My Third Million

Providore, Cebu City, Philippines
Providore, Cebu City, Philippines

As the year ends I’m taking stock of the choices I made this year, some good, some bad, some were, “WTF was I thinking buying into CHP**** just as profits were about to tank!” Work piled up as I spent spring travelling through Europe. I went on this holiday while still barely four months into my new job. Came home, and by some miracle, spent a stoic few months not merely catching up with work but exceeding personal targets.

Made a proactive decision with frugal husband to improve our workout and eating habits and resolved to be healthier. Lost a few pounds and now raring to do our annual medical checkup in January 2019.

Lost touch with many acquaintances, met some new friends, spent awesome nights rediscovering the teenager*** in me. Became even closer than ever with family, to the point where we finally (and I sigh with heavy relief), finally, invested in bonds together* this year!
Luckily, I came out of 2018 relatively** unscathed. Happy to discover that I’ll be ending my 2018 with my third million. What an early Christmas gift! Other than this, there is plenty to be thankful for.

I am happy to be spending my third Christmas together with frugal husband and our families this year. The same can’t be said for OFW families who will be spending the holidays apart. We have our health, a roof over our heads, and food on the table three times a day.

My current net worth is

PhP 3,031,937.52 / USD 58,306.49

It is comprised of:
Real estate 35.72%
Shares of stock, bonds, etc. 24.19%
Cash 23.60%
Car value 13.19%
Retirement account 3.30%

Saving Rate

Year-to-date (YTD) saving rate is 53.35%, down by about 6.2% from 2017. As MP of mustachian post keeps track of my YTD saving rate, I tend to monitor it myself. So I am always painfully aware when I’m having a low saving rate every month. At its lowest, my YTD saving rate fell to about 45%. To get back on track, I often resort to an extreme 80+% saving rate for some months to make up for the shortfall. I hope to do better in 2019!

Investment Allocation

I used to be 100% in equities as I could stomach the risk. As I grow older and stakes get higher and FIRE continues to be a dream, I have had to temper my risk.
As many economists predicted an approaching recession, I shifted majority of my allocation to fixed income securities. My investment***** asset allocation is currently split 29% (bonds) to 71% (stocks). Bond rates are higher than before. I used to balk at a 5-year retail treasury bond with a measly coupon rate of 2.5%! Now it goes as high as 5%. Seven percent for corporate bonds. Alarming and a sign of an approaching recession as the government wishes to calm rising inflation by decreasing money supply thereby contracting the economy.

It is also interesting to observe that most of economic assumptions and theories I learned in college no longer hold true! 2019 will be fun!

What is your YTD saving rate?

To the next million,

George

*Separate individual accounts obviously. I’m just happy that finance finally sparked their interest.

**Although there were many bad hair days from too much work!

***Only better as we now have more money for beer /better alcohol
****Cemex Holdings Philippines
*****Investment assets are capital securities = Shares of stocks+bonds


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