Comments on: How To Calculate Your Net Worth http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html personal finance blog with anecdotes, advice and commentary. Tue, 24 Nov 2009 20:44:11 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Jim http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-291428 Jim Mon, 10 Nov 2008 13:35:44 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-291428 I don't know how to do that - suggestions, guidance? Thanks... I don’t know how to do that – suggestions, guidance?

Thanks…

]]> By: jim http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-291426 jim Mon, 10 Nov 2008 13:33:00 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-291426 @Jim - One option is to find the current cash value of the stream of income, you can do this pretty easily by discounting cash flows. @Jim – One option is to find the current cash value of the stream of income, you can do this pretty easily by discounting cash flows.

]]> By: Jim http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-291423 Jim Mon, 10 Nov 2008 13:18:03 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-291423 How does one include retirement annuities in calculating net worth? Before I retired I could determine a cash-out value, but after annuitization, it is just a monthly income. How does one include retirement annuities in calculating net worth? Before I retired I could determine a cash-out value, but after annuitization, it is just a monthly income.

]]> By: fivecentnickel.com http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-96522 fivecentnickel.com Wed, 23 May 2007 12:13:05 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-96522 <strong>Net Worth vs. Net Investable Assets</strong> If you regularly read personal finance weblogs, then you know that writing about one’s “net worth” is a fairly popular topic. While I understand the importance of metrics for tracking your progress, I have to admit that I’ve nev... Net Worth vs. Net Investable Assets

If you regularly read personal finance weblogs, then you know that writing about one’s “net worth” is a fairly popular topic. While I understand the importance of metrics for tracking your progress, I have to admit that I’ve nev…

]]> By: FinanceGirl http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-92567 FinanceGirl Mon, 07 May 2007 03:01:24 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-92567 It is always confusing to calculation by yourself. I gave up already because I always end up with the different figure than it actually is. Now I'm using the personal finance software by Parcus Group and all work out amazing for me. I don't need to do any calculation anymore. All i need to do is enter the data then i get all the correct reasults. Such a relief! Just go to: http://www.parcusgroup.com/index.html GOOD Luck!!! It is always confusing to calculation by yourself.
I gave up already because I always end up with the different figure than it actually is.
Now I’m using the personal finance software by Parcus Group and all work out amazing for me.
I don’t need to do any calculation anymore. All i need to do is enter the data then i get all the correct reasults.
Such a relief!
Just go to:
http://www.parcusgroup.com/index.html

GOOD Luck!!!

]]> By: miller http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80560 miller Sun, 15 Apr 2007 22:53:49 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80560 Just a quick thing to add. Start SIMPLE and then work your way up. I ended up with a spread sheet that is so complicated that I haven't updated it in about a year. haha. Sophisticated (... complicated...) is nice, but if its so much that it because a burden, or it takes more time to use that you're willing to give, then obviously it doesnt work for you. My next cut at tracking this will be much simpler and "dumber." Just a quick thing to add. Start SIMPLE and then work your way up. I ended up with a spread sheet that is so complicated that I haven’t updated it in about a year. haha.

Sophisticated (… complicated…) is nice, but if its so much that it because a burden, or it takes more time to use that you’re willing to give, then obviously it doesnt work for you.

My next cut at tracking this will be much simpler and “dumber.”

]]> By: tinyhands http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80463 tinyhands Fri, 13 Apr 2007 17:40:03 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80463 I don't think Nick's question was so much "how" as "why" because you said that you don't change the value of your home from the purchase price. I don’t think Nick’s question was so much “how” as “why” because you said that you don’t change the value of your home from the purchase price.

]]> By: F2O http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80380 F2O Thu, 12 Apr 2007 13:01:28 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80380 I agree that consistancy is the key as well. But I still struggle with the home value every month. I've owned the place since 1999 and made major improvments. Since the house was bought cash and I took out a loan to do all the construction, the mortgage only offsets a small portion of the value. Plus, even with the pullback in the market, I know the house is worth more now than it was then. What I've used recently was the price similar homes recenently sold for on the street. Since the last time a house on my street was for sale was in 2004, I used that amount. The thinking is that it gives me a ballpark estimate without the overzelous expectations that can go along with home prices of the past few years. I agree that consistancy is the key as well.
But I still struggle with the home value every month. I’ve owned the place since 1999 and made major improvments. Since the house was bought cash and I took out a loan to do all the construction, the mortgage only offsets a small portion of the value. Plus, even with the pullback in the market, I know the house is worth more now than it was then.
What I’ve used recently was the price similar homes recenently sold for on the street. Since the last time a house on my street was for sale was in 2004, I used that amount. The thinking is that it gives me a ballpark estimate without the overzelous expectations that can go along with home prices of the past few years.

]]> By: Minimum Wage http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80372 Minimum Wage Thu, 12 Apr 2007 05:02:48 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80372 My net worth is minus five figures, and I doubt it will ever get to zero. Why would I want to calculate it? I'm not THAT much of a masochist. My net worth is minus five figures, and I doubt it will ever get to zero. Why would I want to calculate it? I’m not THAT much of a masochist.

