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| Photo from author |
Dear Readers,
Thank you for coming here!
As we just entered 2023, I would like to share with you a quick summary of 2022 from the perspective of financials.
As you can see from the chat above, our Total Net-Worth (TNW) has been increasing every year, but the increment year-on-year has been dropping, which means we are further away from our 40/40 goal than 2019 while I am 3 years closer to age 40.
This is mainly due to our investment.
I was mostly out of a job in 2020, but our investment carried us through.
In 2021, it is the opposite. I got my salary back, but our investment tanked, resulting in an overall lower increment than 2020.
2022, on the other hand, was a disgrace.
Our investment continued the dive, but not as drastic as 2021. I was able to hold on to my salary for the most part and most of the pay for the freelancer work I did in 2021 came in 2022. But we still had a lower increment than 2021.
Worse still, at the end of 2022, our actual TNW was lower than our conservative projection. This means we have fallen behind our projection in absolute terms, aka, we are poorer than we planned to be.
Again, investment contributed to most of it. Even we were conservative about our projection, we did not forecast a negative return on investment. But we have been in the red zone for the last 18 consecutive months.
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| Photo by micheile dot com on Unsplash |
With the market showing some signs of recovery and my new start in career, we hope to reverse this declining trend of increment and catch up with our projection in 2023.
Let’s revisit the numbers by the end of 2023.
Hi, most investors would have lost money in 2022. Even Vanguard Total World (VT) tanked 20%, its just a question of minimising the loss in most cases and not getting wiped out by Crypto. However, 2021 was a fantastic bull market, so I am surprised that you lost money in 2021 because that was one of the best years ever for stocks. Hopefully 2023 will be better than 2022.
ReplyDeleteThank you for your comments!
DeleteTrue. 2022 was a year of loss. Funny enough, I lost a lot more money in 2021. The first two months of 2021 worked really well for me and after that pretty much all my holdings dived in a straight line.
Finger crossed that 2023 will be better! I am counting on it for my 40/40 goal.