{"id":2385,"date":"2014-12-03T02:18:29","date_gmt":"2014-12-02T18:18:29","guid":{"rendered":"http:\/\/tzlee.com\/blog\/?p=2385"},"modified":"2014-12-03T02:26:15","modified_gmt":"2014-12-02T18:26:15","slug":"tracking-your-net-worth","status":"publish","type":"post","link":"https:\/\/tzlee.com\/blog\/2014\/12\/tracking-your-net-worth\/","title":{"rendered":"One year of financial progress; Tracking your net worth"},"content":{"rendered":"

I’ve made effort to track my expenses over the last few years. This meant keeping a record every time I took money or a credit card out of my wallet. It is a\u00a0tedious process, and gets sloppy at times.<\/p>\n

At the beginning of this year I set out to track my finances a little differently; I started tracking my total net worth month-to-month. Tracking net worth is much easier than tracking expenses because you only need to do it once a month. The difference, however, is that tracking net worth does not give you visibility into where exactly money is spent, e.g. food, entertainment, transport, etc.<\/p>\n

This is how I do it:\u00a0At every start of the month, after<\/em> I get my salary but\u00a0before<\/em> I pay my credit card bills, I keep a record of the following in an excel sheet: –<\/p>\n

    \n
  1. Net present value of resident property less outstanding loan<\/li>\n
  2. Net present value of investment property less outstanding loan<\/li>\n
  3. Net present value of other assets (e.g. cars) less outstanding loan<\/li>\n
  4. Net present value of other liquid investments, e.g. stocks, bonds, endowment, etc.<\/li>\n
  5. Net present value of any high value personal items, e.g. jewelry<\/li>\n
  6. Outstanding credit card debts, or other unsecured credit facilities (if any)<\/li>\n
  7. Total cash in bank<\/li>\n
  8. Total balance in CPF account<\/li>\n<\/ol>\n

    * For illiquid assets, e.g. cars and jewelry, apply a fair discount of between 10-30% to\u00a0its\u00a0NPV.<\/em><\/p>\n

    Then, I would create three different totals: –<\/p>\n