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.
The brokerage account I am using to buy shares is TD Ameritrade. An email was sent to inform all customers that buying of shares for all stocks listed in US is now $0. This is amazing news and will most likely affect the amount of stock I buy for each ‘bullet’. I will spend some time to reallocate the capital between my brokerage account and Robo Investing.
EXPENSES
Interestingly, the money of money I spent on food still isn’t a lot. I guess it has go to do with less dining out (I’m avoiding crowded places due to the ongoing pandemic). The major expense for this month is on running shoes, I bought 3 pairs (about $300). I’m getting a bit more serious about running and find it important to invest in quality running shoes (to prevent injuries). I bought all 3 pairs at 50% off (awesome bargain).
My savings rate for this month is 40.28%, it is a nice healthy figure. Based on this savings rate, it will take me about 22 more years to reach retirement.
INVESTING
There is only one direction for the whole stock market – UP. The stock market is ignoring the pandemic. I am continuing to be a net buyer but only buying individual businesses when the price makes sense.
The ACWI Year-To-Date return is -2.21% whereas my stock portfolio YTD return is 4.13%. The outperformance is at 6.34%.
If you are interested in investing via Robo Advisors, you can take a look here. This is the method to invest consistently and easily. But of course this will come at a small cost. I am doing a weekly contribution to buy stocks in small amount via this method. The Robos being used are Stashaway and Syfe.
SPECULATING
This section tracks the return of my forex speculating account (using algorithm). This is a pure speculating play. The year-to-date return is about -33.69%. It doesn’t look like there will be a turnaround. Hence, I will let it run.. forever. It is a small part of my network, I am not worrying about it.
FINAL THOUGHTS
Debt/Networth Ratio: 6.37%
Investment/Networth Ratio: 37.14%
Networth Month On Month Growth: 0.18%
There is a spike in Debt/Networth Ratio due to an annual insurance plan due. I charged it to my credit card and intend to pay it off slowly over 12 months. All of my debt are interest free credit card debt.
Investment/Networth Ratio has risen from 34.04% to 37.14% as I deploy more capital into cash generating assets – I want my money to work harder for me!
I am still documenting my wealth accumulating journey. I am not a success yet, and will never become an overnight success. As I am putting in the work and discipline to make things work. Everyone can do it, as long as they are willing to do it too. Hope this inspires you. 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.