Securing My Child’s Financial Independence Early

 

Having a child in Singapore comes with a surprising number of financial benefits, thanks to government policies that help kickstart savings for your little one. With programs like the Baby Bonus CDA and cash gifts, parents are given a head start in building their children’s financial future.

For me, I’ve chosen not to touch the Baby Bonus CDA or the cash gift provided by the government. I see these as my child’s money, meant to support their future rather than our present needs. Since I’m fortunate enough to afford the necessities, I’ve left the CDA untouched to compound over time since I am unable to touch them anway. Meanwhile, I’ve invested the cash gifts in low-risk instruments to preserve and grow their value steadily.

Why Build a Fund for My Son’s 20s?

Traditionally, the older generation believed their children would eventually inherit their assets. While this is true, the timing of such an inheritance might not be ideal. Assuming I live into my 80s or 90s, my children could only inherit these assets in their 50s or 60s. While receiving a lump sum at that age is helpful, accessing a financial boost in their 20s, 30s, or even 40s can have a transformative impact.

My plan is to unlock this fund for my kids when they reach their twenties—a time when financial support can significantly shape their opportunities, whether it’s pursuing education, starting a business, or making their first major investment.

Why Low-Risk Investments?

The advantage of starting this fund early is the sheer amount of time it has to grow, even in low-risk investments. Unlike an adult who begins investing around age 25, my son’s financial journey started the moment he was born.

For instance, even placing the funds in a GXS savings account earning 2.68% annually would double the money in about 26.7 years using the Rule of 72. That’s without considering other low-risk investment options or changes in interest rates. This example highlights the power of compounding, which becomes even more effective over a long horizon. By the time my son reaches his twenties, this fund could grow substantially—all with minimal risk.

The Composition of the Fund

This “fund” consists of:

• Baby Bonus Cash Gift: About $11,000 over 6.5 years.
• Ang Bao Money (until K2): All red packet money received until kindergarten.
  

By the time they turn seven, each child will have at least $15,000 in their fund—even if I had simply stored the money in a biscuit tin. After this point, no additional funds will be injected into the account, apart from the investment income it generates.

Once my children complete kindergarten, I plan to introduce them to the basics of financial literacy. Starting in primary school, they will take responsibility for managing their own pocket money and ang bao money, learning the importance of budgeting and saving. From age seven onward, the account balance they see and manage will only reflect the funds accumulated from that point forward. I do not intend to inform them about the assets accrued prior to their seventh birthday.

My Current Investment Strategy

To manage this fund, I’ve created a T-bill ladder and allocated spare cash to daily interest-yielding savings accounts. These low-risk options provide consistent returns and protect the principal, ensuring the money grows without exposure to much market volatility.

Since this money belongs to them, I’ve decided against placing it in high-risk investments like the stock market. While the potential returns could be 3x or 4x higher, the accompanying risk isn’t something I’m willing to take with their money. My goal is preservation and steady growth, not speculation.

Conclusion

While high-risk investments like the stock market or S&P 500 could yield greater returns, the possibility of a downturn or market crash makes them unsuitable for my children’s money. Managing their funds responsibly means prioritizing safety over speculation—it’s not my money to risk.

Building a substantial, secure fund for my kids’ future is a long-term commitment. By leveraging the power of compounding and low-risk investments, I’m ensuring they’ll have a financial foundation to support their dreams in their twenties—a foundation that’s been growing since day one

Happy New Year! Reflecting on 2024 and Looking Ahead 🎉

The past year has been a period of notable growth and significant challenges. My assets grew from $143K to $180K in 2024, primarily due to paper gains from investments in OCBC and cryptocurrencies. This growth was a marked improvement over previous years, where I typically anticipated an annual increase of $6K–$10K based on modest monthly savings, given my family commitments. The asset calculation excludes property, joint savings, and an endowment shared with my spouse.

Despite achieving financial progress, 2024 was personally challenging. In January, I moved into a new flat with my wife and son, taking on the responsibility of managing daily household and family duties independently for the first time. This transition brought a significant financial impact, as a larger share of my monthly income now goes toward household expenses—costs that were previously non-existent when living with my parents. Expenses such as Service & Conservancy Charges (S&CC), utility bills, and broadband alone amount to nearly an additional $400 each month. While spending on daily necessities hasn’t increased substantially—partly because we previously dined out frequently—the overall expenses remain considerable as we now prepare and eat meals at home more often.

