Reviewing My Personal Finance with Peek [October 2024]
One of the biggest mental life hacks I’ve learned is to think of yourself like a business. It’s a topic that deserves a whole lot more attention.
One of the things companies have to do every quarter, if not annually, is to review their finances in public. This can be daunting and scary.
But not doing it is like playing a game without a score, or hiking in unmarked territory without a map. You won’t have any idea if you’ve been walking in circles by the time your food and water runs out.
I’ve been leaning heavily on Peek, an app I’m building to visualize my investment portfolio and extract actionable insights.
Here’s what I learned this month:
A Rebound in Risk Assets
After a softer September—a trend that seems to recur annually—my total savings grew by 2%, nudging the figure to $1.1 million.
This rebound aligns with broader market movements, particularly the uptick in the S&P 500 and a notable rise in Alphabet Inc. (GOOGL) shares, and Bitcoin making headlines with its resurgence to $67,200.
Peek makes it easy for me to see the biggest winners and losers in my portfolio, which is a great starting point for me to think about how I could invest better.
Spending Habits
My monthly expenditures have been creeping upward, resulting in a savings rate that's dipped to 30%—a bit shy of my 40-50% target range.
It's a gentle nudge to reassess discretionary spending and ensure that my financial habits align with my long-term goals.
Rethinking My Asset Allocation
Peek's insights have helped me come up with some reallocation decisions I'm considering:
Rebalancing GOOGL Holdings: Given its impressive performance, I'm contemplating rebalancing my GOOGL position to comprise 5-10% of my portfolio to maximize returns while managing risk.
Adjusting Tesla (TSLA) Positions: Tesla has been a star performer, but diversification is essential. I'm exploring the possibility of selling some of my TSLA shares to redistribute capital into other promising opportunities.
Eyeing Palantir Technologies (PLTR): PLTR has been on my watchlist, and I'm looking for a good entry point to expand my position. Market entry timing can significantly impact returns, so finding the right moment is crucial.
Unearthing Hidden Inefficiencies
One of the most eye-opening discoveries was realizing I had $18,000 languishing in a 401(k) account, earning embarrassing returns. It's easy for such amounts to slip under the radar, especially when spread across multiple accounts or platforms.
That’s why I’m glad I can easily consolidate my financial information. Having all my investments visualized in one place with Peek not only provides clarity but also helps identify where I’m leaving money on the table.
Key Takeaways
This month's personal finance review reinforced several lessons:
Regular Monitoring: Markets and personal circumstances change. Regular reviews ensure that my investment strategies remain aligned with my financial goals like early retirement.
Actionable Insights: Leveraging tools like Peek helps me make sense of my personal financial data into actionable insights, so I don’t have to spend as much energy thinking about how I can improve.
Active Management: Passive holding isn't always optimal. Adjusting positions in response to market conditions can enhance returns. But your mileage may vary depending on your own investing goals and interests.
Spending Mindfully: Keeping an eye on expenses is as important as monitoring your investments. Small changes in spending habits can significantly impact savings rates over time.
For anyone on a similar journey, I can't stress enough the importance of staying engaged with your finances—it's not just about numbers but about securing the future you want!
Do you conduct regular financial reviews? What tools or strategies do you find most helpful? Share your thoughts below—I’d love to hear about your experiences!