How much are you invested versus your cash on hand?
A fellow blogger at Fatty Finance recently posted some money management tips via twitter. They are tip number 1. Don’t be a slave to money – money works for you, not the other way round, tip number 2. Create value first – money will come eventually, tip number 3. Count your money – you cannot manage what you don’t know.
Tip number 2 reminded me of my recent disappointment on not getting my job promotion. While I have created value to my bosses and company, I failed to obtain the recognition that I deserved. Perhaps the time (money) has yet to come. I will continue to work hard on it.
Tip number 3 reminded me that I have not kept track of my money since last year! The last time I checked how much money I have on hand versus the total money that I have invested was in March 2019.
Below is the breakdown in terms of percentage on the cash I have on hand versus the total money I have thrown into the stock market in March 2019.
Below is the breakdown as of current month July 2020.
From the breakdown, it seems that I have kept my cash on hand levels pretty stable based on my monthly routine. I am not overweight in my investments.
If you remember, I considered monies in my DBS Multiplier Savings Account, Singapore Savings Bonds (SSB), cash benefits payouts from NTUC Revosave and newly added Singlife account as “Cash”. These are monies that I can easily redeem in event of an investment opportunity or in terms of emergency such as a job retrenchment etc. “Investments” are stocks and REITs that I have bought.
Is My Money Growing?
Definitely Yes! I still get paid my salary from my work. I stashed a certain portion into savings and the rest goes into household bills. Both my cash on hand and investments continue to grow steadily over the past one year. For confidentiality reasons, I can only share the percentage breakdown and not the total value.
Wondering How Much Should You Invest?
There is actually no right or wrong answer on how much money should you keep on hand and how much money should you put into the stock market. I have previously believed a 30 percent cash and 70 invested percentage is a good ratio. Throughout the years, I felt more comfortable with 40 percent cash on hand and 60 percent invested.
