Achieving $300k cash before the clock strikes 30

 When I first started blogging (cue the first blog post), I set myself a goal to save $100k by 28.


$100k cash, excluding CPF.

I achieved this at 25.

I even thought my $100k would drop downwards after paying for flat, reno, kids. But who would have known that my chance to get a flat would only happen at 27, and my savings grew and grew?

$200k at 28

At 28, I hit $200k cash savings. It took me 3 years to grow another $100k. 

If not for the fact that I've been topping up $14k annually to mum and my CPF RA/SA, spendings on wedding, house related stuff and frequent holidays, I would have much more cash on hand. But, that can't be real, that's not living - those money have to be spent.

If not for the fact that I've pumped $80k over the past 7 years into stocks, of which the paper value is now only at $60k+, I'd been $80k "richer". The converse could be said if I've great investment capabilities to grow $80k to $100k 🙃

Anyway...

As I edge closer to 30 ⏰, I've another achievement unlocked.


I look back at my previous post where I shared tips on how I save my money here.

Discipline is still key.

I used to spend sparingly. Looking back, I was pretty hard on myself. I try not to spend my moolahs on bbt or snacks. I really lived like a student in my first 5 years of work life.

I still remember times where I was hungry when out running errands, and I deliberated for so long whether to buy a $1.50 curry puff...because I could have gotten it free from points redemption. I remember spending or rather wasting time trying to login my accounts just so I can enjoy free snacks, and when deals ran out, I'd rather not eat. I already had $100k-$200k in my pockets, and I couldn't bear to spend $1.50 on a curry puff. Thinking that I'd head home soon for dinner anyway.

I was sibei giam on myself. 

I still penny pinch now, but not thatttt much. 

I'm not sure if it's because I've reached a comfortable stage now or I've grown (older). My husband likes to mock my frugal habits and said I should just buy what I like - I can't carry my money into the coffin 🙄

Conversely, he spend what he likes, though not excessively as he will ask for my opinions on big purchases (and I meant above $100 lol).

The thing is, I'm still low maintenance. My main expenditure, other than household expenses, is on food. I still try to find discounts for food or groceries. I admit that I sometimes buy recklessly because of discount codes just so I can hit minimum purchases. Or I could spend $100+ on buffet although I'm not a big eater.

But saving money was just one part of the equation.

Growing money is more important.

I'm not good at investing. In fact, I pumped in $80k into stocks over the past 6-7 years and the value is only at $60k+. I may be better off growing it via low risk instruments?

Back in Mar 2020 when the stocks were low, I was fearful. I had a war chest ready, but I didn't know what to buy. I didnt dare to buy. Now that prices of stocks are back to pre-Covid days, I don't bear to buy. I'm sure I'm not the minority.

The best way I could grow my money was through employment.

Do well at work and pray your bosses like you enough to give you a good bonus and increment.

I've probably shared in my previous posts that I was an above average performer. This granted me slightly higher increments than colleagues. In the first few years of my career, I saw 10-15% increments yearly.

It felt really good to see my salary grow since I started off at a lower salary than peers. 

Despite my salary growth, I didn't increase my expenditure. I still live a frugal life. My bonuses were saved up, catapulting my cash savings.

Unfortunately...

I didn't know how to negotiate my pay when I changed job. I moved with little increment and is probably earning similar should I had stayed on. While it wasn't a wise move financially, I also couldn't fathom staying put in my first job for too long. I wish I had fought harder for myself, but it's all too late.

Although my increments are less than 5% now, I'm still thankful for having a job and not seeing any pay cuts (hope I don't jinx it). I don't foresee any bonuses coming my way this year. There could possibly be no increments next year as well, but this is not unique to me. Globally, people are retrenched or seeing huge pay cuts. I am grateful.

In the event of retrenchment, my savings would be able to tide my hubby and I through for a few years. It feels good to have a decent safety net.

I guess this is why I save my money for - for a sense of security. 

I'll share the distribution of my $300k cash in the next post.

Till then.


Comments

  1. With the amazing rate that your cash is growing, 100k every few years and the prudent spending habits, and how risk averse you are, I do not think that you need to consider investment at all, at best some index fund and regular top up to cpf will do. If you do not have kids yet, you can skip the insurance except hospitalisation, as you have a huge cash buffer. Hope these tips help to increase your savings rate! It's amazing!

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    1. Thank you! haha nobody will say no to more money 🤑I wish I was better at investments but since I am not, I can only save my money!

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  2. It is impressive you are growing cash at a good rate. Agree with you that growing money and staying disciplined is indeed important. Keep up the effort there!

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    1. Thank you! Good thing I am born to be low maintenance! hehe

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  3. Hi! Congratulations to your saving milestone!
    I see many similarities between us so I enjoy reading your blog.
    Do you have a saving/retirement goal in mind? Or you just derive security from having a huge financial cushion?

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    1. Sorry for the late post! A mix of both - I aim to retire at 40. But growing up from a low-income family made me insecure...so I derive my sense of security from my saving chunks!

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