
Adding Net Property Value To Your Savings
A net property value statement is a financial scorecard that can usually be used to assess your financial position. This can be a reference point when making financial decisions and disclosing your property (assets) and debt liabilities (liabilities).
Assets include cash, savings, real estate, unit trusts, and company shares, while liabilities
include all types of loans, whether bank debt (including credit card debt), family or friend debts, rent payments, and utility bills.
You can boost the value of your net property by using a budget and cost tracking system. A budget can help control your spending. As a result, it allows you to invest in and gather
resources to boost the value of your net property.
Reducing costs and increasing savings is the key to enhancing net property value.
How To Calculate Net Property Value
STEP 1 – LIST THE VALUABLES ITEM YOU HAVE
Cash and
similar items,
such as fixed
deposits and
fixed deposit
accounts
Investments
such as shares,
bonds, and unit
trust funds
Retirement
funds such as
EPF and
personal
accounts
Real estate,
including
homes,
apartments, and
land
Personal
belongings that
can be sold,
including
jewelry made
of gold bars,
artwork, and
antique
STEP 2 – EXPAND YOUR ASSETS
STEP 3 – LIST ALL YOUR DEBTS WITH OTHERS
Loans including
educational
loans, loans
from the bank,
and others
Credit card
balance
Taxes payable
such as
property tax and
income tax
Debts to
relatives,
friends, and
other people
Settlement
balance for
consumer
goods such as
televisions or
furniture
Step 4 – SUM UP YOUR LIABILITY
STEP 5 – ASSET MINUS LIABILITY
Congratulations if the answer is positive. You have to plan how to increase the value of your
net property. If the answer is negative, try not to be frustrated because there are still things
you can do to improve your situation