Networth = Total Assets – Total Liabilities
June 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 31 May 2019 and 30 June 2019.
EXPENSES
My biggest expense this month, as usual, is on Daily Needs (38.65% – food and transport spending), next biggest expense is on Leisure (16.17% of my total expenses). It is one of the few rare time I spent “so much” on leisure. I seriously can’t remember when was the last time I spent money on leisure or travelling.
PERSONAL CASHFLOW
There is nice cash inflow of 44.54% (higher than my personal benchmark of 30%). I am thinking to do some part time job during weekends to push my cash inflow up to 50%. Let’s see if it is possible in July and August.
INVESTING
Shiller PE Ratio for S&P 500 is now 29.99, higher than previous month’s ratio of 28.34. US S&P 500 Index broke the all time high but the Hang Seng Index and Straits Times Index didn’t. Many Asian markets are still cheaper than the US market.
S&P 500 Index is up about 17.35% year to date while my personal portfolio is only up 1.59%. Seriously underperforming by 15.76%! I am fine with the temporary underperformance as long as I stay disciplined and committed to my own investment philosophy.
Another way to stay invested and not panic regardless of market direction is via Robo Investing. Market Drop = Buy MORE!
Example of Compounding
The total cashback (from credit cards) accumulated for this month is $8.75. This amount has been transferred to my investment account.
Compound $8.75 at 10% per annum for 30 years = $152.68
This is the magic of compounding.
FINAL THOUGHTS
Debt/Networth Ratio: 2.70%
Investment/Networth Ratio: 28.84%
Networth Month On Month Growth: +3.38%
Debt is slowly decreasing and that is nice. There is upcoming yearly insurance premium due soon. And I am also considering to further my studies. So I expect there may be negative growth in networth in the next few months.
Overall, I think it is still considered a healthy networth growth (for now).
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.