What is your Net Worth?

[Peacemaker]

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[vand]

You also need to adjust for age and income, which is why I like the Millionaire Next Door formula: Age * Gross Income /10 

You need to be trending above this number to be consider a good accumulator or wealth. PAWs are generally considered to have twice this level.

https://medium.com/@jeffwiener/are-you-really-cut-out-to-be-rich-1f2afadd76d8

[CadmiumGreen]

I ain’t tellin’...oh, here’s what I had for dinner...

...for the past 264 days☹️...gettin’ sick of beans!🤣🤣🤣

[cravethatcoin]

10 hours ago, CadmiumGreen said:

I ain’t tellin’...oh, here’s what I had for dinner...

...for the past 264 days☹️...gettin’ sick of beans!🤣🤣🤣

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[StackerCollector]

Working and saving hard to reach 6 figure net worth so I can start my own business and have multiple income streams.

Living in expensive London is not making it very easy  But I do manage to save 60% of my salary. Don't need a car, no mortgage, no cellphone contract, no netflix. Living well below my means is paying off bit by bit.

[Bullionaire]

I do enjoy tracking my net worth. I have a spreadsheet that I update each month with my assets and liabilities. This gives net worth which I then make a graph of. Sometimes it can feel like you're not making progress if you're paying off debt/mortgages etc. Tracking net worth regularly (doesn't have to be monthly- could be annual) keeps me motivated as it shows me what I'm doing is working.

[AuricGoldfinger]

1 hour ago, Bullionaire said:

I do enjoy tracking my net worth. I have a spreadsheet that I update each month with my assets and liabilities. This gives net worth which I then make a graph of. Sometimes it can feel like you're not making progress if you're paying off debt/mortgages etc. Tracking net worth regularly (doesn't have to be monthly- could be annual) keeps me motivated as it shows me what I'm doing is working.

I do exactly the same, updating regularly whenever there is change. I want to start doing it monthly with an annual review, as i think it would help be keep track of (unrealised) profit on assets rather just tracking an amount. I think it would be useful to see exactly what growth has been made per annum.

It’s satisfying to chip away and build it slowly, and this way even a small increase adds to the bigger picture and is easily noticeable. 

[StackerCollector]

22 hours ago, Bullionaire said:

I do enjoy tracking my net worth. I have a spreadsheet that I update each month with my assets and liabilities. This gives net worth which I then make a graph of. Sometimes it can feel like you're not making progress if you're paying off debt/mortgages etc. Tracking net worth regularly (doesn't have to be monthly- could be annual) keeps me motivated as it shows me what I'm doing is working.

Same here. I do get paid weekly and allocate money right away to ISA, Degiro brokerage account and metals. It's really motivating to see small but steady gains overall.

[sovereignsteve]

Interesting results so far; 40 responders with 6 millionaires and none between 750k and 1 mill.

Does net worth include your pension assets and if so, how do you count a nhs/civil service type pension?

Personally I think it's a sad way of looking at life if you're constantly working out your worth in monetary units.

[silvernewbie]

Does net worth include house equity and sipps.  Tbh i dont think about this much and only consider net worth to be investments i can easily liquidate eg stocks, physical bullion, watches etc.  not personal property or pensions which are locked in.  

being aged 50+ with net worth of 500-1m including property/pensions is probably the norm, unless you are on the dole/council house

[AuricGoldfinger]

@sovereignsteve i think it’s each to their own. I’m sure plenty of people would think we are sad for oggling over a few coins and blocks of metal, but if something gives you enjoyment and a purpose then I can’t knock it. I find it sadder to see people hurtling towards retirement age with no pension , no plan and no clue! I guess it all comes down to balance and personal choice. 

@silvernewbie yes net worth includes everything. Or at least for benefit of this survey I’m suggesting to include everything.

As for the second statement it’s a bit too broad and not necessarily true but i get the point that even someone who has never invested a penny or thought about it could end up with a net worth of £500kplus. I wonder if thats why we see a jump from upto £750k to over a mil with nothing inbetween in the poll. 

 

[Pottedbeef]

On 09/05/2020 at 12:13, Bullionaire said:

I do enjoy tracking my net worth. I have a spreadsheet that I update each month with my assets and liabilities. This gives net worth which I then make a graph of. Sometimes it can feel like you're not making progress if you're paying off debt/mortgages etc. Tracking net worth regularly (doesn't have to be monthly- could be annual) keeps me motivated as it shows me what I'm doing is working.

Same here too. I don't use a spreadsheet however, I use a notebook which I basically use to run my business and keep track of personal balances and values of stuff each month.

I have a spreadsheet which is a 'retirement forecaster' which I plug in the annual numbers and track our annual increase (or decrease) in net worth.

If we're on plan then great, if not we either cut cloth accordingly or (more likely) find other ways to plug the gap i.e. grow the business or move into higher risk investments.

The problem is the more you make the more you think you need 😬

[Foster88]

7 hours ago, sovereignsteve said:

Interesting results so far; 40 responders with 6 millionaires and none between 750k and 1 mill.

