1. Achieve almost $200/month of dividends
2. Expenditure of $1, 000/month
3. Cash savings of $6, 000
I try to make my resolutions as "SMART" as possible, meaning "Specific", "Achievable", "Measurable", "Relevant" and "Timed". The following are my new Financial Resolutions for 2011.
1. Achieve $350/mth of dividends by Dec 2011 -----> Increase Income
This year, I aim to increase my passive income flow to $350 per month. Base on my current dividends portfolio, I did some calculations. The projected total dividends I will be receiving (if I dun alter my portfolio much) is roughly $4, 200. At the same time, I hope to maintain the overall yield of my dividends portfolio at around 7%. This will enable me to beat the average inflation rate of 3% - 4% in Singapore.
2. Maintain Expenditure at $1, 300/mth -----> Maintain Spending
In 2010, I spend $1,300 per month on average. This is a breakdown of my "fixed" expenditure per month.
- Allowance to parents: $600
- Handphone bill: $20
- Broadband (Shared wif my bro): $27
- Utility bill (Shared wif my bro): $50
- Groceries (Shared wif my bro): $50
- Transport: $50
- Food: $50
- Entertainment: $200
- Insurance: $300
After looking through my expenditure, I really could not reduce my spending significantly on any components except "Entertainment". However, I feel $200 per month on entertainment is reasonable. Movies, good food and chilling out wif friends over the weekends is important to me. So, my spending should remain at the same level.
3. Accumulate $36, 000 cash savings by Dec 2011 -----> Increase Savings
My monthly take-home pay is about $3,500. After deducting my expenditure, I will have $2,200 left for saving per month. This will add up to about $36,000 at the end of 2011.
That's all for my financial resolutions 2011.
Short and Sweet ^^
So, wads your financial resolutions in the year 2011? Feel free to share by commenting below ^^