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2023 has been a yr filled with ups and downs. If somebody had instructed me to start with of the yr that we might see the Russia-Ukraine warfare proceed into its second yr, and that October would see Israel launch a full-blown assault on Gaza main to fifteen,000 lives misplaced in beneath 2 months…I might have discovered it exhausting to imagine.
However that’s precisely what occurs – Life usually has its manner of peculiar us.
As 2023 involves an finish, that is my annual evaluation of my funds to examine the place we at the moment are and be certain that we’re not falling too far off from our targets. Throughout this yearly evaluation, I sometimes study my earnings progress, bills, financial savings, insurance coverage protection, and funding efficiency – which helps me to higher strategize for the brand new yr.
Time flies, this marks the tenth yr that I’m doing this on the weblog! Earlier than I’m going into this yr’s evaluation, right here’s a fast recap of earlier years:
- 2014: Saved $20,000
- 2015: Saved $30,000 and grew earnings
- 2016: Saved $40,000 and grew earnings, hit $100k in web value at age 26 together with CPF
- 2017: Saved $45,000 and doubled my web value in a yr
- 2018: Saved $50,000
- 2019: Saved $35,000 (didn’t realise I fully missed out on a round-up submit, however right here’s our child-related bills as a substitute)
- 2020: Saved $30,000 and achieved loopy (irregular) funding returns
- 2021: Saved $40,000, grew earnings however noticed lowered funding returns
- 2022: Saved $45,000 and battled a bearish funding local weather
Financial savings & Revenue
This yr’s financial savings hit an all-time excessive, largely fuelled by the expansion in my earnings – which greater than made up for larger family bills as a result of inflation.
| 2014 | $20,000 |
| 2015 | $30,000 |
| 2016 | $40,000 |
| 2017 | $45,000 |
| 2018 | $50,000 |
| 2019 | $35,000 |
| 2020 | $30,000 |
| 2021 | $40,000 |
| 2022 | $45,000 |
| 2023 | $60,000 |
Loyal readers would possibly recall how I selected to take a step again in my profession after welcoming my second child. In 2021, I gave up my Director function and was headhunted to affix a competitor, the place I requested for a less-demanding Senior Supervisor function as a substitute, clocking in simply 3 days per week (and extra throughout crunchtime). However in 2023, I bought promoted to a brand new portfolio as Director, working intently with the federal government on new insurance policies and I now handle a crew answerable for bringing in and sustaining an enormous bulk of our firm’s Singapore income base.
In consequence, my salaried earnings doubled.
My aspect hustles have additionally continued as BAU (enterprise as regular), however I seen one thing highly effective kick on this yr: the ability of referrals. Phrase concerning the work that I do (for weight reduction) actually began spreading as my preliminary base of shoppers (who efficiently misplaced weight) shared their “secret” with their family and friends members, which resulted in referrals and loads of new enterprise from of us who by no means in any other case heard of me (or Price range Babe).
Subsequent yr, I’m trying to construct one other new supply of earnings, so we’ll see if that kicks off!
Bills
As a consequence of inflation and rising costs, our household bills have risen considerably. We bought hit by the next mortgage charge (since we opted for a financial institution mortgage once we signed our mortgage pre-COVID at 1+%) and larger family payments on the similar time, identical to everybody else who’s a home-owner and pays for his or her household in Singapore.
Our present month-to-month family earnings has risen to:
| Nate: childcare & enrichment | $1,200 |
| Finn: childcare & enrichment | $1,000 |
| Helper wage and levy | $1,000 |
| Mortgage & residence insurance coverage | $1,300 |
| City council, carpark and utilities | $650 |
| Eating & groceries | $1,400 |
| Household insurance coverage insurance policies | $1,200 |
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 larger.
Our payments (fastened bills) have gone up, however the greatest ache has undoubtedly bought to be from the price of consuming out, which has elevated considerably as F&B shops hiked their costs this yr. To adapt, we’ve been attempting to chop down on this so as to not bust our funds (though it’s exhausting to run away from it fully, particularly when you’ve got youngsters who request to eat at sure locations on weekends).
For abroad travels, we introduced our household (and fogeys) to Taiwan for a 2-week journey and spent 4D3N in Cameron Highlands, so our complete vacation funds rose from $5k final yr to $13k this yr.
Insurance coverage
My husband and I added 2 new insurance coverage insurance policies this yr to our portfolio to extend our protection for crucial sickness, particularly after MOH dominated that most cancers will not be coated 100% beneath typical insurance coverage.
We misplaced just a few mates to demise this yr and noticed a number of others bought recognized with most cancers, so we determined to behave whereas we’re nonetheless in good well being.
Investments
However what was much more sudden?
That the inventory market would formally backside out in December 2022 and see the beginning of a brand new bull ushered in by ChatGPT’s launch (on 30 Nov 2022, marking the stellar rise of Synthetic Intelligence shares (and hype?).
And that the S&P 500 would go on to achieve 25% in 2023 alone, largely pushed by mega-cap shares together with Microsoft, Apple, Alphabet, (new-darling) Nvidia and Meta, and so on.
If you happen to had diligently caught to your investing all through (as a substitute of giving up like what most retail buyers did, when the bear market triggered by the tech shares crash in 2022 continued for for much longer than most individuals anticipated)…congratulations, you’ll have seen your portfolio transfer from being within the purple to into the inexperienced.
After I wrote this final yr,
“In complete, my funding portfolio is at the moment down by about ~35%”.
SG Price range Babe, 30 December 2022
I definitely wasn’t anticipating the market to reverse so quickly and for my portfolio to return into the inexperienced so rapidly, however that’s precisely what occurred.
On one other good observe, my dividends payout have additionally hit an all-time excessive this yr, with a big enhance coming from DBS’ hike earlier.
All in all, my investments are again on observe.
Conclusion
I’m stunned that my financial savings hit a brand new milestone this yr – contemplating how the final time I hit $50k was earlier than I had youngsters, I definitely wasn’t anticipating to surpass the quantity this yr as a result of inflation.
However that’s the ability of elevated incomes means. If something, this yr has actually been an excellent reminder that we must always proceed to work exhausting and construct via our 20s and 30s, in order that we will have a neater time in our later years.
After I began this weblog in 2014, I wrote that my objective was to retire by age 45. Taking a look at my very own monetary report card and progress since then, it’s secure to say that barring any sudden occasions, I’m effectively on observe to attaining it.
My 2023 monetary abstract would thus be:
- larger earnings (as a result of a promotion at work, and extra referrals),
- larger bills (as a result of inflation),
- a extra resilient insurance coverage portfolio, and
- improved funding efficiency (because the inventory market turned bullish).
The following huge merchandise on my monetary agenda can be to construct my dividends portfolio to the purpose the place my dividends can be sufficient to pay for my dwelling bills. I estimate that this may take me 2 – 4 years to execute, so I’ll replace as soon as I clear that milestone.
See you guys over within the new yr!
With love,
Price range Babe
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