$$$ KPO and CZM $$$: 2019 Net Worth

Thursday, January 2, 2020

2019 Net Worth

Let me start by wishing everyone a happy 2020 again! This was supposed to be my first post for the year but the move by DBS stole the limelight - DBS Multiplier Account Changes For The Worst.

This year will be an exciting year with many many things to look forward to!
1. This is our first year staying together as husband and wife in our new home for a full year. Expenses are definitely going to increase but we will be able to forecast more accurately as a family.
2. We will be doing our RTW trip going to Mexico, Peru, Bolivia, Brazil, and Switzerland next month!
3. Bringing CZM's family to Hokkaido on Business flights using Alaska miles (the hack is no longer available).
4. Going to the Scandinavia/Northern Europe (Denmark, Norway, Sweden, Finland and Estonia) with my family
5. I should be getting my promotion which means an increase in salary!
6. Our portfolio should reach half a million according to our forecast and IF recession doesn't happen this year. lol.

Alright. Let me just share the same importance of tracking net worth once again for the new readers.

This is the classic comic where everyone is actually poorer than the beggar who has a net asset of $2.73. Your friend/colleague may be living in a huge condominium, driving some fancy car but it could all be financed by debts. There is absolutely nothing wrong with that as long as their income allows so. You can refer to the following articles/google on the importance of net worth.

InvestmentMoats - Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead

This is all the money we have in our savings accounts. Our cash dropped as compared to last year because we just completed our renovation few weeks back. You can read about the total cost here - Renovation Cost for Our New House. In addition, I also did a Voluntary Contribution (VC) to CPF Medisave for Tax Reduction.

Our Cash: ~ $22,000 (-54.2%)

Every month, I will try to show CZM her net worth in order to motivate her to work harder towards financial freedom. However, she would always say I inflate her net worth because I included CPF. lol. I am sure some of you may have the same mentality but like I always tell her, CPF is our money and should be included as our retirement planning.

Our CPF: ~ $262,000 (OA + SA + MA) (+19.6%)

I have yet to blog about our portfolio performance (still in draft mode!) but I am proud to say that we have outperformed the index (STI). Overall, our time-weighted return is 19.54% and XIRR is 6.99%.

I have also invested some of my SRS money ($3,500) with Endowus since my last review. Will blog more about Endowus in the future.

Our Investment: ~$469,000 (+33.2%)

HUGE change as compared to last year. We took a 25 years HDB loan for our 4 room BTO and started paying for the loan mid last year.

I believe that property should be included in the computation of net worth. If one excludes the value of the property, the money (cash/CPF) you use to pay for the loan/mortgage will be no different as disappearing into the thin air or throwing it into the sea. Hence, I will be valuing the property based on the total payment (interest + renovation cost) till date. This ensures that our money will not "disappear" and act as a floor/minimum amount (total payment + remaining loan + markup/profit) to sell in the future.

I can imagine people selling their house at market value + markup, thinking that they made money from the sale but it is totally possible that market price + markup < total payment + remaining loan. Does this make sense or is it too confusing? lol.

Our Property: ~$133,000 (+533.2%)


Our Net Worth: ~$886,000 (+38.4%)

Here you go! Our net worth pie chart, it looks pretty yummy to me :) We are so close to becoming a millionaire in net worth before the age of 30! Hopefully, it happens before both of us turn 30 this year. Hahaha. On a side note, we are already a millionaire in KrisFlyer miles @_@"

We also have ~11k Asia Miles and ~55k Alaska Miles in each of our accounts thanks to the Cathay error fare.

We have also clocked 1,000,000 page views! Thank you very much to all our readers!

Alright, I digress too much. Are you tracking your net worth?

You might be interested in these blog posts too:
2017 Net Worth: ~$510,000
2018 Net Worth: ~$640,000
- 2019 Net Worth: ~$886,000

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