Comments on: Building Your Own Monthly Net Worth Calculator Using A Spreadsheet http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 23:44:30 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Sharon http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-807453 Sharon Wed, 11 Nov 2009 18:20:24 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-807453 Should retirement savings (ROTH IRA, regular IRA, 401K, etc.) be counted as assets? I'm especially curious about the ROTH as that was created with after tax money. Should retirement savings (ROTH IRA, regular IRA, 401K, etc.) be counted as assets? I’m especially curious about the ROTH as that was created with after tax money.

]]> By: Bill in Houston http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-752187 Bill in Houston Wed, 12 Aug 2009 18:22:03 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-752187 Thanks to my student loans of (currently) $43,000 I still have a negative net worth, but that should flip by February 2010. Thanks to my student loans of (currently) $43,000 I still have a negative net worth, but that should flip by February 2010.

]]> By: Ian http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-317770 Ian Wed, 02 Jul 2008 16:12:56 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-317770 @ Trent, Comment #3 A better way to calculate percent change of net worth when going from negative to positive is to do =(C9-B9)/B9*SIGN(C9) which will always give the result you want without having to change the formula. @ Trent, Comment #3

A better way to calculate percent change of net worth when going from negative to positive is to do =(C9-B9)/B9*SIGN(C9) which will always give the result you want without having to change the formula.

]]> By: Jerry http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-253921 Jerry Sat, 26 Apr 2008 05:28:55 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-253921 @Matt, in his reply to Shelby. For the purposes of tracking net worth, it is most important to select (a) an easy method that is (b) objective and (c) somewhat approximately accurate. It has to be easy because you will be doing this monthly. It has to be objective, because you're working with numbers, not what someone feels it "should be worth". Why it has to be accurate, well, that's obvious. Just don't get hung up on absolute accuracy down to the penny. For most home owners, +/- $1,000 or even +/- $5,000 is only 1% or a fraction thereof. "Close enough" is fine As Long As you are consistent. I use Zillow (http://www.zillow.com). It is free, easy, objective, and somewhat nears reality. You can check Zillow's estimate for your home's value as often as you want to calculate your net worth. Even better, you can use this estimate as a reminder to update the home replacement cost in your homeowner's insurance policy every few years. Tracking your home's value also lets you know if your property tax appraisal is way off and needs to be challenged. How one assigns the exact monetary value to a home is a difficult question. Why else have an obscenely costly realty and appraisal industry, after all? How much a home is worth can only be decided, ultimately, during its' sale to a willing buyer. Okay, enough philosophical musing. The precise value of your home is not important to your net worth calculation unless you are a buyer or a seller at this very moment. Some financial managers don't even care what your home is worth. They use "investable assets": net worth excluding your primary residence. I cannot sell a bedroom if I need to invest some money or pay off a bill, after all. A house is not a liquid asset, and it's all or nothing. For the reasons stated above (insurance and property tax appraisal), I prefer to track my home's value. Besides, it makes my net worth look bigger, so I feel better. :) I just don't obsess about it. regards, Jerry @Matt, in his reply to Shelby.

For the purposes of tracking net worth, it is most important to select (a) an easy method that is (b) objective and (c) somewhat approximately accurate. It has to be easy because you will be doing this monthly. It has to be objective, because you’re working with numbers, not what someone feels it “should be worth”. Why it has to be accurate, well, that’s obvious. Just don’t get hung up on absolute accuracy down to the penny. For most home owners, +/- $1,000 or even +/- $5,000 is only 1% or a fraction thereof. “Close enough” is fine As Long As you are consistent. I use Zillow (http://www.zillow.com). It is free, easy, objective, and somewhat nears reality. You can check Zillow’s estimate for your home’s value as often as you want to calculate your net worth.

Even better, you can use this estimate as a reminder to update the home replacement cost in your homeowner’s insurance policy every few years. Tracking your home’s value also lets you know if your property tax appraisal is way off and needs to be challenged.

How one assigns the exact monetary value to a home is a difficult question. Why else have an obscenely costly realty and appraisal industry, after all? How much a home is worth can only be decided, ultimately, during its’ sale to a willing buyer. Okay, enough philosophical musing. The precise value of your home is not important to your net worth calculation unless you are a buyer or a seller at this very moment.

Some financial managers don’t even care what your home is worth. They use “investable assets”: net worth excluding your primary residence. I cannot sell a bedroom if I need to invest some money or pay off a bill, after all. A house is not a liquid asset, and it’s all or nothing. For the reasons stated above (insurance and property tax appraisal), I prefer to track my home’s value. Besides, it makes my net worth look bigger, so I feel better. :) I just don’t obsess about it.
regards,
Jerry

]]> By: Matt http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-252706 Matt Thu, 24 Apr 2008 18:09:56 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-252706 @Shelby: Your debt remaining on your mortgage will actually be on your mortgage statement (either electronically or physically, depending how you get your statement these days!). This is required by law, so you shouldn't have a problem getting that. The one problem I have is treating my house as an asset. What do you declare its value as from month to month, especially with the wicked deflation from the houseing market recently (at least in my metro-Detroit area!). Do I just leave it as the value I purchased it at, or base it every 6 months on the State Equalized Value that it shows on my property taxes, or what? @Shelby:
Your debt remaining on your mortgage will actually be on your mortgage statement (either electronically or physically, depending how you get your statement these days!). This is required by law, so you shouldn’t have a problem getting that.

