Saturday, July 21, 2018

Co-ops before Co-ops were Cool

With the recent 2 co-op articles pumped out by Dollars & Sense (one of the few financial blogs that I hold in high regards) and by SG Budget Babe (fellow crypto warrior), I thought it's time that I dug out my old posts on co-ops.

About 2 and a half years ago, I blogged about a mysterious financial product that as it turns out, is actually savings and share subscription at one of the co-ops.

Based on the last financial report, annual dividend is at 3% and there is a 30% buffer, making it a rather "safe" investment vehicle in my opinion.

As mentioned a long time ago, I am treating it as a cross between a last line of defense emergency cash, flexible rolling fixed-deposit and a retirement product that has emergency features to either:
(1) borrow from myself with a small interest cost or
(2) drain and withdraw entirely if need be.

I must say, I am particularly happy to have stumbled upon and open this co-op savings account.

If I continue at it, maxing my contributions every month, at the end of the day I'm going to have a very flexible, low-risk cash generating machine.

Recently, I have done a lot of re-arranging of my bank accounts and financial products:

- SGX stocks
- SSBs
- CIMB StarSaver account
- P2P loan capital and interest
- precious metals trading position
+ crypto
+ crypto

But amidst all that change, the few things that I have been doing is trying to:

  • keep my Citibank Maxigain account untouched
  • diligently contribute to my co-op savings
  • pay my insurance premiums

I guess soon it'll be time for me to do my financial spring cleaning and move around money from accounts, consolidate and close accounts and review my financial situation again.

Anyway, I was drifting off-topic for a bit.

Co-ops are great. You should check to see if you are eligible to join any. Even if you aren't, perhaps now is a good time to take stock of your finances now that we are past the 1st half of the year.

It's only when we know where we are, that we can properly map the path to our goal.

Don't get too caught up in the now and make (or don't make!) decisions that end up to be very costly for your future.

As much as I yolo into crypto, I do have the necessary fallback plans if it all goes to shit and I won't be ruining my life - it will merely be a set-back if my calculated risky adventure fails.

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