Manila, Philippines

I Want To Be a Millionaire! How Do I Start and Track My Financial Progress?

I Want To Be a Millionaire! How Do I Start and Track My Financial Progress?
Sharing is caring:
Happy New Year! Excited for what’s in store for every Juan this new year!
Future Millionaire on Board (Update) by Enkhtuvshin

Most of us will surely have new year resolutions or goals. And some would probably have something to the tune of:

I want to be a millionaire this year.

Or become a millionaire by my 30th birthday, something like that. Nothing wrong with this goal. But what I realized, and asked my self more than 2 years ago, is that, how does one measure becoming a millionaire financially.


How Do I Know if I’m Making Progress?

Or the most basic question really is, how do I know if I’m making progress towards my financial goals? Especially now that it’s a new year, a new start for all of us.

I’m reiterating in this post that Juan should create a personal statement of assets, liabilities and net worth (SALN). I wrote about this more than two years ago, the basics of creating Juan’s SALN and I shall be stressing it now once again, to encourage Pinoy’s to start the year right. Sharing here our video again:


Surely, it’s easy to tell that Juan is a millionaire if s/he has at least PHP1M in his/her bank deposits. But how many of us have that? If I don’t have PHP1M, does that mean I’m not a millionaire?

How about my other assets? Or what if I indeed have PHP1M in my bank account but I also have a loan of PHP1.5M — am I still a millionaire? How many of us ask these questions to ourselves?

Create a Personal SALN

Creating a SALN is basically listing down what you own, what you owe, and the difference is your net equity, or in the language of taipans and the world’s richest, your net worth. Again, it does not have to be as accurate as auditors and BIR would have it since it shall be for your personal use. You just need an Excel file and the discipline to manage and track your finances — which is for your own good anyway.

And believe me, it gives you more peace of mind than tracking your savings (or loans) separately. It also becomes addicting to the point that you become extra aware and judicious before you spend your money.

I Want To Be a Millionaire! How Do I Start and Track My Financial Progress?

Also mentioned before that one of the fastest way to become a millionaire is to get a life insurance. But of course we all want to be a millionaire while we are still alive. So allow me to list down how I defined the entries to my personal SALN. You may tailor-fit yours as necessary.



1. Liquid Cash
How much is in your savings and checking accounts. May also include your emergency funds.

2. Long-term Cash

How much you have on high yield time deposits, T-bills, bonds and other equivalents. I also prefer to include here savings in AFPSLAI / PSSLAI, if any, since it has higher yields and I prefer to keep them long-term.

3. Stocks
Market value of stocks you have, preferably net of selling charges.

4. UITF / Mutual Funds
Market value of your various managed funds may it be equity, balanced, bond, etc.

5. Insurance Fund Value
I prefer to keep this separate from UITF and mutual funds since it has a different effect to my current net worth (CNW) (discussed below).

6. Life Insurance Sum Assured

How much will your beneficiaries get when you die? As mentioned above, this will make you a millionaire easily. Hence I track my net worth via 3 different definitions (discussed below).

7. Various Businesses
Market value of your various businesses. It may be the net worth of your businesses or an estimate of its “value”.

8. House and Lot  and/ or Condominium Value

The market value of the house and lot (and/or condominium) you own (mortgaged or otherwise). You may also depreciate / appreciate its value over time. You may also include here the value of major appliances / properties inside the house if they have good resell value (antique, paintings etc, but personally I don’t do this).

If the condo is still pre-sell, then Juan can count as asset the cumulative down payment s/he has paid. Once turned-over, the whole value of the condo may be counted as asset, but a mortgage loan (if any) shall be accounted for as liability.

9. Vehicles Value

The market value of the vehicle/s that you own. This one is usually depreciated over time (e.g. 10 years).

10. Land Value

In case you have other properties, the market value of these. If market value is hard to determine, purchase value might also be a conservative estimate.

Note that I don’t usually include appliances / gadgets etc. Personally I don’t want to have the mindset that buying these items increases my net worth. Yes these are all important and useful, but in my books, they count as necessary expenses and not assets.



1. Credit Card Balances
This one is important because usually, when we swipe to shop, we tend to forget how much we already owe. Tracking this also encourages Juan to pay the whole balances and not just the minimum amount due.

2. Short Term Loans
Balance of other unsecured loans you may have, especially those with less than or equal to 12 months loan tenor.

3. Long Term Loans
Balances of other loans with loan tenor longer than 12 months. SSS loan, Pag-Ibig Loan and other bank loans may go here.

4. Insurance Payables
Since we are counting insurance fund value and sum assured as assets, insurance payable must be rightfully treated as liabilities since if we don’t pay this obligation (e.g. 10 years), then our policy might lapse and we will not have above-mentioned assets.

5. Mortgage Loan
Did you take out a mortgage loan to get a house and/or condominium? Then these shall be counted as liabilities for us to enjoy the above listed assets.

