5 Common Money Mistakes to Avoid in 2025

As we kick off 2025, many are setting ambitious financial goals. However, knowing what to avoid is just as crucial as knowing what to do. These are the five common money mistakes that I personally feel we should steer clear in order to stay on track toward financial success.

1. Neglecting an Emergency Fund: Your First Line of Defense 

An emergency fund is the bedrock of your asset. Many individuals underestimate its importance, leaving themselves vulnerable to unexpected expenses such as medical bills, car repairs, or sudden job losses. Without an emergency fund, you could be forced to rely on high-interest credit cards or loans, which can quickly become debt-free.

We should aim to save at least 3-6 months’ worth of living expenses. Start small if you need to – automatic transfers to a separate savings account can help you create this fund gradually.

2. Ignoring Global Economic Risks and Job Security

In our interconnected world, global events—whether economic downturns, geopolitical tensions, or pandemics—can significantly impact job markets. Industries may face sudden disruptions, leading to layoffs or reduced hours.

We should try to keep ourselves updated about global trends that might affect your industry. Diversify your income by exploring side hustles or upskilling to become competitive. There is no iron rice bowl in the world nowadays.

3. Failing to Adjust Your Budget: A Dynamic Approach

A static budget is a missed opportunity. Your financial situation, goals, and external factors like inflation or changes in expenses evolve over time. Yet, many stick to outdated budgets, which can lead to overspending or missed savings opportunities.

Revisit your budget monthly. Use budgeting apps or tools to track expenses and identify areas for improvement. This ensures your spending aligns with your current financial goals.

4. Overlooking Inflation: Planning for the Future

Inflation erodes purchasing power, making it essential to factor this into your financial plans. Many overlook the impact of rising costs on their long-term objectives, such as saving for a home or education.

Invest in assets that historically outpace inflation, like stocks or real estate. Determine your savings goals annually to ensure they reflect current economic conditions and future needs.

5. Chasing High-Risk Investments Without a Plan

Watching young people become millionaires overnight by investing in coins featuring dog or penguin mascots can make the allure of high returns irresistible, especially in volatile or emerging markets like cryptocurrencies. However, investing in high-risk investments without a well-thought-out strategy can result in substantial losses.

Develop a diversified investment portfolio that aligns with your risk tolerance and long-term goals. Regularly review and rebalance your portfolio to maintain a healthy balance of assets.

Conclusion

In 2025, avoiding these common money mistakes can create a more secure and prosperous year. By focusing on building an emergency fund, staying aware of global economic risks, regularly updating your budget, planning for inflation, and investing wisely, you’ll be better prepared to navigate financial challenges and achieve your goals.

Stay proactive and mindful of these pitfalls to make 2025 your most financially successful year yet!

 

 

Will Hiring a Helper Help Me Build My Portfolio Faster?

 

Nearly a year ago, my wife, son, and I moved out of our parents’ home to start a new chapter in our cozy little nest. Over the past year, our days have followed a structured but exhausting routine: waking up, preparing breakfast, dropping our son off at infant care, going to the gym, heading to the office, returning home to cook dinner, and splitting housework in the evening. After putting our son to bed, I was often too drained to do anything else. Weekends weren’t much better—mostly spent tackling chores like cleaning windows and managing weekly household tasks.

Everything changed when we learned we were expecting our second child. This prompted us to consider hiring a helper—a prospect we had previously avoided due to concerns about the costs involved.

The Costs of Hiring a Helper

After researching online and consulting friends, we discovered that onboarding a helper involved significant upfront and ongoing expenses. In addition to her basic living necessities, there were agent fees, government fees, and the cost of preparing her accommodations.

Despite our reservations, we decided to take the plunge and hired a helper in late December 2024. Two weeks into this new arrangement, here are my reflections on the process and its impact.

Here’s a breakdown of the upfront costs:

    Agent and related mandatory fees: Approximately $2,800

    Helper’s salary loan (7.5 months): $3,750

    Household essentials (e.g., mattress, pillows, and other necessities): Around $500

Altogether, the onboarding process cost us close to $7,000. Although this amount was substantial, it included the helper’s salary for the first 7.5 months, meaning we wouldn’t need to pay her monthly wages during this period.

Ongoing expenses include daily meals and necessities. We ensure our helper has her portion of meals set aside first when dining at home, as we don’t believe in serving leftovers. Eating out costs an average of $7 to $15 per meal, depending on the venue. These expenses add up to about $400 per month, making the total monthly cost of having a helper approximately $1,000.

How Our Lives Have Changed

Since our helper’s arrival, we’ve delegated all household chores to her. While she handles cleaning and washing, my wife and I continue to care for our son unless necessary. This shift has been transformative—I now have more energy to focus at work and spend quality, undistracted time playing with my wife and son. Without mundane household tasks weighing on me, I feel much more present and engaged.

Evenings have become a revelation. Once our son falls asleep around 9 PM, I no longer face a mountain of unfinished housework. Instead, I feel surprisingly energized. However, this newfound freedom has left me somewhat disoriented—I often find myself aimlessly scrolling through my phone, unsure of how to use this reclaimed time.

The Next Step

With the reclaimed time and energy, I am planning to explore ways to generate additional income. My immediate goal is to cover the monthly cost of having the helper, which amounts to approximately $1,000. This will not only offset the financial burden but also make the decision to hire a helper even more sustainable in the long run.

By focusing on leveraging this newfound freedom effectively, I hope to create opportunities that bring both financial stability and personal growth.

Conclusion

Hiring a helper has been a considerable investment, but the benefits far outweigh the costs. Reclaiming time and energy has not only improved my quality of life but also allowed me to focus on what truly matters—spending meaningful moments with my family and exploring personal growth opportunities.

While adjusting to this newfound freedom feels unfamiliar after a year of constant busyness, I’m optimistic about what lies ahead. With plans to use this time productively, starting with generating additional income to offset the cost of having a helper, I’m embracing this new chapter with an open mind and a sense of purpose.

My Investment Portfolio Strategy for 2025

This year, I’m in a position to ease up on my trading activity with regard to US and Singapore investment portfolios. For example, this year, I wish to focus more on the positions I already have in the market, and only try to reposition myself if certain opportunities arise. 

US Portfolio Strategy

Given the current AI climate, I have every conviction in holding Nvidia, everything in my strategy this year pertains to using covered calls to gain some extra income. 

Covered Calls Approach: Selling covered calls permits me to receive premiums and hence the market volatility is turned into an income for me. If in the execution of these calls my shares of Nvidia are called away, this may cause me to re-assess my position as regards to Nvidia. Either way, this would allow funds to either be preserved to invest into another opportunity or allow for a later strategic investment back into Nvidia.

No Fresh Funds for 2025: In a sense, I aim for my US portfolio this year to mostly self sustain throughout the year. To ensure this, I work toward turning up my current holds and strategies for better returns without funds being added in the mix.

Singapore Portfolio Strategy

Key Targets: AIMS APAC REIT and Genting Singapore

Turning to my Singapore portfolio, my focus will be on opportunistic buying of AIMS APAC REIT and Genting Singapore. Both have shown resilience and growth potential, making them attractive additions in the current market landscape.

AIMS APAC REIT (AIMS)

Why AIMS? AIMS is attractive due to its strong dividend payouts and its portfolio of industrial and logistic assets. The logistics and industrial property markets will continue to grow in the wake of the growth in e-commerce.

Accumulation Strategy: I plan to adopt a nibbling approach, gradually increasing my position whenever the market presents a buying opportunity. This method not only mitigates risk but also allows me to capitalize on undervaluation.

Genting Singapore

Why Genting Singapore? Genting Singapore stands out for its integrated resort operations, encompassing gaming, hospitality, and entertainment. With the global tourism industry rebounding, Genting is well-placed to benefit from the influx of international visitors and increased domestic spending. This is also a sector with high barrier of entry where there are currently only two operators in Singapore.

Accumulation Strategy: If the price point continue to remain at this level, I will simply nibble once I've build up enough comfortable war chest.

Conclusion

2025 is shaping up to be a year of strategic reinvestment and careful accumulation for my portfolio. By focusing on maximizing returns from existing holdings in the US and selectively adding to my Singapore portfolio, I aim to navigate the markets with a balanced approach. Nvidia will remain my key player in the US, with covered calls enhancing my returns, while AIMS and Genting Singapore offer promising growth prospects in the Singapore market. Let’s see how the year unfolds!

 

Managing Household Finances as a Couple

 

When it comes to splitting household bills—be it utilities, groceries, or dining out—every couple has their own approach. Some prefer the “AA” method, where both partners share costs equally. Others might have one partner covering all the expenses, while some choose to pool their finances into a shared account.

In my case, since both my wife and I are working, we’ve opted for the shared account method. This approach has worked well for us, and here’s how we’ve structured it:

Account 1: Savings and Major Expenses

This account is reserved for significant financial commitments, including:

1. Big-ticket spending: Renovations, vacations, or any irregular, large-scale expenses

2. Savings: Remaining funds go toward building a financial safety net for the future.

We only dip into this account for major, planned expenditures, ensuring our long-term goals remain intact.

Account 2: Daily Expenses

This account takes care of our everyday expenses, such as:

1. Meals and dining out.

2. Groceries.

3. Utilities and other recurring monthly bills.

The practical side of this setup works like this: when either of us pays for something (like groceries or dining out) using a personal card, we immediately reimburse the amount from this shared account. This ensures all day-to-day costs are managed equitably and without delay.

Why This Method Works for Us

We’ve found our shared account method effective for several reasons:

1. Eliminates budgeting conflicts: Both of us have full visibility into these accounts, making disagreements over spending decisions nearly non-existent.

2. Encourages shared responsibility: Contributing equally fosters a sense of teamwork and mutual respect. We agreed on a shared percentage of monthly salary for the contribution.
   

3. Avoids guilt or overthinking: Whether it’s splurging on a nice dinner or buying premium groceries, there’s no hesitation—every purchase feels fair and transparent.

4. Your money is still your money: Whatever is not contributed to these two accounts remains our own money. There’s no need for "私房钱" (secret stashes).
   

By maintaining a clear and organized financial structure, we’ve been able to reduce stress around money and focus on what truly matters—our relationship and goals.

What About You?

How do you and your partner manage your household expenses? Feel free to share your methods or tips—it’s always interesting to hear different approaches!

 

 

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.