freedom, but the issues and cost to society as a whole is real. I also agreed with his thoughts about human genes and his view on religion. I love that he insisted to be correct, not politically correct.

We can all argue and point out his high-handed ways that might have destroyed some people and families. But perhaps that is makes him a true leader, because he made those hard decisions and stood so firm, resulting in the birth of Singapore which has benefited so many of us. It also made him human, for it’s not possible to please everyone no matter how great you may be. 

Maybe one can argue that we are so economically driven and competitive that makes Singaporeans are a stressful and unhappy lot. I believe that one’s happiness is a choice and we are not forced to stay here. If somewhere else suits you better, you can always leave for greener pastures. But keep in mind that Singapore is an amazing place to live in and one of the most efficient countries in the world. After visiting more than 30 countries and spending a year in Europe, I still love Singapore and probably wouldn’t want to leave. We can also choose to be more frugal, have lower expectations, consume less and have a less stressful life. Instead, most of us choose to slog for a bigger apartment, a better car, luxury goods and holidays. These are not needs but wants, and how can we blame a man who has fulfilled all our basic needs so well that we are complaining about not having enough wants fulfilled?

The man is no more. While I’m very thankful and grateful for all that Singapore is, I think we need change. It might be a necessity to push everyone so hard then, but now that we are already a developed country, I wish to see a more compassionate Singapore and more policies to support it. It’s all great if we compare ourselves in the region, but when compared against developed countries, we are lagging behind in many areas and there’s so much to learn from other developed countries. My wish for Singapore is to become a developed country with happy people. It may probably take another lifetime for policies to be put in place and people to change their mindset about success and happiness.

.::. Steamed Herbal Chicken .::.

These days, I have fallen in love with steaming. My favorite is steamed herbal chicken with chicken essence. It's so yummy and nutritious, plus obviously healthy! Goes really well with rice!

Generally, marinate chicken and add in some chinese herbs (optional), wolfberries, red dates and pour in a bottle of chicken essence. Steam it for about 30 minutes and you get really yummy and tender chicken!

.::. 2015 Resolutions .::.

1. Be more disciplined with exercise and diet to reduce fat % and become leaner/stronger.

I think I have finally got back on track with my fitness level, becoming more disciplined with my weekly exercise. I feel a lot stronger and toned. Next year’s aim is to reduce fat % and to get leaner/stronger with more consistent exercise and conscious diet choices.

2.Reading more news and books to enrich myself and to meet my financial goals this year.

All goals set this year have been met. We’re in fact ahead of the goals, but it’s an uphill climb that requires patience and endurance. Next year’s aim is to read more and to cultivate more financial sense, expanding the portfolio for more passive income.

3. Learn a new instrument – violin!

I finally took the plunge to get a violin although I’m not confident at all about mastering it. Then again, I’ve a whole lifetime ahead of me! Let’s just hope that I can get the basics and play a few songs next year.

4. Reduce clutter and organize the home.

This requires a lot of work, and yes, I do have many things! Hopefully with exams and less going on next year, I can put more energy to organizing the home.

5. Experiment with new recipes and cook/bake more often.

Although I’ve been cooking very often, I seldom cook the more complicated stuff and seldom bake. Hoping to experiment more and to start baking again.

Of all these, this year’s focus shall be on health. Or perhaps, health should be our focus all the time. It's easy to say that we 'do not have time' for exercise or healthy diet choices in our hectic lifestyles, but it's only when you lose your health that you realize that without health, there's nothing you can achieve or do! For people with desk-bound jobs like me, it's important to get some exercise and incorporate physical activities in our lives. Maybe it's the aging, but I'm becoming so much more health conscious as I feel my physical energy levels dropping. Time to get back into shape!

To another great year ahead~

.::. 2014 Report Card .::.

So 2014 is coming to an end, and it's time to look back and see if I've achieved what I have set out to do this year. 2014 has been a very rewarding and fulfilling year on so many fronts. It's a whole year of bliss and calm with really nothing much to complain about.

2014 Resolutions:

1. To stay healthy and fit.

I think I have become alot more health conscious and disciplined with my diet and exercise this year! I have been packing my food to work daily and exercising at least once a week religiously. I've gained quite abit of muscles and tone this year, although I would like to be leaner and lose more fats in the year ahead.

2. Creating passive income

This has good progress this year and I've done up a personal financial plan to be financially free by 40 - 45. This year's passive income is a modest $2k or so, but the first milestone is to grow the portfolio to a six-figure one by the time I'm 30. This year has given great buying opportunities with selective depression in the markets, and we are on track.

3. Finish ACCA already!

I have taken my last paper in December, and results will be out in 2 months' time. Hopefully, I'm done, or I'll have to retake in June 2015.

We also celebrated our 10th anniversary in December - a wonderful decade together with the husband. All's good, and I'm really thankful for all the great things that's happening around me and within me. I think we have grown stronger and closer as a couple the past year and on the personal front, I'm more connected to myself and have never been clearer of what I want for myself in the next few years. The family is also well, and the girls has also been great pillars of support with amazing energy and warmth.

