Comments on: Financial Planning: How to Find Your Net Worth

By: Sarah

Sarah — Tue, 09 Mar 2010 00:35:56 +0000

If you are going to include assets like cars when calculating your net worth, they should probably be entered at their market value (what you could sell them for today) rather than at their book value (what you paid for them) or their replacement value. Standard accounting practice in business is to use the book value but that doesn’t tell you much when you’re a person considering your net worth.

By: Forex Manager

Forex Manager — Mon, 08 Mar 2010 08:56:24 +0000

Have you read Robert Kiyosaki’s books? He has some interesting concepts about assets and investments which may go against the common accounting definitions of such terms.

By: Chiot's Run

Chiot's Run — Sun, 07 Mar 2010 23:42:04 +0000

I calculate my net worth each month, I use NetworthIQ.com to keep track. I do add the cars in my net worth calculations, but I undervalue them. I figure if everything goes sideways I can always sell at least one of my cars, so it’s an asset in my mind if I can sell if for cash. Household good, not so much.

By: Kerry

Kerry — Sun, 07 Mar 2010 23:06:17 +0000

@BibleDebt HA! I think that’s the best simplification ever! Love your thinking.

By: BibleDebt

BibleDebt — Sun, 07 Mar 2010 22:59:45 +0000

The calculation gets even easier when you eliminate your debts. The equation then becomes Assets = Net Worth as your debt is zero. Thanks for the article, it is good to be aware of where you actually balance out.