What is your worth?
In finance, this question simply asks about your net worth.
According to Wikipedia, net worth or wealth is the value of all the non-financial and financial assets owned minus the value of its outstanding liabilities.
Examples of assets are savings accounts, retirement accounts, investments, home, and vehicle while liabilities include debt such as home mortgages, vehicle loan, credit cards, and personal loans.
Filipino adult has a net worth of $ 9,878 according to Credit Suisse’s Global Wealth Databook 2016. This is around P 497,505 with a conversion rate of $1= 50 PHP.
Why is it important to know your net worth?
It is necessary to know your net worth especially if you’re aiming for financial freedom because you can then see if there is an increase on your finances or if there is a need to cut off your expenses.
My Net Worth as of July 2017
This will be my first ever calculation of my net worth. I will be calculating my net worth every 3 months in which I will also be posting on my blog.
Cash on hand/bank – 35.78 %
Real Estate – 46.85%
Insurance and Retirement – 14.45%
Receivables – 2.93%
Real Estate – 84.34%
Braces – 15.66%
To share to you some kind of ideas about my assets, I have saved a few months worth of my salary as my savings fund in a bank. However, I have not added anything to it for the past 3 months because I was unemployed during this time. As a matter of fact, it has actually decreased but I am positive that I’ll be able to replenish it once I start working in my new job.
Currently, I am paying for a lot in the Philippines payable for 9 years. I bought 2 lots and I am paying 2,000 PHP /month. I am halfway through it as I have paid half of the amount already.
My insurance is VUL from Sunlife and I am also a member of SSS and Pag-Ibig.
My receivables are not that much. There are just a few amounts that my friends and family borrowed and promised to pay. It’s only about 1,000 Baht to 5,000 Baht and they pay on time.
The lot I mentioned is still halfway unpaid. That constitutes a big part of my liabilities.
My braces are the only personal expenses that I am paying for myself at the moment. My braces are worth 35,000 Baht but I am paying it through installment.
Overall, my net worth for July 2017 is P346,270. It’s less than the average Filipino adult and it is nothing compared to Henry Sy’s and I am totally okay with it. Again, this is the start of my finance journey and I didn’t expect it to be big. My goal now after knowing my net worth is to increase it every month. I plan on doing it by continuing to live below my means and regularly investing my money in stocks and mutual fund.
What is your worth?
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Hi Ira, thanks for dropping by my site! Glad to see another pf blogger posting net worth updates. Keep going!
Thank you for being one of my inspirations for this blog. I really appreciate your comment. =)
Hi Ira. Would you mind sharing how you did purchased the lot. Is it through Pag-IBIG housing loan or a Philippine bank. I’m also an OFW and I want to buy a house and lot. I chronicled my journey on my blog.
By the way do you also invest in Flexifund and MP2?
Hi PwedePadala, the lot I am still paying monthly was recommended to me by my aunt. She knew the seller from work who is maybe wanting to get rid of her extra land. It is payable for 9 years through cash. So, I didn’t apply for PAG-IBIG or bank loan. I don’t have a solid plan for it yet. Maybe I’ll build my future home there or sell it in the future, I’m not sure. So far, I only invest in COL Financial and FAMI Mutual Fund. I’ve read your blogs too. It’s nice to see another OFW working for their dreams. Let’s keep in touch =).
Will definitely keep in touch. And thanks for the response.
I got one more question about the lot. Did you sign any agreement since it is paid in installment? Do you get any receipt or something? Thanks for dropping by on my blog.
Yes, we had an agreement and all. It was all sorted by my aunts. Thanks to them. We have this passbook prepared so when we pay, they’ll record and sign it. Are you buying a house or did you already buy one?
I’m applying for a bank loan in the Philippines. I have a representative (sibling) who do all the work for me. But the bank is strict especially for a single OFW. I was asked that it would help to have a co-borrower which I wouldn’t do as much as possible. (My siblings are not qualified.)
My last resort would be Pag-IBIG. I am paying online the monthly contribution and MP2 (savings with dividends). I would appreciate any suggestions.