3 Ways to Upsize Your Investments

Investment is a long and, sometimes, tiring journey. At times we would be thinking on how to shorten the investment journey by increasing our monthly investment amount. Here are three ways you can look at to help you in your investments.

For those who are starting off their journey in dividend investing would usually be attracted by the monthly dividend payments they are expecting to receive from companies they are to invest in. However, with the average dividend yield of around 2%, one would require to invest $1,800,000 just to receive a monthly paycheck of $3,000.

How many of us have $1,800,000 in our banks that we can invest today?

Because of this reason, many shy away from dividend investing and start looking at other means on how they can achieve their financial freedom.

Investing is a long journey. Although it may be tedious, you will be able to enjoy the fruits of your labour at the end of the journey. It doesn’t mean that we must invest the “X” about today else you will miss the train. To get to your destination, we can also invest in small amounts constantly to build the investment nest.

It is the ability to reach your destination that is important here isn’t it?

However, for those who do not wish to wait that long,  there are three ways I would like to share with you to reduce the time required to reach their goal.

Reduce Your Spending

For those who are living on your paychecks, what we have left is a factor of how much you spent for the month. One way to increase the monthly investment amount, we will have to reduce the amount that we spend. Although it may not seem much, the effects of compounding interest will definitely help to amplify this amount by a few times by the time you consider yourself achieving financial freedom.

Do A Sideline

How many of you spend hours in front of the television, watching boring movies after work? Why not put the time into good use?

Finding a sideline allow us to earn extra money that we can put into our investment funds. I am not asking you to go find another job here. Things that you can consider includes writing articles for websites or being a freelance photographer (if you have the skills required).

The most important point to note is in point one, reduce your spending. I have seen many people who are working as freelance in their free time still complaining that they aren’t earning enough. On further probing, it turns out that they will spend every single cent, or even more, from what they earned in their sideline just because they feel that they are richer than before they are earning through their sideline.

Trading 

Since we are in the investment topic, why not leverage on what we already know?

Trading allows us to enter and exit the market on a much shorter time frame and thus allowing us to lock in our profits earlier. With the positions closed, we can use the profits with the initial invested amount to invest in another position. This can go on and eventually we can use the profits in our long-term investments, helping to reduce the time needed to our investment goal.

The Bottom Line

Although investment is a long journey, there are many ways to shorten this journey. At the end of the day, what is important is that we will be able to reach our destination. Apart from finding new sources of income, reducing the amount that we spend is important else no matter how much you can earn, the extra income will be used to fund your extra spending.

Back to the Future

October 21, 2015 is marked as the “Back to the Future” day. This is the day when Marty McFly (played by Michael J. Fox) traveled to, to save his children who were yet to be born. Although we still do not see hovering cars and hoverboards on our roads today, there is something that is planned to be released today.

Rent or Buy Back to the Future II on AmazonFor those who are fans of the movie series “Back to the Future” would have eagerly waited for today when part 2 of the series was first screened in 1989. In the movie,  Marty McFly (played by Michael J. Fox) traveled to the future, to the date October 21, 2015.

Yes, it is today that Marty McFly came from the past, to save his children who were yet to be born.

Back in the days when we watched the movie, it seems fun of the things that we will be having in the future, especially the hoverboards.

Today, marked the day but no hoverboards are seen in our streets (not sure if there are actually any being developed).

To mark this “Back to the Future” day, Pepsi planned the release of 6,500 limited-edition bottles of “Pepsi Perfect” that was being featured in the 1989 movie.

Although not exactly a fan of the movie series, it would be great if I would be able to buy one of the limited-edition bottles as it is part of my childhood memories. Anyways, doubt there will be release of the bottles in Singapore.

A commercial for the product was produced and released earlier the month which I have included below. Enjoy.

For those who are interested in watching the movie again, you can rent or buy it at Amazon.

3 Things I Learnt From A Typhoon-Hit Holiday

Typhoon brings inconveniences to those affected, including holiday makers who wishes to enjoy their holidays. My recent trip to Taiwan was hit by a super typhoon, Dujuan. Luckily, all went well, we came back without a scratch. In fact, I even learnt three important things from this experience that can be applied to my investing journey.

The week before, I was in Taiwan when Super Typhoon, Dujuan, hit the island. The typhoon left three dead and 376 injuries in Taiwan. Numerous houses were destroyed and million of households spent the rain-beaten night in darkness from the power outrage caused by the typhoon.

While the typhoon brought some inconveniences to my holiday, we were lucky as we were able to work around our plans and continue our holiday without much hiccups. The work arounds were only possible because of what we did which can be applied to our investments.

Changing of Plans

Plans are meant to adhere to. However, like what Murphy’s Law says, If anything can go wrong, it will, and when something goes wrong, we have to learn to adapt and change our game plans.

When I was planning for the trip, due to the limited window of travel, we chose to travel to Taiwan in late-September till early-October thinking that the chances of getting hit by a typhoon should be low since the typhoon period in Taiwan is between July and September. And true enough, the typhoon hit Taiwan and affected the whole island.

That was when we had to review our plans and see which parts of our travel plans have to be changed.

Similarly, while investing, we should always have a game plan. A game plan which not only includes an entry plan but also an exit plan. Investing is a long-term one. We will have to constantly monitor the companies we invest in and if the investment is not going according to our plans, we will have to revisit our plans and make changes to them. Only then, we can steer clear of the dangers of investing and not get sunk into too deeply, resulting in losses.

Do Not Just Heed Advice From the Experts

A day after the typhoon made landfall on Taiwan, we were supposed to make our way up to Alishan. Being worried that the roads would be affected, we called our hotel in Alishan the night before to seek their advice if we should continue our way up the next day. The hotel staff was very confident that they will not be affected and thus we decided to proceed according to plan and make our way there.

While we were on our way the next morning, we received a phone call from the hotel informing us that we should not make our way up as the heavy rain make the journey up Alishan dangerous.

Even as a local, they were not able to predict how bad the situation will be.  Similarly in investing, every situation is different and nobody will be able to tell, based on past events, how the market is going to react to the event.

Watch the News

In fact, the day when the typhoon hit taiwan, I had a group of friends who were supposed to fly back from Taipei. When they were checking out of the hotel, the hotel employees were asking them if they were sure that their plane was going to depart.

Since they did not receive any notification from the airline, they assumed that their flight is going to depart on schedule and proceeded to head towards the airport.

When they arrived at the airport, they had continued to board the plane despite the weather getting worse. In the end, the airline had to disembark them as the weather reached its limit and flight was cancelled.

All these while, if they had watched and followed the news, they would have noticed that most airlines have already cancelled their flight or brought forward the flight timings.

Similarly in investing, even after you have already invested your hard-earned money into the companies, we have to continue watching out and follow the news of the invested companies. It is often in the news that gives the tell-tale signs that something is happening to the company so that we can evaluate if we should continue to hold the investments.

The Bottom Line

Contrary to what most people thing, investment although can bring us financial freedom but that does not mean investment can allow us to sit back, relax and continue to earn money. Often than not, we have to continue spending time understanding the investments we are making and make changes to the investment plans according to what is happening.

Oh, and finally, spending time understanding does not mean to just listen to what some financial advisor had to say and reacting. Understanding the investment is to read and follow the news of the company you are invested in for any policies they just implemented, new products they launched, etc.