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$3K salary a month but saving $16K this year!

Sunday, January 29, 2017

Hello AK,

How are you? One year ago i've start following your blog and chatting with you via FB as well. I got so much things to share and update you. After completed my private degree, i have changed a job and income increased from 2.4k to 3k.


Some of my friends are still earning more than me. i was so stressful to keep up with the market and expenses. But thanks to AK's Blog, everything is under control.

Well, i have been doing my financial planning constantly for the past one year. i set my own personal goals. Firstly, i have already got all the necessary insurance covered and building my Emergency Fund, transferring all my OA to SA, note down all my extra expense every month and everything is keep track down BLACK and White in EXCEL.

Like i said, i feel my full time job 3k is so insufficient, hence be like AK, do more part time job. i took up part time job working in the Gym. As my Full time belongs to shift work, i try to slot myself whenever i can to earn extra cash.

All my friends asked, "Not tired meh?". Of course my respond was, "Its Damn tiring, Dying!". I have reduced free time to hang out with friends for movie and stuff. But well, i start saving even more.

I re-contract latest Iphone 7 and sell away for extra $800 cash into my pocket. I went to keep fit and train for my 2.4km run and take ippt for extra $500 cash into my pocket. I have completed half of my NS ICT milestone and rewarded with $3k CPF OA and $2k MA. Happy!

So after talking so long, what did i gain from 2016 to 2017? I attached my CPF statement for your reference. I realised the 4% interest in SA is IMPT when i've WITNESS and received what Government is rewarding us.

A, B, C, D, E! Wow, more than AK!
He is enjoying an interest rate of 5% per annum for his CPF savings too!

Additionally, now i have 10k saving in my OCBC saving account. i know it's still so little but i challenge myself to target hit 26k by end of Dec 2017.  i shared with my friends and they thought i must be CRAZY. Earn 3k monthly, after cpf 2.4k, how to save 16k within 12 months?

Don't worry, i got my plans. I will update you next year on this. And i will start planning investment on REITs next year once i fulfil my E-fund of 26k.

Lastly, Wishing you good health and a Happy Chinese New Year ahead. AK ❤
Warmest Regards
S


This young man emanates positive energy and determination. I won't be surprised if he ends up saving more than $16K this year!

ๆญๅ–œๅ‘่ดข๐Ÿ˜Š

Related posts:
1. Filial son working hard.
2. First step to becoming richer.
3. Be a wealthy and happy peasant.

16 comments:

Matthew Seah said...

Is he buying a BTO anytime soon?

thomas tan said...

Very encouraging and hopefully more youngsters follow suit. Having said that, this young man has to be very sure that he has no need to accumulate fund in the OA. As can be seen, ZERO in the OA! Wah... if he ever needs to purchase a property how?

AK71 said...

Hi Matthew,

See related post #1.

Nope. I don't think he is. :)

AK71 said...

Hi Thomas,

This is my fault. I blogged about how I transferred all my savings in CPF-OA to CPF-SA when I first started life as a working adult.

How to upsize $100K to $225K in 20 years?

Bad AK! Bad AK!

Desmond said...

Hi Ak,

i have been following your blog since my university days. I did almost exactly what this young man did. except for working multiple jobs. I earn only 2500 a month. transferred every single money from OA to SA. I have small amount stocks in Caroesus,accordia, cache log and sti etf I am somehow influenced by you. As I do not earn that much, my savings tend to suffer, as most of my salary goes to my investment and expenses.

I am 29 this year , single, and no plans to get attached. I hope all these will work out fine for me in the future.

AK71 said...

Hi Desmond,

If you are growing financially stronger year after year, you are probably moving in the right direction.

Savings is part of your personal balance sheet. Dividends is part of your personal cash flow statement.

If you were to stop adding to your investment portfolio today, for example, your savings will still grow much faster than if you had zero investment because, including dividends, your cash flow is surely stronger now. ;)

Cindy Siow said...

Hi AK,

This is a very encouraging blog. Hope to have more stories like this

AK71 said...

Hi Cindy,

The media always has stories of multi-millionaires and billionaires.

However, I have always found stories of regular workers doing the right things towards greater financial security more attractive. There are more workers than entrepreneurs. There should be more stories to encourage the majority. Be a wealthy peasant. :)

simplyme said...

I think the O2SA warriors (muahaha I coined a new term) get asked this question v often (myself included). Point is, we also save lots of cash. So if need be, we can reduce our equity investments and redirect them to housing. Also, once the M/SA is maxed out, the MA goes to OA. That's ~31% of monthly income and at 3k/mth (im sure he'll earn more by then), he's looking at 900+ in OA/mth or ~11k/yr excluding interest. The OA will end up growing fast enough for a downpayment and/or monthly mortgage payments.

lucy said...

Hi AK
I am going to show this post to my Daughter, sitting for her A levels this year. It's not all about how much one earns, but more so, one must learn to be financially savvy from a young age. One must learn to plan, save and invest. ๆญๅ–œๅ‘่ดข

thomas tan said...

Hi AK,

Yes I knew about your 100K upsize story as I read your blog regularly too. I was inspired too and started to pump money into my child's CPF account even though she is only 14 years old. So far the contributions went into the 3 accounts but it seems that we can choose to contribute to SA only if we want. Not too sure about this though and need to find out more.

AK71 said...

Hi simplyme, lucy and thomas,

I think we can all agree that the sooner we start, the more magical the effect of compound interest is going to be. Time is a good friend of the financially prudent. :)

Daffodilistic said...

Caution must be advised for young folk with low incomes doing the O2SA method, as they may not have liquid cash to finance their HDB.

AK71 said...

Hi D,

Yes, for sure, we must know what we are trying to achieve and do what our circumstances allow. If someone has no plans on buying a flat or is willing to put off the purchase by a few years, OA to SA transfer is an idea worth considering.

jojo said...

Hi AK,
Happy Lunar New Year to you and your readers.
Honestly, if this isn't evidence of your positive influence on your readers, I don't know what is???!!!

Keep up the good ... :) "talking to myself" ;)

AK71 said...

Hi jojo,

Always happy to read emails like this one. :)

I don't know for sure but surely I hope that my blog has created more positive than negative energy. :)

ๆญๅ–œๅ‘่ดข๐Ÿ˜Š

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