Tuesday, May 19, 2015

Income and Expenditure From January to April

Its the time of the year again to review my income and expenses for this new year 2015. Reviewing my financial situation once every 4 months is certainly not too much work to do. The bulk of the work will be the recording of my income and expenses everyday in order to track it. This is what I've been doing for the past 4 years.

Here's the familiar chart which shows my financial journey from January 2013 till now:

The year 2015 has been a good year for me so far. I've all along set out to create passive income apart from the income I have from my job. Passive/other income has been rather consistent for the past few months. In April last month, passive/other income increased substantially which was a surprise. This came from dividends of the many st

As the saying goes, when our income increases, our expense increases as well. Last month, even though passive/other income increased, expenses increased as well due to my phone dying out on me and I had to replace with a new one. One thing to confess is I succumbed to the temptation of buying the latest Samsung S6. However, I could still save more than 100% of my salary just because I created passive/other income. This is what I wrote in a previous post: Spending on Luxuries The FIRE Way

Moving Forward

Creating multiple streams of income is what I've been trying to do since 3 years ago. After entering the workforce, I realised nobody is immune to the fact that we could lose our jobs anytime. I've seen a few instances of restructuring that caused hundreds of people to lose their jobs. It could be worse when a financial crisis hits. Having multiple streams of income will cushion this impact of stress in the event we lose our income.

Another reason for creating multiple streams of income is for financial independence or freedom. Not only will I not be afraid if I lose my job, I also have the freedom to choose whether to work or not to work. This is the freedom of choice. For my life, I realised that after I have more passive/other income, I no longer worry about money matters. It gives me more freedom to spend knowing that my financial state will still be in good state even after spending on luxuries.

Moving forward, the way to create more passive income is to save up and invest more. Right now, I've only invested about 40% of my investment capital in the stock market. If I bump it up, passive income can be doubled. With a savings rate of >100% or close to 100%, my money grows faster every month and year. The next move is to reinvest the passive income so it gets compounded. However, to invest heavily when the market is at a high will not be a wise move. I will invest more when some opportunity presents itself.

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Related Posts:
1. Income and expenditure update for the past one year plus
2. How I Amassed More Than $120,000 After 4.5 Years of Work


  1. Glad to know you already planned for mid 40s job crisis at your age. I only started at 37. Got the same calling, not wanting to stuck in the situation begging my boss for job when family needs me the most financially. I personally witnessed it happened around friends n colleague. That forms the driving force behind my financial freedom journey.

    1. Hi HS,

      Yup there's always a trigger point for financial freedom. Its never too late to start.

  2. Hi SGYI

    May I know does it mean that your passive income is able to sustain your monthly expenses and you can save up all your job salary? I am hoping to be able to move into your direction too!

    Also, for passive income, it comes from dividend or recurring blog ad income right? Tuition would still be considered as active income?

    Cheers! =)

    1. Hi,

      Yes my passive was able to sustain my current lifestyle for the past 3 months. Still not that conaistent. My passive income does mainly come from dividends and adverts. Tuition is certainly considered as an active income