25 year old. Saving for passive income. Advice?

CloudJames

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Hi all.

Currently I am 25 year old.
Only got 10k savings.

I want to continue saving until 35/40 years old to earn passive income. My income about 3k. I usually put 30%-40% of my income as savings. (Some months use more because of entertainment expenses e.g PC, Games, Movies.) I am trying to calculate is it enough by the time I reach 35/40 years old. What entertainment I must sacrifice. I am more focused on learning to earn 15%-20% of my investment. If can get more, lagi better. I got a few ideas. But I need advice and opinion. Warning first ar, some of my ideas may make you all face palm... lol. Because a lot of things I still don't understand and still learning so be harsh with the advice so I can learn.

Property
I have no idea on the return on investment on buying and selling property. Last time I post here ask here about buy condo. Many people gave me a lot of good advice. I really cannot affoed condo and rent out. Seems like a bad financial idea.

Now what if when I reach 35 year old. I buy BTO flat. I still stay with my mum but I rent out the BTO flat. I calculated like this. I may have missed out a lot of other factors so please be harsh with the advice so I can learn. I only did the approximation

BTO flat 3-room - $180,000
Downpayment - $60,000
Monthly installments @ 2.5% interest, 15 years- approximately $900. (I use POSB interest rate.)
Rental whole flat - $5,000 (I see advertisement and call them one.)
1 year returns : $60,000
End of year ROI - $60,000 ÷ [60,000 + ($900 X 12)] = 84% approximately.

Like that calculate. Got wrong or not?
I think already. I can afford every month pay.
So even no one rental also never mind. I can tahan "no rent money" for 6 months. But do you think this idea is bad or are there things that I have no considered yet? Please teach me!

Investment
I see all the investment... all less than 10% one sia. But I read got people play stocks and forex earn 15%-20% per year. Don't know real or not.

The thing is I am willing to put in time to learn. But I don't know where to start. There are so many informations out there. What is the "right" way of learning?

I also downloaded many Forex and Stocks app. But 1 problem I notice. They don't let you demo stocks one. Wah lao... how to learn?

So I got 2 choice.
(1) Rent out house
(2) Learn investment

Please teach me! Thank you.
 
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My advice is short and simple:develop your career,get higher salary,get married buy a hdb flat,raise kids. After having done all that you actually don't need much other money. Honestly speaking I don't think many of us have liquid asset more than a million dollars. So don't need to aim too high
 

sAVaGEmP5

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All these calculations of how much needed of a BTO is veyr simple n straightforward. Anyone who bought or is going to buy a HDB will know it, which I think you already know. Donnt can ask property agent. U have 10,000 property agents who can help u on the housing part.

Dont start with greed about making money only. Somehow i think u only want to make money and nothing else.

Give u 1 tip. Buy toto. Oh ya btw once toto increase to 49 number even hard to tio. GG good luck
 

CloudJames

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I want to retire early. I don't need luxuries like car all that. Got roof. Got food. Got games already enough. You are right. I only want to make money. But passive income.

Build career need to network with people. Network with people means go club/pub drink. Bo tai ji also must drink. I very sian of that lifestyle. Go clubbing drink until vomit already experience that. Maybe my thinking is different from a lot of people. I have no desire to achieve higher in career.

That's why I am double working hard now so I can enjoy early.

Lol... Sorry I very anti-gambling one
 

amberlight

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Lol... Sorry I very anti-gambling one

u do know trading is considered as gambling too right?

there are fewer entrepreneurs in sg now when compare to the past (<2000s), that is the best way to gaining passive income fastest and retiring life early...

not sure about your method, but may not be passive income as my definition for passive means money that one can spend freely to enjoy life, rather than putting back into savings once again :o
 

CloudJames

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Not that kind of gambling la.

I meant toto, 4D that kind of nonsense.

If investing in the market is considered gambling, then those that study investment one is waste time lor. No matter what we do in life sure got risk one ma. Maybe I use the word gambling too vaguely. I meant blind gambling is useless. Only bring you down.

Ya lor. My passive income means, no need to work also got income. Through rental or profit from investments.
 

wahkao3

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Teach u my investment methodology
Use TA+FA on every single stock on stock market
Both say buy, then buy.

If 1 never say buy, u dont buy

Use this method how to lose money? :o
 

athulican

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Get married - siong no. 1
Buy flat - siong no. 2
have kid (and usually +car) - siong no. 3
 

Futureskid

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u do know trading is considered as gambling too right?

there are fewer entrepreneurs in sg now when compare to the past (<2000s), that is the best way to gaining passive income fastest and retiring life early...

not sure about your method, but may not be passive income as my definition for passive means money that one can spend freely to enjoy life, rather than putting back into savings once again :o

u do know entrepreneurship is considered as gambling too right?
 

