(29-12-2010, 11:42 AM)egghead Wrote: [ -> ] (29-12-2010, 10:39 AM)yeokiwi Wrote: [ -> ]My Total networth = Cash + Investment + Salary - Expenses.
Investments(all stocks) are valuated at last traded price.
Hi yeokiwi,
I'm not an accountant but I thought salary and expenses are more like income statement items - not so for tracking net worth 
I also do up a balance sheet for myself which includes everything from property to CPF etc. My net worth will be my total asset less total liabilities.
Basically, I just compared what I have at the beginning of the year and at the end of the year.
The factors that affecting the amount are my initial investment, the salary that I had earned over the whole year and the expenses incurred over the year.
Not sure what the actual meaning of networth..
I thought Networth = Assets - liabilities?
I do not keep track of the capital injection of my salary into my investment fund. Basically, I just add them up and minus away the expenses and liabilities.
In my case, I have no liabilities except my HDB loan and that is taken care of by my CPF.
(29-12-2010, 10:23 AM)Musicwhiz Wrote: [ -> ]Hi MrEngineer,
When you say growing your cash/investments by 25% without mark to market, what do you mean? I assume that investments are taken at market value + cash to see the growth of your total wealth. Unless you mean the cost of your investments has increased?
Thanks!
Hi MW, sorry for the confusion caused. Basically my investments are marked to historical cost. I do not adjust them accordingly until I convert them to cash. Thats why I mentioned I use a cashflow NI method instead of a normal NI method. Hope I am clear.
The reason of not using marked to market method for investments is because I may see large swings in my balance sheet as I am quite heavily vested (>75%). I do want to send wrong signals to myself that I am doing very well or too poorly.
I recalculated my year performance because I accidentally included reimbursement cashflows (eg helping to pay for dinner with friends using credit card and receiving cash back subsequently) into my income. I managed to plough back 30% of my total income into my assets. Don't feel so bad now.. haha
(27-12-2010, 01:36 PM)bb88 Wrote: [ -> ]How do you guys manage your finances?
1) Do not actively keep track of finances but only spend when necessary - no fixed savings but controlled expenses
2) Do not actively keep track of finances and spend as you wish - no fixed savings
3) Keep track of finances and creates "budget envelopes" for different classes of spending i.e. bills, meals, entertainment, etc. - consistently set aside fixed savings
4) Keep track of finances by using daily limit i.e. spending for that day do not exceed income for that day or ensure that overbudget is managed over restriction over few days. - quite similar to (1) but has more visibility on expenses
There are definitely more but just curious to know how you guys manage yours.
I was (4) when I first started working, and is now (1) as I am making enough to cover my basic expenses and some at least weekly pamperings (restaurant meals but not electronic gadgets) so I don't really watch my spending anymore.
Not so rational but I don't miss out so much in life now.
When i started working i am (1) and (2).
Now older and much more careful with money so is (3) and (4). Is a good habit i feel.
I think once you set it up its really not too difficult. i strongly urge a good software to run things and take away most of the brain power.
http://www.investmentmoats.com/budgeting...ey-easily/
the key is can automate as much just automate. when it comes time to review u will be able to tell certain trends.
Hi all forumers,
Time to take record of my performance.
Savings rate for 2011 about 30%
Compounded asset growth rate (starting from 2010) about 3%
Remark to myself: Very poor performance due to inability to cut loss. If I used 10% cut loss, my growth rate would have been above 8%. But i presume many people would have their portfolio tanked as well. Mine collapsed 20%. If only loss stocks, then it collapsed about 42%.
Anyway, wishing all forumers happy and huat huat new year!
(31-12-2011, 12:25 AM)mrEngineer Wrote: [ -> ]Hi all forumers,
Time to take record of my performance.
Savings rate for 2011 about 30%
Compounded asset growth rate (starting from 2010) about 3%
Remark to myself: Very poor performance due to inability to cut loss. If I used 10% cut loss, my growth rate would have been above 8%. But i presume many people would have their portfolio tanked as well. Mine collapsed 20%. If only loss stocks, then it collapsed about 42%.
Anyway, wishing all forumers happy and huat huat new year!
After all expenses,
Net investible asset increases by 7.3% (portfolio + salary)
If salary is excluded,
Net investible asset decreases by 0.8% (portfolio only)
Yeokiwi I can imagine your absolute amount of net asset is large. Haha. 8% of your net asset constitutes to your income. If you earning 120k a year, you are probably a millionaire already!
Just curious - how do you guys measure CAGR for Net Investible Assets? What does Net Investible Assets consist of?
For myself, I just finished my year-end portfolio review. XIRR for 2011 = -5%, Portfolio is +3.2% above cost as at year-end. Average yield for 2011 = 6.0%, portfolio value is about $250,500.
My savings rate for 2011 hovered around 45% to 50% of net salary.
Hope to be able to increase savings rate, income level and also invested cash amount (if margin of safety is present in 2012).
Thanks for the feedback, guys.
(31-12-2011, 02:46 PM)Musicwhiz Wrote: [ -> ]Just curious - how do you guys measure CAGR for Net Investible Assets? What does Net Investible Assets consist of?
For myself, I just finished my year-end portfolio review. XIRR for 2011 = -5%, Portfolio is +3.2% above cost as at year-end. Average yield for 2011 = 6.0%, portfolio value is about $250,500.
My savings rate for 2011 hovered around 45% to 50% of net salary.
Hope to be able to increase savings rate, income level and also invested cash amount (if margin of safety is present in 2012).
Thanks for the feedback, guys.
I did it in a simple way. Basically, I take my net investible asset at the beginning of the year and compare with the amount at the end of the year. I am too lazy to do a more precise tracking of my net asset.