Thank you for the great 2014. Thank you. 

.::. The Ikea Way .::.

The Ikea Way

Not long ago, this guy shared his experience with getting an Ikea kitchen on his blog. It’s appalling, and anyone who has been through renovation would feel for him. It’s one of those typical horrible experience with contractors, miscommunications, wrong measurements, bad workmanship and worst of all, bad attitude. It makes me somewhat sad and disappointed, because Ikea has been known for their innovation and creativity in managing their furniture design to maximize functionality at low cost through working with their network of suppliers.  I’ve done so many case studies about Ikea during my studies in Sweden, and Ikea represents Sweden in so many ways. Moreover, their kitchen cabinet uses OEM blum accessories, which is probably the best kitchen accessories currently! Ikea’s kitchen is also looking great with a large selection of sinks which I really like.

To Ikea’s credit, they have upheld their values and reputation by rectifying the situation once they got wind of this. It truly shows the power of social platforms and how important reputation and reviews are these days. But being able to apologize for their mistake and take such measures to rectify it shows a lot about the values behind a corporation. A good company will realize that customers’ satisfaction is the main driver of profits and should be one of the top priority.

When it comes to carpentry work, it’s quite easy to discern good workmanship. Apart from the apparent fit of the carpentry and smooth surfaces, one can easily check the workmanship in a few ways:

1.       The edges. The laminate should be seamless at the edges without things like jagged edges and not-so-straight cuts that do not cover the wood totally.

2.       The alignment. The drawers should be perfectly aligned and straight. There should be minimal gaps between the panels of a cabinet. The easiest way to check alignment is to open up all your carpentry, the drawers should not hit one another and panels should not be drooping.

Sadly, I learnt by experience. Till now, more than 2 years after my own renovation, I’m still annoyed when I notice the gaps between my cabinet panels. Still annoyed when I clean my kitchen cabinets and see how misaligned all the drawers and panels are. Yes, they are totally functional and could last for years to come, but I don’t think anyone likes living with such substandard work.

You know what’s the worst thing? The worst thing is, if the carpentry is already done badly, there’s very little anyone can do to rectify such issues, unless to redo the whole thing (which is almost impossible given the cost and time involved). Our drawers did get re-aligned just so they don’t hit each other when opened, but the gaps between the drawers and panels were never able to be perfectly aligned. The edges of the laminate, when not done properly? - The only rectification possible was to use a paint pen of similar color to color over the visible jagged edges just so it’s not so visible. Two years down the road, some of the paint has worn off and I’m getting the husband to buy some paint pens for me to redo the edges because it annoys the hell out of me whenever I see them. It will be many years later before I can ever redo my kitchen and carpentry work, because it’s going to cost me a five figure sum and a whole lot of inconvenience.

I can’t stress the importance of doing some homework and choosing a reputable and good contractor/designer. Sometimes, it all comes down to ethics of a person or a company and how they choose to make their money. It’s difficult to discern, except to follow your heart and your 6^th sense when interacting with people and observing them. Mistakes are inevitable, but what’s more important is attitude and how people handle their mistakes. Some will apologize and make the effort to rectify their mistakes, while some will never admit their mistakes but blame everyone else instead.

Not everything legal is ethical, and every business wants to make money. What is most important is how you make your money, because karma works in mysterious ways. 

君子爱财取之有道

Be righteous and make money in righteous ways.

Kudos to Ikea for doing what they did in response to such a situation. Most of the time, customers simply want their issues to be acknowledged and would forgive many mistakes if they were handled in a reasonable way.

On another note that’s relevant to business ethics, here’s a link to one of the biggest story in Singapore’s social media world that made me lose some faith in humanity, yet have it restored again.

There’s always bad people around, but there will also be great ones. Sometimes, when the law doesn’t help, the compounding power of people could be a great catalyst for change and justice. It takes courage to stand up for your values and go against what you believe is wrong. Not many people do that nowadays. We simply take it as it is and continue living life. It's amazing how the power of social media can dig up so much information and make life difficult for some unethical merchants. Not all may agree with it, but hey, I think we do need such people who's unafraid of legal repercussions and spend their time fighting for things they believe to be right. 

There are still too many unethical businesses around, too many people making money at the expense of others. But beware of karma and such social media forces! Every single action produces a consequence.

To ethics, humanity and karma, and the Ikea way ~

.::. Almost Goodbye .::.

The year is coming to an end. *gasp* I’ve no idea how did time fly by just like that.

I am finally done with ACCA exams, though I’m not too confident about passing and I don’t want to think about it. It’s my last paper, and I’m bummed that I’m not fully prepared and fell sick a few days before exam. Otherwise, that 2 days would have made the difference!

