Year End Review: Source of income in 2024

The cost of living continues to rise, driven by inflation, increasing food and energy prices, as well as higher housing and transportation costs. While salaries may not always keep pace, careful planning and smart strategies can help us grow our income and make the most of our resources.

In this article, I’ll share how, as a single individual in my early 40s, I allocate my money to work harder for me. My ultimate goal is to enjoy life at 65 without worrying about financial constraints—whether that means pursuing hobbies, engaging in meaningful projects, or taking up a part-time job by choice, not necessity.

I’ll provide a breakdown of my monthly income from highest to lowest and the rationale behind each decision. This post serves as a reference, offering insights from my personal journey. Please note that this is not financial advice but a sharing of experiences and strategies. I hope it inspires you to craft your own path toward financial security and fulfillment!

1) Salary ( $$$$ per month )

My primary source of income is my salary. I’ve been working in the IT industry since graduating from Polytechnic in 2007, starting with a modest monthly pay of $1,400. Over the years, my salary has grown steadily. Being single with relatively low expenses, I’ve been able to manage comfortably while supporting my elderly parents.

As salary is a sensitive topic—and since colleagues might come across this post—I won’t be sharing my exact earnings. However, if you’re curious about salary benchmarks in the IT industry, I recommend visiting CareersFuture.sg, which provides accurate and reliable salary ranges for various roles.

This year, my salary increment was around 2%. For now, I’m content with my current role and position and am not actively pursuing higher ranks on the corporate ladder. I’ve also shared this with my boss to set expectations. My focus is to spend more time with my family and work on building a passive income.

2) Rental Income ( $2,100 per month )

In Singapore, singles aged 35 and above are eligible to purchase their own HDB flats. I took advantage of this opportunity at the time, seeking independence from my parents. However, I have since moved back in with them and now rent out my entire flat for $2,100 per month.

The decision to move back was driven by my parents’ advancing age and the need to provide closer care. My dad has been hospitalized three times this year due to a viral infection, and living with them makes it much easier to manage their medical appointments and daily care, rather than constantly commuting back and forth.

The rental income helps offset medical expenses, daycare costs, and other household needs. Besides earning rental income, I also need to factor in expenses such as the agent’s fee, monthly conservancy charges, and property tax. Furthermore, this rental income adds to my overall taxable income, increasing my annual tax obligations.

3) Dividend / Stock Trading ( $1,230 per month )

Dividend investing is a well-known strategy for generating passive income, and I’ve incorporated it into my financial plan alongside keeping cash in the bank. This year, I earned $2,139.10 in dividends, primarily from Singapore stocks, and an additional $12,644 from trading U.S. stocks, including companies like Pinduoduo (PDD), Palantir (PLTR), and Alphabet.

Despite these gains, my overall stock portfolio is currently in the red, primarily due to the absence of a clear selling strategy. I’ve missed several opportunities to lock in profits at the right time. Reflecting on the lessons from 2023, I’ve decided to adopt a more disciplined approach: moving forward, I will aim to sell stocks once they reach a 10% profit margin. This strategy will help me secure gains and avoid the common mistake of holding on for too long in hopes of higher returns.

4) Bank Interest income ( $458 per month )

With rising inflation, banks are offering higher interest rates to encourage savings. I’ve taken advantage of this by placing my funds in DBS Multiplier, UOB One Account, and OCBC 360 accounts, earning interest rates ranging from 2.4% to 4% by meeting their respective conditions. As of November, I’ve received $4,974.55 in interest, and I expect to earn an additional $520 in December, bringing the total to $5,494.55 for the year.

Keeping money in high-interest savings accounts also serves as an emergency fund. Financial experts generally advise setting aside at least 6 to 12 months’ worth of daily expenses. This provides a safety net in case of job loss, allowing sufficient time to manage daily expenses and focus on finding a new job without added financial stress.

5) Investment in Tbills ( $134 per month )

Treasury bills (T-bills) are short-term, low-risk government securities that offer guaranteed returns, making them an ideal option for risk-averse investors. A portion of my available cash is strategically invested in 6-month T-bills, currently yielding an interest rate of 3.02% (as of December 19, 2024). I’ve been consistently bidding $5,000 each month, ensuring a fresh batch matures every six months. This allows me to recycle the funds—once the January bid matures, I’ll rebid for the July cycle.

Compared to high-interest bank accounts, T-bills provide a more reliable interest payout without any conditions, which is why I continue to use them as a low-risk investment. However, with the Federal Reserve gradually cutting interest rates, I expect T-bill rates to eventually decrease. When that happens, I’ll need to explore alternative low-risk investment options to maintain my returns.

6) CDC Voucher ( $67 per month )

The Community Development Council (CDC) vouchers provided by the Singapore government are an excellent way to offset daily expenses. These vouchers can be used at hawker stalls, minimarts, and participating merchants island-wide. As a homeowner, I received a total of $800 in CDC vouchers—$500 in January and $300 in June. These vouchers are allocated equally: $400 for participating supermarkets and $400 for participating heartland merchants and hawkers.

