Come February next year, I will no longer have a regular salary. Time to do a stock check on what I currently have and plan on how I can bridge the gap.
Current sources of income
Excluding my job, these are my other sources of income.
- Interest from CPF
- Interest from SSB and banks
- Dividend from Equities and Reits
- Return from Equities, Reits and Unit Trusts
As the only property that I have is my humble 4-room HDB flat, I have built up a comfortable amount of CPF savings. The interest from both OA and SA covers about 20% of my expenses. The dividend from my counters invested through CPFIS will bump it up to about 28%. The main issue is that I still could not touch them yet until 7 years later. This is not entirely bad as it allow this source of income to continue to grow! This amount will decrease from 55 though after I set aside the Full Retirement Sum and it might dwindle further if I need to draw down from it.
The interest from SSB and banks contribute about 3% – 5% of my expenses. Nothing significant but better than nothing. Dividend from my cash investment current covers 21% of expenses. This amount should continue to increase as I expect on average a 2-3% increase in dividend annually.
The main source of income comes from investment return. If I can get a 6% return excluding dividend, then it will contribute about 60% of my expenses (42% excluding CPFIS). However, this source of income is least stable and there is no guarantee I can get the 6% return consistently annually. Also, if I need to sell them to fund my cash flow in the next 7 years, the return will drop.
In short, depending on my investment return I am currently short by a good 35% – 75% of my annual expenses! However, given that I have set aside sufficient cash for next 3 to 4 years of expenses, I am not in a rush to make up the shortfall. So I am taking this an opportunity for me to explore new options.
Possible new streams of income
I am definitely not going back to a full-time job for at least the next two years. I want to give myself that time and space to have a different experience. Whatever I am going to do has to be something which I find fulfilling such that the money is only the by-product.
Content Creation: Finance Matter
No matter its form, creating a piece of original work is always satisfying.
The low lying fruit for me will be monetising this blog as I am already writing regularly. While I have not made millions in investing yet, I would give myself a B grade for my performance over the years. I hope that my sharing will encourage other retail investors to either start their investing journey or stay the course.
Beyond this blog, I am also contemplating starting a Youtube channel that will complement the blog content. Even though I am a reader, I can’t deny the advantage of video in spreading a message to an audience.
Content Creation: Expertise from Current Job
Having been in my current job for more than 20 years, I have acquired much knowledge, skill and experience. I am still not going to divulge the industry I am in yet but similar to the finance matter, the content that I intend to share will not be exclusive. What I hope to do is to add my own slant to it such that it become accessible to more people. Again, a Youtube channel does seem to be a good platform for sharing.
Freelancing through Fiverr
I am a believer that freelancing will become more popular in the next few decades. So why not try it out on Fiverr since I have invested a very small stake in the counter? This will provide me further insight of the Fiverr’s business from a user’s perspective. The big question is “What can I offer?”
While not high in my choices, these are other possible options if I really need the cash.
- Deliver for Amazon, earning $21 to $26 per hour?
- Be a tutor, earning >$50 per hour?
- Be a part-timer in my current industry?
- Etc etc etc…I am sure I can find a lot more if I do a search online.
Do you have any other lobang?