About Me and My Goals

Got Money, Got Honey! is personal finance blog written by a non-professional who shares his point of view as a retail investor. His blog is an open diary of his honest opinions about anything that has to do with personal finance. Warning: strong levels of sarcasm.


Hey everyone!

Welcome to my personal blog about me ranting on personal finance issues. The main aim of this blog is to journal down my thoughts, as well as share them with anyone who cares to read it. I've always believed that if I can pen down a thought or idea into words, it means that I have really thought about it and understand it quite well.

As much as this blog is about me sharing my knowledge, it is also for me to recognize my lack of knowledge as well. When I write something and I realize that I don't have the full picture or I don't understand something, I stop writing and start searching and learning. Sometimes a simple post takes me a few days to complete.

I am now 27 and I have been writing for over 4 years already. I prefer to go by GMGH when I am on the internet. I shudder to ever reveal my true identity because I know it will just draw criticism like "What does this young punk think he knows about money or investing?".

I attended one of the local universities and I studied Business. During my time in university, I was also fortunate enough to go on exchange to one of the top business universities in Europe. Sadly (well, depends how you look at it), when I was in university, I did not learn and pick up as much knowledge as I should have because I was too busy enjoying student life.

I have been working since I graduated and I quite enjoy the work that I do. However, I really enjoy the financial markets for the mysterious beings that they are. As much as it seems like my life revolves around money, one of the things I really strive for is happiness regardless of money. At the end of the day, I think I'm a pretty simple guy.

So, that is my backstory! I'm just a normal guy trying to survive in this world, right?

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My Long Term Financial Goals:

Retire from real work at 55.
Have $400,000 in my SRS account by my 63rd birthday.
Fully own and paid off my own condo by 60.
Passive income of stable $4000 per month for retirement (about $2200 in 2014 dollars)

29 comments:

  1. Hi MoneyHoney,

    That's some pretty interesting goals you have, especially the short term ones. If you can save $20k to $40k each year, you should be able to easily achieve them by your mid 30s.

    All the best!

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  2. Hi Mr 15HWW,

    I am a big fan of your site! Seeing your passive income portfolio encouraged me to start building my own and to monitor it regularly as well!

    Thanks for the encouragement, I hope I can stick to my savings plan and goals!

    MH

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  3. Eating food that costs 2-4 per meal, probably wont make you live until 60. Spend a bit more on healthy food and throw in a gym membership too, then you should make it to 60 and beyond easily (and in good health!) :)
    Nich

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    Replies
    1. Hi Nich,

      Thanks for your comment. I also think budgeting only $2-4 a meal is too little, but I am just low balling in case of extreme financial scenarios when healthy food might be a luxury. Economy rice can be affordable and it is not that unhealthy if you avoid the oily and fried food.

      Instead of a gym membership, I have set up a home gym. I also run around my estate. Gym memberships are too costly and I do not enjoy the social aspect of it. I spent less than $400 as a one-time cost to set-up my home gym and I have more than enough equipment to do many different exercises. I think even the cheapest gym memberships with a long contract costs at least $50 a month. You might want to consider a home gym as a long term health investment to replace your gym membership expenses!

      MH

      Delete
  4. Hi Moneyhoney

    Thats a nice name you have there.

    And better still a nice precise calculation you have done for your planning. I must say im impressed.

    Keep it up and im sure you will be up there by the time you hit 30.

    ReplyDelete
  5. Hi Moneyhoney,
    You remind me of myself 25 years ago.
    To gain some more wisdom you may wish to view my book.
    I wrote it to share what I have learned the past 30 years as a Dr of Chiropractic, Naturopath, Investment Adviser (past 14 years), and Property Developer....
    Saving when you are young and using compounding is a key idea that you already learnt.
    Investing well over the years is your next challenge to master.
    I suggest you read my book, Warren Buffet, Harry Dent (Demographics) etc.
    My book is called The Book About Life and you can buy it on www.Smashwords.com for $10 (USD).
    DBS Asian Insights is indeed excellent research even if they have some bias.
    For me direct Asian Property is one of the safest ways to get invested.
    I have 9 condos in Manila for example...and you can buy a studio condo here in Manila for as little as $250 a month.
    Regards,
    Matt
    mbohlsen@gmail.com

    ReplyDelete
  6. yo MH!
    24 and you already have your life all worked out? oh well, at least you know what you hope to achieve money-wise. so happy for you and so paisay for myself #^.^#

    i've practically gone through my entire life not knowing much about anything! i too graduated from Biz Ad and oops, still don't know much about personal investment! hope there're more young peeps like you around! good luck!

    ReplyDelete
    Replies
    1. Hi bb,

      As much as I plan, anything could happen! All I can hope for is that I am steering my ship in the correct direction. Once I can take money out of the equation from life, I think that freedom will allow me to spend my time doing more things that I enjoy!

      It's okay bb, you read and follow My 15HWW, he shares his experience and points out very practical things. It's never too late to start! Thanks for your articles on PWM and your kind words!

      Delete
  7. "Ideal Plan

    From 25-29, I aim to add $50 per month passive income, every year. That would generate $600 per annum. With a conservative 3% payout, that means I need to save at least $20,000 a year.

    From 30-39, I aim to add $100 per month passive income, every year. That would generate $1200 per annum. With a conservative 3% payout, that means I need to save at least $40,000 a year.

    From 40-54, I aim to add $200 per month passive income, every year. That would generate $2400 per annum. With a conservative 3% payout, that means I need to save at least $80,000 a year.

    Retiring at age 55, my portfolio would be $1.7 mil, paying out a conservative $4,250 a month."

    You have a terrific plan, I can't believe you're only 25 years old. I wish I was as savvy as you at PF at your age. I think you can achieve this even before the age of 55 yo. Goodluck.

    ReplyDelete
    Replies
    1. Thanks vivianne! My plan isn't running as ideal as I wish since I'm trying to save up for a downpayment for a house, but it is keeping me on track, though at a slower pace than I would like!

      I'm just lucky to have stumbled upon this early on, though I also wished I had started younger, haha! Good luck to you as well!

      Delete
  8. Hey GMGH,

    A the above plan is wonderful, maybe you might want to factor in inflation :P
    Also, I'm not sure how useful is a SRS account unless you are in a higher tax bracket... (just my 2 cents worth)

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    Replies
    1. Hi Wolf,

      Thanks. Yup, $4000 in the expected future would be roughly about $2200 in 2014 money, which is more than the $750 baseline expenses that I foresee. Would the remaining money be enough to improve my lifestyle from basic to comfortable? I hope so! I do hope to be able to sock away more money and also invest and get higher rates of return compared to just 3%.

      The SRS account is more useful the higher your tax bracket, but I think many of us will be able to benefit from it by contributing in our early 40s. By then, our incomes would (hopefully) be higher, pushing us into higher tax brackets. Maxing out contributions would reduce our tax burdens immediately while also giving us forcing us to use the money for more strategic longer term investments. I think the psychological aspect of being forced to have a long term view would make investments in such accounts significant better performing than the average retail investor's account.

      Delete
  9. Hi GMGH,

    Good goals! But have you taken into consideration of getting married and getting your own property? Not sure how you calculate but if you dont focus much on wedding and getting your own property, I think you will be able to hit that amount. If you happen to have girlfriend and wanted to get married, then you might have a problem in hitting your target.

    ReplyDelete
    Replies
    1. Hi James!

      Oh that's true, I didn't really consider that, haha! I wrote this a while ago. I'll probably update some stuff in the near future.

      My view on weddings is very non-traditional though. I'm hoping for a simple low-brow wedding, which I understand is super unrealistic to most Singaporeans. No big celebration in a big hotel? In-laws no face and sure unhappy. Jialat. #bachelor4life

      Currently property is my #1 priority. Just like my non-traditional view on weddings, I also got non-traditional views about young adult life. I am fully aware that living away from home is not the financially prudent thing to do, but I am willing to pay that price for independent living.

      On the bright side, my rate of returns were only using 3%, and without compounding. I also put retirement age at 55. Perhaps my ideal plan is more fantasy than reality, haha!

      Delete
    2. Hey GMGH,

      Just an idea for you if you want to live out on your own, why don't you explore career opportunities outside of Singapore? If you work hard enough, you might get sent overseas for work, where you can stay on your own, while the money you earned can be spent to buy the property and rent it out. Caveat is that expat packages are getting pretty rare nowadays, but there are still a number of Singaporeans getting sent for overseas postings with reasonable packages. Besides, there is the added perk of experiencing living life abroad and challenging yourself to get out of your comfort zone! =P

      All the best in your financial journey!

      Delete
    3. Hi Haduken,

      I did contemplate working overseas, but I am working at a good job now and it's unlikely I can get anything similar. I'm thinking of taking a 2 year mid-life crisis break sometime in the near future and perhaps do like you say and buy an overseas property and rent it out once I decide to come back to Singapore. Thanks!

      Delete
    4. Hi GMGH,

      Yea really have to depend on what kind/type of wedding that you and your future wife really want. My wife and I also work towards a low cost wedding (might not be that low because the wedding venue already cost 13k. But overall still less than 20K so still quite alright for us.

      As for condo, this is really a tricky question. Will you be purchasing a one bedroom or two bedroom condo? Because in the future, if you really get married, you won't be able to purchase BTO (which many people made profit from it).

