Comments on: End of the Year Net Worth Update http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/ This is where your finance takes place Thu, 09 Feb 2012 04:02:52 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Financial Blogger | Tricks to Improve Your Net Worth Part1 http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4357 The Financial Blogger | Tricks to Improve Your Net Worth Part1 Tue, 06 Jan 2009 10:54:31 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4357 [...] I was able to increase my Net worth by 17% last year, I still think that I could have done better. Some people don’t think that net worth [...] [...] I was able to increase my Net worth by 17% last year, I still think that I could have done better. Some people don’t think that net worth [...]

]]> By: The Financial Blogger http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4327 The Financial Blogger Wed, 31 Dec 2008 23:03:06 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4327 I understand your point for the car. However, if I would have paid 23K for my tv, I would be tempted to include it in my net worth ;-) Good point on the house but it seems a lot of calculations ;-) and it would probably increase the value of my property (the fact that I work for a bank makes my interest charges on a mortgage very very low!) Happy New Year! I understand your point for the car. However, if I would have paid 23K for my tv, I would be tempted to include it in my net worth ;-)

Good point on the house but it seems a lot of calculations ;-) and it would probably increase the value of my property (the fact that I work for a bank makes my interest charges on a mortgage very very low!)

Happy New Year!

]]> By: Goalhunter http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4326 Goalhunter Wed, 31 Dec 2008 21:59:44 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4326 If you prefer to include the car then why not your other long-lived assets like the TV and kitchen table? You could estimate the value of those by the value of the insurance of your home's contents, or by taking the big items and comparing price on Kijiji. Especially if they are funded by the "personal debt". By the way, that's a fantastic interest rate if it's unsecured. For my "net worth" as it applies to tracking my wealth I take only the investment activities. So no primary residence, no car, etc. If I was to value my residence, I would value it as the difference between owning and renting since I absolutely must live somewhere. Basically the PV of what rent would be minus the PV of all the interest payments is what owning my home adds to my wealth. But I don't go through that and just value the home at zero until I come a lot closer to owning it outright. If you prefer to include the car then why not your other long-lived assets like the TV and kitchen table? You could estimate the value of those by the value of the insurance of your home’s contents, or by taking the big items and comparing price on Kijiji. Especially if they are funded by the “personal debt”.

By the way, that’s a fantastic interest rate if it’s unsecured.

For my “net worth” as it applies to tracking my wealth I take only the investment activities. So no primary residence, no car, etc.

If I was to value my residence, I would value it as the difference between owning and renting since I absolutely must live somewhere. Basically the PV of what rent would be minus the PV of all the interest payments is what owning my home adds to my wealth. But I don’t go through that and just value the home at zero until I come a lot closer to owning it outright.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4325 The Financial Blogger Wed, 31 Dec 2008 21:30:49 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4325 Goalhunter, I actually used the Dec 22th appraisal report i received from the bank. you know appraisers, they always use even numbers ;-) It is definitely not ideal to have most of my net worth lies in my property value. However, considering my age and the fact that I have a family (much tougher to have 2 kids in an apartment), I think it was the right decision... for now. I used 17K from my HELOC to finance my investments in the stock market and my company shares. I am counting to increase my net worth in 2009 via other means than thought my property. I put the car value because I don't have any debts attached to it and the same model is being sold around 7 to 8 K right now. Goalhunter,

I actually used the Dec 22th appraisal report i received from the bank. you know appraisers, they always use even numbers ;-)

It is definitely not ideal to have most of my net worth lies in my property value. However, considering my age and the fact that I have a family (much tougher to have 2 kids in an apartment), I think it was the right decision… for now.

I used 17K from my HELOC to finance my investments in the stock market and my company shares.

I am counting to increase my net worth in 2009 via other means than thought my property. I put the car value because I don’t have any debts attached to it and the same model is being sold around 7 to 8 K right now.

]]> By: Goalhunter http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4324 Goalhunter Wed, 31 Dec 2008 20:51:10 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4324 You house (value - HELOC) is 47 out of your 48K net worth. The value of your house is appraised at 300,000 (3 with 5 zeros, what are the chances?). This is clearly an estimate within, I'm guessing, maybe a 10-50K margin of error. That affects your net worth by 20%-100% if you leave it in. This means that 48K is almost certainly not even close to your net worth. More useful to cut that piece out, especially since it isn't optional and doesn't generate revenue. List as a liability the portion of the mortgage associated with investments. I just assumed this was part of the HELOC, but if you increased another mortgage then that amount is applicable. You house (value – HELOC) is 47 out of your 48K net worth. The value of your house is appraised at 300,000 (3 with 5 zeros, what are the chances?). This is clearly an estimate within, I’m guessing, maybe a 10-50K margin of error. That affects your net worth by 20%-100% if you leave it in. This means that 48K is almost certainly not even close to your net worth.

More useful to cut that piece out, especially since it isn’t optional and doesn’t generate revenue. List as a liability the portion of the mortgage associated with investments. I just assumed this was part of the HELOC, but if you increased another mortgage then that amount is applicable.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4323 The Financial Blogger Wed, 31 Dec 2008 20:32:06 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4323 Goal Hunter, Why would you take off the house value and the mortgage? I actually used my house value several times in order to increase my net worth through investment (stock market and my company). Without this "tool" I would not be able to leverage in order to create more wealth. I'll increase my company share value next year ;-) What do you think? Goal Hunter,

Why would you take off the house value and the mortgage? I actually used my house value several times in order to increase my net worth through investment (stock market and my company). Without this “tool” I would not be able to leverage in order to create more wealth.

I’ll increase my company share value next year ;-)

What do you think?

]]> By: Goalhunter http://www.thefinancialblogger.com/end-of-the-year-net-worth-update/comment-page-1/#comment-4320 Goalhunter Wed, 31 Dec 2008 14:51:38 +0000 http://www.thefinancialblogger.com/?p=1058#comment-4320 I would change three things about how you measure your net worth: 1) Get the car out of there. 2) Get the house out of there, as well as the mortgage associated with it. But keep the heloc associated with investments. 3) Value the company shares in at more of a market value. You value your stock market shares at market, so if you were able to improve on your company give yourself credit! I would change three things about how you measure your net worth:

1) Get the car out of there.
2) Get the house out of there, as well as the mortgage associated with it. But keep the heloc associated with investments.
3) Value the company shares in at more of a market value. You value your stock market shares at market, so if you were able to improve on your company give yourself credit!

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