Last month, I achieved my first hundred thousand net worth. I also pledged to accumulate my next hundred thousand by the end of 2010, which is about 16 months from now. I’ve listed out my sources of income as a starting guide to see where and how my next hundred thousand will come in.

For the next 16 months, I estimate my income to be as follow:

1. I’d be able to save about RM3,000 a month from my salary (after deducting normal expenses eg. internet, mobile, petrol). In 16 months, I would be able to save RM48,000.
2. Business is bad this year. I don’t expect my bonus to be as high as last year. I’m estimating about RM6,000 bonus, after EPF, taxes etc.
3. I have some side income. Thank God it has started to pick up again. I earn about RM1,400 a month. In 16 months, I would be able to save RM22,400.
4. The dividends from my investments, is estimated to be about RM6,000.
5. I have some uncollected payments from some jobs, valued at RM2,600.

1 to 5 totals to RM85,000. This means a shortfall of RM15,000. What are the opportunities available that could help me narrow the gap and achieve my target?

1. I’m 100% invested in stocks now. My current portfolio value is about RM100,000. Can my portfolio appreciate 15% in the next 16 months? If yes, then the capital appreciation of 15% or RM15,000 will help me achieve my target. However, given that consensus views are that the stock market is already overvalued, I cannot count on further upside in my investment portfolio to cover my shortfall.
2. I have loaned a friend about RM5,000. I have already written this amount off after many unsuccessful attempts to collect the loan. I think now I have to be more persistent to collect this loan and if I am successful, I will be able to cover 33% of my shortfall.
3. Cutting back on my spending. Hmmm, I don’t think I can cut back anymore. I’m already spending very little.
4. Perhaps it’s time to setup a website to advertise my SEO services. If I can get a job every two months, this would add about RM5,000 in 16 months.
5. Join multiple contests and sell off the prizes? You’d be surprise to know that my brother has a friend who is doing this for a living.

Looking at the list above, accumulating my next hundred thousand in the next 16 months is certainly an achievable target. I’m looking forward to this challenge. It’s a nice feeling to watch my net worth grow month by month.