Anyone can be rich if they do the following...
This is a rather bold header... and you would be stupid to think that you can be rich by reading this blog post. Rich can be defined in so many ways depending on the individual as every human being develops their own perspective of the meaning of being rich.
Many years ago while working in the education sector, I remember this conversation which I had with an ex-colleague named Alex S. Alex S is an Indonesian, both him and I worked in the same department which would required us to handle any matters relating to student sports. One night, we had to work into overtime and we were both extremely exhausted. Feeling worn out and at the same time taking the road of self pity, I asked Alex S: "What is the meaning of happiness?" It was a casual question and I was not expecting Alex S to reply in such detail. It was one of those questions where you start questioning your existence in this world. To my surprise, Alex S gave me an answer which I remember till this day.
"Happiness is different from every individual. Happiness to a low wage construction worker could be drinking a can of ice cold beer after a long day at work. Happiness to you could be going home early to be with your family."
While his reply was simple, it prompted me to think if happiness was just about feeling contented. At the age of 45, happiness to me is being able to do the things that I want to do without having to consider much about the consequences. Go wherever I want to go, eat whatever I want to eat, sleep until shiok shiok then I wake up. Maybe the word that I am trying to find is FREEDOM. The freedom to do anything you want. Likewise, being able to spend whenever I want, not so much of whether I can afford.
The year is ending in 1 week's time and heading into 2024, I will set bolder goals. 2023 was a game changer for me or at least I am assuming it. Although my portfolio is still in the red zone, it has since gone lesser red and instead of whining and ranting over a broken mirror, I rather look at the progress that I have made since I started trading and investing in 2020.
With the Fed pausing interest rate hike, December was a good time to be invested, all signs are showing that the market is going to be super bullish and yes, not just bullish but super bullish! Over the last 1 month, I made slightly over USD13K trading just one ticker: NVDA, using options as a leverage tool and gain some confidence heading into 2024. This year, I dipped my hands into S-Reits, T-bills and money market fund, each gaining good returns. My goal was to expose my investment portfolio to a wider asset allocation in order to re-balance the risker segments. I also managed to fund a full allocation into my Special Account and Supplementary Retirement Scheme (SRS) Account for the first time to achieve a higher tax relief for 2024.
This is my take for 2024.
Bonds will rise with fallen inflation. Stocks will climb pushing into another all time high with interest rates coming down and the US Presidential Election will clam the economy. There will be no recession though the stock market will be extremely volatile as it flushes out the weak hands. Don't expect daily essentials to get cheaper, in fact, they will be more expensive. The more reason to stay invested.
Dollar Cost Average (DCA) into the stock market can get good returns. Ignore the noises.
Ben is not financially trained. He is not a certified financial planner and he does not sell any insurance or investment plans. He is not financially motivated by any entities to produce this blog. He just want his friends to know more about money management and not have anyone fall between the social cracks. Nope, he is not a millionaire though he aims to be financially free before 50 years old.
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