Personal Finance
Should We Include Human Capital In Calculating Our Net Worth?
By Invest Openly  •  June 28, 2015
Often times, when we read books or attend workshops related to Personal Finance, one of the exercise that you are requested to do (even before the actual book/workshop started) is to calculate your current Financial Net Worth. It is a simple formula : The sum of all your Assets (cash, investment, CPF balance and properties etc..) MINUS the sum of all your Liabilities (Housing loan, credit cards repayment, car loan etc..). The difference (could be positive or negative) is your Financial Net Worth at the moment. Recently, I am reading a book by Moshe A. Milevsky called Your Money Milestones. It kinds of throwing a spanner in the works by introducing Human Capital into the equation and claimed that the above-mentioned formula is flawed. In short, he is of the view that Human Capital is our greatest assets and it should formed of the Asset category. Of course, ... ...
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By Invest Openly
My name is Richard Ng and I am a Malaysian turned Singaporean. This is a personal blog of mine detailing my venture in Share Investment Project. All the details in this blog are from my real venture (as it happens) and all amount quoted are in SGD (Singapore Dollars), unless otherwise stated.
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