I didn't mean to abandon my own thread but we headed out on a family vacation. We drove from Colorado to Northern Michigan where my family has a cabin. And yes, we kept our receipts and had a budget!
My intent of the question was to understand the extent to which people tracked their finances and not just talk about a 'budget'. There are varied answers which I expected! I did NOT expect the judgement against me for tracking my net worth though. It saddens me to think that some people assume that by me asking one question on a thread, it somehow consumes my life. It does not. I shockingly have time for my family too! And work, and home, and cooking, cleaning, reading books, running, coaching my kids soccer team, movie nights with the family, talking with friends, neighborhood parties, and I could go on! So to those that don't track their net worth or budget the way I do, that's fine - for you. And my way works for me and my family.
But back to some of the responses around net worth in general. I am not sure about the calculator - or what is included in it. I thought it was low as well but then so many Americans have a LOT of debt which would bring down their net worth. I also trust the source. But I do take it with a grain of salt. No one asked my household what our net worth is so they didn't average me in there
OK - I'll admit it - I have a What is Net Worth question.
First of all - we don't budget at all - and I would prefer that we do at least some/more of that, but dh is resistant and it is tough to do it one sided. That said, we do well financially and don't spend a lot (except on vacations - even those are on the budget side). I know our retirement goals and we meet with our financial analyst once a year so I know we're on track. So it isn't like I don't have a clue where we stand...I just don't watch it week to week, etc.
Now, as for Net Worth - I know that it's Assets minus liabilities....I'm just not certain what to include in those figures. For example, a whole life insurance policy (where we will eventually get payments from in our older age)...Does that get included? Do you include your kids' college 529's (even tho you only anticipate using them for college expenses)? Do you include as a liability your kids future college costs or only current debts?
Net worth can be as simple as saying it is your assets minus your liabilities. Life insurance is not part of that (if it is term life insurance.) Because your inheritors would be the only ones that would see the money anyway and only if you die (and the terms are met). And some assets can be subjective. Your house for instance is only worth what someone would pay - and that is if you could even sell it. I use the last assessment of my house (at my last refinance) and what the city taxes me on to average an amount. I might lower or raise it according to how much the houses are selling for in our neighborhood as well. And in general, I lowball it (like someone else was saying - better to lowball the assets!)
Thanks for all the honest responses from everyone!
