It's late January of 2023, and while it seems a bit late to talk about 2022, it's probably a year where I should pen down because it's different from the rest.
2022 was a year where I worked not at all since I graduated, and I wanted to pen my thoughts.
For curiosity sake, I typed in my topic into the chatGPT, and this was what it gave:
So below is my version, of how 2022 was, a year where I worked NOT.
My Income For 2022
Below is a chart showing my income for 2022. And they are broadly divided into 3 sources: Interest from bonds (including the Singapore saving bonds, but excluding T bills), dividends and T- bills.
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| My Income for 2022 |
The 6 months T-bills become a source of income towards the end of the year, due to the higher interest (~4%). I learnt and read most about T bills a lot from Financial Horse and the MAS website. I separated my T-bills income separately from interest income, mainly for my own visualisation. The T-bills income are non-recurring, but the interest and dividend incomes would recure for a few years to come.
If $2000 was the minimum survival amount per month, then I probably only survived 4 out of the 12 months or 25% of the time - not too good.
And this was when chatGPT was spot on. " I was fortunate enough to have some savings that helped me get through the year without having to work." But this was just part of the story.
Savings definitely help, and was a big part of me surviving. But having low wants, and a working spouse who brings in a monthly income were more important reasons why I survived the year of Inactivity (as what ChatGPT calls, really?). It was also nice that he gave me a monthly allowance, that was sufficient to pay for things, with kids' enrichment and education being the biggest part of my expenses, excluding mortgage.
Did I dip into my savings? I can't really tell if I did. Simply because there's money coming in, there's money going out. I calculated my net financial assets (cash, bonds, stocks, cash value of insurance products) and deducted the allowance from my spouse. There was a $10k+ increase, contributed mainly due to capital gains.
Lessons Learnt in 2022
Lesson 1: Limit your Delayed Gratification
My partner lost a close one in 2022. The episode made me I realize how important it is to use what you have been saving up.
What's the point of stocking up when you don't have the chance to enjoy them?
While understanding delayed gratification is important, and it's probably an essential ingredient to success in work, financial freedom and so on. But it's also important to recognize that you should enjoy your rewards from time to time.
This could be taking time to spend your money on things that matter, taking the leave that you have accumulated over the years and spend your time engaging in activities you really want, taking the wine that you have kept in your closet over the years and sip it, and so on. The one year earlier you enjoy something, the one more year you can enjoy this memory.
I took a break off work to enjoy freedom of time. And the memories that come with this freedom will start accumulating from 2022.
Lesson 2: I cannot predict the future
In 2021, when I knew, I was going to take a sabbatical of some sort, I pivoted my strategy to focusing my efforts on bonds, and index funds. I had bought many bonds above par in 2021.
As we all know, by 2022, their prices have dropped significantly. And had I waited, the returns would have been better, or I would have the funds to put to better yielding bonds. Well, while the gurus probably predicted interest rate will increase in 2022, but myself probably did not anticipate this rate of increase I saw in 2022. The good thing was I still had some warchest to deploy for 2022, but with my warchest depleting, the rate of deployment has also slowed down.
Nonetheless, if things go as planned, I'll expect more income from dividends and interests in 2023, from the additional investments made in 2022. The T-bills will also trickle more funds back upon maturity, which I can deploy for other means.
Lesson 3: For What?
You want to have more free time, for what? You want more money, for what? Without understanding the purpose, achieving a goal is meaningless.
ChatGPT says this: I found myself struggling with feelings of boredom and a lack of purpose. It was hard to shake the feeling that I should be doing something more productive with my time.
And many of my friends have this impression that I'll experience the above when I stop working. Isn't it sad if that we need to complete the orders of others to feel fulfilled and productive?
Probably I know what I want to do with me time, hence the statement from ChatGPT makes no sense to me.
Or is it because I'm an ISTP, which makes me a bit weird?
Throughout my working life, I experienced my company's purpose (not mine). And I don't believe that of the millions and billions of employees, a large majority have the same life purpose as the company's purpose?! I always try to finish my work as fast as possible and I always calculate my productivity as my own things that I have done. How could being engaged in completing other thing's goals considered productive unless it's in line with your goal?
While I have no job, I am so busy. Because now for 24 hours, because I have 24 hours of my own things. I wanted this free time to do things that I couldn't if I were at work. Like teaching my kids, creating stuff I want, starting projects that are time intensive, and more. My to-do list has grown since I started NOT working.
2022 in a nutshell
My 2022 income showed I'm not financially independent. My income wasn't enough from a financial independent standpoint, but I could probably sustain for a few more years without working even without income support from my spouse.
2022 wasn't the best year. We lost person, but I learned to appreciate what we have and guard's important to me. 2022 is probably the most purposeful year to date.
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