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
Expenses is pretty for this month. I spent most of my free time either reading or exercising (away from crowded areas). I have dined out once, in Jurong East. I don’t mind dining out less. If I were to dine out, I really hope to enjoy the experience. Food and transport expenses add up to almost 50% of my total expenditure. Seriously, I didn’t buy any random stuff this month (which is awesome).
My savings rate for this month is 51.18%. This is an improvement from the previous month. For the rest of the year, I may spend a little bit more on some my of hobbies.
INVESTING
The general stock market came back down a little. I am investing for the long term (like for 50 years) and hence I am still buying stocks every week. This requires some sort of discipline, resilience and conviction. I have added 1 small position using my CPF OA money as well. This position will most likely be there for a long long time.
The ACWI Year-To-Date return is -0.30% whereas my stock portfolio YTD return is 5.82%. The outperformance is at 6.12%.
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 -26.62%.
FINAL THOUGHTS
Debt/Networth Ratio: 4.97%
Investment/Networth Ratio: 39.68%
Networth Month On Month Growth: 2.11%
I have shifted to a more passive way of investing and earning some extra money by taking on some paid assignments. There is a good balance of investing, earning extra income and engaging my hobbies, for now. This will most likely continue for the rest of 2020.
My debt level is holding up pretty well and it will continue to be paid down. Hence, I am not too worried about my financial situations. There is unlikely to be any sudden increase in debt level. During this pandemic, I am really fortunate and privileged to be sleeping soundly every night without having to worry about money. Grateful for this!
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.