Journey to My Networth


Just like any other personal finance blogs that I visited, I will start providing updates on my networth and this blog will be a living witness as I increase and improve my networth until such time that I retire. As of this writing, I am on my silver anniversary of birth in this world.

But first of all, what is networth? It is simply defined by this equation.

ASSETS – LIABILITIES = NETWORTH

Based on the equation above, an increase in assets corresponds to an increase in networth. Additionally, we must also decrease our liabilities in order to increase our networth.

What is an asset? And what is a liability? In accounting, we are used to define asset as anything that has of certain value and therefore can be converted into cash. And a liability is any kind of debt that we have be it unpaid bills or credit card purchases.

After reading Robert Kiyosaki’s books, I realized a whole new definition about assets and liabilities. An asset is simply anything that generates cash to your pocket and a liability is anything that sends out cash of your pocket. So put it simply, anything that flows cash INWARD, then that’s an asset while anything that flows cash OUTWARD is a liabilility.

Let me start by telling my journey to my networth. It all began during my college years when my entrepreneurial spirit grew. It all started with my passion about mobile phones.

I remember back then, my uncle used to sponsor additional allowance to me besides from the allowance that my parents used to give. Because of that passion in mobile phones, an idea grew in me to enter the buy and sell business using some of the savings that I got from my additional allowance provided to me by my uncle. During my free time, instead of spending it lobying around like most students do, I can be seen in the library particularly in the internet section. I used several websites as my resources in finding cheap mobile phones to buy and also use the same set of sites in posting them in return for a profit.

Six months after graduation and I was lucky to find myself to be employed in a multinational asset management firm as a consultant doing field research in the real estate market industry. The starting pay back then was way above the average starting salary. And after just a few months, it was increased by a hefty 50% due to the success of the company. We were then absorbed as underwriters doing due diligence of distressed debts and assets.

I stayed in the company for three years and with the salary that I’m getting with a lot of overtime fees, and the generous performance-based bonus that we have coupled with my frugal living, I was able to set some outstanding records with the developments of my networth.

In my entire stay in the company, I was in a habit of regularly saving my paychecks. I kept on setting aside a portion of my salary and used the equation:

INCOME – SAVINGS = EXPENSES

It was in late 2005 at the age of 22 when I started to learn about investments. I first invested in a bond fund in Sun Life. Then after I received my performance based bonus, I invested it into Metrobank Bond Fund. As my financial intelligence increases, my risk appetite kep on growing. And so I transferred my bond fund to equity fund in Sun Life.

I withdrew my investments in Metrobank Bond Fund gaining some 2.6% after 4 months. I also invested in Metrobank Balanced Fund where I reaped some 15% after about 6 months. Then I shifted to Equity Funds.

Just very recently, I started to invest directly in the stock market and just like any other investor, I am on a hefty loss as of now. No worries though since I started young and I still have a lot of time before retirement to ride the volatility of the stock market. It really pays to start young.

My first goal will soon be reach. With the right financial education, frugal living, attitude and discipline at work, and finally will power, I am determined to reach and achieve my first goal next year.

I will continue to provide updates on a monthly basis with regards to the development of it. Learn from my triumphs and avoid my mistakes. Join the Journey.

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Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

8 responses on “Journey to My Networth

  1. Занятно пишете, жизненно. Все-таки, для того, чтобы делать интересный блог, нужно не только просто сообщать о чем-то, но и делать это в интересной форме:)

  2. i am 21 and minimum wage employee, im a cook, there is no possible raise or opportunity to achienve higher wage. My monthly income is less than 10,000 precisely 8,000+.

    I want to do sidelines or small business but I wasn’t trained and do not have any mentors.

    can you help me

    • by the way my purpose is to start investing at an early age. I planned to start at low risk low amount possible investment then moving to higher amount and risk investments.

      thank you

    • Hi Jr, your situation is challenging but here’s what I can advise you to do. First of all, as a minimum wage earner, you need to discipline yourself when it comes to spending. Be frugal in all means for you to save. Pay yourself first. Everytime you receive your salary, immediately set aside a portion of it into savings FIRST, before you spend the rest.

      Do some budgeting. Downsizing is one of the keys in budgeting. Then as soon as you have savings then you can start investing in mutual funds. Some mutual funds offer as low as P10K investment. You can read more about investments here. Just choose the “Investments” category on the right upper right sidebar of this blog.

      In addition, to help you with your savings, let me refer you to choose the SAVINGS under topics.

      I hope this blog is able to help you in one way or another.

    • Jr, We have same case.. I am a teacher that’s why that’s the only sallary i’ve got monthly.. And i want to be financially free someday..

      Let’s educated ourselves in this very interesting matter.

  3. Wow, stumbled on this while looking for tips on investing. What a shame, I am 60 and just started to take interest… but better late than never….!

    Thank you so much, it is easy to understand you …Hope you can add me as your subscriber.

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