You have been working for some time and accumulated some savings and did some investment along the way. However do you really know how much asset you have from time to time? Fret not, in the below write up I will share how you can keep track your asset, your spending and manage your cashflow.
Tracking your net worth
I have created a sample excel to keep track of your net worth. In the below sample, I will share how to derive the value of the different items stated.
Asset
Bank-You might have open a few accounts with other bank. E.g. DBS, UOB, OCBC. You can just login your internet banking to see your ending balance.
Stock-Shares of the company you bought. E.g. Apple share, Singtel share, etc. To calculate the ending balance, you can take Quantity multiply by Price(last traded price), if your stock is in other currency, you will also need to multiply the exchange rate to get the ending balance in SGD.
Bond-Fixed income asset you have bought. E.g. Temasek bond, Singapore savings bond, etc. To calculate the ending balance, you can take Quantity multiply by Price(last traded price), if your bond is in other currency, you will also need to multiply the exchange rate to get the ending balance in SGD.
Unit trust-Nowadays banks are offering various unit trust products where investors can invest a certain amount per month or lump sum. E.g. DBS digiportfolio, OCBC roboinvest, etc. You can login to various platform to track your unit trust ending balance.
Insurance plan-This will be any saving, investment, endowment plan you have bought from insurance companies E.g. Singlife account, Prudential saving plan, etc. You can login insurance online platform to see your balance or consult your agent.
Other Investment-This will be more complex investment products like crypto, options, futures, etc. To track the balance, you can login to the platform you traded these products to see the portfolio value.
Physical Asset-This will be your HDB flat, Car, Condo, etc - The value of these asset will be hard to evaluate. For flat you can use the last transacted price around the area in the past few months. For car, you can use a 10 years straight line depreciation. It's based on individual preference how they want to value their physical asset as the value is huge and not as liquid as other assets
Alternative investment-This will be asset that may appreciate greatly in future. E.g. A famous painting, Rolex watch, etc. Pretty hard to gauge the market value every month, a simple way will be just using the cost price.
Liabilities
Loan-This will be any housing, car, renovation or study loan you took up from a bank. The balance will be future value of the loan less periodic payment (PMT) every month. The monthly PMT will be stated in the loan contract which you will be paying every month to slowly reduce your loan amount to 0.
Credit card-This will be sum of all your credit card spending for that month which have not been paid. To get the balance, sum up all your credit cards outstanding balance as per the table above. (To note, your outstanding balance should also include those unbilled transaction as well, as some bank has statement date in the middle of the month.)
Owner Equity
Your net worth is calculated the summation of your total asset less your total liabilities. This means if you were to liquidate all your asset at current market value and to pay off all your financial obligation, you would have this amount of free cash on hand.
In the above sample, if you hold more than 1 of the given asset or liabilities, you can add a few more rows in the excel.
It's recommended that you do up the excel every month if you are an active trader, whereas you can do it quarterly if you are inactive trader.
In the excel, there's an additional tab where you can track your net worth throughout the year to see your financial health.
You can download the sample excel format from the link below:
Tracking your spending
I have also created a sample excel to keep track of your spending. In the below sample, I will share how to derive the value of the different items stated.
Credit card Spending-This will be the sum of all your credit card spending for that month. To keep track, you can login your internet banking to download the CC spending in excel and collate together.
Add: Withdrawal-This will be the sum of all your withdrawal via ATM or fund transfer out from your bank account E.g. paynow To keep track, you can login your internet banking to download the statement as excel
Less: Deposit-This will be the sum of all your deposit via ATM or fund transfer into your bank account E.g. paynow receipt To keep track, you can login your internet banking to download the statement as excel
Gross spending-This will be the sum of your needs and wants spending
Net spending (monthly expenses)-This will be your needs spending. E.g. food, transport, monthly phone bills etc less all your wants spending such as iphone purchase etc.
This excel will keep track on your needs and wants spending so that you can adjust your spending accordingly. As shown, 1 of the benefit of credit card enable you to download your spending into excel so that you can monitor on what category your monthly spending is on unlike cash where there is no audit trail. You can refer to my write up on credit card for further info https://kfgw-investing.blogspot.com/p/credit-card.html
There's an additional tab in this excel that summarize your needs and wants spending every month and to highlight any exceptional spending for the month.
You can download the sample excel format from the link below:
Cashflow Tracking (Applicable for credit card holder)
As bank will impose hefty penalty on late credit card (CC) payment, this is a simple excel created to keep track of any upcoming credit card payment due for the month.
As soon you received your CC statement, take some time to update the excel on the amount due and the due date so that you would not miss to pay your credit card bill for the month.
You can download the sample excel format from the link below:
Conclusion
Hopefully with the above sharing, you managed to gain a better understanding of how to record and manage your personal finance more effectively. If you have not started an excel keeping track of your finance and spending, this is your chance now to start tracking!
*Last updated 31 Jan 2022
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