Comments on: The One Hour Project: Build Your Own Net Worth Calculator http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/ Simple, applicable personal finance advice for the modern world Fri, 19 Mar 2010 07:26:28 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Schwamie http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-375783 Schwamie Tue, 16 Sep 2008 21:23:27 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-375783 For calculating my net worth, for the assets, I leave off my checking account (as that is used primarily for bills anyway). I only include savings accounts (401k, IRA's, cd's, savings), stocks and mutual funds, BV of cars, purchase price of my house (not accounting for any upward valuation of it as I'm not looking to sell and I'll let that be a surprise if I get more than I paid), the ebay value of my other goods (music/dvd's/stamp collection/etc.). I do not include the 529 accounts for my children nor any "loose change". As for my liabilities, I have the remaining amount on my mortgage, student loan, and child support (until she turns 19). While I have other monthly obligations, I have my paycheck that routinely covers these costs. The net worth is a long term view condensed into a present snapshot of what I have. As such, the amount is not as great as I could make it look, but since the number is important to me (and my family), I have no need to inflate that figure. For calculating my net worth, for the assets, I leave off my checking account (as that is used primarily for bills anyway). I only include savings accounts (401k, IRA’s, cd’s, savings), stocks and mutual funds, BV of cars, purchase price of my house (not accounting for any upward valuation of it as I’m not looking to sell and I’ll let that be a surprise if I get more than I paid), the ebay value of my other goods (music/dvd’s/stamp collection/etc.). I do not include the 529 accounts for my children nor any “loose change”. As for my liabilities, I have the remaining amount on my mortgage, student loan, and child support (until she turns 19). While I have other monthly obligations, I have my paycheck that routinely covers these costs. The net worth is a long term view condensed into a present snapshot of what I have. As such, the amount is not as great as I could make it look, but since the number is important to me (and my family), I have no need to inflate that figure.

]]> By: alo http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69551 alo Tue, 11 Sep 2007 11:00:48 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69551 I'm a new convert to this site. The quality Trent's writing and the commenters is high. I surprised no one ever mentions Quicken, which I've used for years to track all my assets, accounts, budget and net worth. Never thought of building my own in a spreadsheet. Is there a reason (aside from cost of software-$40 saved!) that you all prefer google/excel? I’m a new convert to this site. The quality Trent’s writing and the commenters is high.

I surprised no one ever mentions Quicken, which I’ve used for years to track all my assets, accounts, budget and net worth. Never thought of building my own in a spreadsheet. Is there a reason (aside from cost of software-$40 saved!) that you all prefer google/excel?

]]> By: Dave http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69404 Dave Tue, 11 Sep 2007 03:24:52 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69404 Good posts! I have to try that google spreadsheet one. I keep track of mine in Excel, and just try to make sure it goes up every month. Sure, some months my stocks bomb, but since I'm saving/contributing, I usually go up. And then when stocks go back up, it goes up even more! Good posts! I have to try that google spreadsheet one.
I keep track of mine in Excel, and just try to make sure it goes up every month. Sure, some months my stocks bomb, but since I’m saving/contributing, I usually go up. And then when stocks go back up, it goes up even more!

]]> By: disavow http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69188 disavow Mon, 10 Sep 2007 17:14:59 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69188 My net worth is even more bursty than most, thanks to an accelerated (five-semester) degree program and tuition reimbursement. Pretty much no way can I ensure net worth growth each pay period, so instead I plug montly net worth figures into Excel and use its trend plotter to see what average growth is. As long as the positive trend stays the same or improves, I know I'm spending/saving responsibly. My net worth is even more bursty than most, thanks to an accelerated (five-semester) degree program and tuition reimbursement. Pretty much no way can I ensure net worth growth each pay period, so instead I plug montly net worth figures into Excel and use its trend plotter to see what average growth is. As long as the positive trend stays the same or improves, I know I’m spending/saving responsibly.

]]> By: Debbie http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69172 Debbie Mon, 10 Sep 2007 16:20:37 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69172 I like to calculate my net worth after my paychecks. I get paid at the first of each month, and then immediately a bunch of it gets transferred into retirement accounts, savings accounts, etc. So right after that is when I do my calculation. I deal with the spike phenomenon by not including my checking account or cash-on-hand in my calculation--that's really the only part that changes during the month. Right after pay day, I calculate how much I have on my credit cards, how much will disappear in monthly payments (mortgage, Netflix, etc.), then calculate how much additional cash I can transfer from my checking account into savings and still have an additional $750 to cover me for the rest of the month. So after I transfer this money to savings, and add up the additional retirement money, interest, etc., that's when it's the most exciting to see my net worth, and thus when I'm most motivated to do it. Sometimes when the stock market does something wonky, I'll update those numbers mid-month to see how that affects the bottom line. I like to calculate my net worth after my paychecks. I get paid at the first of each month, and then immediately a bunch of it gets transferred into retirement accounts, savings accounts, etc. So right after that is when I do my calculation.

