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 eventually results in a higher networth.
EXPENSES
Expenditure is pretty low again for this spent despite spending a few hundred dollars on health and fitness products. I bought another pair of running shoe, a garmin gps watch and protein powder. They are worthy investments for long term good health.
My savings rate for this month is 60.46%. This is an improvement from the previous month of 51.18% due to an increase in income despite spending a bit more. This rate would most likely drop for the next month.
INVESTING
There seems to be some volatility in the stock market but seriously, I really can’t be bothered about it. I do not monitor stock prices everyday and continue log in to my brokerage account to make my purchases every week. Robo-advisors are also used to invest automatically every week.
While there are people who enjoy spending money buying stuff, I enjoy spending money buying assets. I am not judging anyone here as everyone has their own choice and freedom. I choose investing (and buying my future freedom). Peace.
The ACWI Year-To-Date return is -2.37% whereas my stock portfolio YTD return is 5.07%. The outperformance is at 7.44%.
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 -11.38%. In the previous month, the return was -26.62%.
FINAL THOUGHTS
Debt/Networth Ratio: 5.00%
Investment/Networth Ratio: 38.47%
Networth Month On Month Growth: 4.90%
I am enjoying my life a bit more after shifting my investing method a little. There is more time for exercising, hobbies and deeper reflections. I would definitely love to ‘hack’ my life a little more in preparation for 2021.
My Debt/Networth Ratio is pretty low and all the debt are interest free. Recently, I am wondering if there is a need to take on more debt to arbitrage or leverage my returns. This is the ‘dark side’ of investing. I will spend some time thinking about it but as of now, I prefer to sleep soundly every night.
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.