]]> By: Scott http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80366 Scott Thu, 12 Apr 2007 02:04:16 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80366 Well, I look at as my net worth and my financial net worth. Net worth includes the house and car- financial net worth does not. I also include value of items not yet realized, stock options, rights, warrants etc. I also figure in inflation and taxes(AMT) so I can see how I am keeping pace with my buying power relative to the big number. Well, I look at as my net worth and my financial net worth.

Net worth includes the house and car- financial net worth does not. I also include value of items not yet realized, stock options, rights, warrants etc.

I also figure in inflation and taxes(AMT) so I can see how I am keeping pace with my buying power relative to the big number.

]]> By: Christopher Smith http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80354 Christopher Smith Wed, 11 Apr 2007 21:23:38 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80354 I think you've hit the nail on the head with your <b>consistency is key</b> message. That's the most important point. As a real estate investor, however, I take a different view on marking property at the purchase price and never touching it. Over the long run, solid real estate investments can be a key component in building wealth. It's useful to know when you're sitting on a bunch of equity. For those folks who've enjoyed the run-up in some overheated markets now might be the time to cash in - or at least re-optimize their portfolio. This isn't something you'll want to do frequently, or you'll introduce a lot of noise (and, probably, misplaced optimism) into your results. But in my opinion you should take a look every now and then, otherwise you're not getting a complete picture. I think you’ve hit the nail on the head with your consistency is key message. That’s the most important point.

As a real estate investor, however, I take a different view on marking property at the purchase price and never touching it.

Over the long run, solid real estate investments can be a key component in building wealth. It’s useful to know when you’re sitting on a bunch of equity. For those folks who’ve enjoyed the run-up in some overheated markets now might be the time to cash in – or at least re-optimize their portfolio.

This isn’t something you’ll want to do frequently, or you’ll introduce a lot of noise (and, probably, misplaced optimism) into your results. But in my opinion you should take a look every now and then, otherwise you’re not getting a complete picture.

]]> By: Christopher Smith http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80352 Christopher Smith Wed, 11 Apr 2007 21:21:59 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80352 I think you've hit the nail on the head with your <b><i>consistency is key</b></i> message. That's the most important point. As a real estate investor, however, I take a different view on marking property at the purchase price and never touching it. Over the long run, solid real estate investments can be a key component in building wealth. It's useful to know when you're sitting on a bunch of equity. For those folks who've enjoyed the run-up in some overheated markets now might be the time to cash in - or at least re-optimize their portfolio. This isn't something you'll want to do frequently, or you'll introduce a lot of noise (and, probably, misplaced optimism) into your results. But in my opinion you should take a look every now and then, otherwise you're not getting a complete picture. I think you’ve hit the nail on the head with your consistency is key message. That’s the most important point.

As a real estate investor, however, I take a different view on marking property at the purchase price and never touching it.

Over the long run, solid real estate investments can be a key component in building wealth. It’s useful to know when you’re sitting on a bunch of equity. For those folks who’ve enjoyed the run-up in some overheated markets now might be the time to cash in – or at least re-optimize their portfolio.

This isn’t something you’ll want to do frequently, or you’ll introduce a lot of noise (and, probably, misplaced optimism) into your results. But in my opinion you should take a look every now and then, otherwise you’re not getting a complete picture.

]]> By: Blaine Moore (First Time Home Owner) http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80333 Blaine Moore (First Time Home Owner) Wed, 11 Apr 2007 17:51:27 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80333 I haven't really been tracking my net worth (I really should) but I would use a similar method for offsetting the mortgage w/the house value. However, I wouldn't include the vehicle in my net worth. By the time I sell it, it will be worth very little and at any time I could crash it (or have it crashed into in a parking lot) and it would be worth next to nothing; the insurance would just help me with a down payment on another vehicle. I hope that I have enough cash reserves the next time that I need a vehicle that I can pay for it outright; I like not having a vehicle payment every month. I haven’t really been tracking my net worth (I really should) but I would use a similar method for offsetting the mortgage w/the house value.

However, I wouldn’t include the vehicle in my net worth. By the time I sell it, it will be worth very little and at any time I could crash it (or have it crashed into in a parking lot) and it would be worth next to nothing; the insurance would just help me with a down payment on another vehicle.

I hope that I have enough cash reserves the next time that I need a vehicle that I can pay for it outright; I like not having a vehicle payment every month.

]]> By: jim http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80329 jim Wed, 11 Apr 2007 17:10:32 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80329 You will want to record that as a capital improvement of some kind and add it to the value of your home. This is doubly important because you'll want to track large improvements because it increases the cost of your home and consequently will reduce your tax burden when you sell it. You will want to record that as a capital improvement of some kind and add it to the value of your home.

This is doubly important because you’ll want to track large improvements because it increases the cost of your home and consequently will reduce your tax burden when you sell it.

]]> By: Nick http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html/comment-page-1#comment-80328 Nick Wed, 11 Apr 2007 17:05:54 +0000 http://www.bargaineering.com/articles/how-to-calculate-your-net-worth.html#comment-80328 How do you account for improvements to your house? Spending $2,000 on new tile for the bathroom or redoing a kitchen for $20K? Do you increase the value of your house based on the cost of the improvement? How do you account for improvements to your house? Spending $2,000 on new tile for the bathroom or redoing a kitchen for $20K? Do you increase the value of your house based on the cost of the improvement?

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