Following my last three blog posts, I checked three accounts today.
My bank account.
My SRS account.
My CPF account.
Why?
To see how much pocket money I am getting from the recent T-bill auction, the one that took place on 14 September.
People sometimes look down on small sums of money, especially in today’s environment of high inflation.
“Walao! $2 only you also calculate!”
$2 is also money.
Small sums of money add up to big sums of money.
Being careful with small sums of money can only help in our journey towards financial freedom.
Don’t kick a pup because when the pup grows up, it will come back to bite you.
OK, this is true for regular folks like AK.
For “jin satki” people or high-flyers who make hundreds of thousands or millions of dollars per year, please stop reading.
You have come to the wrong blog.
Still here?
OK, shocking numbers up next.
Anyway, here is the breakdown:
$186 from $10,000 cash.
$148.80 from $8,000 SRS money
$216.16 more in interest income from $52,000 CPF OA money.
So, $186 goes into my current day pocket.
$148.80 goes into my pocket which can only be unzipped 10 years later from age 62.
$216.16 goes into my pocket which can only be unzipped 3 years later from age 55.
Shocking, right?
Some people might be wondering why “rich” AK bought so little T-bills.
AK is just a regular guy and not “rich”.
Why some people don’t believe me?
Sigh.
T-bills are risk free and volatility free.
Not a bad way to make sure I have more pocket money now and in the future.
However, I am very aware of re-investment risk as high interest rates might not be around for long.
I will continue to wait for better opportunities to invest for dividend income.
While waiting, there is nothing wrong with getting relatively attractive risk free returns.
If AK can do it, so can you!
