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Why I am going to be stingy in 2023 ….
If you understand the compounding effect of the dividend snowball, you will be too.
I have decided. In 2023, I will be stingy. This is because every dollar I save gives me the ability to buy one more dividend-paying share that, like the “dividend man” in the picture below, labors away to build me my passive income stream.
The proliferation of platforms like Moomoo and Syfe have made it easier for ordinary Singaporeans to build a portfolio of dividend stocks to fund their retirement. Buying stocks on the SGX requires capital as stocks are sold in lots of 100 — prior to 2015, the lot size was 1,000. With Moomoo and Syfe, Singaporeans can buy single shares (and even fractional shares) with good dividend-paying shares on the NASDAQ for as low as USD10.33 (SGD14).
An initial investment of around SGD740 starts an immediate dividend snowball (see diagram below) — well within the means of 90% of Singaporeans. Even if you do not have SGD740 to start an Immediate Dividend Snowball, a monthly investment of SGD14 gets you in the game and, over time, your own dividend snowball.
