Networth = Total Assets – Total Liabilities
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
May period is the 2nd month of circuit breaker for Singapore. Transport expenses is very low as I am only either at work or at home, not much travelling is required. And after buying a new bicycle, I can cycle to nearby places to get the necessities I need. Food expense is low as my parents are cooking at home. The only time I need to dine out is during that few days I am at work (outside).
There is no large expenses for the month. And surprisingly, there is a positive net cash inflow of about 72%. I may not be able to sustain this rate, this is just one of the rare occurrences due to the circuit breaker. It just goes to show how much money can be saved during this period.
INVESTING
The stock market has been rising like crazy. It seems unaffected by the virus and death rate. Regardless of whether it is going up or down, I am still invested and putting more money to work. I have been a net-buyer of stocks ever since I started investing. There is nothing in the near future that will stop me from doing that.
The ACWI Year-To-Date return is -9.77% whereas my stock portfolio YTD return is 1.07%.
If you are interested in investing via Robo Advisors, you can take a look here. I sincerely think that Robo Investing is very helpful for any beginners to start investing in the stock market.
I am currently using Stashaway and Syfe for Robo Investing and I am starting to like Syfe more and more. It has one of the lowest fees in Singapore.
SPECULATING
This section tracks the return of my forex speculating account. This is a pure speculating play. The year-to-date return is about -24.57%.
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: 3.51%
Investment/Networth Ratio: 31.86%
Networth Month On Month Growth: 0.7%
All my credit card liabilities are on interest-free installment plans. My cashflow over the coming months will be sufficient to cover the payments. Debt is decreasing gradually, which is nice.
To me, the Investment/Networth Ratio seems pretty low. I would really like to deploy CPF money into the SG stock market but nothing interesting caught my attention yet. So I am still waiting and waiting, patiently. The CPF money is just idling, but enjoying at least a 2.5% return.
The lessons learnt during these 2 months of Circuit Breaker (another term for lockdown, but our government said it isn’t a lockdown), is that I need to really have a lot of liquidity and reserves. I doubt my parents are well prepared for the hit (my father even lost his job). This pandemic also offered savvy investors to make good returns. I am fortunate to be in my current situation where things carry on as per normal for me.
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.