[Net Asset Review] 1H2018 - Net asset has not been growing lately :(

Thoughts

Personally I feel that tracking net asset is a great way to assess if i am generally on the right track or not, without going down to the micro-details. But of course i still need to do the hardwork of detailing my expenditure. Currently, I update my cash + equity assets on a near weekly basis (see latest post) , and track my expenses on a monthly basis. As this ties in well with my weekly blogging exercise, I do not spend more time than necessary, while i think it is definitely important to allocate some time each week and month to maintain some fiscal discipline. please see my "routine"

Activity-Time Spent

Weekly-detailing trade Transactions: 30min

Monthly-Recording of Expenses :15min

Half Yearly-  Net Asset Tracking: 30 min

Overview

Observations

1. No Growth in Net Assets. The last three months (since Mar 18), the net asset has been flat. This means i have been losing my savings from wages for the last three months on trades.
2. High Proportion in Cash. The proportion in equities has been the lowest level thus far, this is likely because STI has been trading sideways & been a bit bearish lately, so lesser counters to trade in.

Recommendations

• Reduce Opportunity Cost of Liquidity. Need to consolidate my cash bearing accounts, will be reducing moving to UOB One savings & DBS multiplier. by end of Aug 2018
• Identify Income Assets for Accumulation. Since there will be lesser trend trading opportunities, I need to build up income assets that will be my wealth generator. Need to study approaches & establish a framework to assess. by End Sept 2018.
• Review Expenditure. Need to look at the things I am spending money on, and see how i can reduce how much i spend on it, and how often i spend. Monthly.

Conclusion

There is a strong correlation between STI and my net asset, of course through managing my exposure to risks, i have avoided the volatility and the emotional roller coasters . Now, to build systems and competencies in financial tools to allow me to break this current barrier.