Do you track your net worth?

[Tinkerbellie16]

I have read a lot on this site and others about whether people follow a budget. I am one of those people that tracks down to the quarter what I spend (and my entire household) and have been doing this for over 10 years.

I also track all assets and liabilities and update these continuously so at any point in time, I can see my net worth.

I am actually astounded by comments from folks that say they don't believe that folks track their finances or make a budget. But maybe I'm the only one So I wanted to ask this question -

Do you track your net worth?
-Yes
-No
-What is net worth?

Comments are welcome - please let me know why you do what you do (track or not) too!

 

[Scubee]

We've used monthly budgets for the past 4-5 years and roll that into a cash flow statement each month to see how we are doing. I use the same excel spreadsheet to do both of them.

I have a separate spreadsheet for my net worth statement. I usually only update it 2-3 times annually. It usually happens when I'm reviewing my portfolio performance since it's easy to grab my balances at that time. Since our only liability is our home, that's another easy balance to get.

Both spreadsheets have built in calculations to cut down on the adding/subtracting. Continuously updating our net worth statement would be a bit annoying given the ups and downs of the moderate to high risk portfolio. Keeping an eye on the budget/cash flow is another story. I tend to check it once weekly to keep an eye on trouble areas (AKA dining out and clothing).

 

[Disneefun]

1. Yes. My financial software actually tracks it for me, but I like the feature and refer to it often.

2. Don't want to say. It's positive. That's all I'm saying.

3. We track because it's the only way to truly see how we're doing. That number isn't the end all, be all, but it's a great way to see how we're shaping up for retirement, etc.

 

[RitaE]

Yes obsessively. It's stupid, I know but Quicken enables me to the point of helplessness.

 

[MickeyMickey]

Yes, monthly in excel. I am a geek!

 

[Pesky]

You bet! I will confess to DH and I having been sloppy until recently about our finances. We are actually in a nice financial position debt-wise but that is more from me constantly assuming/pretending we make less than we do. But we've reached a point where we've realized that we need tighter controls on our finances to achieve some pretty big goals, like paying off our mortgage early, funding the kids' college accounts, accelerating our retirement if we can, saving for a replacement vehicle and bathroom remodel and so on. We follow our net worth because that is what determines approximate age for retirement, especially as we are looking for DH to retire and move to a different job (at a significant pay cut) in at least the next 10 years.

 

[ssawka]

Yes, I have a loving wife, a beautiful daughter, a roof over my head, a good job, and food on the table. I'd say I'm a pretty rich man!

 

[EMAW_KSU]

I also track all assets and liabilities and update these continuously so at any point in time, I can see my net worth.

I track ours but not continuously. Does it really matter what your net worth is at 1:15 PM compared to 1:30 PM?

 

[QVCshopper]

Yes, we track our net worth, but don't have a set monthly budget down do the last penny. But, we know what each expense is, how much food usually costs, etc.

We are happy with our net worth, which I would include house, investments, retirement, college savings, cars, minus loans on those things (we only have a loan for the car, which we could pay off but I like having some cash for emergencies and the interest rate is very low).

Personally, I would like to save a certain figure in assets alone by the time I reach 40, but my DH doesn't think it will happen by then. And I wish there wasn't such a stigma about money. I like discussing it with others, but many people don't.

 

[Tinkerbellie16]

We've used monthly budgets for the past 4-5 years and roll that into a cash flow statement each month to see how we are doing. I use the same excel spreadsheet to do both of them.

I have a separate spreadsheet for my net worth statement. I usually only update it 2-3 times annually. It usually happens when I'm reviewing my portfolio performance since it's easy to grab my balances at that time. Since our only liability is our home, that's another easy balance to get.

Both spreadsheets have built in calculations to cut down on the adding/subtracting. Continuously updating our net worth statement would be a bit annoying given the ups and downs of the moderate to high risk portfolio. Keeping an eye on the budget/cash flow is another story. I tend to check it once weekly to keep an eye on trouble areas (AKA dining out and clothing).

Nice! It's good that you keep an eye out on your portfolio performance too!

1. Yes. My financial software actually tracks it for me, but I like the feature and refer to it often.

2. Don't want to say. It's positive. That's all I'm saying.

3. We track because it's the only way to truly see how we're doing. That number isn't the end all, be all, but it's a great way to see how we're shaping up for retirement, etc.

