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How often do you calculate your net worth?

The Dividend Experiment

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It's obviously easier if your entire portfolio is in stocks or on markets that give a valuation almost every day, but for those with a significant portion of their net worth in property or other much less liquid assets, how often do you calculate your net worth figure?

Also on another note (and a slightly more provocative question) is net worth even worth* calculating at all? What does it bring to you?



*pun intended ;)
 

Smart Finance

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It's obviously easier if your entire portfolio is in stocks or on markets that give a valuation almost every day, but for those with a significant portion of their net worth in property or other much less liquid assets, how often do you calculate your net worth figure?

Also on another note (and a slightly more provocative question) is net worth even worth* calculating at all? What does it bring to you?



*pun intended ;)
I calculate my net worth when i remember or each quarter which ever i remember first :ROFLMAO: It also depends on the type of net worth you are trying to calculate and whether a house should be included in the sum. For FIRE net worth its all the liquid accounts but a full break down of assets to liabilities then i think a house could be included.

I own 50% of my house and am liable for 100% of the mortgage so it changes my numbers quite a bit.

Personally i think most people use net worth wrong. The majority of people use net worth as a feel good metric, rather than a metric to evaluate the diversity of their capital/investments compared to their risk tolerance. Example you could be a millionaire but only own your house. House prices go down you have 100% risk as all your eggs in one basket, though you look great with a £1m net worth. Compared to being diverse and evaluating maybe there is to much invested into crypto and its a higher risk than willing so you can then see where you need to invest or can invest to reduce the risk of your asset range.

Think also net worth can help you visualise is your portfolio/assets aligning with your goals.
 

23rdian

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I'm always updating it. I think it's kind of sad in a way but I do have other things in my life and I do think it helps to know where you are with things.

I use a single spreadsheet with everything on. I'm pretty proud of it. It's a work of art :)

I put everything on including the expected annual return and charges for each asset (if appropriate) and less my liabilities at the bottom (thankfully all 0pc debt - hey why not if they are going to lend to me at that rate!)

It helps me to see what's not pulling its weight and has to be ditched or switched.

I do use it to keep an eye on diversication as you mention. It's easy to get the tunnel vision.
 
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Matthew

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I do it once a year when the mortgage statements come in. I run this following the financial year for a fixed date each year , on a small balance sheet with some goals on it. :)
 
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Smart Finance

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I do it once a year when the mortgage statements come in. I run this following the financial year for a fixed date each year , on a small balance sheet with some goals on it. :)
Thats a good idea tbh. There is no need to over calculate your networth as it doesn't really have a direct relation to financial improvement. Things like houses are hard to evaluate so once a year makes sense.
 

J.Stalling

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It's obviously easier if your entire portfolio is in stocks or on markets that give a valuation almost every day, but for those with a significant portion of their net worth in property or other much less liquid assets, how often do you calculate your net worth figure?

Also on another note (and a slightly more provocative question) is net worth even worth* calculating at all? What does it bring to you?



*pun intended ;)
What are the benefits of calculating networth?
 

The Dividend Experiment

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What are the benefits of calculating networth?
It gives you a general impression of your financial standing. Also if you are feeling anxious about money it can be good to see what position you are in and whether the anxiety is unwarranted.

Overall I don't think its a good measure.
 

J.Stalling

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It gives you a general impression of your financial standing. Also if you are feeling anxious about money it can be good to see what position you are in and whether the anxiety is unwarranted.

Overall I don't think its a good measure.
I think id much prefer to just invest everything i can and worry about it at a later date
 

RealisticOption

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I didn't yet reach the point to calculate my Net Worth, but i focus on my monthly cash flow. I try to keep track of my active income and passive income. Passive Income would become a game changer. Would suggest all to concentrate more on Passive Income, it gradually builds by one's Net Worth also. People with High Net Worth usually have great passive cash flow.
 
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Smart Finance

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I didn't yet reach the point to calculate my Net Worth, but i focus on my monthly cash flow. I try to keep track of my active income and passive income. Passive Income would become a game changer. Would suggest all to concentrate more on Passive Income, it gradually builds by one's Net Worth also. People with High Net Worth usually have great passive cash flow.
You are the same as me, focusing more on the cashflow than net worth. I can compound faster focusing on high quality cashflowing assets rather than an overall number.