With exams out of the way and our year-end trip upcoming, we spent last weekend doing spring cleaning our place. We did pretty thorough cleaning, from cleaning the ceiling fan to stripping our sofa covers to wash and wiping all the surfaces, air-con filters and even cleaning our metal gates and window grills! *wee* I also packed the storeroom and study room, so I’m feeling very accomplished though it has been a very tiring weekend. We also wrapped presents and set up our Christmas tree for the parties that we will be hosting at home. We bought quite abit of Christmas deco for the home in addition to those recycled ones.

It’s a great time, and it has been a great year on many counts. I can’t wait for our parties and our 10^th anniversary Maldives trip. I’m also ahead this time, with all my Christmas presents done way before Christmas!

Feeling very thankful for all the love and people around me who really matters. I think as I grow older, I find it easier to accept that there are mean people and I’m no longer bothered about peoples’ opinion about me. My mum has always said things like what would people think of me if I did this and that, and it may have made me somewhat conscious despite my rebellious streak. But seriously, why the f*ck do I give a damn about what other people think? Going into the last year in my twenties, I’m proud to say that I’m no longer affected by what people think nor say apart from the passing annoyance before deciding to cut people off. Don’t give others the ability to hurt you. Life is way too short and precious for things like that!

I’m really looking forward to the parties and trips ahead! I’m ending 2014 with a bang with a truckload full of anticipation and optimism for 2015. I’m all ready~!

.::. Home Alone .::.

This week, the husband is traveling. Again. He has been traveling pretty often, but this time feels abit more unbearable. I usually love having the time to myself and pack my week with activities like meeting up with my friends or going to the gym, or getting my hair done or simply go window shopping and have dinner by myself. But this week, I'm preparing for my exams and days feel so long when they are sleep-work-study on repeat mode. Doesn't help that work has been busy, I have been stressed-up, exams are next week and it's almost that time of the month soon.

This is one of the rare cold weeks that I feel somewhat lonely and long for a warm body to hug in bed. No, Chikey who has been snuggling up to me these days don't count!

Can't wait for exams to end (hopefully forever!) and the husband to be back soon! #fighting

.::. Belief .::.

"She believed she could, so she did."

.::. Jan's Ark .::.

I suppose many have heard of the story ‘Noah’s Ark’ – it’s probably my favorite biblical story and the very few that I actually connect with.  In short, it’s a story about how Noah built an ark to save his family and animals from a big flood that he believed would come. It has been used in a few movies, and what I really liked about it was how Noah put in all his heart to prepare for a potential challenge. He simply strengthened his ship and kept working on it, just so he can be prepared and ready when the storm comes.

I find inspiration and connect with his determination to be prepared for future challenges. It’s the human factor that inspires me more than the ‘God’ part of the story. I believe that if we are constantly strengthening ourselves and preparing ourselves for future challenges, we will be able to manage any difficulties that come our way. A solid ground work will always be a good base to fall back on when things get tough. Sometimes this simply mean a conscious effort to be positive, to have visions and plans, or to work on mental and physical strength.

Approaching the 10^th year of my relationship with the husband, I have the same thoughts about our relationship. It’s like throughout the 10 years, we have been building our ark, strengthening it bit by bit. With every storm we weather, we may lose some parts of our ark and emerge embattled – but we always continue working on it, repairing it and fortifying it. The first few years might have been challenging when we only had a little sampan that broke all the time while we hung on to it to keep afloat. Thankfully, after many years of hard work, we now have a strong and fortified ark that hopefully could bring us through all the challenges and storms in life. All’s calm now, but it sure feels like there might be storms ahead and every little thing we could do to strengthen our ark now would bring us a long way.

Jan’s ark is ready and strengthening! Bring it on! =)

.::. Home Sweet Home .::.

The last few months simply flew by. We have been too busy living life, enjoying our freedom and couple-hood.

Both of us have been traveling quite abit and missing each other all the time. I don't exactly mean it that way. It's just that he usually flies out on Saturday when I'm flying in on Sunday! And so we miss each other and go 2 weeks without seeing each other. I have been to Shanghai, Hanoi and Seoul the past few months, and the husband has been to China and Italy for work trips too. I really enjoyed all my trips this year, every single one of them. Hanoi with the husband was so much fun!

We have finally collected our new dining chairs from Crate and Barrel. Those 2 year-old ones from Taobao ain't of that good quality and not very comfortable. We have been chair-hunting on and off the past year, but the husband has an atas butt that can't seem to find a comfortable and nice-looking chair that is also affordable. Everytime a chair catches my attention and pass the look test, the husband has to do a sit test. Most of them fail the sit test, apart from a few that cost like $800 each. We finally settled for these.

It was supposed to take 3 months to indent and arrive in Singapore in October. But since we have been traveling and couldn't find the receipt, we waited and waited for the call that never came. We had to call  Crate and Barrel, only to realize that the chair is already there. Pretty bad customer service for such a brand!

Home looks like this now. I love how the chairs fit into the whole place, and they are pretty comfortable chairs!

The thing about home is that no matter where you go, you will always be back and thankful for a place you can call home.

