Networth = Total Assets – Total Liabilities
February has come to a completion. It is time for a financial health check up! The growth percentage is calculated using the difference between the networth figures on 31 January 2019 and 28 February 2019.
EXPENSES
It is the month of Chinese New Year celebration and there is bound to be some expenses for the household. I didn’t set a budget for that and also didn’t keep track of the expenses. However, it is definitely not of a significant amount. Generally, my parents will spend more on CNY food and stuff. I didn’t gamble and definitely didn’t lose any money at all.
The utility bill for the household is not paid, not because I don’t want to. There is some of sort of voucher or subsidy that waved off the whole bill. That is another (estimated) $100 saved. I made the switch of the electricity provider and the electricity bill will be about 25% cheaper than before. My handphone bill is only $20 after making the jump from Starhub to M1. And this month, I will also be making some change to the household tv and broadband service. The estimated amount saved may be up to $30+ per month.
INVESTING
Shiller PE Ratio for S&P 500 is now 30.42, higher than previous month. S&P 500 also recovered more than 10% since the start of 2019. I am more cautious about deploying cash. Not deploying cash creates a headache for me too as I know cash will pull down the overall returns. Cash produces negative return over the long run due to inflation. However, patience is key. It is important not to invest blindly, without understanding.
Last month, I mentioned investing into STI ETF using POSB Invest-Saver. Few days ago, I actually liquidated the position and currently holds more cash. This small amount belongs to the “investing department” and may most likely be redeployed into dividend stocks. Money meant for investing are to be invested. It should not going to buying unnecessary stuff.
Example of Compounding
The total cashback (from credit cards) accumulated for this month is $16.62. This amount has been transferred to my investment account.
Compound $16.62 at 10% per annum for 30 years = $290.01
This is the magic of compounding.
FINAL THOUGHTS
Debt/Networth Ratio: 2.61%
Investment/Networth Ratio: 30.24%
Networth Month On Month Growth: +1.34%
It is important to be healthy financially and I am glad the Debt/Networth Ratio dropped from 2.91% to 2.61% (improvement). Investment/Networth Ratio has went up from 29.75% to 30.24% (another improvement yay). My aim is to keep investing to grow my networth. Join me in this journey if you would like to.
Do you track your networth? Let me know in the comments section below. 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.