Calculate Net Worth and Benchmark It - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Calculate Net Worth and Benchmark It

Reply
 
Thread Tools
  #1 (permalink)  
Old 30-08-2007, 08:10 PM
Salary.sg
Guest
 
Posts: n/a
Default Calculate Net Worth and Benchmark It

Your net worth is a measure of how wealthy you are.

A person may be cash rich, while another may be cash poor. But because the cash poor person owns a property, both of them could have equal net worth.

And do you know there's a rule of thumb for telling whether your net worth is up to scratch?

According to the book The Millionaire Next Door if your net worth equals (or exceeds) your age times your annual income divided by 10, then you are a "wealth accumulator". I suppose that means it's good. This is your target net worth.

So if you are 30 years old and make $60,000 a year, you'll be called a wealth accumulator if you have an actual net worth of $180,000 or more.

To calculate your actual net worth, you simply add up all your assets, and subtract from that sum all your liabilities.

Er, exactly how?

For assets, add up all your cash savings, CPF balances, insurance cash value (you may want to take the surrender value of all your policies). Then add the market values of all your shares, unit trusts and properties. The result is the sum of all your assets.

For liabilities, add up your mortgage balance (how much you still owe the bank or HDB), credit card balance, renovation loan balance, and car loan balance. Add other sums of money you still owe banks, financial institutions, CPF, HDB, relatives and friends, and you'll get the sum of all your liabilities.

Then apply this simple formula:

Your Net Worth = Sum of Assets - Sum of Liabilities

And compare it with your target net worth.

To save you time, here's a tool to help you calculate and benchmark your net worth:



http://www.salary.sg/2007/calculate-...-benchmark-it/

Reply With Quote
  #2 (permalink)  
Old 31-08-2007, 08:50 AM
Masindi---
Guest
 
Posts: n/a
Default 372

If you bought a condo that costs S$600k but have not fully paid for it, can you use that S$600k as part of your net worth or asset?

Reply With Quote
  #3 (permalink)  
Old 31-08-2007, 01:30 PM
admin---
Guest
 
Posts: n/a
Default 373

Masindi, you can take the market value of that condo, say S$650k as part of your assets. BUT you also have to include the mortgage balance - what you still owe the bank - as part of your liabilities.

Reply With Quote
  #4 (permalink)  
Old 08-10-2007, 04:19 PM
mryang---
Guest
 
Posts: n/a
Default 445

T_T I'm not a wealth accumulator... /wrist...
Reply With Quote
  #5 (permalink)  
Old 08-01-2008, 04:47 PM
enlightened---
Guest
 
Posts: n/a
Default 725

after all these years, i came to realise that salaried workers should never equate fix pay with wealth. anyone who wants REAL wealth, go be a self employed. it is silly to push HR so hard for a pathetic $300-$500 increment and end of the day, the real wealth increase is not even worth 1% to a self employed.

if a worker's salary is not ridiculously low compared to the mass, leave it. fight for minimal increment for the sake to expand "wealth" is silly. fight for "acceptable living allowance" sounds better to me.

bonuses and director fees are different altogether.
Reply With Quote
  #6 (permalink)  
Old 14-02-2008, 01:24 PM
Razor---
Guest
 
Posts: n/a
Default 851

No need to fight with HR. The market will determine your pay. As in, shop around. If you're making 6000 per month, and the HR refuse to give you a single cent more than 500 increment (which makes it 6500), then shop around.

Go for interviews and ask for 7500. Can you get one? If you can, leave. If you can't, and everybody pushes you down to 6600, then either (1) you're not that hot of an employee, or (2) maybe you're near the ceiling of your profession or post.

I totally agree with you that fighting for minimal increment for the sake of expanding wealth is silly. Because the fact is you can't get wealthy by getting 300-500 increment every year.
Reply With Quote

  #7 (permalink)  
Old 29-05-2008, 10:51 AM
James Brown---
Guest
 
Posts: n/a
Default 1795

I agree with Razor.

You can't expect REAL wealth from your employer who only employ you to work.

Save/plan/budget/invest your way outside the scope of your job to expand your wealth.

