Hello! Haven't been here for a while and just thought to pop by and pen down some feelings.
Just came back from a 3-week holiday and had to delay my monthly accounting for September. With Mr Stock Market recovering a little through the month, the numbers are looking slightly better. And as someone who has slight money dysmorphia (self-prescribed), it did provide a bit of relief.
(On a sidenote, came across this ST article on money dysmorphia and I felt... seen?)
I've been a worry wart for most of my life. And being someone who grew up in a low-income household, money always seemed like something that was scarce and hard to come by. Naturally, finances was something I found myself worrying over - though not excessively - but sufficient to gnaw at the back of my mind sometimes. Which probably explains why I've been religiously tracking my expenses ever since I graduated.
Anyway, I digressed. While working on my monthly accounting excel sheet, I did a quick scroll-through across the months to see how my savings/investments have grown over the years. As an ultra-average salaryman with no side hustles, I find myself oscillating between two moods frequently. One would be me scoffing at the numbers I see, knowing that my peers are definitely away ahead of me. But another would be a gentler, kinder version, reminding me of how far I've come.
While looking through the numbers in the different columns (savings, investments, CPF), I am reminded of how much my personal finance views have evolved. Through different seasons, I've learnt more about myself and what works for me. So here I am, sharing how my saving & investing mindset has changed over the years.
Money habits in my 20s vs 30s
- Daily expenditure
In my 20s, I used to squeeze every dollar out of everything. I rarely ate meals which cost more than $20. Every restaurant meal would be discounted, and I would dig through diff discount apps to make sure I could shave some dollars off. I cooked often at work, which often only consisted of an egg and noodles.
Today, I eat salads that cost >$10. Hahaha younger me would've balked at that. I spend more on food, but I also see it as an investment. I'm investing in 1) my health, with higher nutrition levels, and 2) time with my loved ones, enjoying our time out and having good food during our meet ups.
For other purchases, I realised I am now more willing to spend on things that I never used to in the past. Clothes or bags that cost >$40 but are made of better quality, or even workout classes. These are things that I see value in today, and think they're worth spending on.
- Savings accounts
In my 20s, DBS Multiplier was my best friend. SSBs too!
Today, UOB One is my best friend haha. SSBs are still in my portfolio, but T-bills and cash management accounts are in the mix as well. My liquid cash is spreaded out across more places today.
- Insurance
In my 20s, I purchased my hospitalisation, critical illness and term life insurance.
Today, I still own the same plans. Just with CareShield Life (& its supplement) in the mix. :") Needless to say, premiums have been rising and so the money set aside has been increasing as well. But it's alright because it is still within 5% of my annual income.
- Investing
Investing is something I'm glad that I started early in life. It's truly something that you need to experience it yourself before knowing your own style, tolerance, and comfort level. For me, I took a while to figure out my own investment style and what I preferred.
In my 20s, I started investing into SSBs. I then moved to Singapore stocks, where I purchased blue chip stocks purely based on the recommendation of others. It was what people warned against but I did it anyway haha. I guess it had to happen for me to learn my lesson the hard way.
A couple of years later, I joined in the masses to buy individual US stocks during the tech rally. Needless to say, that portfolio is still in the red today. I also dabbled into crypto (fomo, anyone?), burnt my hands badly and realised that I've fallen into usual trap of greed and overconfidence. Needless to say, I've learnt my lesson on this as well.
Today, I'm sticking to world indices via diversified ETFs. Also recently purchased some REITs because I'm interested in income investing and am starting from there. Am a safe and boring investor, but I intend to keep it this way. :)
Looking back, so much has changed in my personal finance journey. Now that I'm in my thirties, I do feel more financially secure with a bigger financial base. While many things have changed, lots have also stayed consistent. Things like always spending less than I earn, budgeting my wants and needs have all formed the core of my personal finance journey, and have became things that are second nature to me.
And while I still find big questions like 'Why can I retire?' rather intimidating, I'm grateful that my progress has been visible as I squirrel away my very average salaryman paycheck.
Excited to see how my money habits will evolve years down the road as I approach my mid-thirties!
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