Monthly update #30: December and full year 2017
Posted: Thu Jan 04, 2018 10:27 am
Another year has passed and this is already my 30th entry.
The complete embarrassment: monthly goal review
- 20 days no alcohol: 13 days - failed completely, thanks to Christmas parties.
- 12 times sport: 9 times - failed due to laziness
Calories in > calories out, thus I gained 2.5 kgs in just one month. Horrible.
In January I will change the behavior to stick to the goals and eat healthily inside the calory limit.
ERE Scorecard:
In December I invested 53% of my income, bringing the yearly savings rate to SGD 40.1%.
My portfolio ended the year at SGD 251,603 (USD ~189,400), a gain which was made up of SGD 6,035 in fresh investments and paper gains of SGD 289.
_______________________________________________________________________________
Yearly review 2017
I made it!
2017 goal: invest SGD 53,000
2017 result: invested SGD 57,887 (+SGD 4,887)
(1 SGD = 0.75 USD)
I could not resist creating a waterfall chart:
Where did all my money go?
These are by far my favorite charts. Unfortunately, 2017 saw a huge increase in discretionary spending. I spent around SGD 18,000 more than last year! Behind this shocking figure there are a lot of one time costs because of my move to Europe. I bought a lightly used car in cash (SGD 19,400) and spent around SGD 5,400 on furniture and household stuff. Too much!
In 2018 I expect this figure to go down.
Income development – after tax
Salary has grown nicely. 2018 is probably going to be a good year, thanks to expat benefits and hopefully a higher bonus. Dividend growth is accelerating and should make up quite a sizeable chunk in a few years or so.
Should I be able to stick it out under current conditions I should be financially independent sooner than I had hoped.
Goals for 2018
It is time to finally commit to the ERE ways and this forum with a proper saving rate goal:
Saving goal: My plan is to save SGD 100,000 (~USD 75,000) this year. This will mean a saving rate of around 60-65%.
Quite a step up from my earlier goals. It will require quite some discipline to get there.
Discretionary spending goal: Discretionary spending should be reduced to below SGD 50,000 (~SGD 26,000 less than this year). I admit it is still ridiculously high, but <insert excuses here>
Life goal 1: Find a new job outside the company I currently work in
Life goal 2: 240 days no alcohol, 144 days sport
Life goal 3: be fluent in French
Outlook – freaking out at the markets
Equity prices feel way too high. I know the whole theory about not timing the markets, but cannot help it much.
What will I do to fight this feeling?
- Increase cash allocation: Currently I have only 0.5% of my portfolio in cash, but will increase this a little bit, to maximum 5-10%.
- Stay the course for the rest of the portfolio
- Eliminate all unnecessary spending and avoid the exuberant mindset that sets in when incomes increase and the mood is good in the company
- Try to use the economic boom phase to find a new job with a better company
- Further reduce clothes and other possessions to reduce stress
The complete embarrassment: monthly goal review
- 20 days no alcohol: 13 days - failed completely, thanks to Christmas parties.
- 12 times sport: 9 times - failed due to laziness
Calories in > calories out, thus I gained 2.5 kgs in just one month. Horrible.
In January I will change the behavior to stick to the goals and eat healthily inside the calory limit.
ERE Scorecard:
In December I invested 53% of my income, bringing the yearly savings rate to SGD 40.1%.
My portfolio ended the year at SGD 251,603 (USD ~189,400), a gain which was made up of SGD 6,035 in fresh investments and paper gains of SGD 289.
_______________________________________________________________________________
Yearly review 2017
I made it!
2017 goal: invest SGD 53,000
2017 result: invested SGD 57,887 (+SGD 4,887)
(1 SGD = 0.75 USD)
I could not resist creating a waterfall chart:
Where did all my money go?
These are by far my favorite charts. Unfortunately, 2017 saw a huge increase in discretionary spending. I spent around SGD 18,000 more than last year! Behind this shocking figure there are a lot of one time costs because of my move to Europe. I bought a lightly used car in cash (SGD 19,400) and spent around SGD 5,400 on furniture and household stuff. Too much!
In 2018 I expect this figure to go down.
Income development – after tax
Salary has grown nicely. 2018 is probably going to be a good year, thanks to expat benefits and hopefully a higher bonus. Dividend growth is accelerating and should make up quite a sizeable chunk in a few years or so.
Should I be able to stick it out under current conditions I should be financially independent sooner than I had hoped.
Goals for 2018
It is time to finally commit to the ERE ways and this forum with a proper saving rate goal:
Saving goal: My plan is to save SGD 100,000 (~USD 75,000) this year. This will mean a saving rate of around 60-65%.
Quite a step up from my earlier goals. It will require quite some discipline to get there.
Discretionary spending goal: Discretionary spending should be reduced to below SGD 50,000 (~SGD 26,000 less than this year). I admit it is still ridiculously high, but <insert excuses here>
Life goal 1: Find a new job outside the company I currently work in
Life goal 2: 240 days no alcohol, 144 days sport
Life goal 3: be fluent in French
Outlook – freaking out at the markets
Equity prices feel way too high. I know the whole theory about not timing the markets, but cannot help it much.
What will I do to fight this feeling?
- Increase cash allocation: Currently I have only 0.5% of my portfolio in cash, but will increase this a little bit, to maximum 5-10%.
- Stay the course for the rest of the portfolio
- Eliminate all unnecessary spending and avoid the exuberant mindset that sets in when incomes increase and the mood is good in the company
- Try to use the economic boom phase to find a new job with a better company
- Further reduce clothes and other possessions to reduce stress