Net Worth for Jan 2022 and Reflections for 2021

First, let's look at the net worth update based on the snapshot below for Jan 2022

As of Jan 2022, CPF and property take up the lion's share at 24.5%

CPF includes OA, SA, and MA. As they are rarely utilized and is contributed monthly from employee and employer income, hence it is able to grow so quickly over time

Recently purchase a private property hence a large amount of cash was used to pay for the downpayment. 

The amount shown here is the equity value of the house based on the cash only.

Third, in the list is stocks where I have been putting in the same amount each year in both 2020 and 2021. 

Performance-wise for stocks were decent personally to me although it did not beat the US market index.

Achieved a return of 17.95% for 2021 compared to 27.95% for 2020.

Fourth in value is Cryptocurrency.

I started in it in about Aug 2020 and put money when institutional started announcing their purchase of bitcoin.

The rationale for me investing in crypto was due to the flow of money and also to understand how it works.

So far the portfolio for crypto has performed decently, up to date of 400+%.

If I were to annualized it would be 300+%

I probably won't be expecting it to repeat again for such high returns although who knows for crypto.

The strategy moving forward would be to cash out until all my capital amount is taken out, leaving behind profits. Then to reallocate the portfolio by splitting it between 60% crypto and 40% in stablecoins for earning interest.

Income/Savings/Expenses

Looking at income-wise it was about a 6% increase for 2021 compared to 2020. Not expecting any bonus for 2021. If have then it is a bonus.

Savings wise in 2020 average was at 46% of income, meaning on average I was able to save 46% of my monthly income. 

For 2021, the savings rate was 43.6%. Although percentage wise 2021 is lower than 2020, the absolute amount saved in 2021 is higher than 2020 due to higher income.

That is why instead of focussing on saving, one should instead look at how to earn more.

The rich didn't get rich by saving more but by earning more instead.

For eg., A rich person may only save 25% of their income compared to another person saving 75% of their income.

If the rich person is making 10K a month, the amount saved is 2.5K

But the lower-income person making 3k a month, the amount saved is only 2.25K.

Despite having a higher saving rate of 2x more than the rich person, the lower-income person still saves lesser in absolute amount than the rich person.

Expenses wise for 2021, big-ticket items were the private property and also getting term insurance which will serve as mortgage insurance. 

Didn't travel overseas for 2021 so not much spending on leisure. 

Investments

Made more investment into US tech stocks for long-term hold.

The value of the company becomes higher as earnings go up.

Criteria of the companies chosen were based on secular trends, importance to business operations, and ability to scale globally with track record of growing revenue.

Cloudflare: CDN and cybersecurity

Crowdstrike: cybersecurity

Zscalar: cybersecurity

Unity: gaming engine and visual effects

Okta: identity access management

Snowflake: data warehouse

MongoDB: database as a service

Atlassian: workflow management

Moving Ahead

I will be putting in more effort to come out with more content for Youtube channel "Just Being Ernest"

Looking at having a more consistent output of 1 video a week.

Also looking to put more money into stock investment for the long-term hold.

And also start investing in properties for rental income, looking to get at least 2 positive cash flow properties in industrial/retail.

Healthwise to go for hiit classes regularly every week.

Spend more time with family and close friends.

And that's it for this post. Hope you can subscribe to my youtube channel and provide feedbacks on how I can improve. Thanks!