Feeling all warm and blessed these days, in a very peaceful and thankful state-of-mind. =)

.::. His 29th, Our 10th .::.

We celebrated the husband's birthday few weeks back. It's his 29th birthday and the 10th year we're celebrating it together. The husband is a very simple (and very kind) man who always put others before himself and never asks for anything. He always says that he already have everything and isn't that sort who will boast about his knowledge or flaunt what he has. He's mostly quiet, but one will only get to know him if they bother trying to make conversation and wait for him to warm up. He's the most loyal person I know and you can definitely trust him with secrets and know that he will never tell a single soul.  He's nice, very nice in fact, but don't mess with him, he will fight back if you cross his limits. Sometimes, he amazes me and I love him a little more everyday. I think that despite our differences, we have a lot in common when it comes to our views about life. That's my amazing husband whom I adore.

I always struggle to think of what to get him, although I know that having me by his side is probably all he asks for and the best thing I could give. =P 10 years ago, we started going out and I still remember getting him a Levis' short-sleeved shirt for his 19th birthday that he still wears today. That's the extent of his thriftiness - he never shops and I buy him most of his clothes, and even shoes.

This year, we celebrated his birthday at NOX. It was a great experience dining in complete darkness and not knowing what you are eating. It's also a very expensive experience that is probably not worth another visit. We could have gotten very good steak at a fancy restaurant with that price.

Having said that, I was pretty excited to try NOX and the husband was somewhat taken aback when he realized that we were dining in the dark. I like that they have put in a lot of thought into the whole experience, and all the food were served in small portions which is slightly warm but definitely not hot enough to scald you. The waiting area was also dim, so that you can adjust your eyes to and from the complete darkness. I didn't quite like the atas service that I found pretty impersonal and even somewhat snobbish although polite. The visually-impaired who served us in the dark were very well-trained though. We did manage to guess most of the food correctly though we totally did not expect pig's tongue! And me who have been abstaining from foie gras had it in the dark. The husband took a lot longer that normal to eat in the dark and the whole dinner took us 2 hours for 12 small portions - 4 starters, 4 main course and 4 desserts. It really makes me cherish my sight and we both decided that our sight is probably the most important as compared to hearing and other disabilities.

We did enjoy the whole experience though, and most importantly, the company!

Here's a picture of us this year, and obviously there's no other picture because we dined in the dark. This tiny birthday cake cost me $20 by the way (I didn't dare tell him that). Morton's serves their warm chocolate cake free if you're celebrating your birthday there!

And here's the most important person in my life whom I'm going to annoy for the rest of my life. May you be blessed with an abundance of happiness, laughter and love. Stay happy, stay grounded, stay true.

It's the people who think that they have everything and want nothing who really knows happiness.

Happy Birthday my dearest.

.::. When September Ends .::.

These 2 months have been really crazy. Where did all the time go?

I have been in a contented state of mind this whole year, very thankful that everything is on track. Most of my goals for the year have been achieved. Some goals that I have set for myself when I just graduated has been achieved 2 years ahead of schedule. In no time, we will be stepping into the last quarter of the year.

The husband still remains the core of my life. I guess people really mean it when they say 'your other half', because he has already become literally the other half of me. I feel very thankful for love, for sharing others' love and being part of people's journey. So much love going around these days!

This last quarter I'm looking forward to our travel plans and celebrating our 10th Anniversary. *gasp* Yes, it's been 10 years since we started dating. It hasn't always been a smooth journey and looking back, we have been through so much together that I'm thankful for the state of contentment and stability now.

There's lots to be done these few weeks and October will be packed.  So many photos to share, but let's leave it till next time.

I'm ending September with deprivation of sleep and overflowing love for my loved ones. Totally looking forward to the last quarter! Bring it on!  =)

.::. The Paradox .::.

I might have shared this before. It's one of my favorite quotes from Dalai Lama and one that I keep close to my heart, to remind myself of what is truly important.

The heart is feeling heavy tonight. Its been a long day that ended with tuition. The tuitees are preparing for exams, and there's all that prep talk about life and their future. But the real reason for my heavy heart was work. Not exactly work, but a conversation I had with my colleagues at work.

One of the managers said that he realized early in his life that you need to make friends that enrich your life and have something to offer. It's important to learn how to spend time nurturing meaningful relationships and network with people who could help propel you forward in life. The other management trainee said that it is like a business transaction, there's an exchange of something that each party is interested in.

It makes me sad.

I suppose there is some truth in it, that one should not spend time with people who makes you feel bad or put you down. But somehow I can't bring myself to agree that the basis of a friendship should be whether or not they can give you something in return. I don't befriend someone because I think I can get something from them!

My question to them is, what happens if you are down and out and do not have anything to offer anymore? Does the 'friendship' then breakdown?

Most of the time, I feel like there's a mismatch between me and my work persona. I don't feel like I'm on the same wavelength as the people I work with. I feel suffocated by the power struggles by observing how things unfold in the corporate world, how quickly people fall out of favor, how people go all out to butter up strategically, how people change for the sake of power and money.

