I regret that I didn't do this since the first day I started to work. However, it's never too late to start.
|Liquid Assets||Fixed Assets|
|Unit Trust||EPF Savings|
|Other ST Investment||Valuables|
|Current Liabilities||Non Current Liabilities|
|Credit Card Debts||Property Loan|
|Personal Loan||Vehicle Loan|
|Other ST Debts|
The line chart above shows my liquid net worth (liquid assets - current liabilities) for the past 5 years since July 2009.
We always say that in order to achieve financial freedom, we need to put our money in investment that generates x% of return annually for n years.
So basically we expect our net worth to increase with time towards our financial target.
However, in real life, this might not be the case as sometimes we might spend more than we earn and see our net worth falling even though our investment return is on target.
For my case, my liquid net worth was trending down from 2009 to 2011. Basically it was due to high expenditure and so-so stock market investment result.
The expenditure is mainly due to property & car purchase. Anyway, I treat property purchase as "capex".
In the end of year 2012, my net worth fell quite substantially because of house renovation. If not because of this, I will have more cash to put into stock market...
From mid 2013, I started to change the style of stock market investment and the outcome so far is good. Furthermore, my "capex" in 2009-2011 has started to yield some result since 2014.
Anyway, my current net worth level is still very far away from my retirement figures.
I think everyone should record their household cash flow & net worth every month, as it can make us more disciplined in our financial planning.