Flexible Approach & Buffer Measure

Time flies. We are now in the last two months of 2019. Time waits for no man. I hope that all the readers make full use of the time in achieving your dreams and targets. It has been almost half a year since I left the full-time employment. In totality, I will term it as a fruitful rest for me. I do not regret on the decision of quitting the rat race. I feel more healthier and most importantly happier on the way in which I lead my life. I feel that there is no pressure and stress during the last six months. I look forward to more such lifestyle to come in the future.

I make a checkback on my finance aspect. I note that my net worth has not decreased and increase to some extent. This is due to the adjustment of my expense in accordance to the generated dividend from the investment portfolio. As mentioned before, I keep a buffer between the generated dividend and projected expense. I give myself an annual projected expense and keep to this projected expense on a monthly basis. I do not care the performance of the generated dividend from the investment portfolio.  As I left the full-time employment at the beginning of May 2019, I make the projected expense till 31 December 2019. With effect from 1 January 2020, I will start to give the projected expense in respect of the finalised dividend for 2019. I will minus the buffer of $10,000 from the finalised dividend and this will be the projected expense for 2020. I will divide the projected expense by 12 months and obtain the projected monthly expense. The buffer will cater to unexpected and emergency expense in the time of need. I believe that this is one of safety of margin which I cater for myself. I have yet to embark on the side hustle though I have been making plans for such activities. In the event if I manage to embark on these side hustle, the generated income from the side hustle are likely to be channelled back to the investment portfolio which will in turn generate more dividend for me,

Let’s see how the above plans unravel. I will adopt the flexible approach for the unforeseeable circumstance. Life does not always happen as per the plan.  I will be applying such approach accordingly.


Author: firewtk

A middle-age Singaporean currently having a minimalist and simple lifestyle. I am not longer in full-time employment with effect from 1 May 2019. I try my very best to write one post per day on this blog. The purpose is to share my prevailing thoughts to interested readers. It is up to the interested readers to decide whether they want to take action in embarking on the FIRE journey. I do not gain anything from this blog and it is solely for sharing hopefully for the benefits of all interested reader. WTK

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