Monday, December 11, 2006

Net Worth - December 2006 + $63,679.21

I have been tracking my net worth for a while, but I have never seperated it into debt or asset classes. This will be absolutely critical for rebalancing my portfolio.

As of 01 December 2006:

Discretionary Funds NZD 7,271.01
Credit Cards NZD 0.00
Loans NZD 0.00
Mortgage NZD 0.00
Sub Total NZD 7,271.01

Cash NZD 25,632.40
Property Equity NZD 0.00
Forex NZD 15,925.91
Stocks NZD 14,849.90
Sub Total NZD 56,408.20

Total NZD 63,679.21

The only real significance here is that I have no debt. I aim to keep it that way if possible. The only debt I would consider is a mortgage, but even then I would have to think about it quite hard.

I know some would argue this point and I welcome some healthy discussion.

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Sunday, December 03, 2006

Some more perspective

Just to make it clear, I am only aiming for one billion New Zealand dollars net worth, just in case you thought I was a raving lunatic.

So just how far am I away from this lofty goal which would place me 2nd on the NZ rich list:

Cash 68.03% NZD 38,460.67
Investment 31.97% NZD 18,077.27
NZD 56,537.94

Quite a way to go... but hey I have a plan.

Step 1 - Quit my job.
Step 2 - Profit.

OK, I may have skipped a few steps there, but anyway...

The first thing I need to do, before giving a two finger salute to my boss, is to start generating enough passive income to cover my living expenses and go toward future investment. I have determined this amount of money to be 400,000 NZD a year. Currently I am generating about 3300 NZD a year passively, so I have a way to go yet.

I also want this income to be rock solid stable, so the majority of it will be in income providing type investments. I realise this might make my ultimate goal a bit more tricky, but hey I've got the rest of my life to get there!

So the magic interim figure I am aiming for is 10,000,000 NZD using the tried and true formula of 25 x planned retirement income.

More on how I'm going to get there later.

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