What kind of software do you use?

As for #2, I didn't expect anyone to actually list their net worth but I realize that I listed the poll answers to the question in my first post and 'What is net worth?' was probably viewed as 'What is YOUR net worth?'. Maybe that's what you saw??

Yes obsessively. It's stupid, I know but Quicken enables me to the point of helplessness.

Quicken! I haven't used it before - do you like it?

 

[Tinkerbellie16]

Yes, monthly in excel. I am a geek!

Fellow geek here

You bet! I will confess to DH and I having been sloppy until recently about our finances. We are actually in a nice financial position debt-wise but that is more from me constantly assuming/pretending we make less than we do. But we've reached a point where we've realized that we need tighter controls on our finances to achieve some pretty big goals, like paying off our mortgage early, funding the kids' college accounts, accelerating our retirement if we can, saving for a replacement vehicle and bathroom remodel and so on. We follow our net worth because that is what determines approximate age for retirement, especially as we are looking for DH to retire and move to a different job (at a significant pay cut) in at least the next 10 years.

Good for you! I also like to track my net worth and make sure I am above the line for my age and income. I want to feel secure and retire early if I so choose.

Yes, I have a loving wife, a beautiful daughter, a roof over my head, a good job, and food on the table. I'd say I'm a pretty rich man!

Aw, so sweet! And I totally hear you! Although I was asking about it economically

 

[nunzia]

Every month I add up all accounts. I don't really track our mortgage which is the only debt we have (and should be done with that next year), but like to see how much cash is available in all retirement accounts, banks, etc. I don't include house, cars, DVC, etc in this..only things I can quickly access if need be.

 

[Tinkerbellie16]

I track ours but not continuously. Does it really matter what your net worth is at 1:15 PM compared to 1:30 PM?

Not usually! The continuous part comes more into play for our expenses rather than our assets.

The way I track everything is by a spreadsheet. I do check all of our accounts daily to make sure there is nothing unauthorized and to update my expenses. I only update the retirement and long-term accounts once a month though. So at any time, I can check my spreadsheet and see my net worth. It can be 'off' a bit due to the monthly updates but it's negligible.

Yes, we track our net worth, but don't have a set monthly budget down do the last penny. But, we know what each expense is, how much food usually costs, etc.

We are happy with our net worth, which I would include house, investments, retirement, college savings, cars, minus loans on those things (we only have a loan for the car, which we could pay off but I like having some cash for emergencies and the interest rate is very low).

Personally, I would like to save a certain figure in assets alone by the time I reach 40, but my DH doesn't think it will happen by then. And I wish there wasn't such a stigma about money. I like discussing it with others, but many people don't.

I completely agree! I believe that the stigma around money actually causes us to misuse it (such as overspending!) I sit my family down once a month to review all expenses. DH gets the bigger story and more details then we pull the kids in to talk about our budget and what everyone is doing right and what everyone can do better for the next month. DH gets that 'deer-in-a-headlights' look when I talk finances, but he knows it is important so he listens

 

[Friendly Frog]

Nope. Too depressing. Currently using the "Ostrich" method.

 

[Tinkerbellie16]

In case anyone would like to see it, here is where you can see the average net worth by age and income (from a trusted source - CNN MONEY):

http://cgi.money.cnn.com/tools/networth_ageincome/

Every month I add up all accounts. I don't really track our mortgage which is the only debt we have (and should be done with that next year), but like to see how much cash is available in all retirement accounts, banks, etc. I don't include house, cars, DVC, etc in this..only things I can quickly access if need be.

Mortgage paid off next year, that deserves some whoops and hollerin!

Nope. Too depressing. Currently using the "Ostrich" method.

Aw
When I first started all this financial planning of mine, the numbers were tiny (or um, negative). But I found that I was always trying to push my number a little higher. So I'd think, I just need $50 to get to X amount so I'd do it. And I put in a set amount every month to different accounts. So the next month would roll around and I'd think, I only need $110 to get to Y amount, and I'd make a transfer. Eventually the number got better looking!

 

[ssawka]

Aw, so sweet! And I totally hear you! Although I was asking about it economically

I know, but I think we spend too much time basing a person's worth in monetary terms instead of worrying about what is really important!