It's always about power and money isn't it?

It's during your climb up that your values become important as they define you as a person. Will you go against your values or bring harm to others just so you can profit from it? I can't see myself there. I suppose that these are just things which we have to grapple with in today's world. No matter how I dissociate myself with these, I'm still part of the game.

Sometimes, it's not easy to hold on tight to what is important and make it a priority.

THE PARADOX OF OUR TIMES

Is that we have taller buildings, but shorter tempers

Wider freeways, but narrower viewpoints

We spend more, but we have less.

We have bigger houses, but smaller families

More conveniences, but less time.

We have more degrees, but less sense

More knowledge, but less judgement

More experts, but more problems

More medicines, but less wellness.

We have multiplied our possessions, but reduced our values.

We talk too much, love too seldom, and hate too often

We have learnt how to make a living, but not a life.

We have added years to life, but not life to years.

We've been all the way to the moon and back

But have trouble crossing the street to meet the new neighbour.

We have conquered outer space, but not inner space.

We've cleaned up the air, but polluted our soul.

We've split the atom, but not our prejudice.

We've higher incomes, but lower morals.

We've become long on quantity but short on quality.

These are the times of tall men, and short character;

Steep profits, and shallow relationships.

These are the times of world peace, but domestic warfare,

More leisure, but less fun; more kinds of food, but less nutrition.

These are the days of two incomes, but more divorces;

Of fancier houses, but broken homes.

It is a time when there is much in the show window, and nothing in the stockroom.

.::. It's the little things .::.

Few weeks back, we celebrated Edward's one-year-old birthday with our friend. Edward's a really big baby and he was running around the whole place the entire afternoon. Looking at how quickly the children grow up around us makes me acutely aware of how time passes us by.

Here's a picture of Edward enjoying his snack.

The point is, I wanted to remember this day.

I love attending my friends' children's birthday parties and weddings, mostly because it's where you get to meet your friends and catch up. The few that meet often are people whom I really care about. I was intending to spend the evening chatting with these people till the husband suddenly said that he needed to go to town 'to collect something'. It sounds very fishy, because well, the husband does not buy much. And what do you buy that needs you to collect from town by 8pm?

I kept asking him about it but he stood his ground. The husband is good with secrets like that. He secretly enjoys being able to fool an unsuspecting wife who would keep guessing and hounding him. He never lets any clue out though. After awhile, it became apparent that we were going to Marina Bay Sands. He refused to admit it till we were there. Putting all the pieces together, I proudly guessed that he was bringing me to watch the fireworks. He, as usual, smiled and refused to divulge anything. Well, many people were at MBS trying to catch the national day rehearsal fireworks, and it was around 8pm too! Makes sense right?

Apparently not. I was happily rushing with the hoards of people, thinking that we're trying to get up to street level for a good spot before the fireworks starts. Before I knew it, I was pulled into the MBS theatre!

He was bringing me to watch the 'Sound of Music'! As usual, he manages to pull off another surprise with an unsuspecting wife. You should see the proud smirk on his face, sometimes teasing how 'dumb' I can be. We laugh at each other that way, but I was overflowing with love yet again.

I didn't even know 'Sound of Music' was on! We enjoy musicals, and my favorite is still 'Wicked'. But then again, 'Sound of Music' holds a special place in my heart because I used to watch the movie again and again on tape as a child. It was also why I always wanted to visit Innsbruck and the mountains in Austria.

I get really happy about these small things. It's these little things that make me feel exceptionally blessed and loved. *thankful*

.::. Jojo's Bday .::.

It was Jo's birthday early this month. The last our of us 4 for the year. We had Spanish food for dinner at Binomio. It was a weekday and I had coffee with Ju on Duxton Hill before dinner. It was a great evening.

It really doesn't feel that long, but its been 15 years.

Our dear Jo is also getting married in a few weeks' time!

Really looking forward to our next girls' trip, and wishing nothing but the best for these girls.

.::. Making a difference .::.

Had to share this. Such an inspiration and selfless woman. How many doctors actually has such a big heart and courage?

Makes me want to spend some of my time helping people in a cause I believe in. Makes me appreciate all I have more. Makes me realize that perhaps there's more to life than what most of us are pursuing.

.::. Largest Companies in the world .::.

Part of my job, the more interesting part, involves market research. I’m not in an industry that I’m really interested in, but I am intrigued by some aspects of it. Sometimes, my results lead me to deviate from my original intent out of curiosity. It’s like a chain of thoughts and I research about many different topics constantly, just because. I’m constantly amazed by the things I find, and surprised to find that a lot of the brands are actually under one same company. Did you know that Sealy, Stearns & Foster, and Bassett are all under Tempur? There are many things that you spend so much time choosing between 2 brands, but they are actually; the same company and probably uses the same suppliers with little real differentiation in quality.

