For those of you who calculate your net worth

[Hedy]

What do you include for assets-I've been including my bank accounts, Roth, and 401K, but a blogger I read includes her car as an asset. Mine isn't paid off yet, so I don't know if I should include it or not.

As a sidenote, even if you think you don't have that much for a networth, or know your networth is negative-I highly recommend tracking your networth-yeah, mine is negative, but over the three months I've done it I've both learned I was drastically underestimating my networth, and I've seen my how my networth has grown in the past few months.

[disneysteve]

I typically include only my financial assets - cash, stocks, bonds, funds. I don't usually include the house since it isn't a liquid asset. And I don't include stuff, like cars, clothing, jewelry, furniture, collectibles, etc., though a detailed net worth calculation would include all of those things.

[Broken Arrow]

I think it's fair to include your car into your net worth, so long as the market value is subtracted by the outstanding loan. Kelly Blue Book is probably the easiest way to go, though I wonder if it isn't more realistic to use a figure of what you can actually sell it for.

Personally, I don't add my car, but mine is 10 years old even though it is paid for.

I track my net worth monthly. It's serves as a decent barometer to measure our financial health.

[Scanner]

I think it's fair to put all your wordly posessions (major ones) when calculating your net worth.

Illiquid assets like houses in some markets can be liquidated in 3 days (our last house). . .some markets 3 years.

Your house is often a great repository of your wealth. Just be sure to include your liabilities, your mortgage and car loan.

I like calculating net worth too. . .and then fantasizing about what one old lady did.

She sold all of her worldly posessions down to 3 suitcases and decided to retire to cruise ships and cheap hotels and family between cruises. It was handicapped accessible, small cabins were affordable, and a ship doctor was always available for basic health needs.

If DisneySteve doesnt' calculate his house or car in his net worth, he'll never be able to live that fantasy out in his head (and I know he wants to "cruise").

[Hedy]

Thanks for your input!

[Ima saver]

I do my net worth on the first day of every month. I do count my vehicles because 2 of them are antiques. I count my home cause it is paid for.

[Scanner]

All Aboard Travel

This is just a random selection of a travel website.

I see a cruise for 7 days for $400.

Figure that $1600/month (if you can arrange successive weeks in a row. . .I'd imagine that's highly unlikely) to be housed, fed, and access to basic healthcare. You could keep a few family pictures, sell all of your jewelry, furniture and buy some basic toiletries while on land.

I'd budget in an extra $1000/month for hotel stay-overs (restaraunt food) at major cruise ports and some books/magazines here and there. No need for a car. . .budget in taxi fare/bus fare or pick hotels near majory supermarkets

$2600/month. . .that ain't bad. You get maid service to boot.

Now. . .if I could only talk the wife into this. . .

I love the idea of liquidating everything. I figure if I achieve a $1,000,000 in networth. . .that's 40 years of cruising.

That's the problem. . .you got people like JimOhio trying to finance retirements with needs of 3.5 million dollars. That's because they want to own homes and pay taxes on them.



Someday my kids will figure I've lost my mind, I guess.

[Broken Arrow]

Someday my kids will figure I've lost my mind, I guess.

Dude, I think you've lost your marbles too.

But that's OK. I like it when people come up with er "innovative" solutions for their everyday issues.

That's the first time I've heard of the "cruiseline retirement strategy", but it certainly is an entertaining one.

[Gruntina]

I log my vehicle as a liability and not an asset. The vehicle can be demolished in one day and I lose it all. But it is listed as a liability in the case I run into an emergency and I had to sell the car and use the amount that is left over from the loan payoff if it is not yet paid off.

[disneysteve]

If DisneySteve doesnt' calculate his house or car in his net worth, he'll never be able to live that fantasy out in his head (and I know he wants to "cruise").

That cruise plan of mine really bugs you, doesn't it.

Since I don't plan to sell my vehicles or sell or borrow against my home to finance my retirement, I see no reason to include those assets in my net worth calculation. There was a thread recently asking if you consider your house to be a home or an investment. I consider it to be my home. If I owned investment real estate, I'd certainly count that in my net worth calculation, but I don't count my home.

[InDebtInDC]

If you consider everything, your education and experience are technically income producing assets as well.

But if you want to calculate using just your liquid assets, I would include book value for all properties, even personal belongings.

[FrugalFish]

When we applied for our home loan, they listed our cars as assets, so assume they are part of our net worth. The funniest thing is that our cars are old and on the paperwork were valued at $1200 and $800. Ya gotta be careful with assets like that floating around. I personally wouldn't have listed them, but the company wanted any and all cars listed as assets...

[disneysteve]

When we applied for our home loan, they listed our cars as assets, so assume they are part of our net worth. The funniest thing is that our cars are old and on the paperwork were valued at $1200 and $800. Ya gotta be careful with assets like that floating around. I personally wouldn't have listed them, but the company wanted any and all cars listed as assets...

My insurance agent runs a financial projection for me every few years. He includes cars, home, jewelry, furniture, collectibles, etc. in my net worth statement - basically all my worldly possessions of monetary value. The problem is he then uses that figure in calculating if I am on track for my retirement goals. That doesn't make sense to me since I'm not planning on hocking my wife's jewelry or selling the sofa and tv when I need to buy food in retirement.

[thekid]

I don't include depreciating assets, such as cars, furniture or other personal belongings.

Basically, since I don't own a house yet, I include only financial assets. Once I do buy a house, I will include it as it is not a depreciable asset (mostly) nor would excluding the large equity holding give a proper financial picture.

I'm a strong believer in calculating net worth. To me, it's all that matters in terms of sizing current financial health and mesuring how you are doing over time.

[disneysteve]

I'm a strong believer in calculating net worth. To me, it's all that matters in terms of sizing current financial health and mesuring how you are doing over time.

I think you're right, but I also think it depends why you are calculating your net worth. I do it primarily to track our progress toward retirement. That's why I don't include the value of our home. Assuming we continue to live here after retirement, the value of the home is of no significance toward deciding whether or not we are able to retire financially.