This serves as a general framework on how we approach our personal finances these days.
And I thought it would be interesting to pen these thoughts down and share them.
Income
Target: $100,000/year
- Pegged to Median Household Income in Singapore. A peg means the target should increase over the years. This will provide some form of motivation and competition to not slack off completely or too early in our lives. And of course, keep up with society and also provide more consumption options.
- Since our portfolio is not exactly positioned heavily towards dividends, passive income (dividends, coupons and interest) is a modest $15,000/year currently. This also means that we need to earn at least $85,000 from our work.
- Income seems to be more of a taboo number as compared to investments. My observation is that even financial bloggers are more forthcoming with their portfolio numbers as compared to income, myself ...
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