This is the 4th consecutive year that I am updating our net worth on this blog. And as usual, the result surprises on the upside. Cue one of my favourite gifs…
The snowball is finally starting to accumulate, grow bigger and roll faster down the hill.
Our net worth currently stands, at $697,000. This represents an incredible $107,000 increase as compared to 2016.
The main contributor is still the savings from our income ($65,000). The bullish stock market has also contributed significant capital gains ($32,000) while dividends, bond coupons and interest added another ($10,000).
I have also simplified our net worth into 3 main categories for easier visualisation and tracking.
Foreign Equities ($62,000): Comprises Berk B and 4 other HK stocks. This is still a relatively small exposure of about 25% of the entire equity portion.
Cash, Bonds & Commodities ($242,000)
Cash ($129,000): SGD deposits in six bank accounts along with about $15,000 in foreign currencies.
Commodities ($35,000): No cryptocurrencies. I might be missing either the opportunity of a lifetime or one of the biggest crashes ever. It’s really just a conservative mixture of Physical Gold & Gold ETFs here.
Home Equity ($272,000)
Home Value ($500,000): This BTO flat that I have lived in for more than 4 years (older than this blog) will reach its Minimum Occupation Period (MOP) in a couple of months time. Although I believe the houses in my estate will fetch more than $500,000, I have decided to be conservative until some resale transactions are lodged on the HDB website.
Outstanding Mortgage Loan (-$228,000): This home loan is being chipped away very very slowly. And why not, since my interest on the debt is much lower than 2%?
Other Liabilities (-$69,000)
The amount of my siblings’ funds parked with me has reduced by quite a bit as I have started returning my sister’s funds back to her. The Mrs also plans on returning her school fees to her parents and the proceeds of an endowment plan that her parents had bought for her.
So, would a net worth of $700,000 enable us to retire?
Probably not, unless we uproot to a place like Chiang Mai and perform some geographical arbitrage. This isn’t what we really desire but it’s still good to know that we could pursue an option like this if push comes to shove.
Most likely though, both of us will continue putting in more heart, sweat and tears into our trade. That should help to push us comfortably forward in our journey towards Financial Independence. And yes, looking forward to breaking the $800,000 mark next year.
Till the next update in a year’s time.
You can refer to the networth updates in the previous years here: