Sunday, 12 February 2017

New Shoes for CNY, A Lesson on Trade-offs

Bata shoes for $49.90.
When I was just a bit younger, I would never have stepped foot into Bata as it means "Buy And Throw Away" among many of my friends. Truthfully, I have not been shopping there after finishing my primary school. 

However, as I started working, I started to value comfort and functionality instead of branding in things I buy. A pair of $49.90  shoes can be as comfortable as a pair that costs $499. I guess the main reason is because every purchase and expenses, will pull me further away from my financial goals. 

There are always trade-offs in life. For me, I would rather spend my money on food and travelling. Some other person might not think twice about spending $500 over a pair of shoes but save on food and other items. As long as we have a clear sense of our financial goals and can achieve them, I think it is important to live our life while we work towards financial freedom. 

There are some though, that spends on everything, living the present without any trade-offs. If you find yourself constantly overspending month after month (some to the extent of being in debt), do remind yourself that the trade-off in this case, is your future


Sunday, 5 February 2017

StarHub and M1 Financial Results - Part 2

Previously, I posted about the upcoming financial results release by StarHub and M1. They have since both released their full year 2016 results as of this continuation post. 

You can download StarHub FY2016 financial report here and M1 FY2016 financial report here. Overall, the performance for both telcos is nothing to cheer about. There was flat growth in revenue and earnings per share yoy dropped approximately 15% for M1 and 8% for StarHub. In addition, dividend payouts are estimated to be cut in FY2017. M1 will remain its 80% payout ratio on net profit after taxes (if net profit drops further, then dividend will be further reduced) while StarHub guided 0.4c per quarter for FY2017 (20% cut in dividend from FY2016).

With the fourth telco TPG Telcom set to commence operation in mid 2018, StarHub and M1 still have some time to devise strategies to retain their market share or diversify their income streams. Despite the dividend cuts, StarHub and M1 will still pay a dividend of more than 5% based on current market price. Will continue to monitor closely and might add more to these 2 companies if they get too undervalued in 2017.


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Financial freedom = Passive Income > Expenses. Always remember that there are two sides to the equation of financial freedom. Beside working on how to improve our passive income through investing, we should never neglect the expenses portion. By striving to improve both side of the equation, we can achieve our financial goals and win in the game of money.

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