Question on tracking net worth

[lemmyk]

I've been tracking my overall net worth on a monthly basis... very simply taking all my savings/retirement/college savings accounts and adding them up in one section, then taking all my debt and adding them up in another.

I then subtract debt from assets, and viola!

But here's a question, and it's more semantic than anything else, just to get an idea how you've been tracking net worth...

I have a couple of "fun" savings accounts (holiday shopping, vacation, etc...) that I place some money into each week. These accounts then get lumped into my assets... once Christmas, or vacation rolls around, it (on paper) looks like my net worth takes a big hit. Mind you, these accounts were always earmarked for spending, so do I:

1. Stay the course, keeping these accounts as assets until use, then taking a hit on net worth?
2. Do not record these accounts in my net worth spreadsheet?
3. Create a third category to track them, but they don't affect net worth?

Again, this is a question of semantics, but I'm really trying to be better at tracking my progress. This just came up because we are now going to use our vacation fund, and my poor net-worth tracker just took a hit!

So, how do you keep track of these accounts?

[mrpaseo]

I gestimate my net worth quarterly by using an excel tracker that I put together. In your case I would suggest using number three, build your net worth using your base investment portfolio and track your vacation/christmas funds on the side.

Just my two pfennings...
Ray

[Ima saver]

I agree, I would use #3!

[Ima saver]

I have a checking account that pays interest. I keep my money for vacations, christmas, house repairs and medical in that checking. (and keep track of it on paper)
I never count that in my net worth. Oh, I also put away so much money each week in that account for my biggest expense, property tax, house insurance and car insurance.

[disneysteve]

I think that money is an asset and should be counted as such. The fact that you plan to spend it is irrelevant. I plan to spend the money in my daughter's college account, but I still count it as an asset. I plan to spend the money in my retirement account, but I still count it as an asset.

Net worth is a fluid number. It goes up and it goes down. It doesn't just go up continually.

[Aleta]

Your networth is everything that you own minus your debt. If you should pass away everything would have a monetary value for you to pass on to others. The networth includes your house also minus the balance owed. It is also your cars, jewelry, art, coin collections, etc.

It doesn't matter what categories that you have your money assigned to. You could have it in a future vacation fund and then decide to fund your retirement account with it.

Eventually your retirement funds will be spent or used as well. Some people like to just track their monetary net worth as in their 401K's, IRA's, stocks, mutual funds, CD's, money market funds, savings, checking accounts, bonds, savings bonds, cash, etc.

This is an overview of how much you are worth to yourself. The true networth has more to do with your demise.

[Broken Arrow]

This is just me, but I stay the course and let it take a hit when it gets there. I prefer to know exactly what I am working with, and bumps here and there are normal to me.

[mrpaseo]

All good points, as a matter of fact, one of the reasons I do it quarterly and include everything is so in the event of my death, my wife will know where everything is and what we owe. As was said, I have an ING account that I store my annual payments in (Christmas, Birthdays, vacations, car ins...etc), when I calculate my net worth I include all of these items. I suggested otherwise as you were adamant about the influx of the monetary value of your tracker, since you view your net worth as a building block, it made since to exclude monies that you will be spending in the short term. (The key being short term)

Ray