Starting Early and Staying Focused: How I Reached $500,000 at 32

 

When I was just 20, I started to educate myself on personal finance and investing. I read books about investing from the national library, keeping myself updated with the latest financial news by reading The Straits Times, and watching videos to learn about the different investment investment instruments and strategies. At 21, I made my first investment in the local stock market by purchasing 4,000 shares of Starhill Global REIT. Despite being an undergraduate with limited funds, it was a crucial step in kickstarting my investing journey. I understood that the earlier I start, the more time I would have to learn and grow my savings.

At 25, I started my first job and began saving a significant portion of my monthly income. As I had low material desires, I was able to me live below my means without sacrificing much. I also set long-term saving targets for myself and was determined to achieve Financial Independence (FI) by the age of 45. At the time, this seemed like an ambitious goal to have, but I've been able to keep up with my saving targets so far.

Stay focused and avoiding distractions was another key strategy that I employed. There were times, especially during my hour-long commute to work, when I wondered if I should buy a car. But owning a car in Singapore would definitely shatter my goal of achieving FI by 45. And so I stayed disciplined and stuck to my savings and investing plan.

Finally, I was "smart" with my investment decisions. Not in the sense that I know how to time the market or pick wining stocks, but recognising I (and most actively managed funds) can't do so and stuck to the tried-and-tested diversification and dollar-cost-averaging. This probably helped me avoid many investing pitfalls.

Today, a few weeks shy of my 33rd birthday, I am proud to have achieved $500,000 in liquid assets. About half of it is in local and international stocks, while the remaining half is in high-interest accounts/robo cash funds. Reaching this milestone is a moment of pride for me. If you’re just starting out on your journey to financial independence, remember that starting early and staying focused are the keys to your success.