Monday, December 07, 2015

Networth updated!

Okay, it's time to do an update on my networth position. Seems like my click bait-ish post last year titled I've Zero networth is picked up in fb and started a few posts by other bloggers like BIGfatpurse and The Turtle Investor. They said it's controversial, haha and I agree that it is so. I think it's because of the way I calculate networth seems like I'm self flagellating myself and deriving pleasure from my own self inflicted pain. Kinky stuff, grrr.

Recap: Here's how I calculate my networth. It's assets minus liabilities yes? So my assets part include:

1. Wallet
2. All the bank account, including fixed deposit and savings
3. Cash holdings under mattress and milo tins
4. Paypal account
5. CPF
6. Money market fund account
7. Marked to market investment
8. Surrender cash value of insurance plans

Again, take note that I did not include the value of my 5 room flat.

Under liabilities, they include:

1. Existing car loan
2. Credit card bills
3. My portion of the HDB mortgage (total loan amount divided by 2)

Last year, my assets is $226k. This year, my assets went up to $295k.
Last year, my liabilities is $220k. This year, my liabilities went down to $207k.
Hence, last year my networth is 6k, while this year my networth is $87k.

Realistically, I can continue to expect higher asset value. Disregarding any contributions CPF interest (I don't have much to begin with, though I'm building it up) and any capital gains from stocks, I'm looking at a minimum of $50k addition to my assets every year. This comes mainly from work, with a little portion of it contributed by passive income from my investment portfolio. It's not significant as yet, but I hope it should be in the future. I also look forward to reducing the liabilities portion. Every month, my part of the mortgage loan is $1k, so for a year it'll be $12k. I also do partial capital redemption for my loan, to a tune of at least 6k every year. So it's about 13k plus minus. All in all, I should expect to increase my networth by about 50k + 13k = 63k every year, if nothing significant changes in my life.

Can I be a millionaire, defined as having $1000k networth excluding residential property? Of course I can. It's a slow scenic route but I'll reach there. I just need about 15 years to do so. But I suspect that it's not so important to be a millionaire when I finally reach there lol


Dividend Knight said...

Hi LP,

You are not the only one who likes self-inflicted pain.

I have my own weird version of networth too. I do not include my CPF.

I am totally not counting on CPF to fund my retirement bcos I foresee lots and lots of policy changes over the next few decades.

Singapore Man of Leisure said...



I guess soon other copy cats will come up with their own versions of one-upmanship and declare they only count liquid cash as an asset!


It reminds me of anyone who have their own interpretations and start their own religious cults...

Well, in some cultures, they count the number of goats/sheep as part of their wealth ;)

la papillion said...

Hi DK,

Haha, I can understand why you want to remove that from your calculation :) I guess as long as you make sense of it :) Some people don't count non-liquid assets (like CPF) because they can't rely on it in terms of need. Well, I guess it depends on what you want your net worth numbers to reflect.

Are u going to do up a post on it? lol

la papillion said...


Except that I'm not interested to start a cult! Just a butterfly moving on to the next flower ;) I guess there are multiple ways to see your networth, and who is to say which one is the correct one? haha

Createwealth8888 said...

What wrong with CPF?

Without CPF, I eat grass. LOL!

Kevin said...

Slow and steady wins the race!

la papillion said...

Hi temperament,

Haha, it's a good 'networth' to get! I think you two managed very well indeed, judging by the peace that you get in your golden years :) Salute!

la papillion said...

Hi bro8888,

Nothing's wrong with it, haha :) If you're going to be retired soon, then it's okay, still steady. But if you're going to be retired in 30 yrs or 40 yrs time, who knows what CPF will evolve to become? Might have some policy risk involved lol

la papillion said...


I prefer "Slow and steady MISS the race" Hahaaha

JW said...


la papillion said...

Hi JW,

haha, thanks bro!