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
Circuit Breaker in Singapore has ended. But my spending did not increase due to the opening up. More people have been going out, but I haven’t been meeting much people outside. The major expenses for this month is on Healthcare. I spent a couple hundred dollars on supplements and these can last for few months. Prevention is always better than cure. I would rather spend on exercising, supplements and staying healthy than to pay medical bills.
My net cash inflow is at about 55% for this month and this seems like a pretty good number.
INVESTING
The stock market has been going up, and only up. I am still buying stocks every week (via robo) and every month. The US market has been rising a lot but there are some good businesses at attractive prices in Asia. Hence, Asia is my hunting ground for now. People always worry about a crash. I am not worried about a stock market crash, but am worried that I may not have enough cash to buy more stocks if the market really crashes.
The ACWI Year-To-Date return is -6.99% whereas my stock portfolio YTD return is 2.47%. The outperformance is at 9.46%.
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. This is a pure speculating play. The year-to-date return is about -30.98%.
This is a terrible result but I am not making any changes to this automated system of trading forex. I will just let the system play it out.
FINAL THOUGHTS
Debt/Networth Ratio: 3.72%
Investment/Networth Ratio: 34.04%
Networth Month On Month Growth: 2.42%
Total Debt/Networth Ratio has risen from 3.51% to 3.72%. But all of these debt are interest free credit card debt. Generally, I like to take on debt if they are interest free as it allows me to reallocate cash to higher yielding assets. 3.72% of Debt/Networth seems pretty awesome for someone aged 32.
Investment/Networth Ratio has risen from 31.86% to 34.04% as I bought a lot more stocks than usual. I am buying to buy more in the month of July, but it really depends on valuation. It is important to just buy blindly or listen to hot tips.
The plan for July is to earn a bit more extra, keep liquidity high and most importantly, to stay safe and stay healthy!
By the way, I am writing these blog posts not to gather viewers or impress anyone. I am simply documenting my journey. If anyone in the future says that I am an overnight success or an overnight millionaire of some sort, I will redirect them to these posts. It is to let anyone and everyone know that consistent hard work is needed for any ‘Success’ to happen.
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.