Summary
In this month’s financial review, I’ll break down the details of our asset situation and household budget.
Total Assets
- Month-over-Month (MoM): +3.81%
- Year-over-Year (YoY): +38.22%
June Household Budget
- Household Budget: -80,000 yen
Our total assets have seen a steady increase, but June’s household budget recorded a deficit. This discrepancy highlights that the asset growth this month was primarily driven by the positive performance of our stock investments. Every month, I consistently invest in S&P 500 mutual funds and global equities (excluding Japan) through a defined contribution pension plan. This steady investment strategy is fostering a stable upward trend in our asset growth.
Moreover, our US dollar-denominated stocks benefited from both rising stock prices and a depreciating yen (160 yen/USD!), significantly boosting our yen-based assets. On the expenditure side, this month included the annual payment of property taxes for both our building and land. Owning a house entails significant property tax obligations, which impacted our monthly budget.
Despite the asset growth, the negative household budget is a concern. Therefore, my spouse and I are currently reviewing our expenses to improve our financial management. Our goal for next month is to enhance our household budget, aiming for both an increase in total assets and a positive household budget.
Insights and Actions
Key Factors Driving Asset Growth:
- Consistent Investments:
- Monthly investments in S&P 500 mutual funds and global equities.
- Steady contributions to a defined contribution pension plan.
- US Dollar-Denominated Stocks:
- Beneficial stock price increases.
- Favorable exchange rate (160 yen/USD) enhancing yen-based asset values.
Household Budget Review:
- Property Tax Payments:
- Significant annual expense for property taxes on our house and land.
- Expense Review:
- Ongoing efforts to scrutinize and optimize our household expenditures.
Next Steps:
- Expense Management:
- Identify and reduce unnecessary expenditures.
- Develop a more balanced household budget for the coming months.
- Investment Continuity:
- Maintain consistent investment contributions.
- Monitor market trends and adjust investment strategies as needed.
Conclusion
June 2024 has been a month of contrasts in our financial journey. While our total assets continue to grow thanks to prudent investment strategies and favorable market conditions, the household budget deficit is a signal to tighten our financial management. By addressing our expenses and maintaining a disciplined investment approach, we aim to achieve a positive balance in both our total assets and household budget in the coming months.