I have yet again deviated from my point. The intent was to share my shock and disbelief when I found out which are the largest companies in the world. Make a guess? I bet that probably not many people know that the top 3 companies in the world is actually Chinese. ICBC bank is top, followed by China Construction Bank and Agriculture Bank of China. JP Morgan is 4^th while Warren Buffet’s Berkshire Hathaway is 5^th, with Exxon Mobil at 6^th place. Apple is only ranked 15^th. So yes, the tide is changing. Chinese companies now take up the most slots in the Top 2000 ranking, 674 places to be exact. Oil and Gas companies also take up quite a few top places.

Food for thought for those who dislike mandarin, and those stupid policies that reduce the importance of mandarin in Singapore. Even if you do not work in a Chinese company, there are high chances that you will get to work with the Chinese or have Chinese vendors or customers. Being able to speak mandarin fluently will definitely help and make things a lot easier, even if the Chinese do speak English.

Here are the links if you’re interested:

http://www.forbes.com/global2000/list/

http://www.forbes.com/sites/liyanchen/2014/05/07/the-worlds-largest-companies-china-takes-over-the-top-three-spots/

.::. Retirement Planning – Where to start? .::.

Although retirement planning has been on my mind for a long time and I have started my CDP account years ago, I only started my own portfolio this year. One of this year’s resolution is to consciously grow my portfolio for financial freedom and retirement. I revisited a lot of stuff that I’ve learnt from my finance and accounting background to look into companies’ balance sheets and spent a lot of time reading financial news. My initial capital for my portfolio was from the ILP that I bought as a 21-year-old student – that has made me 1% p.a. for the past 7 years with dollar-cost averaging. Investment-linked-plans has got to be one of the worst investments to get most of the time because of the high fees, non-guaranteed returns and expensive insurance component involved. No real finance person would actually recommend ILPs, although many insurance agents are actively selling it. I wanted a regular savings account then, but the banker sold me an ILP instead. It didn’t turn out bad for me, since I would have probably spent all those money during my year in Europe if not for the ‘forced’ savings.

It’s a universal rule that the rich will always get richer while the poor will find it difficult to get out of their poverty cycle. Of course, there’s always exception to the rule, but the lack of financial literacy, even among educated graduates is almost appalling. How many actively manage their money and do financial planning? Most do not want to spend time learning or simply dislike even thinking about it. It has become a reality that we can’t retire or become comfortably ‘rich’ without actually investing in one way or another. It’s getting tougher to be comfortable in Singapore, but one can continue complaining or choose to find ways to get around rising cost. Without good finance management, it’s going to be very difficult to be survive in Singapore. It doesn’t mean having a finance degree, but simply learning the basic skills and knowing the importance of managing one’s own finances.

Singapore has many millionaires, and what is interesting is that many of them (let’s not count the imported ones) are actually working professionals who have worked and saved hard throughout their working-life to get there. It isn’t that difficult to become a millionaire really, because of the power of compounding interest over time. If you save about $700 a month at about 8% interest p.a., you will become a millionaire in 30 years. And if you save about $1700 per month at about 8% interest p.a., you will become a millionaire in 20 years. $700/month or $8400 a year isn’t that difficult if you take into account 13th month and bonuses for most people, since medium household income is at $7,870 in 2013 – simplistically, becoming a millionaire household would materialize by saving the 13th month pay conscientiously for about 30 years with an interest rate of 8%.

Singapore is also a great place to invest or start a business due to our laws. We do not need to pay tax for dividends received, we do not pay tax for capital gains from investing in stocks and property. There are people who actually receive more dividends monthly than their salary and do not pay tax on those dividends. If you start a business as a private limited, you only lose what is invested. If things don’t go right, you simply close the company and open a new one without having to pay your suppliers/customers (and people charge their expenses such as car and meals to the company).

So, the millionaire question – where do we start?

There’s only one answer.

Save.

Spend less than what you earn and save conscientiously. The earlier in life and the more you save, the quicker you can be financially free.

After that, you can learn how to make your money work for you.

Li Ka-shing’s article has been a great hit some time back and teaches many useful principles, although I don’t exactly agree with the networking one. Basically, he recommends one to split their income into different buckets – for daily expenses and necessities, savings to invest, for self-enrichment, for travel and re-charging and for networking. The main concept as I read is to be frugal early in life and only spend what is needed, then learn how to grow your wealth. You can then do whatever you like when you become rich.

Step 1: Save

Always put aside some money from your paycheck every month that you do not touch. What I do is to have a few bank accounts and set automatic transfers a day after my payday. Part of it is transferred to my savings account that I do not touch, part of it is transferred to our joint account that we do not touch (with the exception of some holidays and bigger ticket items for our home), and what’s left will be what I can spend. I’m quite flexible with what is left for spending and not too frugal day-to-day. This works for me because I can spend freely from my spending account, and will still have a good amount of savings every month that ‘I do not see’.

