Having much admin time in Nee Soon camp gave me a great opportunity to think about my current financial condition.
Robert Kiyosaki (RK) commonly encourages his readers to create multiple source of income to grow our assets, namely through 1) Earned income, which would be my NS pay for now. 2) Portfolio income, my shares I’m holding for both capital appreciation and dividend yield. 3) Real estate, where a good amount of passive income would be generated from.
Looking at my current situation, I would be able to fulfill (1) and (2) but not (3) at the time being namely due to cost issues in Singapore. Where prices of properties are at a level where I cannot afford with my current networth.
Looking at (1), I ask myself, what do I have? Firstly, I have my NS pay which forms a large bulk of my income for now. Then, another source of income would be doing surveys online that pays meager amount. Although it’s insignificant, it’s definitely a source of additional money for me to spend/save. I’m thinking of ways and ideas to increase my earned income through different sources. Could providing a service earn me somemore? What can I do to provide such a service?
Next, (2) is my portfolio income, both capital appreciation and dividend income. Currently my dividend income per month is $60 which is a good start for me! At current market conditions, I do not think it’s wise to take on larger market risk due to many impending news, etc. It’s currently volatile at the moment with a bearish sentiment.
RK taught me to always use income-generating assets to pay off my liabilities which at this moment would be (1) Cab fares – $50/mth (2) Train fares – $20/mth (3) Food – $170/mth. My expenses would be about $250/mth.
Then I look at my income side. I namely have 3 stable income and 1 variable income.
Stable income: (1) $400 allowance (2) NS pay of $480 and (3) $60 of dividend income. My total income would be about $960/mth.
Variable income would be coming from my surveys as of now, which is rather negligible.
Overall, my net income should be $710/mth.
Yes, although net income is positive, for every expense, I’m working towards funding it with an asset. My newest expense would be the cab fares. So far the way I have thought the about mitigating it is to use UberX, and making use of the rebates it gives me for referring people to use. Everyone that signs up and uses it I get $10, which is a really good deal in my opinion.
I’m thinking of funding this new expense with an asset that would give me minimally $50/mth. Getting a part-time job would solve the issue, but that is not in line with my goal of finding my expenses with income-producing assets. If I could find something that pays me $2 a day, I would already be able to cover my cab expenses and increase my networth by $10 a month! But which asset does that?