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.
Ever since TD Ameritrade (the brokerage that I’m using) announced $0 commission, I have been buying individual stocks weekly. This is a good way to average up or down.
EXPENSES
Food expenses is manageable as I often eat the usual food (that are healthy and suitable to my body). I have only dined out twice in August. It is rather shocking that malls and restaurants are so crowded. Maybe Singaporeans felt too stucked at home. Transport fee is pretty low, as I still try to stay home as much as possible. I spent a fair bit of money on sport equipment this month again as I want to exercise at home as much as possible (minimizing contact with other people).
My savings rate for this month is 30.41%. This is a still nice healthy figure but I would prefer to be much higher. For coming month, I would try to spend a bit less and also bring in some extra income.
INVESTING
The general stock market is still going up and the USA S&P 500 broke the all time high. Despite this, I am still a net buyer of stocks. I have confidence in the businesses I bought and investing (for the long term) requires some sort of strong conviction.
The ACWI Year-To-Date return is 3.63% whereas my stock portfolio YTD return is 8.39%. The outperformance is at 4.76%.
The US tech stocks form a rather big part of ACWI. If the tech stocks continue to push higher, the performance of my portfolio may eventually lag ACWI as tech stocks only form a few percentage points of my portfolio.
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 -25.63%. Once again, I am just letting this run for the long term and will not be too bothered by the results.
FINAL THOUGHTS
Debt/Networth Ratio: 5.61%
Investment/Networth Ratio: 38.22%
Networth Month On Month Growth: 3.79%
These are the financial ratios I used to measure my own financial health. These ratios are holding up pretty well and I am happy about it. Of course, there are still room for improvements. For the coming month, I will spending some time to reflect on my priorities. There are only 24 hours every day and I need to be intentional on how I spend my time.
Two areas where there may be changes;
1. Being more passive in my investing
2. Spending more time and money in a new hobby
If these changes are made, my ‘wealth’ will be affected because the hobby requires time to be invested and some money to be spent. If I spend more time in the hobby, I have less time to do research for my investment and to take up projects to earn more income. However, this is a sacrifice I am willing to take. Because Happiness triumphs over Money.
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.