Financial Relativity

As I progress further along my journey, I begin to understand the concept of financial relativity. In a nutshell, financial relativity is how much we think or feel is a large sum of money relative to our mindset. $10,000 to a billionaire is probably equal to about $100 to a millionaire, which is probably equal to $1 to a thousandaire.

So... how much is a large sum? Is $100 large? I remember feeling that it was a huge sum when I was serving the army with a monthly allowance of $500+. $100 could make a significant difference in my assets for months, or so I thought. But now, I would spend it on meals with my girlfriend quite frequently as it is no longer very large to me. It is fairly insignificant to my assets, and feels perfectly normal to me.

Starhill Quarterly Results

SINGAPORE, 26 April 2010 – YTL Pacific Star today announced that Starhill Global REIT’s 1Q 2010 income to be distributed was S$18.4 million, 2.0% higher than that of S$18.0 million in 1Q 2009. Distribution Per Unit (DPU) (post-rights) for the period 1 January to 31 March 2010 was 0.95 cents, 2.2% higher compared to the restated 0.93 cents1 achieved for the previous corresponding period. On an annualised basis, the latest distribution represents a yield of 6.88% {based on 56 cents close on 31st March 2010}

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20 lots gives me $190.

My Maths Equation to Increasing Networth!

To me, at my late twenties age, I find that to massively increase our networth, three factors are extremely crucial. They are:
(i) Income
(ii) Savings
(iii) Investments

The three factors above are all equally important. My mathematical formula for gaining networth is:

Gross Gain in networth = Income * Percentage Savings Invested * (1 + Returns on Investments) + Current Networth * Returns on Investments


*Edit: Percentage savings invested as suggested by LP.

Bought some more Aztech

I bought 19 lots of Aztech today after my late night review on it last night.

On hindsight, it was fortunate I managed to review it last night, to capture the panic sell today. I'm still cautiously optimistic about the prospects of this company.

Why 19 lots? Because I had 31 lots originally, and this top up my holdings to a nice round number of 50 lots, and an additiontal $4.56k was pumped in.