Networth = Total Assets – Total Liabilities
The growth in networth is calculated using the difference between the networth figures on 29 February 2020 and 31 March 2020.
The focus of my financial journey is to accumulate cash generating assets that will grow in value and cut down on liabilities, which results in higher networth.
EXPENSES
I have been quite a bit of money during March. Bought a new Macbook Pro, some gadgets for the Macbook Pro and two pairs of shoes. These are not exactly necessities but I do need them for my work. Food and Transportation contributed about 34% of total expenses. There is a still positive cash inflow of 28.9% (I would like it to be at least 30%). This should better for the coming month.
INVESTING
The Covid-19 pandemic has affected many countries around the world and the global stock market has came down a far bit. I bought some more shares in March, but haven’t been buying aggressively. In my opinion, some of the stocks on my watchlist are still overpriced.
A large part of my portfolio is still in cash, and I am waiting patiently to deploy them. It is important to stay rational during this volatile period. Making emotional investing decisions bring no benefits in the long run.
The ACWI year-to-date return is -21.62% whereas my stock portfolio YTD return is -7.19%.
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SPECULATING
This section tracks the return of my forex speculating account. This is a pure speculating play. The year-to-date return is about -32.79%.
This portion consists of a very tiny portion of my overall networth. The trading is done automatically and I will not be doing any amendments to the trading system. It has done well in the past. Of course, the past results does not equate that it will also do well in the future. It is still important not to bring emotions into this system.
FINAL THOUGHTS
Debt/Networth Ratio: 3.25%
Investment/Networth Ratio: 22.67%
Networth Month On Month Growth: -0.98%
Debt went up a little due to me buying the Macbook Pro using a credit card (24 months installment plan). The debt I carry is very manageable, as I always make sure I set aside $X to make sure I can tide through uncertain periods. Cash is still flowing in, hence I will not have any problem making the payments.
The networth reports a negative growth, it may continue to drop if the stock market keeps dropping. Howevere, I am not worried about that my focus is on researching and buying businesses to add into my portfolio. My CPFIS account is opened, and I am ready to deploy my CPFOA money whenever necessary.
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.