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Subscribe to RSS feed Net Worth & Financial Freedom Index

By evankoh posted on 4 Jan 2019  -  7,924 views


With the new ability to include any asset into StocksCafe, we can now compute some interesting numbers useful to almost all investors. I have created a clean-cut dashboard page to display these numbers.

Net Worth
I hope it is obvious why as an investor you need to know your net worth. In case it is not, you might want to google it or read these articles: here, here and here.

Once you have included all your stocks, assets, and liabilities into StocksCafe, your net worth can easily be computed. You might ask, how can I input my liabilities? You can simply input negative price/value to an asset and that would make it a liability.

Net Worth = Total Portfolio (on this page) + Total Other Assets (on this page)

Financial Freedom Index
While knowing our net worth is important, it does not tell us how far are we from achieving financial freedom (my assumption is that many investors invest to achieve financial freedom).

Hence I decided to come up with a number that can measure how far you are from achieving your financial freedom. I would like to call this the "Financial Freedom Index".

Financial Freedom Index (%) = Annual Income / Annual Expenses

Annual Income = "Dividends projected (for next 12 months)" + "Upcoming payments (for next 12 months)"

Annual Expenses = Based on your settings under "Financial Freedom Index". It is defaulted to SGD 60,000.

How do your numbers look? The closer your FFI is to 100, the closer you are to popping that bottle of champagne to celebrate your freedom!

As always, I am happy to receive feedback and suggestions. In this case, I'd particularly like to hear what other numbers you believe are important to investors and should be included in the dashboard.

Happy investing!

Bonus: You can now auto-export (via email) information entered for other assets by updating the settings under "Regular Export Email"


Like
19 likes
15 comments

kpo - Looks cool! Thanks Evan.
4 Jan 2019 08:34:31

urameshi85 - wow. This rocks
4 Jan 2019 10:29:16

warriortan - Nice surprise!
4 Jan 2019 19:20:58

hldhl - The FFI is a cool idea which I am tracking separately myself in excel. It matches really closely to my calculations, so its very cool.
However, my networth is mindbogglingly different until I figured out total portfolio = current value + cash balance (which becomes more negative with every stock purchase). Since I don't really understand purpose of cash balance, and don't want to tinker with it, I found the networth chart unhelpful to me. Just my two cents.
Lots of new features recently. Thanks! :)
4 Jan 2019 19:24:12

evankoh - @all, thanks!

@hldhl, you can remove the cash balance feature here -> https://stocks.cafe/user/toupdateportfoliopreferences
Search for "Display Cash Feature" and uncheck it.
4 Jan 2019 20:16:35

starfishx2 - Great addition!
4 Jan 2019 22:34:54

azrael - Thanks, I have been tracking that myself for some time
5 Jan 2019 01:55:00

imnotfish - Hi Evan, for Other Assets, there isn't an option to input Dividend other than Buy or Sell, is there any way for the FFI to account for the dividends acquired from Other Assets? Thanks!
7 Jan 2019 19:22:41

evankoh - @imnotfish, yes, you can add payments/dividends here => https://stocks.cafe/personal/assets/payment/toadd
Cheers!
7 Jan 2019 20:07:23

nigelmichaelw - Fantastic addition Evan!! Just thinking out loud here; do you think it would be a good idea to be able to segregate our customised "Other Assets" that we've added under our various existing portfolios? Reason being that I track multiple portfolios on my account, i.e. Myself, parents, my better half etc and this occurred to me when I wanted to add our individual property investments/insurance endowments/CPFs. Just thought it would be good to be able to see how each of our individual net worths are faring over time. Cheers
8 Jan 2019 23:09:11

evankoh - @nigelmichaelw, sure. would you mind creating a feature request for it? Btw, I am not sure if tagging to existing portfolios would be the best way. One alternative would be to have other assets specific portfolio. I would think that is slightly more flexible. (The other assets portfolios can of course mirror current stock portfolios).
9 Jan 2019 06:32:53

chengkk - Hi great feature ! but I can not input negative value for liabilities like loan, it gave error. Thanks!
13 Jan 2019 17:36:24

evankoh - @chengkk, I wrote up a simple guide to explain how to enter liability here => https://forum.stocks.cafe/t/how-to-enter-liabilities-into-other-assets/851
14 Jan 2019 06:47:07

imnotfish - @evankoh Thank you!
19 Jan 2019 04:21:44

Albertyeo - $60K annual is expenses og $5K per month. Looks reasonable at this point of time.

Thanks Evan. You are always value adding this services.
31 Jan 2019 13:13:57



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