Personally, I don't see the point in calculating your net worth. You have what you have and you know weather it is enough to support your lifestyle. It's nice to have a general idea of how you are doing, but I don't need an exact number.

 

[ilovemk76]

We have kept a budget for decades. When we were first married we used envelopes to stay on our budget.

We check our net worth quarterly. We only look at the "cash" accounts. We do not include the value of the house, cars, furniture etc.

I always round up the numbers in the budget (If I spend $56.21, I record $57) and down for the net worth (If the account has $1141, I put down $1100). I just need to be in the ball park.

 

[sukhakuli]

I know, but I think we spend too much time basing a person's worth in monetary terms instead of worrying about what is really important!

Personally, I don't see the point in calculating your net worth. You have what you have and you know weather it is enough to support your lifestyle. It's nice to have a general idea of how you are doing, but I don't need an exact number.

Ditto. I just don't see a point in tracking what I spend to the quarter. We stay debt free, and live generally beneath our means. According to your net worth calculator we are doing very well for our age group. I'd just rather spend my free time playing with my kids or whatnot vs playing with money software. but everyone has different interests. Neither are right or wrong.

 

[disneypharm]

In case anyone would like to see it, here is where you can see the average net worth by age and income (from a trusted source - CNN MONEY):

Wow! How accurate is this site calculator? The numbers seem really low for average net worth for both age and income. I thought that we are doing badly until I used this calculator.

We do all our finances using Quicken. It is very easy and quick to use.

 

[MrsPete]

I have read a lot on this site and others about whether people follow a budget. I am one of those people that tracks down to the quarter what I spend (and my entire household) and have been doing this for over 10 years.

I also track all assets and liabilities and update these continuously so at any point in time, I can see my net worth.

I am actually astounded by comments from folks that say they don't believe that folks track their finances or make a budget. But maybe I'm the only one So I wanted to ask this question -

Do you track your net worth?
-Yes
-No
-What is net worth?

Comments are welcome - please let me know why you do what you do (track or not) too!

When we were first married, we talked about our budget frequently. At that point we were, I suppose, honing our shared approach to money. Now, after 22 years of marriage, we never talk about it; it's not necessary. We have a sort of sixth sense about what we can and can't afford, and it doesn't fit neatly into a weekly or monthly budget. For example, this is a big spending month for us: Our yearly insurance (3 drivers + the house) is due, I just made a downpayment on our youngest's braces, and I'm buying 1/4 of a cow for the freezer. But this all fits into our planned expenditures: Paying our insurance yearly saves money, the braces are a necessity, and buying the cow gives us superior beef for a low price. For us, tracking down to the quarter would be a waste of time. Although our budget might seem rather fuzzy to someone else, we're in perfect agreement on the boundaries.

My husband calculates our total net worth twice a year: At New Year's and on our anniversary in July. This is often enough to see how our savings, retirement, etc. has grown (or occasionally shrunk), and it's often enough for us to guarantee that we're heading for our overall goals.

Every couple years my husband has a chance to talk to a financial advisor without charge. He always takes this offer, saying although we're actually ahead of our financial goals, it's nice to have an unbiased expert verify that we are actually on track for our savings goals.

I know, but I think we spend too much time basing a person's worth in monetary terms instead of worrying about what is really important!

Personally, I don't see the point in calculating your net worth. You have what you have and you know weather it is enough to support your lifestyle. It's nice to have a general idea of how you are doing, but I don't need an exact number.

Watching your budget doesn't mean you aren't also paying attention to your family and relationships.

For us, especially my husband, not knowing where we stand financially is extremely stressful, and it prevents him from focusing on "what is really important". For example, he's been a bit on edge financially about our oldest heading out to college. We have the money many times over, but he's worried about whether we should pull it from this account or that account, should we use the savings bonds first or save them for the year when we'll have two in college, etc. Once she chose her college and he could see the actual costs, he relaxed a great deal. Neither of us deals well with "maybes".

Also, failing to watch your finances can cause trouble for your loved ones. I don't feel obligated to provide my children with their every whim, but I don't want them to have to borrow for college or figure out how to support me in my old age because I didn't save. Those things are also really important!