2020 ended and it has been some time since I first wrote a blog post about tracking my finances. With discipline and consistency, I tracked my networth, cashflow, investments and expenses using Google Sheet. This is usually done at the end of every month and I will write a blog post after that.
I will be keeping this post as simple and as minimalistic as possible.
NETWORTH
Networth is just a figure. It is not a direct reflection of self-worth. It is important to keep this in mind while on the path of pursuing financial indepedence. It is definitely also a moving goal post. I always remind myself that the journey is always more joyous than achieving the final goal.
INCOME
There is slightly higher income earned in 2020 than in 2019, due to a change in job and people offering me small projects to do.
Comment: Good
EXPENSES
Relatively, less money is spent in 2020. The only issue I realized is, I bought too many running shoes.
Comment: Fairly Good
INVESTING & SPECULATING
An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Intelligent speculating is the taking of a risk that appears justified after careful weighing of the pros and cons.
Stock Portfolio: did better than in 2019 and slightly better than than my chosen benchmark ACWI. The improvement needed is to place a bigger order when the opportunity comes. I also started using some CPF-OA money to invest in SG stocks
Comment: Good
Forex Trading: down 31.45%, it is the first time there is a negative return in years. I need to figure out what went wrong.
Comment: Bad
FINAL THOUGHTS
Debt/Networth Ratio: 3.83%
Investment/Networth Ratio: 43.94%
Networth Year On Year Growth: +37.41%
Manageable debt ratio, increasing investment ratio, and nice yoy growth in networth mark a decent completion to 2020.
Living expenses in Singapore are still going higher. There is definitely a noticeable increase in food prices after the pandemic strikes.
Solution: earn more income + better investment returns
Thanks for reading.
Disclaimer: www.engboonhow.com is an opinion based website. I am not a financial advisor, and the opinions on this site should not be considered as financial advice.