4 Tips To Help You Achieve Your Sweet Retirement

Below are some of the tips I have been practicing and I hope it helps you to achieve your sweet retirement. Please feel free to share more tips with me in the comments below.

#1 Invest For Passive Income

If you have followed my blog, you know that I am a dividend investor. As a dividend investor, I collect dividends from stocks that I bought, accumulate cash and re-invest them. Occasionally, I will do a stock take of how much cash I have on hand versus the amount I invested (Seventy Four Percent Invested, Twenty Six Percent Cash). I try to maintain at least 30 percent cash versus 70 percent investment. Anything above 30 percent, I will invest them if opportunity arises. If there is no current opportunity, I will park the cash in Singapore Savings Bonds which I think is an excellent place to keep your war chest as you can redeem the bonds anytime.

I have not been investing for a few months now as I am building my cash position towards the 30 percent mark.

#2 Transfer Your Monies From CPF Ordinary Account to Special Account

As a monthly routine, I have been transferring my monies from my ordinary account to my special account. Monies in the special account earns you a higher interest p.a. For more details of the interest rates, you can refer to the CPF website.

#3 Buy What You Need Not What You Want

I learnt to buy what I need and not what I want. There are endless things that I desire and wanted. My “Wants” are never enough. Nowadays, when I wanted to buy something, I will always ask myself whether do I need that thing that I wanted to buy and after I bought it, will I use it often? This allows me to be more conscious in my spending. For these few months, most of my monthly spending is on basic necessities such as food and toiletries. This also helps to make my home less cluttered as I avoided buying things that I do not need such as a new pair of shoes (P.S. I already have 3 pairs of shoes).

#4 Contribute to Supplementary Retirement Scheme

I contribute to the Supplementary Retirement Scheme (SRS) account. Although the interest rate is pathetic, it helps to reduce your income taxes.

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