SBFEB21 GX21020N is 0.89%

Singapore Savings Bonds SBFEB21 GX21020N

The effective interest rate for February 2021 Singapore Savings Bonds (SBFEB21 GX21020N) is 0.89% if you held it for 10 years. The minimum amount you can purchase is S$500. If you decide to hold and sell the current issue (SBFEB21 GHX21020N) after 1 year, the effective interest rate is 0.32%.

I wouldn’t put my money into the Singapore Savings Bonds as the interest rate is simply too low. What are the alternatives? You can check my previous post on What can you invest with 500 Dollars?

Is Singapore Savings Bonds still Useful?

Most of the financial products out there require you to invest using cold hard cash. This is where the Singapore Savings Bonds outshine them. You can purchase the Singapore Savings Bonds using your Supplementary Retirement Scheme (SRS) funds.

The interest rate for Supplementary Retirement Scheme (SRS) fund is only 0.05% per annum. You can top up your SRS account to offset your annual taxes and then use the funds from your SRS account to purchase Singapore Savings Bonds to earn a higher interest rate.

Tracking Singapore Savings Bonds via Stocks Café

My favourite website, Stocks Café has allows adding of Singapore Savings Bonds into your portfolio. If you didn’t know, I signed up as a Friend of Stocks Café as my most favourite feature of Stocks Café is the automated tracking of dividends payout.

This is the third year that I continue to use Stocks Café to track my dividends.

Tracking Singapore Savings Bonds via My Savings Bonds Portal

MAS has launched My Savings Bonds Portal where you can track your Singapore Savings Bonds purchases separately from your stock purchases. I have done up a simple guide here. (Read more: Guide to My Savings Bonds Portal)

Identity Based Habits for 2021

Identity Based Habits for 2021

Identity Based Habits are something that not everyone have heard of. Every year, I will set SMART goals (S – Specific, M – Measurable, A – attainable, R – relevant, T – time-based). Having read the book Atomic Habits written by James Clear last year, I decided to tweak my approach slightly this year.

What do I mean? When we set our goals, most of our goals are focused on outcome. For example, last year, I set a goal of contributing at least S$600 to each of my child OCBC Young Savers Account. Another example is to run a total of 300KM in 2020. These are goals that are focused on outcome.

This year, in 2021, I wanted to focus on building identity based habits. Why? This is because once you build a habit, it becomes long lasting. Identity based habits focuses on who I wish to become.

“If you want better results then forget about setting goals. Focus on your system instead – James Clear”

Identity Based Habits for 2021

#1 I want to be stronger

Identity: Become the type of person who exercises every week.

Small wins: Run every week and do some heavy weights.

#2 I want to improve my knowledge

Identity: Become the type of person who read books and watch self improvement videos.

Small wins: Watch at least 1 Udemy video once a month, read at least 1 book per month, take at least 1 certification course per year.

#3 I want to be financially free

Identity: Become the type of person who invest regularly

Small wins: Invest 15% of your monthly salary into dividend paying stocks.

#4 I want to be a better parent

Identity: Become the type of person who plans for the children’s future

Small wins: Contribute monthly to my children’s saving account to build up their savings.

#5 I want to be a minimalist

Identity: Become the type of person who own less things

Small wins: Declutter my home and workplace. Refrain from buying unnecessary things.

I have set my identity. Now, what kind of person do you want to be in 2021 and beyond?