Making money in a Reccession

2020 will be the 2nd time I experienced a recession as a working adult. First time was during 2008-2009 Financial crisis.11 years later, would be the global pandemic.

Singapore would be in a soft lockdown from 7 April onwards. For me, I would likely be working at home from my laptop. Life goes on as normal just that I can't go to my fightzone for exercise. This means I would need to exercise at home if I could.

Well I have a stationary bike at home, been collecting dust and acting as my bag holder for a little while. I may start to go running again ( I stopped running since joining fightzone), so good to restart this. Luckily I have brought my running shoes back from office.

Talking about recession, there was some regrets that I had, as I missed the opportunity to buy big chip stocks there were selling at very low price. OCBC was selling for less than $5, F&N $1 plus.

But I didn't, partly because I was new to investing. I only started investing in 2008 and I was not confident that my job would hold.

Luckily my job was stable but there was no pay increase and bonus. Even after times improved, there was no bonus. Back then, I was drawing a salary of 2450. This was not a bad salary during times then. Beggars can't be choosers. Actually I had some savings then, but I was not confident enough to like buy 30k worth of stocks at one go.

So now, the opportunity arose again. I do not feel that the stocks have fallen low enough as at the time of my writing, I think it is only halfway there.

so my game of plan is to save as much as possible and buy stocks when they are near bottom. 2 stocks that I am waiting for, are City development and Singtel. Target price is $5 for CDL and $2 for Singtel.

I believe this 2 stocks have the ability to double in price when the economy recovers maybe in 1-2 years time and if they do, I will be almost 3/4 my way to my financial freedom.

In a nutshell, my financial freedom plan is to build a 500k portfiolio and live on the dividend income from them. My return rate is around 4%, so if I have 500k generating 4%, I would have 20k per year without working. So far, I have invested 223k cash (Cost price) in stocks, another 30k using CPF monies. On hand, I have around 15k left, I am aiming to save 2.2k every month and to invest them whenever the opportunity arises.

If my stock holdings can double in 2-3 years, I would have reached my financial freedom, by 2023 which is my 40th birthday.