      I am following your blog closely because I myself also aim to purchase condo next year (probably mid of next year if there is a good and affordable condo). after that, I will set a bit of my money on shares to generate dividends (estimate cash inflow to stocks - $7k to 8k per year)

      Good luck in your investment journey!

      Delete
    5. Hi James,

      I've talked to my S/O about it and we both agree that we want a very simple wedding in the future, but of course that idea hasn't been run by our parents. I've been told many times that "my" wedding is not actually "my" wedding, but it's "your in-laws' and family's" wedding. I'm sure I'm going to get an earful about "face" and "doing it right". Gargh.

      Although a BTO is very enticing, we are considering a resale with a good location instead. If I do get a private property first, I can dispose of it up to 6 months after the purchase of my resale HDB. I have a very strong lean towards a one-bedder, but I wouldn't rule out a two-bedder. There is a lot of flexibility in a 2-bedder, especially if you don't mind to rent the other room. Of course, you have to pay a price for that option. I'm thinking that this flexibility might be cheap enough to purchase if prices come down enough.

      Actually, you can BTO if you have bought a private property, but you just have to sell it 2.5 years before you BTO.

      Being practical, I haven't locked down my S/O yet. As much as I would not like it to happen, nothing is stopping her from leaving if she ever decides so. The playbook of getting a private property first, especially if there is a downturn in private property prices, seems to be the optimal strategy to me. Public housing aren't as deeply affected by the market as private housing. If there is progression in the r/s, the condo merely becomes an investment for capital appreciation later. If there isn't, then I have myself a rather nice personal space.

      I'm also looking to generate income, although it seems that all the options I am faced with are from financial instruments. I would actually like to own a stable business, even if its a small one!

      Delete
  10. Wow, pretty well-thought out financial goals in measurable terms.
    Just curious how you would factor in financing for your own home. Considering that the property price is sky high in Singapore, I think it would be a true challenge for young singles to own private condo (unless you are talking about waiting out till 35 to get HDB flat). ;)

    ReplyDelete
    Replies
    1. Hi 22C,

      Sorry for the late response, I didn't realize.

      Well, I am hoping for property prices to drop so that things would be affordable. While waiting, I am slowly saving up so that I can afford the downpayment. I am targeting only a 1 room apartment if I go private, so I don't think the financial burden is too crazy.

      Delete
  11. Honey, ur long term goal seems quite modest. I am sure you will exceed. very few including me at 25 are as mature thinking as u do. Pls keep the blog on. Lets see what u can achieve when u r 35!

    ReplyDelete
    Replies
    1. Thanks for the kind words and motivation Richard, I will keep at it :)

      Delete
  12. Hi,

    Do you consider CPF as your savings? Or what you mention on your savings plan is pure base on cash savings?

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    Replies
    1. Hi Miss P,

      No, I did not consider my CPF savings because I hope to be financially independent of it even though I must admit it is a large chunk of my savings. My OA money will definitely help with my housing, while my MA will cover my H&S insurance.

      This means that regardless of whatever government policy changes, I know that I have enough wealth outside of my CPF to retire and CPF Life will just be a very nice bonus for me.

      Delete
  13. I like your blog Gmgh and ambition to retire at 55.
    The German is fond of adding GmbH behind the company's name.
    I don't know what it stands for.
    But I guess GmbH stands for "Got Money, Boh Honey".

    ReplyDelete
    Replies
    1. Hi Anon,

      Gesellschaft mit beschränkter Haftung!

      Thanks for the kind words, I hope to achieve it and record my journey the whole way!

      Delete
  14. Hey, stumbled upon your blog. Cool! I wished I had such financial goals like you at your age. Just curious, why a condo and not a hdb. I always feel hdb is the property to own in Singapore to achieve financial goals earlier.

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    Replies
    1. Hi R,

      Thanks for leaving a comment! That is a good question to ask, and I have recently been asking that to myself a lot too.

      First off, I am single so I cannot get an HDB until I am 35 or married. I concede that living in an HDB is a lot more "value" than living in a condo, which of course builds towards achieving financial freedom much earlier.

      However, that 35 number is the biggest problem for me. I do not want to continue living with my parents until I get married (which may be never) or 35, so unfortunately only a condo or an older EC is applicable to me. Unless I choose to wait until 35, that is.

      On the extremely practical note, I am certain that I can very easily and comfortably afford a beautiful and well located 3rm HDB (essentially 2 rooms) at 35 and reach FF within my 40s. However, I do think that I can stretch it a little and go for 1rm condo instead. While that might set me back another 5 years of working, I do get to move out perhaps 5 years earlier and I also get the flexibility of owning a private property.

      That said, if the age for singles to buy a HDB dropped to 30, I would put a sock in my mouth and wait until 30, hahaha

      Delete
  15. I'm wondering if you have an income report like many financial bloggers out there?

    Cheers! - livingafreelifetoday.com

    ReplyDelete

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