Good stocks to invest – Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead

Good stocks to invest

You do not need to budget or track your expenses. Instead, take 1 hour at the start of the month to compute your net worth. Then plot them out. It lets others and yourself know your money journey. If you have a money problem, then we turn to review your expenses. This is much easier to do.

People dislike tracking their finances.


It is likely you think your life is already busy enough. There are higher priority things to do.

But you know budgeting is important.

So you force yourself to do it.

But you often give up half way.

Tracking your finances is not budgeting. Budgeting, in its essence, is putting your money to the things you truly value the most. Tracking your money gives you a snapshot of how you been assigning values.

I believe in budgeting very much and practice it myself that I wrote an article explaining the different depths you could budget to create positive changes.

However, the general advice I tell people is, you do not need to track your expenses or budget.

The reason is that some of you might not have a big money problem in the first place. What most of you are anxious is whether you have a wealth problem.

And you think tracking your expenses or budgeting address that. Well its not always the case.

A lot of people fall off the budgeting bandwagon because they cannot be diligent about doing it. We are absent minded or are not motivated to prioritize putting the expenses somewhere.

My suggestion is not to track or budget but find out if you have a problem in the first place.

How do we do that? We track some of our asset & liability accounts or our net worth. And it is very easy to do that.

The Wondrous Benefits of Tracking your Net Worth

I budget passively for the past 12 years. One thing I regretted not collating was a snapshot of my finances on a recurring basis.


And there are benefits.

1. It is less time consuming, much easier to do. People don’t like budgeting, tracking the expenses because they cannot form a habit of noting down how much they spend, or do not have time daily (which to me is an excuse). Well to take a snapshot of your accounts and net worth, you just need less than 1 hour in one month.

I think its reasonable. If you are not able to do this, there is nothing much anyone can help you do it.

There are even startup apps that help you aggregate your bank accounts to get the latest value. Check out the app Seedly, which helps you aggregate your bank data from DBS, OCBC, Citibank, Standard Chartered, UOB, American Express. This makes your life much easier.

2. It lets you detect problems, instead of assuming you have a problem. The personal finance gurus assumes your state of finances is out of wack. But your situation might not be. So why not check your blood sugar, blood pressure once in a while to see if things are OK or not OK?

For example, you plot your net worth chart and its been going up steadily from $10,000 to $100,000 in the 5 years you been working.

I would hazard to guess you are doing things pretty correctly.

If your liability account over 2 years have been increasing or not going down, you might have a problem there. We might need to access how come:

  1. you cannot find money to repay your debts
  2. how come you keep accumulating debts

Tracking your finances seems to be necessary.

If you been working for 3 years, without much major aim, yet your net worth is stagnating, it might make sense to examine your expenses in detail.

3. It makes you Gamify your Financial Life. Human beings love seeing numbers jump. You like to play games where you grind and get a kick out of leveling up. When you plot your accounts in this way, you want to make the numbers better than the month before or the year before.

You want to get your net worth to rise instead of fall. Some of you want to see how fast you can get to a particular band.

While chasing net worth is not healthy (life is more than about saving money and having lots of money), it does put question in your head such as how can I improve this further?

And these question will ignite you to find the answers to improve.

4. This lets you Archive your Money Story. By doing this, you have a money trail that tells others or yourself about your financial life. This can be through your student years, your working years, as a young married couple, a young couple with kids, and middle age couple.

If you want a good example to tell your kids, this record could be it.

5. Accounts are your Real Net Worth. Compared to some budgeting application, you still have to reconcile the figures. This means checking to see if your real net worth is the same as the application. This might be confusing, raising anxiety and a difficult task to undertake. When you record down these accounts, these are the real market value that is at your disposable.

With this, let me show you the 3 simple steps how you can aggregate these accounts, and a Free Spreadsheet that you can make use of.

Step 1. Set a Day of the Month to Collate Your Accounts

The first step is identify a particular day of the month which you set aside to collate these accounts.


I suggest the day of the month to be the start of the month instead of the end of the month. This is because for some wealth builders, some of the dividends received are credited at the end of the month.

By designating the start of the month, you can wait until the dividends are received, after which you can record.

However, I think its not a big issue.

As long as you designate a fixed day of the month and try to stick to it, you are Ok.

For reference, I do it either on last day of the month or start of the month.

Step 2. Record the Value of your Accounts in a Spreadsheet

The second step is: Go through your list of asset accounts and debt accounts and record the latest market value into a spreadsheet in which you consolidate the accounts.


