Many of us have DREAMS.
Big,BOLD,financial dreams.
The young might acclaimed, “I want to be a millionaire by the age of 30“.
“I want to be financially independent by the time,I reach the age of 35″.
“I want to buy my FIRST private property,rent it out and earn passive income”.
Yes!
Indeed,many of us have dreams.
Yet,some us have our dreams UNFULFILED.
I am very sure,many of you reading this blog, has aspirations like me,to become a millionaire by a certain age. otherwise you wont be reading this blog as it will bore you till death
In my previous post,I share with you,on ways to analyse YOUR cashflow.
Today,I am going to share with you,a way to CHECK if your friend is really a millionaire, looks like a millionaire (actually heavily indebted), or a downright pauper.
I will like to introduce you, the “Statement Of Networth” (Clap,Clap,Clap)
Different people have different type of statement of networth.
A millionaire have an excess networth of negative POSITIVE $1,000,000.
Someone who “looks like” a millionaire when actually he is not, will have LOTS of “Personal Use Assets” like car + anything that bring lots of expenses every month… (He only looks rich from the outside)
Whereas a real MILLIONAIRE, has parked most of his money, in “Invested Assets” like Unit Trusts,stocks,invested properties,business ownership, basically anything that brings a lot of money to him.
If you want to accelerate FAST to become a millionaire,place most of your money into “Invested Assets“. (You can get NTUC Income Ideal Plan for start).
Yet, you must also remember to set aside some money (6 month expenses) for contingency purpose in the bank or perhaps in NTUC Income Growth Plan giving 3.23%/annum* (highly liquid after 1st year).
I strongly recommend you,to draft your own statement of net worth.
Should you need any help, do call me at 96520134.
Thanks! 
P.S: Promotional rate till 31 Oct or the discretion of NTUC Income.
20. September 2008 at 5:53 pm
Hi, basically networth = assets – liabilities.
I dont know whether insurance can be placed under assets or liabilities, cos some insurance is something we put our money away for something that is not promised to get in future, but just for protection case.
This is not some kind of savings insurance.
Pse advise, Helmi, cos I know MANY of us will have this doubt.
21. September 2008 at 1:43 am
azhar >>> There are 2 types of insurance.
1) Whole Life Insurance
Insurance which has a savings element in it.
We usually place the existing cash value of that insurance policy,in the Cash/Near Cash Assets.
2) Term Insurance
Term Insurance are cheap premium that gives high coverage.
Term insurance do not have cash value.
You will see this at you cashflow statement,as a “Fixed Outflow”.
Hope that helps!