I deal with the spike phenomenon by not including my checking account or cash-on-hand in my calculation–that’s really the only part that changes during the month. Right after pay day, I calculate how much I have on my credit cards, how much will disappear in monthly payments (mortgage, Netflix, etc.), then calculate how much additional cash I can transfer from my checking account into savings and still have an additional $750 to cover me for the rest of the month.

So after I transfer this money to savings, and add up the additional retirement money, interest, etc., that’s when it’s the most exciting to see my net worth, and thus when I’m most motivated to do it. Sometimes when the stock market does something wonky, I’ll update those numbers mid-month to see how that affects the bottom line.

]]> By: Trent http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69153 Trent Mon, 10 Sep 2007 15:34:05 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69153 You get the idea, Attila. You want to calculate your net worth at a certain time in relation to your payday each time. This way, you avoid sometimes having a spike and sometimes having a valley, which gives an awkward picture of your net worth. You get the idea, Attila. You want to calculate your net worth at a certain time in relation to your payday each time. This way, you avoid sometimes having a spike and sometimes having a valley, which gives an awkward picture of your net worth.

]]> By: Ryan http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-69133 Ryan Mon, 10 Sep 2007 14:22:36 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-69133 The only time a car should go in your net worth calculator is if you use the debt portion of the car loan and not the value of the car. The only time a car should go in your net worth calculator is if you use the debt portion of the car loan and not the value of the car.

]]> By: Attila http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68977 Attila Mon, 10 Sep 2007 05:59:50 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68977 I don't understand the spike thing. If you calculate your net worth on each payday (or before each payday), there won't be any spikes (or valleys), since each entry will contain about the same amount of surplus. I don’t understand the spike thing. If you calculate your net worth on each payday (or before each payday), there won’t be any spikes (or valleys), since each entry will contain about the same amount of surplus.

]]> By: Mrs. Micah http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68907 Mrs. Micah Mon, 10 Sep 2007 01:34:18 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68907 Good stuff! I had to make one of these for my personal finance class. Now I'm using NetworthIQ, but that's because it's already set up. Still, putting the numbers into a spreadsheet at the same time. Then it would be saved on my comp instead of online. Good stuff! I had to make one of these for my personal finance class. Now I’m using NetworthIQ, but that’s because it’s already set up. Still, putting the numbers into a spreadsheet at the same time. Then it would be saved on my comp instead of online.

]]> By: FIRE Finance http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68868 FIRE Finance Sun, 09 Sep 2007 23:21:41 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68868 Jamie's tip is really cool! We too do not put our car's current market value in our networth sheet (MS Excel). We plan to drive it forever like Dave. But as Trent says, tracking networth really gives a great feel about where we are on the financial road map. Also, we set goals every month for our expenses and see how we fared on each of them. This gives us an idea about which area of our expenses need a tweak. Thanks for the great post. Jamie’s tip is really cool! We too do not put our car’s current market value in our networth sheet (MS Excel). We plan to drive it forever like Dave. But as Trent says, tracking networth really gives a great feel about where we are on the financial road map. Also, we set goals every month for our expenses and see how we fared on each of them. This gives us an idea about which area of our expenses need a tweak.
Thanks for the great post.

]]> By: Jamie http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68864 Jamie Sun, 09 Sep 2007 23:09:34 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68864 I use Google Spreadsheets for this. For starters, it's free. But even better, Google Spreadsheets has a function that calls the day's stock quotes . That means you have to update how many stocks you own but not the stock price every time you want to reevaluate your net worth. Just a thought... I use Google Spreadsheets for this. For starters, it’s free. But even better, Google Spreadsheets has a function that calls the day’s stock quotes . That means you have to update how many stocks you own but not the stock price every time you want to reevaluate your net worth.

Just a thought…

]]> By: Dave http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68858 Dave Sun, 09 Sep 2007 22:55:28 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68858 I keep my cars off mine, because I have no intention of selling them, ever. (Well, not the car that's worth anything, anyway) I keep my cars off mine, because I have no intention of selling them, ever. (Well, not the car that’s worth anything, anyway)

]]> By: Robin http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/comment-page-1/#comment-68822 Robin Sun, 09 Sep 2007 21:11:11 +0000 http://www.thesimpledollar.com/2007/09/09/the-one-hour-project-build-your-own-net-worth-calculator/#comment-68822 Oh good, this looks like a great way to procrastinate my studying for another hour. And feel productive at the same time. :) I think I'll start work on that spreadsheet now. Excel is my friend. Oh good, this looks like a great way to procrastinate my studying for another hour. And feel productive at the same time. :)

I think I’ll start work on that spreadsheet now. Excel is my friend.

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