My Investments began in 2020!
2020 have been a special year for everyone on this planet. It sent people home from their jobs and people definitely felt stuck at home for majority of the time during 2020. However, for me 2020 has been the year where i kickstarted my investments and learned a lot about Financial Independence Retire Early (FIRE).
During 2020 I have followed a very simple investing strategy of following the market and selecting a very few very well known companies which is dividend paying companies.
I had no special target, and in the beginning i had a goal of investing 400 USD every week to follow the dollar cost averaging methodology (Roughly 1500-1800 USD per month). However, after only 3 months of investing every week. I found it was way too cumbersome for my investment style to invest every week.
Therefore, I switched strategy slightly to simply invest a minimum of 2000 USD once a month.
The investment result of 2020 is:
After a year of investing my portfolio write 32,999.55 USD on 1st January 2021. This equal 255,814 HKD in my local currency. On average I have invested 21320 HKD (2749 USD) each month including gain, and dividends. In 2020 of my 255,814 HKD (32,999 USD), a total of 4,139 HKD (534 USD) have been from dividends payouts and of the rest 5.77% has been capital gains. I’m quite satisfied with this result and it makes me super excited since I had no idea about dividends and capital gains in 2019 until studying in late 2019, start 2020. Click here to see my current portfolio on eToro
During 2020, I also filled up my emergency fond of 130,000 HKD. which should cover around 4 months of expenses at the same lifestyle. Lastly during 2020 I saved up for payment to a house when one day moving back to Denmark. It is not quite enough for the full payment yet, however, it does have 100,000 HKD saved up so far. With a filled emergency fond and house fond half way, I believe I can add additional to my investment portfolio in 2021. If you are interested in my current net worth you can read this article.
My new investment goal in 2021
From 255,000 HKD (33,000 USD) in 2020 to over 500,000 HKD in 2021
A single year of investing and learning about FIRE made me become very excited about investing.
My new target for 2021 is to reach a portfolio of just about 500,000 in pure stock/EFT investments. This should be achievable with my budget and you can find my reason below.
I still have many years left to invest, before retirement. But every time I get my salary I’m counting the days until I can hit transfer from my bank account and throw them into the market. Every month on the 26th, I receive my salary, and on 28th I have paid all my bills and I can then see how much I can actually invest during that month.
2020 I had to fill up my emergency fond of 130,000 HKD, which roughly equal 10,000 HKD each month I had to use for this. Further my house fond and car fond I have been transferring roughly 15,000 HKD towards each month. For 2021, I do not need to send money for my emergency fond, and I plan to cut down towards car and house.
a cool fact, which excites me incredibly much is if I decided to not invest a single penny more into my portfolio, I can see for 2021 I would receive 7015 HKD (905 USD) from dividends. This is quite cool.
My goal and plan for 2021 is, I plan and hope I can invest at least 21,000 HKD (2700USD) every month. This is 252,000 HKD in 1 year. That should put my portfolio to above 500,000 just by my own contribution without dividends or capital gains.
An outlook and hope of end result for 2021:
However, if I imagine, my current portfolio is 255,000 HKD after 2020, I invest 252,000 HKD in 2021 and get capital gains of roughly 7%, which is my gains target. I hope to see my portfolio be 524,850 HKD as per below graph. That mean in only 3 years my portfolio would be about 1,000,000 HKD (129,000 USD).
If you want to see when you can become financial independent read this article