The one problem I have is treating my house as an asset. What do you declare its value as from month to month, especially with the wicked deflation from the houseing market recently (at least in my metro-Detroit area!). Do I just leave it as the value I purchased it at, or base it every 6 months on the State Equalized Value that it shows on my property taxes, or what?

]]> By: Valerie http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-71538 Valerie Sat, 15 Sep 2007 03:19:04 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-71538 These articles are great and very easy to read especially for a none financial person. Thanks! These articles are great and very easy to read especially for a none financial person. Thanks!

]]> By: Shelby http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-70463 Shelby Thu, 13 Sep 2007 01:49:58 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-70463 I'm not sure how to figure my mortgage balance as a debt. I don't know how much I owe. Other than calling the bank each month, how do you calculate that? I've been reading your site for several weeks now and there are some great tools for staying motivated. Thanks! I’m not sure how to figure my mortgage balance as a debt. I don’t know how much I owe. Other than calling the bank each month, how do you calculate that?

I’ve been reading your site for several weeks now and there are some great tools for staying motivated. Thanks!

]]> By: Mark http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-70068 Mark Wed, 12 Sep 2007 10:44:46 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-70068 I came to this page from your article on Quicken and MS Money (and how they are overkill) I use Quicken to do my taxes and rapidly report information so I can do my tax forms for a small business. I don't see how a simple net worth worksheet does any of that. I came to this page from your article on Quicken and MS Money (and how they are overkill)
I use Quicken to do my taxes and rapidly report information so I can do my tax forms for a small business.
I don’t see how a simple net worth worksheet does any of that.

]]> By: Mircat http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-69903 Mircat Wed, 12 Sep 2007 01:16:19 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-69903 WOW--thanks...just stumbled across this article, and made my own spread sheet. For someone (like moi!) who knows next to nothing about Excel, this article is a godsend! WOW–thanks…just stumbled across this article, and made my own spread sheet. For someone (like moi!) who knows next to nothing about Excel, this article is a godsend!

]]> By: Trent http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-52099 Trent Tue, 31 Jul 2007 15:18:04 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-52099 Your house should be an asset, but your remaining mortgage should be a debt. Your house should be an asset, but your remaining mortgage should be a debt.

]]> By: Justin http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-9066 Justin Mon, 05 Mar 2007 09:24:48 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-9066 Hi Trent, Like the site and the excel walkthroughs. I was looking at this and wondering where should I place my house? I mean it’s not an asset as I still owe money on my mortgage, but it’s not just a liability as I could sell it. Should I place the worth as an asset and mortgage as a liability? Should I try and assess the price every month? Thanks Hi Trent, Like the site and the excel walkthroughs. I was looking at this and wondering where should I place my house?
I mean it’s not an asset as I still owe money on my mortgage, but it’s not just a liability as I could sell it.
Should I place the worth as an asset and mortgage as a liability? Should I try and assess the price every month?

Thanks

]]> By: Rebecca http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-8943 Rebecca Sun, 04 Mar 2007 15:14:07 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-8943 I find these spreadsheet "how-tos" extremely helpful. I hope you continue this series- thank you! I find these spreadsheet “how-tos” extremely helpful. I hope you continue this series- thank you!

]]> By: Pride http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-8800 Pride Sat, 03 Mar 2007 15:08:27 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-8800 The problem with your example is the use of OpenOffice Calc. We all know that that program can't do basic math. Since I'm a financial wizard, if your percent change in net worth is negative, you should report it as negative. Or if you want to delude yourself and want to see change as always positive, use the ABSOLUTE function on the equation. The problem with your example is the use of OpenOffice Calc. We all know that that program can’t do basic math.

Since I’m a financial wizard, if your percent change in net worth is negative, you should report it as negative. Or if you want to delude yourself and want to see change as always positive, use the ABSOLUTE function on the equation.

]]> By: Trent http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-8775 Trent Sat, 03 Mar 2007 11:08:08 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-8775 If your net worth is negative, you reverse the numbers being subtracted. Instead of =(C9-B9)/B9 ... you go =(B9-C9)/B9 During the month your net worth goes from negative to positive, though, the percent change calculation does not work. If your net worth is negative, you reverse the numbers being subtracted. Instead of =(C9-B9)/B9 … you go =(B9-C9)/B9

During the month your net worth goes from negative to positive, though, the percent change calculation does not work.

]]> By: Christian Finance http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-8734 Christian Finance Sat, 03 Mar 2007 04:49:49 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-8734 How do you calculate the percent change in net worth if it's negative? Do you add or subtract and then divide? How do you calculate the percent change in net worth if it’s negative? Do you add or subtract and then divide?

]]> By: Tyler http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/comment-page-1/#comment-8647 Tyler Fri, 02 Mar 2007 18:38:39 +0000 http://www.thesimpledollar.com/2007/03/02/building-your-own-monthly-net-worth-calculator-using-a-spreadsheet/#comment-8647 Thanks for writing an entire article in response to my post! I didn't expect that. Thanks again! This is a great way to organize/chart my progress! Thanks for writing an entire article in response to my post! I didn’t expect that. Thanks again! This is a great way to organize/chart my progress!

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