I managed to spend the entire $800 on groceries. The key was to locate older provision shops in neighborhoods to purchase all the necessary items. Although their prices might be slightly higher compared to larger supermarkets but I didn’t need to think how and what to spend on these heartland merchants to utilize the vouchers. To maximize the value of the $400 allocated for groceries, I purchased items only when they were on promotion and bought in larger quantities.

By strategically using the CDC vouchers, I effectively reduced my grocery expenses and made the most of the government’s support.

7) Youtube Income ( $35 per month )

I manage a YouTube channel where I primarily upload lifestyle videos, including content on holidays, events, and various other topics. Over time, this channel has generated $422 in revenue from a total of 186,814 views and 2,438 subscribers in 2024.

In an upcoming video, I plan to delve into the specifics of my earnings, providing insights into how I achieved this income and sharing tips that might be beneficial if you want to be fellow content creators.

For context, YouTube creators typically earn between $0.01 to $0.03 per view, which translates to approximately $10 to $30 per 1,000 views.

8) Government’s Assurance Package ( $17 per month )

In December 2024, Singaporeans aged 21 and above received cash payments as part of the Government’s Assurance Package (AP). These payments ranged from $200 to $600, depending on income and property ownership.

I was pleasantly surprised to receive $200, which will help offset some of my expenses.

9) NS Life ( $17 per month )

Additionally, eligible past and present national servicemen received $200 in LifeSG credits to recognize their contributions to Singapore’s defense and security. These credits were disbursed via the LifeSG mobile app by November 30, 2024. Currently I have no plan of using it, maybe in the end I will withdraw it using YouTrip then use it for investment.

10) Singapore Saving Bonds ( $15 per month )

Singapore Savings Bonds (SSBs) offer a flexible, low-risk avenue for Singaporeans to grow their savings. Backed by the government, they provide competitive interest rates that increase over time, with the option to redeem without penalties.

To enhance my savings strategy, I’ve been allocating $500 per month to the Supplementary Retirement Scheme (SRS) and subsequently investing those funds into SSBs. This approach not only helps me achieve tax relief but also allows me to “lock in” a higher interest rate for the next 10 years. As of December 2024, the interest rate for SSBs is 2.86%.

11) Tiktok Affiliate Marketing ( $10 per month)

This year marks my first foray into affiliate marketing. I purchase items from TikTok Shop, use them, and then create reviews and videos. When someone clicks my link and makes a purchase, I earn a commission. To date, I’ve spent approximately $161.73 and earned $119.13 in commissions, resulting in a net expense of $42.60. While I haven’t yet turned a profit, I’ve gained valuable products for personal use.

Affiliate marketing earnings can vary widely. Some affiliates earn as little as 17 cents per sale, while others make up to $30 per sale, depending on the business or seller. I plan to continue this venture into 2025, aiming to refine my strategies and increase profitability.

12) Blogging ( $1 per month )

I also maintain a blog where I occasionally share insights on various topics. However, I must admit that I have neglected it at times. In 2014, the blog generated a total of $12 in income, while my monthly hosting fees were approximately $12, resulting in a net loss. Despite this, I am committed to keeping the blog alive and plan to upload more articles this year, hoping to at least offset the hosting expenses.

13) High Risk Cryptocurrency ( on paper $83 per month )

In the past couple of years, I’ve invested $3,000 in cryptocurrency, adopting a strategy of buying and holding to see how far it can go. With the recent support for crypto, particularly following Trump’s stance on it, my investment has grown significantly. As of now, I’m seeing a paper profit of around $1,000. My long-term plan is to continue holding and see where it takes me.

Conclusion

Achieving financial freedom in Singapore may seem daunting, but with the right approach, it’s within reach. One key strategy is to manage your expectations and adopt a more frugal lifestyle. If you consistently desire luxury items like gourmet meals, luxury cars, and spacious condos, no matter how much you earn, it may never be enough.

Diversifying your income streams beyond a traditional salary is essential for achieving financial stability and independence. Relying solely on a single source of income can be risky, especially in the face of unexpected job loss or economic downturns. The COVID-19 pandemic serves as a stark reminder of this vulnerability, as many individuals in traditionally secure jobs experienced unexpected job losses.

If generating passive income isn’t your preference, consider focusing on increasing your salary and moving your money into higher-yield savings accounts. Every small step contributes to your financial goals. The key is to stay consistent, plan ahead, and remain open to learning new strategies. Whether you’re saving for a rainy day or aiming for early retirement, there’s no better time to take charge of your finances than now.

My ultimate goal is to have my passive income exceed my salary. Through strategic investments and exploring additional income streams, I plan to achieve financial independence and build a lifestyle where I’m no longer reliant on my day job. Next I’ll be breaking down my expenses in the next article, so be sure to stay tuned!