One might be able to afford better luxury items with better income, but WEALTH IS another ballgame altogether.More often than not, wealth IS NOT determined by your monthly income.
Reply With Quote
  #8 (permalink)  
Old 26-02-2010, 11:38 AM
Unregistered
Guest
 
Posts: n/a
Default net worth

aged 37
Annual Income: SGD 302,400
(age*annual income)/10 = SGD1.119M

MV stocks: SGD 298,200
MV property: SGD 1.8M
Loan on property: SGD 1.3M
Cash: SGD 20k

Net worth: SGD 818,200 < 1.119M

I'm a loser!
Reply With Quote
  #9 (permalink)  
Old 23-11-2010, 10:49 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Unregistered View Post
aged 37
Annual Income: SGD 302,400
(age*annual income)/10 = SGD1.119M

MV stocks: SGD 298,200
MV property: SGD 1.8M
Loan on property: SGD 1.3M
Cash: SGD 20k

Net worth: SGD 818,200 < 1.119M

I'm a loser!
No loser will make $300K a year. You are just not a PAW (yet).

Save and invest more wisely and you'll be out of the rat race faster than 95% of the population.
Reply With Quote
  #10 (permalink)  
Old 24-11-2010, 12:38 AM
tree
Guest
 
Posts: n/a
Default networth

Heard from somewhere that your income affords you your _lifestyle_.

In "The M... next door", the author mentioned a surgeon who earns like 700 grand USD a year yet worries whether he can ever retire, as he and his family spend like there's no tomorrow!

Not a PAW myself either... just normal accumulator.
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IT salary benchmark Salary.sg Income and Jobs 1 25-09-2021 07:25 PM
Calculate Income Tax 2009 Salary.sg Investments and Net Worth 3 19-09-2009 08:02 PM
Calculate Income Tax 2008 Salary.sg Investments and Net Worth 16 14-11-2008 01:52 PM
Salary benchmark for ministers Salary.sg Income and Jobs 2 25-09-2008 03:55 PM
Benchmark your pay by age group Salary.sg Income and Jobs 9 26-02-2008 10:12 PM

» 30 Recent Threads
Career as Teacher ( 1 2 3... Last Page)
10,834 Replies, 6,666,550 Views
Is getting a PMP worth it ?
4 Replies, 7,102 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
15,309 Replies, 4,983,547 Views
Lawyer Salary ( 1 2 3... Last Page)
21,014 Replies, 10,329,569 Views
GovTech ( 1 2 3... Last Page)
5,161 Replies, 2,163,644 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
1,801 Replies, 1,044,309 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
679 Replies, 388,386 Views
Visa Graduate Development Program ( 1 2 3... Last Page)
207 Replies, 134,619 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
6,922 Replies, 2,902,691 Views
UOB Management Associate Program ( 1 2 3... Last Page)
1,455 Replies, 784,444 Views
Nparks ( 1 2 3... Last Page)
39 Replies, 34,379 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,828 Replies, 4,656,914 Views
ITE Polytechnic Scheme ( 1 2 3... Last Page)
309 Replies, 369,043 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
5,338 Replies, 4,770,571 Views
Compare civil service salary ( 1 2 3... Last Page)
16,342 Replies, 12,455,752 Views
Civil Service Current Estimated... ( 1 2 3... Last Page)
169 Replies, 309,151 Views
Constituency Manager (People... ( 1 2 3... Last Page)
989 Replies, 813,952 Views
Julius Baer Graduate Program 2023 ( 1 2 3)
21 Replies, 14,807 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,385 Replies, 2,324,231 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
752 Replies, 358,452 Views
Shopee fresh grad pay ( 1 2 3... Last Page)
1,049 Replies, 440,583 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,464 Replies, 1,375,238 Views
ST Electronics ( 1 2 3... Last Page)
3,767 Replies, 1,544,924 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,260 Replies, 613,617 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,123 Replies, 3,738,587 Views
MX12 reappointed at MX11
8 Replies, 818 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
749 Replies, 405,562 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,329 Replies, 1,142,185 Views
MFA- Foreign Service... ( 1 2 3... Last Page)
54 Replies, 84,981 Views
Cybersecurity/Info security career ( 1 2 3... Last Page)
511 Replies, 268,608 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 06:09 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2