Dividends

I have a new thought of buying stocks the past few days. If a stock like singpost is able to pay us 60dollars of dividend per year , this means we are able to rest one-two day from work depending on one"s expenditure .
A small plan towards financial freedom :)

A Singaporean Stockmarket Investor (ASSI): Replies from AK71: Rupiah and REITs.

A Singaporean Stockmarket Investor (ASSI): Replies from AK71: Rupiah and REITs.

Why Investing Regularly is a good learning process

Averaged Regular Investment should a good learning process for new or low capital investors.
(1) It reduces the risk of investors of timing
(2) It induces a good saving habit
(3) It allows time for new investors to learn more about a market before committing a larger amount of money
(4) It allows you to follow up with the salesperson or broker that sells you the product or stock.

I will have a numeric illustration

The process of regular investment leads to an effect called pound/cost averaging, which is explained below:

Month Price of Share/Fund ($) Lump Sum ($) Shares Bought Regular investment ($) Shares Bought

Month	Price of Share/Fund (£)	Lump Sum (£)	Shares Bought	Regular investment (£)	Shares Bought
Jan	10	3600	360	300	30
Feb	10.5	-	-	300	29
Mar	9.5	-	-	300	32
Apr	9	-	-	300	33
May	8	-	-	300	38
Jun	8.5	-	-	300	35
Jul	9	-	-	300	33
Aug	11	-	-	300	27
Sep	12	-	-	300	25
Oct	13	-	-	300	23
Nov	11	-	-	300	27
Dec	10	-	-	300	30
Total	-	3600	-	3600	362
Average price per share	-	10	-	10	-
End value	-	3600	-	3622.34	-

Average price per share - 10.00 - 10.00 -
End value - 3600 - 3622.34 -
As you can see the amount invested ($3,600) and the average price paid per share ($10.00) is the same for both investments. However, as the regular investor was buying shares at differing values throughout the year, the overall effect is that the regular investor has more shares and—even though the share price is the same at the end of the year as at the start—has more money.

Remember also that if you have a lump sum and decide to drip feed your money in through regular investments, the money that isn’t invested each month can still be earning interest in a bank account. Even with interest rates at their current historic lows this will still offer some cushion against market falls.

Many stockbrokers allow you to set up a regular investment scheme. These allow you to drip feed money into your chosen investment and usually have a much lower trading commission than for normal lump sum investments.

Most fund providers also allow you to set up a regular savings scheme to build up holdings in their funds. Many offer this service with a reduced level of required initial investment.

Budgeting

Budgeting is a need for every individuals. It allows you to look at the amount left for savings, investing or entertainment.

One may one to start up with saving 50%
Budgeting starts from daily expenditure . Food, transport, internet, hand phone bills
Calculation monthly of fixed expenses
: HAND PHONE (60)
: INTERNET (30)
: TRANSPORT (180)
: FOOD (300)
PER MONTH 600
PER DAY 20
Thus this transit to fixed expenses of 20 per day
Example individuals with $1000 per month one can still left with
1000 - 600 = $400 for cashflow remained on variable expense or investment
assuming saving of 50% and 50% for variable entertainment(lottery, dating and good food)
one still can save 200 dollars per month
results should get savers to increase their cashflow remained on % saved and decreased their % spent

What to do with the 200 saved or 50% of net cash remained? we shall discuss again
:)