I just made a significant mortgage loan payment using my CPF ordinary account which currently stands at $0.15 as at today. My special and medisave accounts are reasonably funded as there’s not many avenues for me to tap on those funds nor would I want to as they are meant for retirement and medical needs in the future.

Looking back, my net-worth is at a relatively low stage compared to two years ago mainly because I have used my savings to top-up. My current new home is funded using proceeds from sale of my old home plus my CPF ordinary account and cash savings accumulated since paying off my previous home’s mortgage.

Technically, my mortgage can be completely paid up today if I want to but I decided to keep some of it (below $100,000) and build up a stronger cash on hand position for more flexibility in investment decisions I may make in the short-term (next 2 years or so).

When Your Net Assets Doesn’t Move Much

I sometimes feel impatient when I see that I am slowing down in my journey towards having $1,000,000 in investible net worth (excluding residential home). During army days, we call the situation of stagnating as “hentak-kaki” or marching on the spot; there appears to be much movement but you’re not getting anywhere.

Basically my net asset position has stagnated because the savings that I have obtained since I paid off my previous home has been invested in my current home which cannot be monetised unless I sell or rent out the home.

Hence, looking at it purely from the figure for net investible savings (which excludes value of my current new property) I have actually lost some ground in my journey towards financial freedom.

Looking at the Positives

However, I’ve gained in other ways that are not immediately tangible. My current property is in a better neighbourhood and the ability to rent for higher rental income is there relative to my previous property. My current place has a bigger floor area and is quieter. Such qualities can be monetised in the future should the rental or sale be required.

During the process of moving home, I also realised that despite my net worth stagnating using the conservative calculation of excluding value of current property I start to understand more about how I am really the main cash flow generating asset.

I’ve taken another step towards getting myself an appointment as an independent director. This is something I’m working on as a possible post-62 career as well as a way to monetise my assets as an accounting and audit trained professional. It is about building up my CV now for better earnings in the future.

Another realisation is that I’m getting less fixated about the numerical targets set for my eventual financial freedom but getting more interested in enjoying the process and the journey. I now network more to get connected with people just to understand more about life outside of my own routine rather than to seek to benefit from the “guanxi” that can be derived. I’ve started to build myself more into a linchpin in my own career and personal life rather than to be a passive rider on this roller-coaster ride that is life.

Counting is important but making your life count is also more important

The key realisation is that setting, counting and hitting targets in life is important. We do what we measure and we need to pursue tangible goals to know if we are on track or not in our life goals. But more importantly, it sinks in that making my life count more is more important even as we track the numbers that give us the feedback on how well we’re meeting our goals.

How are you counting your net assets and how do you make your life count?

Share with Panzer in the comments section.

Be well and prosper.

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