Financial Goals

It's been quite a while since I've posted. My apologies!

In the last 2 weeks, I've made a few other purchases, namely, OCBC at 8.38, KSH at 0.550 and Keppel Corp at 5.3.

Subsequently, sold Keppel at 5.55, only to see it rise further to 5.9 on that very same day. Stuff happens.

So today, I shall reveal what is my financial goal for the future. This will be a conservative estimate with the following assumptions:

1. Only my take home income is considered for salary, with no future increase
2. Assuming current spending for the future*
3. Assuming no major tragedies or necessary spending occurs
4. Portfolio grows with 4% capital gains/dividends each year
5. No inflation is accounted for (since salary does not increase as well)

*: This will be a difficulty in the future as my daughter grows up, as spending on her may increase significantly

Based on these estimates, I should manage to save $1,800 every month, which should make $21,600 every year.

With a current portfolio of about $80k, a simple calculation on excel shows:

Year	Portfolio	Dividends based on 4% of portfolio	Monthly Spending based on dividends
2016	$80,000.00	$3,200.00	$266.67
2017	$104,800.00	$4,192.00	$349.33
2018	$130,592.00	$5,223.68	$435.31
2019	$157,415.68	$6,296.63	$524.72
2020	$185,312.31	$7,412.49	$617.71
2021	$214,324.80	$8,572.99	$714.42
2022	$244,497.79	$9,779.91	$814.99
2023	$275,877.70	$11,035.11	$919.59
2024	$308,512.81	$12,340.51	$1,028.38
2025	$342,453.32	$13,698.13	$1,141.51
2026	$377,751.46	$15,110.06	$1,259.17
2027	$414,461.51	$16,578.46	$1,381.54
2028	$452,639.98	$18,105.60	$1,508.80
2029	$492,345.57	$19,693.82	$1,641.15
2030	$533,639.40	$21,345.58	$1,778.80
2031	$576,584.97	$23,063.40	$1,921.95
2032	$621,248.37	$24,849.93	$2,070.83
2033	$667,698.31	$26,707.93	$2,225.66
2034	$716,006.24	$28,640.25	$2,386.69
2035	$766,246.49	$30,649.86	$2,554.15
2036	$818,496.35	$32,739.85	$2,728.32
2037	$872,836.20	$34,913.45	$2,909.45
2038	$929,349.65	$37,173.99	$3,097.83
2039	$988,123.64	$39,524.95	$3,293.75
2040	$1,049,248.58	$41,969.94	$3,497.50
2041	$1,112,818.53	$44,512.74	$3,709.40
2042	$1,178,931.27	$47,157.25	$3,929.77
2043	$1,247,688.52	$49,907.54	$4,158.96
2044	$1,319,196.06	$52,767.84	$4,397.32
2045	$1,393,563.90	$55,742.56	$4,645.21
2046	$1,470,906.46	$58,836.26	$4,903.02

In other words, I should minimally work towards reaching a portfolio of $104.8k by the beginning of next year.

Target by 2017: $104.8k

Current Portfolio size: $81.4k

Percentage achieved: 5.645% (calculated by 1.4/24.8 * 100%)

Oh dear...

That being said, we have yet to save significantly for this year as we are moving towards our new apartment this year. Shifting to a new place is expensive business! We are still finishing up on payment for our contractors, have yet to purchase our fridge/washing machine etc, and have yet to complete payment for our mattress. All these are costing a bomb and placing a huge dent on our saving rate.

Hopefully, this is only considering the worst case scenario. Considering savings from my wife's income, plus income increment over the year, we should aim to hit and surpass our targets yearly. 

Will have to continue to work harder!