Here I am again to update on my Financial Goals Progress for August 2025. In July, I shared that I finally achieved the goal that I have set for myself 5 years ago. This month, the total value of my assets fell slightly to 99.97%. The above chart is the total value of my financial assets represented in percentage against my financial goal (target). They comprised of my insurance savings, savings accounts, fixed deposits, Singapore Savings Bonds, Singapore Treasury Bills, current value of my stocks, and funds in Supplementary Retirement Scheme account. The main reason of the decline was attributed to the dip in total value of my stock portfolio. This due to the pull back of share price of technology stocks in my stock portfolio.
“Financial goals” are specific objectives you set to manage your money in a way that supports your short and long-term life plans. Setting financial goals is important as it provides direction and motivation for managing money effectively. By establishing clear financial goals, I can track my progress, make informed decisions, and work towards achieving financial stability and security. My long-term financial goal is to stash sufficient money (target) which can help me to retire early in Singapore.
This month, I read about semi-retirement which is to work less hours per week rather than not working totally. With sufficient money, semi-retirement lifestyle can be supported.
How did I achieve my financial goals?
To achieve my financial goal in 5 years, you need a lot of discipline. Below are the actions I did.
Save 20 Percent of My Salary
I made a habit to stash 20 percent of my salary into the savings pocket under GSX digital bank. Every month when I receive my monthly wage, I will transfer twenty percent into this pocket. This helps to build up my cash on hand where I can use it when I need them in future. In May, when the stock market crashed, I used the money in this pocket to purchase DBS and OCBC shares. Last month, I used the money to buy MSCI (NYSE: MSCI) as well when the stock dipped.
Contribute to SRS
Needless to explain, every working adult knows the benefit of contributing to your Supplementary Retirement Scheme (SRS) account. The main benefit is for tax relief. Similar to above, I created a savings pocket under GSX digital bank. On a monthly basis, I have been transferring money into the Supplementary Retirement Scheme (SRS) Saving Pocket. In November, I shall close this pocket and transfer them into my SRS account to maximize the tax relief for this year.
Reinvest Dividends Collected
I hope you know the power of compounding. Compounding is the process of generating earnings on an asset’s reinvested earnings. To put it simply, compounding is the ability of an asset to generate earnings, which are then reinvested to generate their earnings.
Over time, compounding can lead to exponential growth in the value of an investment. This is because as the earnings are reinvested, the base on which they are generated increases, resulting in larger earnings each time.
Compounding is often referred to as the “eighth wonder of the world” and is a powerful tool for building wealth over the long term. The key to harnessing the power of compounding is to start early and be patient.
By starting to invest early and allowing your earnings to compound over time, you can benefit from the exponential growth that compounding offers. Even small, regular contributions can grow significantly over time through the power of compounding.
It’s important to remember that while compounding can work wonders for your investments, it requires time and patience. The longer you allow your investments to compound, the greater the rewards will be.
Whenever I get paid dividends from the stocks and REITs in my stock portfolio, I do not spend them away. Instead, I accumulate them and reinvest the dividends collected back into dividend yielding stocks and REITs. This helped me to increase my passive income over time. Do you know I have been doing this since 2012?
Side Hustle
What is a side hustle? A side hustle is a way to make extra money outside of your full-time job. It is typically a passion project or small business that you work on during your free time to bring in additional income. Side hustles can range from freelance work, selling products online, offering services, or even renting out property. Many people start side hustles to pursue their interests, build new skills, or save up for a specific goal.
In April, I decided to take the plunge and started a new side hustle. If you notice, I started selling stock investments and personal finance related books on my blog. Reading stock investment and personal finance books offers a range of powerful, long-term benefits, especially if you’re serious about building wealth and making informed decisions.
Reading books on stock investment and personal finance significantly enhances your financial literacy, helping you understand key concepts like budgeting, saving, investing, and risk management. These books cultivate an investor mindset, teaching discipline and long-term thinking while improving your decision-making and helping you avoid common financial mistakes.
They encourage wealth-building habits and provide diverse strategies from seasoned investors, allowing you to find approaches that align with your goals. Ultimately, they empower you to take control of your money, build financial independence, and make informed choices that support lasting financial well-being.
Have you read the latest book “Take Back Control of Your Money” written by Singapore SG Babe Dawn Cher? Please also take a look at the items listed at my sweet retirement shop right now!
My Stock Portfolio
As you can see from the above, all my SGS T bills have matured. I am not investing in any new SGS T bills because of the low and unattractive cut off yield. As such, I am holding on to extra cash on hand where I will deploy them when opportunity arises.
There are no changes to my US stock portfolio. As you can see, the technology stocks in my US stock portfolio are the ones which contributed to the decline in my total value of assets in August. The share prices of Artificial Intelligence (AI) chips such as NVIDIA, AMD and TSMC pulled back.
Financial Goals Progress for August 2025
As shared in July, I am not celebrating yet. Stock investments formed part of the total value of my financial assets, and the total value depends on market conditions. The Singapore stock market and US stock market performed exceptionally well in July but pulled back in August.
Good saving habits are important, and I shall continue to focus on accumulating more cash and put them into low-risk financial instruments such as fixed deposits and high interest yielding savings accounts.