R u a wealth accumulator?

[limster]

I've recommended millionaire next door as a good book to read (borrow for free from library), but don't get hung up over its formula.

The shortcoming of the formula is that if you are promoted and receive a big salary increase, you can suddenly drop from 'accumulator' to 'under-accumulator'

 

[pai000000]

I've recommended millionaire next door as a good book to read (borrow for free from library), but don't get hung up over its formula.

The shortcoming of the formula is that if you are promoted and receive a big salary increase, you can suddenly drop from 'accumulator' to 'under-accumulator'

True. Another possibility is that salary is very low, making you a "prodigious" accumulator of wealth.
That formula is not much use I think.

 

[antonpoh]

I've recommended millionaire next door as a good book to read (borrow for free from library), but don't get hung up over its formula.

The shortcoming of the formula is that if you are promoted and receive a big salary increase, you can suddenly drop from 'accumulator' to 'under-accumulator'

This one?

millionaire next door pdf

 

[limster]

This one?

umm its copyrighted so not so sure about posting link to a copy...

anyway, answer is yes thats the book, but there is a newer edition with small updates, but otherwise the same as the 'copy'.

 

[revhappy]

Downloaded it. Thanks. Will read it over the weekend

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[ceciltan]

I kena inheritance from dad and my net worth now is way above what I should be having. So I a wealth accumulator? But it not my own effort leh.

 

[Polar Bear King]

You are not a wealth accumulator.
Your net worth is $256,000. The target for you is $1,200,000

 

[revhappy]

I kena inheritance from dad and my net worth now is way above what I should be having. So I a wealth accumulator? But it not my own effort leh.

You are a luck accumulator

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[SBC]

Will you guys include your CPF OA & SA as part of your net worth?

 

[mummy1234]

Will you guys include your CPF OA & SA as part of your net worth?

Hmm, I did not....

 

[existential_reality]

Typically I would, but it depends how your track your own network/expenses.

For example I use a commercial software for expense/network tracking, by adding the CPF OA / SA etc I can show the expenses paid from the various accounts and also movement of money if the OA funds are used to pay for Real Estate etc.

Without these in the account does not provide a accurate picture.

Will you guys include your CPF OA & SA as part of your net worth?

 

[klarklar]

My hubby's networth higher than mine and yrs so he is not useless. He already found another job that pays nearly S$10k a mth again...

How can that be when he's been jobless for long periods and you're a doctor? Very hard for engineers to be richer than doctors even if they've never been jobless.

did you put some properties solely under his name?

 

[TabascoSauce]

Lol I have 290k at 28 but not a wealth accumulator

 

[direbmem]

Lol I have 290k at 28 but not a wealth accumulator

wah u earn more than 100K per year ...

 

[mummy1234]

How can that be when he's been jobless for long periods and you're a doctor? Very hard for engineers to be richer than doctors even if they've never been jobless.

did you put some properties solely under his name?

No, just that I pay for all household expenses when he is not working. And when he does, he gives me some allowance but saves most of his salary.

I am a spender while he is a saver.

 

[klarklar]

No, just that I pay for all household expenses when he is not working. And when he does, he gives me some allowance but saves most of his salary.

I am a spender while he is a saver.

Of course you're spender since you pay for all household expenses. Fair enough, at least you get some allowance today as compensation for your past household spending. I don't know of any husband who does that when wife is high-powered doctor. Hopefully, better luck this time round with his new job and company so that you can become tai-tai and do your missionary work even without depending on how the property investments will turn out.

 

[Opps-gal]

https://blog.seedly.sg/net-worth-singaporeans-most-important-number-in-personal-finance/

Diagram shows S$376,270 enough for retirement already in Singapore? Not a million also can retired?

 

[limster]

No, just that I pay for all household expenses when he is not working. And when he does, he gives me some allowance but saves most of his salary.

I am a spender while he is a saver.

under the millionaire next door formula, its likely that your husband is an over-accumulator of wealth while you are an under-accumulator.

 

[highsulphur]

Will you guys include your CPF OA & SA as part of your net worth?

I do. But I make a distinction on my net worth on liquid and illiquid component and things like SRS and CPF are under illiquid component

 

[BBCWatcher]

Don’t make it complicated, because it isn’t.

Financial net worth is an accounting term, and it’s equal to total assets minus total liabilities — very simple. Yes, it includes the equity value in your home, the surrender value of your insurance policies (hopefully zero in my view, but it includes that), the total balance across all three of your CPF subaccounts, and even the Carousel/eBay/Gumtree value of your household possessions and the clothes on your back, as examples. It’s just total assets minus total liabilities. (Liabilities would/should include any taxes owed if an asset were to be sold.)

Whether (financial) net worth is a useful measurement or not is a separate matter.

Liquidity is another separate concept. As it happens, too many people in this forum are focusing too heavily on liquidity. You don’t actually need that much liquidity if you’re properly insured (i.e. covering genuine insurance needs adequately, not including insurance luxuries and frivolities) and have an adequate emergency reserve fund. Moreover, liquidity is often very expensive. If you attempt to hoard liquidity as part of your strategy, you’re probably going to wreck your financial future.