6. Auto Loan
Similarly, if you took out an auto loan to get that dream car of yours you call asset, then this liability should be accounted for. The trick here is to ensure that the repayment of the auto loan balance is faster than the depreciating asset / car value.


Net Worth

Caveat, below definitions of various net worth are developed by Investment Juan01 and such definitions work well with us. Again, tweak it as applicable to your finances.

1. Total Equity / Net Worth (NW)

Computed as

Total Assets less Total Liabilities

Basically, this says how much of what you own was paid for by your own hard-earned money and not via credit. This number may surprise you and be unbelievably big since even the insurance sum assured is included here.


2. Living Net Worth (LNW)

Computed as

(Total Assets less Life Insurance Sum Assured) less 

(Total Liabilities less Insurance Payables)

This removes the insurance components in both assets and liabilities side. I call it living net worth since this is how wealthy you are while still alive. Note that insurance fund value is counted here 100% since you own that amount even prior to death.


3. Current Net Worth (CNW)

Computed as

(Sum of Assets 1 to 4, plus Withdrawable Portion of Asset 5) less

(Sum of Liabilities 1 to 2)

This shows the short-term / current state of Juan’s finances, removing long term loans which are likely collateralized by long term assets. I prefer to track this closely just because it’s the most relevant to my goal, and because, of the 3 net worth computations, I find CNW the most difficult to grow.

Only the withdrawable portion of the insurance fund value is counted here since withdrawing 100% of the fund value might affect your insurance policy’s sum assured. Some providers require maintaining PHP20K  in the fund value, hence withdrawable portion may be (Insurance fund value – PHP20K)



It’s easy to be a millionaire in terms of NW and LNW. I’d like to push every Juan to strive being a millionaire in terms of CNW. Personally, growing CNW substantially every year is always the goal.

What do you need to maintain this SALN file in Excel? Attitude, point-of-view and discipline, the same ingredients you need to have a richer financial standing. 

Update this file as often as needed (I try to do it daily), and your lots of steps closer to becoming a millionaire.

With every use your of credit card, or with every loan repayment, you’ll have a better sense of how it’s affecting your financial standing.

You’ll be more careful in taking out new loans, especially long term ones without collateral since it may not impact your CNW but in reality, you are still in debt.

You shall be forced to be creative in improving your CNW whether via more deposits, stocks, UITF, or growing your businesses.

And it will be your constant encouragement since even if your net take home pay is not that big, if majority went to increasing your CNW and not to expenses, then you’re on the right track.

Found this article helpful? Share with a friend to get him / her started. Follow us on Facebook, Instagram and Twitter to get real-time updates. Better yet subscribe to our mailing list absolutely for free.


Checkout Truly Rich Club and see the many financial (stocks, affiliate marketing) and spiritual benefits that we as members enjoy. Finally, feel free to support our advocacy. Share this with your friends.

This new year, may all Pinoys have a richer life.

Photo: Future Millionaire on Board (Update) (CC BY 2.0) by  Enkhtuvshin’s 5DmkII


 Filipino Personal Finance Investments For Filipinos Personal SALN

9 Responses

  1. Pinoys in Forbes Millionaires & Average Net Worth: Where Do You Stand? | Investment Juan-01 says:

    […] Track Financial Progress […]

  2. Geri says:

    Hey Marge. Good question. This one's tricky.

    Personally I don't include my payroll account in my SALN because I almost always zero it out, and it's always a diminishing balance until the next payroll. So in this sense, my SALN is slightly understated.

    As soon as payroll comes in, I withdraw a significant amount and transfer to my other bank accounts (which are counted in my SALN).

    I track my expenses separately (which is pretty much what the payroll account is for) but remember the SALN is a snapshot of what you own and owe, so it does show you your cash in flows and outflows.

    Hope this helps.

  3. Marge says:

    How about your payroll account? Do you count that among your assets?

  4. Geri says:

    Thanks Mark. Hope to hear more of your thoughts here.

  5. Geri says:

    Yup. So that if ever a buy a new phone, it hurts me so much on the asset side (less cash) or liabs side (more card balances) which as negative impact on my NW. That way I really convince my self whether I have to buy those stuff.

  6. Ray says:

    Nice work. If you know where you are (your assets minus liabilities), you'd know how far you need to go (digging out of debt and into the Million) and how fast you'll get there based on your current income.

    Note: Not including gadgets, etc. is a nice touch. I don't consider those as “assets” as well since they depreciate to nothing in a few years.

  7. Mark Joshua says:

    Thanks for sharing! It really is a big help to know how far you can go with your expenses.

  8. Neri Ann says:

    will have this for reference. I only have assets (1, 4, 5, 6 & 8) liabilities (3, 4 & 5) parang ayokong computin feeling ko negative ang net worth ko 🙁

  9. Geri says:

    Try it! I wouldn't think so. Let me know how it turns out. What matter is you know where you are, to know what has to be done to get where you want to be. Cheers! May you have a richer life.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Do NOT follow this link or you will be banned from the site!