Networth = Total Assets – Total Liabilities
The growth in networth is calculated using the difference between the networth figures on 31 December 2019 and 31 January 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
It is the Chinese New Year period and I expected some expenses to go higher. There are typically some money to be spent in a Chinese family as we prepare for the festive season. And my mother’s birthday coincided with the festive season. We had a simple dinner at a Chinese restaurant to celebrate it. These expenses added up to a couple hundred of dollars but this money is meant to be spent.
I spent about $70 to buy some new clothings (I haven’t bought new clothings for very very very long).
The only out of the norm expense is about $127 which I used to engage a freelance programmer to help me code a software.
INVESTING
Investing is almost like watching paint dry. There is actually almost nothing to do. There are some problems in China and Hong Kong, due to the virus outbreak. The stock prices in that area has come down a bit. That is the place where I will be looking for value.
I am currently looking at some insurance companies and property conglomerates. Whether I buy any of them really depends on how much margin of safety there is. Most importantly, I need to make sure I understand their businesses.
If you are interested in investing via Robo Advisors, you can take a look here.
SPECULATING
This section tracks the return of my forex speculating account. This is a pure speculating play. The year-to-date return is about -6.71%.
This is the first time I experienced a significant drawdown in my automated system. Despite the drawdowns in the past, it somehow managed to turn profitable by the end of year. Therefore, I will just let it run and play out for the rest of the year.
FINAL THOUGHTS
Debt/Networth Ratio: 3.28%
Investment/Networth Ratio: 26.11%
Networth Month On Month Growth: +3.86%
Throughout my life, I am very thankful not to be burdened with lots of debt. 3.28% of debt should be considered very low for most people. A large part of this debt will be paid off over 24 months (interest free). I don’t foresee myself adding on huge debt in the near future.
I am currently building another algorithmic trading software. If it works out well, it can generate some extra cash which will then be continuously reinvested till I hit my Financial Independence numbers.
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.