Visualising Net Worth

If you can’t measure it, you can’t improve it

In my opinion, personal finance is similar to running a business. For business owners, it is key to know your numbers, which can be expressed in the form of:

1. Balance Sheet
2. Income Statement
3. Cash Flow Statement

Just like the balance sheet which shows the company’s financial position at a point in time, visualising one’s net worth is useful to see the spread of assets from a bird’s eye view. As of December 2019, 92% of my liquid assets are held in investments, only 8% of my liquid assets are held in cash.

By tracking my net worth consistently over time, it actually motivated me to save and invest more. As a result, I crossed my S$100,000 milestone (cash + investments) this year, after working for 3.5 years.