Discipline is one of the most important virtue required of an investor. Like many tai kors says, it is the process not the method. Savings can also help you to reach your end goal.
I kept a meticulously done spreadsheet that had all my fixed and variable expenses, income and investment in there. It is like a financial life written for me in til the ripe old age of 45. It is tough as you planned for every single penny to be deployed into financial workings at a future time. In fact, I'm deploying future assets today at a given cost.
I'm proud that my current Nett Asset has just passed over a Million SGD! This Nett Asset value has been fluctuating due to the movement in exchange rate and valuation for the past few months and it will continue to be so in the next few months but I'm certain I'm past the value of it. This is a BIG Milestone! A Million Dollars in asset. What this means is at a 4% withdrawal rate, I could draw $40k per annum to meet my expenses. Hmmm, then again, my assets are in properties and not in dividend yielding stocks so this 4% withdrawal rate may not apply to me.
A quick run down of the financial health shows the following :
Total Income (Salary Earned over 11 years) ~ $1 mil
Total Nett Assets ~ $ 1 mil
Total Nett Liabilities ~ $1.4 mil
Total gross passive income ~ $ 2500 / mth
and 4 more properties on various stages on completion.
It always feel good that your nett asset has surpassed your total earned income and it means all your spendings were paid for by others. I always tell E that once my tenants can pay for my shopping and travelling, we can travel and have fun. Right now, just be discipline and work towards financial freedom.
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