Phew, what a 12 months 2022 has been! Because it involves an finish, that is my annual assessment of my funds to examine the place we are actually and make sure that we’re not falling too far off from our objectives. Throughout this yearly assessment, I sometimes study my revenue progress, bills, financial savings, insurance coverage protection, and funding efficiency – which helps me to higher strategize for the brand new 12 months.
This marks the ninth 12 months that I’m doing this on the weblog. Earlier than I’m going into this 12 months’s assessment, right here’s a fast recap of earlier years:
- 2014: Saved $20,000
- 2015: Saved $30,000 and grew revenue
- 2016: Saved $40,000 and grew revenue, hit $100k in internet value at age 26 together with CPF
- 2017: Saved $45,000 and doubled my internet value in a 12 months
- 2018: Saved $50,000
- 2019: Saved $35,000 (didn’t realise I fully missed out on a round-up publish, however right here’s our child-related bills as an alternative)
- 2020: Saved $30,000 and achieved loopy (irregular) funding returns
- 2021: Saved $40,000, grew revenue however noticed lowered funding returns
Financial savings & Revenue
I went again to company life in Q2 this 12 months, and stopped educating GP tuition. As an alternative, I began a brand new facet hustle (fairly by likelihood) which helped to carry up my revenue ranges. This got here after my big achievement in dropping 20kg in 7 months (see how I did it right here), which was achieved by a mix of things – food regimen, train in addition to dietary supplements to make the journey simpler. So a lot of you guys watched my transformation in real-time and stored asking me for steerage on how I did it, so I utilized to grow to be a distributor and convey within the merchandise into Singapore to promote as nicely. That now meant I might now receives a commission for the hours spent consulting and educating every of you on methods to drop a few pounds, which made it definitely worth the time.
And because of this, I used to be in a position to train and assist 1,000 of you drop a few pounds efficiently, which was my subsequent largest achievement this 12 months (apart from my very own transformation). Right now, though I’m now not utilizing the dietary supplements as a lot as I did anymore – primarily as a result of I’m already lighter than pre-pregnancy and might preserve my weight simply with train (it was loads more durable to do intense calorie-burning exercises at 72kg because it damage my knees) – I’m nonetheless teaching people who need my assistance on dropping pounds by way of my little Shopee retailer right here.
My methodology is not any secret – simply work on the calorie deficit. For those who can management your food regimen and train to the purpose the place you’re already in a position to attain a calorie deficit, there’s no want so that you can use any dietary supplements, until you wish to velocity issues up. Nonetheless, from private expertise, I discovered that controlling one’s food regimen in Singapore (with its abundance of fine meals and a powerful foodie tradition) is far simpler mentioned than performed, so utilizing the merchandise positively assist to make the transition loads simpler – to the purpose the place you now not want the merchandise and might wean off them 😉
Our household bills have risen considerably, and I’ve calculated that we want at the very least $5+okay a month to outlive now. As soon as Finn begins faculty in January, it will rise to $6.5k a month, which isn’t too far off from the determine quoted in this Straits Occasions article. The approximate breakdown is as follows:
|Nate’s childcare & enrichment||$1,000|
|Helper wage and levy||$1,000|
|Mortgage & residence insurance coverage||$1,000|
|City council, carpark and utilities||$500|
|Eating & groceries||$1,000|
|Household insurance coverage insurance policies||$1,000|
This excludes our particular person eating bills, the allowances that we give to our mother and father (a 5-figure sum annually) and different miscellaneous bills that aren’t recurring in nature, so you’ll be able to think about how the precise sum is loads increased.
I’ve to confess, this got here as a shock to me as a result of it doesn’t appear that way back after I was surviving on solely $500 a month. However to be honest, 5 out of the 6 line gadgets above didn’t exist throughout that point both, so it’s only pure that our bills have shot up after getting into the subsequent stage of life.
For holidays, we did a Royal Caribbean cruise earlier this 12 months (examine our horrendous encounter right here) and a year-end Genting journey, the place we paid for the mother and father as nicely, in order that amounted to a different $5k. We’re painfully acutely aware that we could not have a lot time left with our mother and father as a result of their age and well being, so we’re hoping to have the ability to do at the very least 1 flight and 1 automobile/ferry journey in a 12 months with the household to construct extra recollections abroad whereas we are able to. That is additionally our means of thanking them, for loving and serving to us with the youngsters which allowed us to nonetheless ship at our workplaces.
We didn’t add any new insurance coverage insurance policies this 12 months, or make any important modifications, since most of it was already settled final 12 months previous to Finn’s delivery.
Nonetheless, I did understand that I had been unknowingly paying near $100 a 12 months for AIA Vitality, which I’ve not utilized since 2018 (upon getting pregnant with Nate). Proper now, I don’t have any of the smartwatches that hyperlinks to this system both, so I’ll seemingly terminate it from henceforth.
2022 was a tough 12 months to speculate. It took quite a lot of psychological self-discipline and can to stay invested, and never run for the hills as inventory costs began falling.
The very best undervalued alternatives appeared this 12 months among the many Chinese language shares, so I used to be focusing extra time and a spotlight on the Hong Kong markets as an alternative of the US facet this 12 months. I wrote on this weblog final 12 months that each one my HK positions have been within the purple, and that massacre continued nicely into this 12 months, so you’ll be able to think about my aid when China lastly introduced their reopening in November, which stopped the inventory market decline and we began seeing some inexperienced once more!
My Singapore portfolio remained flat, as I took some income off the desk. My US portfolio took a giant hit as quite a lot of the positions went into the purple, particularly the newer ones that have been initiated after April 2020. Fortunately, progress shares kind not more than 30% of my total portfolio, so I used to be spared from an enormous meltdown not like another friends (it was additionally the explanation why I had a 40% funding efficiency throughout the COVID bull in a 12 months the place others have been getting 3-digit returns from shares like SEA, Tesla, and so on).
The largest ache got here from crypto, which varieties 20% of my complete funding portfolio. Within the aftermath of the Luna meltdown and FTX collapse, crypto has taken an enormous hit, and I’m down by about 50% right here. It was principally as a result of my earlier purchases of BTC and ETH within the 2016 – 2018 interval that cushioned the losses.
In complete, my funding portfolio is at present down by about ~35%. A few of these are everlasting losses (resembling Luna), however others nonetheless stay to be seen within the coming years.
All in all, this 12 months hasn’t been simple financially. If I needed to sum it up, it will be:
- increased revenue (coming off from a one-year break from company life)
- increased bills
- lowered funding efficiency
I’m being extra lively with mounted revenue choices for now (principally T-bills and money administration choices, see right here) since we’re in a rising rates of interest surroundings, and that’s positively one thing new as I hadn’t seen the necessity for it within the earlier decade whereas rates of interest have been so low.
Shifting into 2023, I foresee that it’ll stay difficult to speculate, particularly given the grim market and investor sentiment proper now, however I’ll proceed to stay vested and deploy extra capital each month into undervalued alternatives. As for crypto, I nonetheless don’t consider it’s the finish of the trade, however I do assume it’s going to take loads longer this time spherical earlier than it recovers from the massive lack of belief that has collapsed in 2022.
See you guys over within the new 12 months!