Every month, my networth, cashflow, investments and expenses are still being tracked using Google Sheet. The blog update will done at the end of every quarter. 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.
NETWORTH
There is a 5.79% increase since the last quarter. The contribution mainly came from my income from work. The increment is slightly on the low side. And I have been slightly busy, not able to pick up any side gigs. This is something worth reflecting on and requires some improvement.
EXPENSES
Expenses has been cut back during Q2 as there was restricted measures in Singapore due to a sudden outbreak of Covid cases. Savings rate for this quarter is 40+%, an increase from 30+% in Q1. There is zero intention to cut back further on my expenditure. The best way to improve the savings rate (for me) would be to increase earnings ability.
INVESTING
My Q1 plan was being followed and executed – less money into robos and more money into my US brokerage account. The number of holdings in my main stock portfolio has been reduced to 10, and I would want to reduce it further (taking up more concentrated positions). I drafted some new execution ideas and would dive deeper into them.
For next quarter, I may include the robos update in this section as well – to consolidate everything in 1 place.
FINAL THOUGHTS
Debt/Networth Ratio: 1.72%
Investment/Networth Ratio: 51.59%
Networth Qtr On Year Qtr: +5.79%
There has been a further reduction in debt from 2.34% to 1.72%. In the coming months, there are some insurance premium due and hence this figure may rise slightly. My debt level is pretty low, and I have actually been thinking for very long about taking up some cheap debt. It is a question of how much and from where.
Investment/Networth Ratio went up above 50% for the first time, and I would like this ratio to be even higher, maybe at least 60%. The main point is still to accumulate more cash generating assets.
To end off, it is really important to live our own versions of a Rich Life. It is never satisfying to live a sorry life, penny pinching and keep all money in the bank. There needs to be a balance of enjoy spending money and saving aside money.
Do the essential that brings happiness, pleasure and fulfilments.
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.