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?

Total Dividends Collected in 2020

Total Dividends Collected

The total dividends that I have collected in the year 2020 is S$15,532.60. This is an increase of 47.26% or S$4,985.20 as compared to the amount of S$10,547.40 that I have collected in the year 2019. This year, I probably struck the jackpot as the sudden increase in dividends collected was due to a special dividend payout by Convenience Retail Asia.

What is Dividend Investing?

If you have followed my blog long enough, you have probably read that I am a dividend investor. This means that I buy stocks such as REITs that consistently pay dividends. Reinvesting the collected dividends further compounds the amount collected.

I consider a stock to be an excellent dividend stock if

a) Able to grow its dividend payout year on year (y-o-y)

b) Increase its share price due to investor’s confidence in the stock

c) Consistent payout in dividends

d) Pay special dividends time to time

How To Track Your Dividends

You may wonder how I track my dividends since I am holding so many stocks in my portfolio. Since May 2016, I am using Stocks Café to keep track of my dividends as it automatically tracks dividend payouts and there is no need for manual entry. This has saved me a lot of time.

Projected Dividends Collected In 2021

Stocks Café has this feature that project your future dividends based on the following assumptions:

a) You will hold the same stocks and amounts until the end of the year, and
b) all stocks will give the same amount of dividends, on the same ExDate, as the previous year

Based on the projection, I will collect S$13,973.58 worth of dividends in 2021. This might not be the real case since companies do not pay special dividends every year. Nevertheless, we shall see how much dividends I will collected at the end of 2021.