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I include the cars (depreciate annually). And as mentioned the debt would show as a liability. I know my car is not a liquid asset, but it is a relatively liquid asset all the same. Plus it is hard to track your net worth if every car purchase goes to a black hole. Depreciation makes more sense. You buy an asset that depreciates with time.
For us, since we live in such an inflated housing area, we include the purchase price of our home. I would even consider adding inflation or a standard 3% per year or something. I include it because it is such a big asset for us and most of our savings in our early years went into the down payment. Otherwise we got about $100k in a black hole as well. Of course we show the purchase price as an asset and the mortgage as a liability. (Don't see having to adjust that downward for a long while if ever - housing is so much more than we paid).
I find tracking our net worth has really helped us financially. It really helps us hone in on long-term goals and look at the big picture. Otherwise it is easy to get wrapped up in just cash or retirement, or the budget. The big picture is what really counts.
For us, since we live in such an inflated housing area, we include the purchase price of our home. I would even consider adding inflation or a standard 3% per year or something. I include it because it is such a big asset for us and most of our savings in our early years went into the down payment. Otherwise we got about $100k in a black hole as well. Of course we show the purchase price as an asset and the mortgage as a liability. (Don't see having to adjust that downward for a long while if ever - housing is so much more than we paid).
I find tracking our net worth has really helped us financially. It really helps us hone in on long-term goals and look at the big picture. Otherwise it is easy to get wrapped up in just cash or retirement, or the budget. The big picture is what really counts.
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