CloudJames

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wahkao3.

Can you teach me where to start learning TA and FA for stocks? I read a lot of your post.

Your TA+FA that one you always say on your post.

Where can start learning these analysis?

Thank you!
 

amberlight

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Not that kind of gambling la.

I meant toto, 4D that kind of nonsense.

If investing in the market is considered gambling, then those that study investment one is waste time lor. No matter what we do in life sure got risk one ma. Maybe I use the word gambling too vaguely. I meant blind gambling is useless. Only bring you down.

Ya lor. My passive income means, no need to work also got income. Through rental or profit from investments.

let's us say trading may not be of any less risk than toto or 4D. au contraire, one can lose more. proceed with care.

u do know entrepreneurship is considered as gambling too right?

heheee of course, i never deny that. even marriage is a gamble too. life is a gamble already. at times, we are forced to take a gamble - like it or not. not everyone has pure luck all the way to be borned with a golden spoon or be stringed as an MP :( :o
 

xXxJavierxXx

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I was once 25 years old, with exactly 10k savings, having the exact same thoughts as you.

Fast forward to 3 years later, my liquid asset has reached 100k+.

How i do it? Focus on your career. Be wealthy but not rich. Never lose money. Build up your capital before thinking investing.
 

sandwicher

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Hi all.


Investment
I see all the investment... all less than 10% one sia. But I read got people play stocks and forex earn 15%-20% per year. Don't know real or not.

The thing is I am willing to put in time to learn. But I don't know where to start. There are so many informations out there. What is the "right" way of learning?

I also downloaded many Forex and Stocks app. But 1 problem I notice. They don't let you demo stocks one. Wah lao... how to learn?

So I got 2 choice.
(1) Rent out house
(2) Learn investment

Please teach me! Thank you.

Albert Einstein once said the world's EIGHTH WORLD OF WONDER is "Compounded Interest".

10% gain in stock may be "small", but this 10% gain will form your principal sum and get compounded to give you exponential returns in the future.

One of the most important factor in investment (not trading) is time. The earlier you start, the better you'll gain. Read up in the sub-forums here, or http://www.fool.sg - Fool is quite objective and insightful.
 

wahkao3

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wahkao3.

Can you teach me where to start learning TA and FA for stocks? I read a lot of your post.

Your TA+FA that one you always say on your post.

Where can start learning these analysis?

Thank you!
sorri i not qualified cannot teach
 

audnzd

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Before you even start thinking of making money, invest, buy property, learn FA/TA, learn about the world first. Learn which country is no 1 superpower, why so, who is coming up, what will happen, what is QE, what is tapering, what the world situation got to do with FX rate, interest rate, will war break out, where is the tension, which country is corrupt, which is not, which is up-and-coming ? which is declining,
 

audnzd

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Before you even start thinking of making money, invest, buy property, learn FA/TA, learn about the world first. Learn which country is no 1 superpower, why so, who is coming up, what will happen, what is QE, what is tapering, what the world situation got to do with FX rate, interest rate, will war break out, where is the tension, which country is corrupt, which is not, which is up-and-coming ? which is declining,

after that, then go into asset class... property/stock/bond/FX/CFD etc... which one is for growth, which one for income, which one is good/bad now and why...
then go deeper into each class... eg for stock, top down, which continent, which country, which sector, which industry, which company (FA).. then when to enter and exit (TA)
FX-- Daytrading, swing, scalping, set-up... FA/TA
Bond -- short dated/long dated/ perps/Zero coupon/ convertible/ callable and the impact on interest rate increase
Property -- which country/which city/which class (commercial/industrial/office/retail/residential/student accommodation/hotel)
your BTO example in Singapore is too myopic . What if Singapore follow US increase I/r even if we don't want to ? (becos we manage FX, not I/r) ? what happen to BTO, what if oversupply no one to rent or rent cheaply....

after you go through the above (take several years), your saving should have ballooned a few times of 10k and you are in a much better position to think about passive income...
 

wahkao3

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Before you even start thinking of making money, invest, buy property, learn FA/TA, learn about the world first. Learn which country is no 1 superpower, why so, who is coming up, what will happen, what is QE, what is tapering, what the world situation got to do with FX rate, interest rate, will war break out, where is the tension, which country is corrupt, which is not, which is up-and-coming ? which is declining,
eh top down?

I prefer bottom up.
analyses through all stocks and cherry pick the best ones :o
 

audnzd

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eh top down?

I prefer bottom up.
analyses through all stocks and cherry pick the best ones :o

to each of his own... different strategy I guess. For me, Fed said tapering / Russian/Ukraine/Middle East Tension impact is 10 times greater than Keppel Corp won a few contracts....
 
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