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Taking stock of what you own and owe.
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WHAT IS THIS POST ABOUT
To chart my progression towards financial independence, I will (try to) take stock of my net worth every half-yearly. The last time I did a review was in May 2017.
I am going to use the same structure and format for this series of posts for consistency.
WHAT I HAVE
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Growing your networth bit by bit.
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I've been staying with my parents-in-law and renting out my DBSS flat since Apr 2016, as detailed here. The monthly rental income of $2500 was used to offset the mortgage payment of $2665. Since Apr 2018, our waiver to rent out the flat expired, and the rental income dried up. We are now digging into our cash savings to pay for the mortgage. If interest rates should go up further, we might consider using our CPF savings to maintain the mortgage.
As before, I'm going to exclude the DBSS that my wife and I bought because we still have a big mortgage to service, which makes our flat more of a liability than an asset.
Cash and Equivalents:
- Personal Savings - $140,000 [an increase of $30k]
- Joint Savings with Spouse - $45,000 [$5k has been used for mortgage payments in Apr and May]
- Daughter's Savings - $19,000 [this amount will slowly start to deplete as we use this to fund her childcare fees]
- Son's Savings - $20,000
FD and Equivalents:
- Dad's CPF - $26,000 (Can be withdrawn with short advance notice as my Dad is past 55 years old. Basically, instead of him withdrawing from his CPF at age 55, I gave him $20k cash in Oct 16 and another $6k in Jan 18. I treat it as a 10 year FD yielding 2.5 - 4% p.a.)
- Mum's CPF - $14,000 (My mum has minimal CPF balances, hence I've decided to contribute to her SA and getting some tax relief in the process. I am planning to contribute a further $7k this year. She will receive monthly payout from CPF LIFE when she reaches around age 65 to help offset her living expenses.) [contributions made in Sep 16; Jan 17]
Personal CPF:
- Ordinary Account - $68,000 [an increase of $26,000]
- Special Account - $49,500 [an increase of $13,500]
- Medisave Account - $54,500 [an increase of $8,500]
Investments:
- Common Stocks - $120,000 (market value on 31 May 18) [an increase of $33,000, mainly due to capital injection]
- 331 Oz of Silver - $7,282 (331 x $22)
- Bonds - $1,010 (market value on 31 May 18)
TOTAL OWNED: ~$564,000 [previously: $444,100]
WHAT I OWE
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The burden of debt.
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I took on a car loan in Dec 2017. Yes I know, bad move, but with 1 infant and 1 toddler to lug along wherever we go, the car adds a lot more value to our lives.
- Outstanding Housing Loan - $584,500 [a decrease of $17,000]
- Car Loan - $57,000
TOTAL OWED: $641,500
MY GOALS FOR 2018
My networth has been on a steady increase ever since I started working about 6 years back. Even with the birth of my two lovely children, we were still able to keep our expenses lower than our income.
However, I've made a decision for a career-switch. Though I hate my current job, I struggled with leaving because from Jul 18 onwards, if I'd accepted the promotion, I will be paid in excess of $150k p.a.
I will likely take on quite a big pay cut, but for my long term happiness and sanity, short term pain is necessary.
I am happy to simply maintain my current level of savings for the next 1-2 years. Hopefully my paycheck will recover to its current level soon.