A spreadsheet which collates the latest market value of your accounts

The spreadsheet can be very simple.

The above spreadsheet is a copy of mine that you can download for free here. Just go to File > Make a copy and you can use it from there.

The spreadsheet just list:

  1. Account name
  2. Date you last updated the value and remarks
  3. What category is this account. To make it simple, I classify them as cash, investment, business, CPF, debt. You can have less or more
  4. Currency of the account. In my spreadsheet, if your account is USD, or AUD it will be converted using Google Finance to SGD (Value). If you are in another part of the world, do change accordingly
  5. Remarks. This is the part where you give descriptive notes or rules that you want to remind yourself. For example, I do not include my Hustle in the eventual computation, so I note it down

Here are some places to take the value from

Bank Accounts

Most of your assets will be in bank accounts.

Login to each of your accounts, and note down the latest value.


In the example above, we note down $14,173 as the account value for this POSB Passbook Savings Account.

Do this for your Citibank, OCBC, UOB, Standard Chartered, CIMB Account

Investment Accounts

You investments are stored in custodian accounts. You purchase stocks through brokers, but the shares are held in custodian account.

For Singaporeans, majority of our local shares listed on the SGX resides in CDP.

You can check your CDP and record down the latest consolidated market value in SGD.


The statement above is a CDP statement that is mailed to you monthly. It shows the shares you own and the value stored in your CDP custodian account.

You can record down the market value, which shows how much your shares in the CDP account is worth.

Do note there are some assets that they might not consolidate the value in the total.

One example is if you own the Singapore Savings Bonds (SSB)

Custodian Account with Brokers


standard chartered online trading custodian account

In recent time, brokerages entice investors with lower brokerage fee if they fund their stock investments with cash upfront and store the shares with the brokers.

Thus, many of your may own custodian accounts for Singapore shares, or international shares.

Go into your brokerage platform, and identify the current market value of your shares.

Insurance Policy Value

I only own one insurance policy with cash value.

Even then, its difficult to find out the current surrender value of your policy.

You can choose not to record this.

Or what you can do is record the premiums you channel to service these policy.

For insurance endowment, if you held the policy to maturity, they should retain the amount that you put in. So this may be a good middle ground. ( you can read my article here on the returns of matured policies of my readers. They do not lose their principal sum based on this sample.)

You do not have to record this every month. Just assume the value is as such, unless you received a statement that contains the latest market value.


Your government forced savings can be readily accessed via the CPF webpage.


When you login with your SingPass you can have a summary of the current value of your CPF Ordinary Account, Special Account, Medisave Account

Property Value

You may or may not include your property. It is up to you.

Personally, I would include a property meant for investment.

What you can do is go to HDB website to see what is the latest transacted value to give you a gauge that, if you sell your property today, what is the value you will get.

Like insurance policy, you might not want to update this every month since the price do not fluctuate that well.


If you Google Condo transacted price, you will be brought to the URA Private Residential Property Transactions site. You may be able to find a reference value that represents your property.

Virtual Accounts

What if you break down your cash into a few different roles and you would like to keep track of how much of your cash or asset is in particular roles?

You can have a section where you record down how much is in these virtual accounts


In my spreadsheet, you can have a section for these.

In the above example, I like to know the level of cash among all my cash that I earmark to invest. I keep track of this in my virtual account.

A fund for parents health is kept with me, but I do not include this in the net worth computation. I spell this out in the remarks.

The Summary

After you update all the market value, your spreadsheet will aggregate the values based on the categories you specified.


My spreadsheet help you to do that. Blue cells indicates cells with formulas on them, and that you do not need to input the values.

In the above example, we aggregate all the cash accounts, investment accounts, property accounts, business accounts, liability accounts and CPF accounts.

What you will get is a Total Net Worth.

You will be able to know what is your current net worth.

You can also aggregate based on your specific requirement. For example, Accounts not to include in our net worth calculation aggregates custom accounts that you do not wish to include in the net worth computation. This differs from person to person.

Step 3. Transfer Your Net Worth Figures to an Archive Sheet

In Step 2, you have updated your market value of various account and compute your net worth, or aggregate account values.

In Step 3, we archive this latest data into a history sheet.


My spreadsheet contains a History sheet which lets you archive the accounts and net worth. The blue cells to the right, which shows the monthly change is computed.


Your new data will be reflected in the chart. This chart will show the progression of your debt accounts, investment accounts, CPF and your net worth.

This could trigger you to put yourself in a better financial situation, pay down your debt. Or it could highlight particular issues.

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