The yen continued to strengthen a bit this month, with the USDJPY rate dropping from 149 to 146 at the end of August, which is a 2% change. This was larger than my portfolio gains this month, which meant that my net worth dropped in JPY terms, even while rising in USD terms. This is the second month in a row that this phenomenon has happened, and while I do completely understand the mechanism behind it, it’s still a bit unsettling to see. I’m still rooting for the JPY to get stronger, although I doubt that prices for goods will actually drop in response. For foreign-made goods (for example, smartphones), companies tend to set local prices roughly the same as the USD price, but converted at the exchange rate at the time of launch. And once the price has been set, it typically doesn’t adjust for changes in the exchange rate, unless there’s been a significant change and then usually only if the local currency has gotten weaker. On the other hand, inflation in Japan has been much lower compared to other developed countries during the COVID era, so I guess I don’t have much grounds to complain.
Here’s a summary of my financial position this month:
| Description | 8/24 |
|---|---|
| Total Expenses | $3,668.20 |
| Gross Income | $5,510.43 |
| Taxes | $1,196.12 |
| Net Income | $4,314.31 |
| Savings | $646.11 |
| Savings Rate | 15.0% |
| Net Worth | $511,997.89 |
Projected time to FI (assuming 6% growth and 4% withdrawal rate): 10 years, 8 months.