Step 2: Insure

That’s what people usually recommend, and the basic would be to get a term plan and a health insurance. I think a good health insurance to cover your healthcare costs is important as any huge hospital bill can derail all your plans. I also have a term insurance that my mum got for me a long time ago. Both of them cost me about $100/month currently. Our housing insurance is paid to HDB through CPF, and if anything happens to me the housing loan is ‘free’. I don’t see a need to get any other plans such as critical illness plans now since I have no dependents and my parents do not need my support, neither do my husband. If anything happens to me, the flat is free and there’s the term plan, my endowment plan, plus my investment portfolio to generate some passive income. I would rather use the money to grow my portfolio and self-insure at this point of time. It might be different if you’ve parents to support or someone that has to depend on you. And hey, instead of spending so much on insurance, why not spend some time exercising and being more health-conscious!

Step 3: Invest

When you’ve put aside an emergency fund of at least 6 months to a year of your expenditure, and have some money left idle, it’s time to make your money work for you. I think it’s important to have some concept of investing and know what you are investing in. It may be daunting for those without finance background, but with interest and some reading, it’s possible to develop financial literacy. But if you do not want to spend much time on it, buying an ETF (exchange traded fund) such as our Straits Times Index might be a good start. There are monthly saving plans into the STI available, meaning that money is deducted from your account to invest automatically every month. The cost is low and you gain from dollar-cost averaging over the years. Other stocks like Singpost, SPH and  our telecommunication stocks – Singtel, Starhub, M1 also pays high dividends and have remained quite stable over the years. REITS can also be a good source of passive income. Investing is a whole huge topic by itself and it takes some time and effort to learn.

Some local financial bloggers to check out:

Here’s one blog that I really like and find useful. His income from S-REITS dividends alone was S$ 118,081.02 in 2013 and S$ 123,873.80 in 2012 . He’s in his mid-40s and have remained anonymous. He shares many of his trades and views on financial literacy but does not give disclose specific details of his portfolio. There are many easy-to-read posts dedicated to new investors and may be a good starting point.

http://singaporeanstocksinvestor.blogspot.sg/

This other blogger who received >$1000/month in dividends before he turned 30 and shares all details of his actual portfolio:

http://dividendsrichwarrior.blogspot.sg/

There’s a lot of information and analytical articles, and a tracker for high-dividend Singapore stocks:

http://www.investmentmoats.com/

This guy is my age, and have saved a larger portion of his tuition income than me and tracks his monthly expenditure and portfolio:

http://www.my15hourworkweek.com/

 Start now!

.::. Retirement Planning – Start Now! .::.

I suppose many of us would have our own vision of retirement, and it’s eventually something which we would like to be able to do someday. It does seem to be increasingly difficult in Singapore as the years go by with the relentless increase in prices. People always find it incredulous when I say I’d like to retire soon – but that soon is probably a good 10 – 15 years away and it takes years of planning, saving and investing to eventually get there. My definition of retirement is being able to sustain a comfortable standard of living and being able to do what I like, whenever I like it. I don’t see myself needing much, spending my time on exercising, cooking and picking up some hobbies. I see myself volunteering, perhaps in animal shelters or working with less privilege children, maybe teaching and helping to set up schools in remote areas. I might set up a small online retail business, perhaps DIY some stuff and learn sewing. The husband and I have a private joke – that we will work in MacDonald’s together for some extra income and free food after retirement. Imagining us both old and in Macdonald’s uniform always puts a smile on my face.

Having said that, the current projection is to be financially free when we are around 45 – 50 years-old. It’s when our mortgage is fully paid and when our future children become almost fully independent. And of course, without kids in the picture, we can probably shave 10 years off the number. Perhaps it’s my financial background or perhaps it’s how my family has embedded the importance of money and savings since I was a child – I committed to my first regular savings plan when I was 21. It was an ILP which I have terminated this year, and I was lucky to make 1% p.a. despite the high fees throughout the 8 years. I was lucky to buy units very cheaply during the financial crisis that covered the hefty ILP fees. ILPs are definitely not the best way to grow your money, but without that, I wouldn’t have saved that 5-figure sum that was left untouched throughout the years. I also started a 15-year endowment plan when I was 25 for forced savings, and it matures when I’m 40. Many people started earlier, but many people have not started too. All too often, we hear complaints about how things are expensive and how retirement is but a dream – but these people need to understand that retirement requires years of planning and saving, sometimes making some sacrifices today for tomorrow’s freedom. What’s the point of complaining but not trying to find a way around it?