In addition to these expenses, infant care represents a significant monthly recurring cost. Even after subsidies, it amounts to over $700 per month. Things improved slightly when my child transitioned to playgroup at 18 months old a few months ago, as the fees dropped significantly. However, with another child arriving in 2025 who will also likely attend infant care, the combined "school fees" for both children are expected to exceed $1,000 per month.

Goals for 2025

1. Asset Growth: Building on this year’s progress, I have set an ambitious goal of increasing my assets by 40%, reaching $250K by the end of 2025. This will require strategic planning, disciplined investments, and careful budgeting to ensure sustainable growth amidst economic uncertainties.
2. Pursue Passion Projects:  I aim to invest time in exploring passion projects that align with my interests and long-term goals. These projects may serve as creative outlets, personal development opportunities, or even avenues for additional income streams.

Reflection and Outlook

Looking back on 2024, the year underscored the importance of adaptability, efficient time management, and strategic decision-making. Moving forward, my focus will remain on balancing financial growth, family responsibilities, and personal development.

As we step into 2025, I am optimistic about the opportunities ahead and am committed to staying disciplined in achieving my goals. To anyone reading this, I extend my wishes for a successful and fulfilling year ahead.

My First Portfolio Update

Hello everyone and welcome to the very first portfolio update of The SG Hustle!

After years of investing, I’ve built a modest portfolio that I’m excited to share. This update will focus solely on assets under my name, as my wife and I manage other investments jointly that won’t be covered here.

Portfolio Overview

Company	Position	Current Price	%
SGD
OCBC	2000	$16.59	25%
Capitaland Invest	10052	$2.60	19%
Aims Apac Reit	12500	$1.26	12%
Hafary	30000	$0.30	7%
Genting Sing	11500	$0.76	7%
USD
NVDA	180	$139.00	25%
BTC	0.0417	$94,424.00	4%
CRO	7000	$0.16	1%

 

Price cut off as of 24th Dec 5pm.

Dividend Income Outlook

The Singapore portfolio is strategically positioned for dividends. In 2025, I project a minimum of $5,000 SGD in dividends, assuming stable payouts across my holdings.

This projection serves as a baseline, as I typically reinvest dividends and add new holdings to the portfolio over time. Reductions are rare and usually only happen if a stock’s valuation surges beyond what I consider reasonable.

• OCBC and Aims Apac REIT: Both are cornerstone dividend plays in the portfolio, providing reliable yields that contribute significantly to the $5,000 projection.
• Growth Potential: While dividends are the focus, certain holdings, such as Capitaland Investment, also have growth prospects that could enhance capital gains over the long term.

U.S. Portfolio Strategy

In the U.S. market, my focus is primarily on NVIDIA (NVDA), where I currently hold 180 shares. To optimize returns, I write covered calls against this position and reinvest the premiums to dollar-cost average (DCA) into more shares.

• Optimization: Writing covered calls allows me to generate additional income while holding a high-conviction growth stock.
• Assignment Risk: While I aim to avoid assignment, it’s a potential outcome if NVDA experiences a rapid price surge. In such cases, I’ll reassess whether to rebuild the position or explore other opportunities.

Crypto Holdings

My exposure to cryptocurrency is minimal, reflecting a cautious approach to this volatile space. My holdings include BTC (Bitcoin) and CRO (Crypto.com Coin), comprising 4% and 1% of my portfolio, respectively.

• BTC: I view Bitcoin as a speculative store of value with asymmetric upside potential.
• CRO: This is a smaller bet, primarily for diversification within the crypto space.

For now, I’m not actively adding to these positions due to my limited expertise in the sector.

Looking Ahead

This portfolio represents a portion of my total financial assets, as it does not include my warchest or endowment funds. Overtime, i will need to find ways to include them inside.

Welcome to The SG Hustle: My Journey to Financial Freedom

Hello and welcome to The SG Hustle!

Born in 1991, I’m a husband and father of two kids (born 2023 and another one coming in 2025), living in Singapore. Like many, I’ve always dreamed of achieving financial freedom – a life where I don’t have to worry about money, and I can focus on the things that matter most: my family, health, and living life to the fullest.

This blog is all about hustling smarter, not harder. I’ve decided to build a path to passive income – income that works for me, so I can cover my family’s daily expenses without being stuck in the 9-to-5 grind forever. I want to create a future where money flows in without constant effort, giving me the freedom to enjoy time with my family and live on my own terms.

Let’s get started – together, we can make our dreams of financial freedom a reality.

Thank you for being here. Stay tuned for my next post, where I’ll dive into my first monthly portfolio update.