As part of personal development and financial education, one of my long term goals is to learn constantly and make better decisions as I mature. As investors, we all strive to take emotion out of our decisions, yet most of us fail and panic when there is a market crash eroding our wealth. Over the course of last six years, we have had an amazing bull market run and it has been extremely easy to make great investment returns. While this is all well and good, we need to take a pause from patting ourselves on the back and prepare for the next downturn.
The Net Worth
The market always moves in cycles. A downturn is around the corner and sooner or later, we will hit a new recession and the economic cycle will have come a full circle since the financial crisis of 2008/09. Preparing emotionally and financially are key to surviving the market turmoils. One key area that I have been thinking more about is the total net worth. My total net worth is something that I have never shared on this blog, and dont intend to – as it changes on a day to day basis considering most of my wealth is tied to the stock, bond, commodity, forex and housing markets. I do share a breakdown of how my net worth is divided and is represented in the chart below.