There is a change to the frequency of the networth update to a quarterly one. Every month, my networth, cashflow, investments and expenses are still being tracked using Google Sheet. But the blog update will done at the end of every quarter.
The focus of my financial journey is to accumulate cash generating assets that will grow in value and cut down on liabilities, which eventually results in a higher networth.
NETWORTH
There is a 8.22% increase since the last quarter. The contribution mainly came from my income from work. It could have been slightly higher but the global stock market took a slight dip. There is no big worry as my investment time horizon is for the next 50 years.
EXPENSES
My expenses has been a little higher than usual. It is due to the Chinese New Year expenditure and buying of some clothings for work purposes. These are generally one off. Savings rate has dropped a little to range of 34% – 49%. The reason is not due to high spending but due to lesser income brought in from side gigs.
INVESTING
For 2021, there will a slight tweak to my approach. Firstly, less money will be allocated to robo advisors. Any extra money will be transferred to my US brokerage account more regularly. Secondly, I will take a more concentrated approach in my stock portfolio, preferably less than 10 positions. Thirdly, I no longer want to bother with a benchmark to compare myself with. As I want to investing to be a hobby as well, not wanting to focus on a number all the time.
FINAL THOUGHTS
Debt/Networth Ratio: 2.34%
Investment/Networth Ratio: 45.54%
Networth Qtr On Year Qtr: +8.22%
There has been a further reduction in debt (which are all interest free). This means more cash will be freed up over the coming months. Most of these cash will be allocated to my investment portfolio. There is no big ticket spending over the next quarter.
Something to ponder on would be to “enjoy my my own money”. I did think that I should spend money to enjoy myself, to reward myself. But for now, I have no wonder what to spend on – that’s the dilemma.
Living expenses in Singapore seems almost certain to be going up again. There will definitely be an increase in GST and prices of basic necessities are also going up. For me personally, a balanced between seeking enjoyments and avoiding lifestyle inflation is highly important.
Do the essential that brings happiness, pleasure and fulfilments.
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.