Financial New Year Resolutions for 2025

Happy 2025! All right good people, I'm gonna skip the generic suggestions, as one can probably chat GPT 'financial new year resolutions' and get pointers such as build an emergency fund, pay down one's debts, start investing etc. Rather given that this blog acts as sort of a personal financial diary for myself, I'm gonna spin some suggestions to myself on what I aim to achieve financially in 2025. Hence, the disclaimer that none of this should be taken as financial advise, as I'm literally 'writing to myself.'

1. Yes boring works. For 2025, I'll Aim to maintain an 80:20 equity-bond portfolio.

Critics will either argue that I'm taking too much risk (As the more conservative proponents will argue that my age should be the proportion I hold in bonds. Hence, 33 years old = 33% in bonds) or that I'm taking too little risk, given the relatively long run-way of about 3 decades I have till retirement (assuming I choose the traditional retire age of 65). Some critics will further add that I shouldn't overly rely on bonds for its negative correlation with equities, as the recent years of rising interest rates have shown that both the bond and stock markets fell over the relatively same period. To the crypto maniacs and commodities bulls, I respectfully decline such addition to my portfolio as of now. While I might consider including gold or its a gold index fund such as GLD in future, bond allows me to build my passive income, which would be covered in my next new year resolution pointer. Moreover, being fundamentally a value investor, I find it hard to buy an asset class which I can't value. Fair game to those who have 2X or 10X your money in crypto though, I personally wouldn't touch crypto as it doesn't align with my investment objective of being able to reliably grow my wealth over a long period of time. Ultimately, be clear on your portfolio allocation and the reason why you select such a risk-return trade off, as this allows one to be grounded during both bull markets and through the rough rides of stormy bear markets.

2. Gun for $1,000 per month passive income.

I'll choose not to reveal my monthly passive income, as there really isn't a point (it'll either make people jealous or discourage people who haven't start on their financial journey). Rather, my goal for this year would be to try to gun for a $1,000 monthly passive income. Why $1,000 per month? Reason is simple, at $100 or $200 per month, this amount hardly make an impact, neither can its impact be felt in a meaningful manner. On the other hand, $1,000 per month in passive income could go a longer way in alleviating some bigger ticket expenses such as parents allowance, and even contribute to one's monthly regular savings plans for index funds etc. (this allows one to compound wealth at an accelerated rate, by reinvesting one's dividend). Also psychologically, $1,000 per month would be the first 4 digit passive income achieved and such financial milestones would certainly be encouraging. Such financial achievements would make one feel that progress in the right direction is taking shape and serve as fuel to continue building one's passive income stream. Singapore REITs, local bank stocks, SGX, STI ETF and fixed income index funds would form the core of my income portfolio which would fuel the monthly passive income stream.

3. Accumulate my growth portfolio and seize opportunities during market corrections.

2025 will likely be a volatile year, with increased geo-political risk and economic uncertainty as Donald Trump's protectionist trade policies could reignite inflationary pressures. Nonetheless, rather than trying to predict the stock/ bond market movement, one could take active steps such as buffing up one's cash pile. The way I do so would be to channel cash into the Singapore Savings Bonds (SSBs), as I have did over the past 2 years when its yield went above 3%. Ireland domiciled S&P 500 ETF and global equity ETF would be my vehicle for growth. Yes, I only do individual stock picking in the local Singapore market. So far my growth portfolio, is up almost 50% as both ETFs were aggressively accumulated during the 2022 inflationary market downturn. Of course I believe in passive income, but as a Singaporean investor, it would be almost foolish not to take a bite off the growth engine of the US and global equity markets. Hence, I'll aim to accumulate this growth portion of my portfolio should markets correct and valuations (from a price-earnings and price-book perspective) become more compelling. 

All right, this post is getting ranty (I'll avoid the usual save up 3-6 months of emergency funds, get adequate protection based on one's life circumstances etc), hence I'll just end off with a personal advise to myself 'Stay focused on your financial resolutions, tune out excessive noise and seize opportunities during a volatile year ahead.' 

Stay cool-headed and humble always good people. May all of us HUAT AH in 2025!

Yours sincerely,

Finance Kaya Toast

Disclosure: This article was written as me talking to myself as an ordinary Singaporean, wishing to achieve financial freedom. It does not represent any financial advise. All opinions are independent and represent just my two-cents on all matters financially-related.