Time for another net worth update to keep things interesting! My saving rate improved this month as I get back to normal programming away from summer vacations. I currently have a year-to-date (YTD) saving rate of 46.03%.
How to compute for saving rate
I like things simple and derive my saving rate by dividing my YTD expenses from my YTD income and then subtract the same from 1 (or 100%). Depending on how you log your cash flow, money that was not spent in expenses is saved or placed in deposit or equity accounts or placed in assets, leaving you a ratio of your savings vis a vis YTD income (your saving rate).
My current net worth is
PhP 2,387,000.00 / USD 45,903.85 (@52perUSD)
This is comprised of:
Real estate 45.37%
Stocks etc. (includes government bonds) 20.99%
Cash (includes time deposit certificates) 18.33%
Retirement account 2.09%
Looking at the numbers now, I highly doubt I’ll make it to the three million mark before 2019. Our real estate exposure is definitely high at 45.37% and comes with periodical costs in terms of association dues* and real property taxes. Moreover, there is an improvement that needs to be done in one property so that will require a capital outlay. But here’s to always hoping for the best!
Have you calculated your net worth lately?
*Among the perks of getting a unit located in a building without an elevator are super low association dues. I pay only PhP 770.00 /USD 14.80 for mine every month. This is something to consider when buying a condo unit. Fortunately, our other real estate properties do not require the payment of association dues.