While I come from a middle-income family, my parents started out poor and have been thrifty all along. I started working at 15, during the June school holidays. A friend referred me for a job at Republic Plaza’s Coffee Bean. I worked for about a year there, part-time during school time. When my peers hung out at malls after school, I made coffee and cleared tables till late. It wasn’t that common around me, because most of my peers came from good families with ample pocket money to spend while my dad has always been very stingy with my pocket money. I hated asking for money, having to justify for why I needed it. I hated being dependent and not able to make my own decisions. I worked till I was 16, when I spent the last few months concentrating on my O’Levels. After O’Levels, I intended to take the Polytechnic route, and started working at DFS in the airport as a cashier at the Liquor and Tobacco shops. Money was pretty good and every single receipt keyed-in earned us an additional 5 cents in addition to our hourly pay. I ended up in Junior College, and worked every school holidays and sometimes during weekends for road shows selling things like Singtel/SPH subscriptions. I took up whatever odd jobs that the agency offered, mostly sales. I started teaching tuition after JC, throughout my university years. When I took up my first job upon graduation, my starting pay was lower than what I earned from part-time tuition during tertiary days. It was a big deal, because I charged barely $20/hr and my student base grew through word-of-mouth. Money was good, because they formed their own groups. Most of the days, I taught for 6 hours a day, back-to-back as they came to my place. Although I’ve wanted to stop teaching as it’s really tiring to teach 2 hours after work, I’m still teaching a few students now, for interest and some extra pocket money. Teaching has always given me the most satisfaction among all my ‘jobs’.

My parents would think that I’m a spendthrift, although I have always saved a large part of my income before spending. I’ve indeed spent a lot of what I earned on CDs and gadgets during my teenage years, and I’ve spent quite abit traveling around the world in the past few years. I guess there has to be a balance, in trying to save up but still being able to experience as many things as possible in life. Every penny spent on traveling has been worth it, as it has opened my eyes and changed me in incredible ways. The husband and I have also created many memorable travel experiences and developed together as a couple. We have always traveled quite frugally, never spending much on accommodation and food. I often wonder when can I travel Europe and enjoy their beautiful hotels and restaurants instead of backpacking and staying in hostels. We did have many unforgettable adventures with our backpacks though, and those memories are priceless. Now, we have also made the conscious decision to delay the purchase of a car and save as much as possible these few years before kids come along and expenditure rises. We can probably afford a car comfortably now, but that would also mean at least $12,000 a year lost in savings. I put aside more than half of my income nowadays, transferred to different accounts to prevent myself from seeing it and spending it. It makes me feel perpetually ‘poor’ and I sometimes delay my purchases till the next paycheck. This helps to rein in my expenditure.

Most people start their retirement planning too late and underestimate the power of compounding interest. What you choose to save instead of spend today will have far-reaching effects in the years to come. There’s also a big difference between saving up first before having children and having children first before saving up! People don’t get it why we want to delay having kids and see no difference in the expenditure now or two years down the road. I beg to differ!

I have started my own portfolio of investments late last year, and would expect to make about 12% return this year through dividends and capital gains. To illustrate the power of compounding interest with a very simplistic illustration, assuming 10% p.a. compounded interest: If A were to save $12,000 a year for 10 years between ages 25 and 34, but stop saving after expenditure rises when kids come along, he will end up with $966,663 when he is 50. Compare that to B who starts saving $12,000 a year from age 35 till 50, he will have $474,536. Although B saved more than A, B has about half of what A has at age 50. Moreover, A doesn’t even save anything between ages 35 and 50!  If the portfolio generates 6% dividends, a $1 million portfolio would have about $60,000 p.a. income, and that would be sufficient for a decent retirement lifestyle without even liquidating anything.

Of course, there are many variables throughout the years and cynics will have many reasons why this wouldn’t work. Some may even complain how difficult it is to even survive in Singapore, let alone save. Circumstances do change, but that doesn’t mean that plans should not be in place to react accordingly. As a matter of fact, it was worked for many regular working-class people, and some of them have shared their knowledge freely. For most, it’s not that difficult to save $1,000 a month when you have very little commitments in your twenties. It can be your bonus and AWS with a few hundred every month. Even if you save less, you will get there eventually with consistency throughout the years. Some may say that a 10% return is neither guaranteed nor achievable, but there are many books that one can read to improve their financial literacy to help you achieve that. Singapore shares represented by STI have generated a 8.8% total annual return for the past 10 years, not taking into account dividends. There are many Singapore companies which have given out a consistent dividend payout of around 5% the past many years. With a long time-horizon and taking advantage of market downturns, it really isn’t that difficult.

The good thing about such planning is that anyone can do it. You don’t need to come from a rich family or have a huge capital to start. It’s possible for any regular working adult who is willing to save a couple of hundreds a month, every month, for a good 10 years. It becomes increasingly difficult to have a good job beyond a certain age and our employment income faces an increasing risk as we age. You don’t want to be 50 and have to work till 60 or even 70 because you do not have enough to retire.

I do hope that Singaporeans would become more financially savvy and start planning their finances early in life. Investing is not the same as gambling. Singaporeans are very lucky to have no tax for capital gain and dividends received, and investing is a very good way to accumulate and preserve your wealth without letting inflation erode it. Hopefully, I will be able to impart my financial literacy to my future kids and help them have a head-start in life.

And maybe, someone might be inspired to start their own retirement planning. =)