Networth = Total Assets – Total Liabilities
May has come to a completion. It is time for a financial health check up! The growth percentage is calculated using the difference between the networth figures on 30 April 2019 and 31 May 2019.
EXPENSES
I found it very interesting that there isn’t any big spending at all and in fact there isn’t even much expenses this month. The only significant amount spent is a dinner to celebrate Mother’s Day. And this amount isn’t even much at all.
PERSONAL CASHFLOW
There is nice cash inflow of 45.21% (higher than my personal benchmark of 30%). My spending has been very very minimal so far this year. The only way to increase cash inflow would be to increase my earnings ability significantly. This is something that I really need to work on.
INVESTING
Shiller PE Ratio for S&P 500 is now 28.34, higher than previous month’s ratio of 31.10. Even though there is some drop, I still feel the US market is still overvalued. But I will be staying invested. Last month, I even started using robo-advisor to invest. I hope to write a bit more on how I intend to use robo investing.
As the different markets all over the world drop, the value of my portfolio did drop a bit as well. I will be constantly waiting for opportunities. Never ever be afraid of the stock market dropping (even though this is easier said than done).
Example of Compounding
The total cashback (from credit cards) accumulated for this month is $12.97. This amount has been transferred to my investment account.
Compound $12.97 at 10% per annum for 30 years = $226.32
This is the magic of compounding.
FINAL THOUGHTS
Debt/Networth Ratio: 2.99%
Investment/Networth Ratio: 29.06%
Networth Month On Month Growth: +1.95%
Debt decreases, as there is nothing much for me to buy and I do not intend to buy any big ticket item soon. Investment value dropped abit but that is fine, as long as I know what I am doing. I do foresee the Networth Month On Month Growth to gradually slow down as I have some plans to do different things.
Overall, I think it is still considered a healthy networth growth.
Do you track your networth? Let me know in the comments section below. 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.