What is my Net Worth? March 8, 2007Posted by pf in Net Worth Update.
Now that I have a better sense for where I’m going, I need to know where I’m starting from. I am familiar with the concept of net worth (assets minus liabilities), but was under the impression that it was not exactly universal. What I mean by this is that I’ve seen some financial “gurus” include home value as part of net worth, while others have excluded it (not as liquid, everyone has to live somewhere, etc).
After some research, my perception is that the majority of net worth calculators / discussions include the asset / liabilities associated with your home and I’ve decided to go ahead and include it.
However, although the liability is without ambiguity (your mortgage), how you value the asset is a bit more subjective. Therefore, I’ll pay extra attention and attempt to be somewhat conservative in my estimates. At a high level, here is my Net Worth for February.