Looks like we are going into Phase 3 Heightened Alert from Monday and the tightened Covid restrictions should hopefully start to loosen more gradually from there. It would be good for us to be able to start dining out, going into the office and meeting up with friends & colleagues outside again. Anyway, this is a short update on a change from monitoring my net worth to liquid assets instead. I no longer think it’s useful to track the monthly progress of our net worth just because it doesn’t capture the essential information of our wealth-building journey.
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It’s more important for me to understand how the different components of our liquid assets interact, their proportion relative to each other and their progress every month. Allows me to see the effectiveness of our investing strategy and whether changes need to be made. On my Google Sheet, I have changed the monthly net worth update tab to a monthly liquid assets update tab. Split by the various aspects of Cash, Securities (i.e. Stocks, Bonds and ETFs), Robo-Advisors, Cryptos and CPF-OA along with a sum total at the top. I have also changed my blog page from net worth to liquid assets to reflect this.
I want us to focus on growing our liquid assets base and not get side-tracked by lowering our liabilities. The latter is kind of fixed already since it depends on the lifestyle we choose. We would only change our lifestyle if something happens to our jobs i.e. income source. So we don’t see major changes to our liabilities until that happens and there’s no point tracking its impact on our monthly net worth. Might as well keep our focus on what’s critical for building our wealth.