Does net worth include your pension assets and if so, how do you count a nhs/civil service type pension?

Personally I think it's a sad way of looking at life if you're constantly working out your worth in monetary units.

Well said. There are many more important ways to asses ‘wealth’. Health and family being just two of them.

People often talk about wealth in financial terms but people rarely question if they’re happy and if not what to do and change become so. Financial wealth, whilst helps to some degree is pointless without health and happiness.

[AuricGoldfinger]

12 minutes ago, Foster88 said:

Well said. There are many more important ways to asses ‘wealth’. Health and family being just two of them.

People often talk about wealth in financial terms but people rarely question if they’re happy and if not what to do and change become so. Financial wealth, whilst helps to some degree is pointless without health and happiness.

Not disputing this or anyone else saying things to a similar effect. But in the context of a precious metals forum in the personal finance section it’s slightly more of a relevant talking point than if this was posted on mumsnet or mens health forum.

[Foster88]

9 minutes ago, AuricGoldfinger said:

Not disputing this or anyone else saying things to a similar effect. But in the context of a precious metals forum in the personal finance section it’s slightly more of a relevant talking point than if this was posted on mumsnet or mens health forum.

I understand that.

[sovereignsteve]

8 hours ago, AuricGoldfinger said:

i think it’s each to their own. I’m sure plenty of people would think we are sad for oggling over a few coins and blocks of metal, but if something gives you enjoyment and a purpose then I can’t knock it. I find it sadder to see people hurtling towards retirement age with no pension , no plan and no clue! I guess it all comes down to balance and personal choice.

I can't disagree with that😊

[vand]

I think it's important to distinguish between your total net worth and your liquid net worth.

When I track my net worth I only track my liquid wealth; ie not including any home equity.  These are the assets that I own and expect to grow and generate the cashflow to meet my living costs in the future in place of my income today. You can't do this with the home over your head. 

Although there is more to life than money, I do track my liquid net worth regularly and make no apologies for doing so.. what gets measured tends to get managed - in my case that is absolutely true.

 

[vand]

On 11/05/2020 at 19:44, vand said:

I think it's important to distinguish between your total net worth and your liquid net worth.

When I track my net worth I only track my liquid wealth; ie not including any home equity.  These are the assets that I own and expect to grow and generate the cashflow to meet my living costs in the future in place of my income today. You can't do this with the home over your head. 

Although there is more to life than money, I do track my liquid net worth regularly and make no apologies for doing so.. what gets measured tends to get managed - in my case that is absolutely true.

 

liquid net worth: https://ofdollarsanddata.com/liquid-net-worth/

[Pottedbeef]

On 11/05/2020 at 19:44, vand said:

I think it's important to distinguish between your total net worth and your liquid net worth.

When I track my net worth I only track my liquid wealth; ie not including any home equity.  These are the assets that I own and expect to grow and generate the cashflow to meet my living costs in the future in place of my income today. You can't do this with the home over your head. 

Although there is more to life than money, I do track my liquid net worth regularly and make no apologies for doing so.. what gets measured tends to get managed - in my case that is absolutely true.

 

There is good merit to this approach, I would caveat it with if you are going to downsize when the time comes you should also be tracking the gains/equity you make when you sell up. These proceeds then become working capital/liquid funds and should form part of your plan. 

[sovereignsteve]

On 11 May 2020 at 19:44, vand said:

I think it's important to distinguish between your total net worth and your liquid net worth.

When I track my net worth I only track my liquid wealth; ie not including any home equity.  These are the assets that I own and expect to grow and generate the cashflow to meet my living costs in the future in place of my income today. You can't do this with the home over your head. 

Although there is more to life than money, I do track my liquid net worth regularly and make no apologies for doing so.. what gets measured tends to get managed - in my case that is absolutely true.

 

It's important to know your liquid wealth but I would argue your total worth is the more important. For most people their illiquid wealth will far outweigh the liquid. The house can be sold and downsized relatively easily. Assuming you have a private pension fund, keeping track and maximising this, will possibly be the single most important thing you can do.

[AuricGoldfinger]

I’m also one for including your home aswel. Home improvements/extensions etc can help build equity and net worth. Home improvements/upgrading home is also a way to build tax free cash. It should just be a part of your overall portfolio. 

[649tom]

Came here and realised I'm c**p at life. 

227k and 29yrs left on mortgage. 

Few hundred left every month for beer money after savings, bills, investments and pension come out.

15k in savings but we need a new car, bathroom, boiler, kitchen and the list goes on. 

Thought I was doing ok until I came here *cries* lol

[KDave]

3 minutes ago, 649tom said:

Came here and realised I'm c**p at life. 

227k and 29yrs left on mortgage. 

Few hundred left every month for beer money after savings, bills, investments and pension come out.

15k in savings but we need a new car, bathroom, boiler, kitchen and the list goes on. 

Thought I was doing ok until I came here *cries* lol

Compared to a few people I know who are up to their eyeballs in debt, no savings, needing to use overdraft and or credit card to get through till pay day - I would say you are doing alright 👍

Oh and many of them rent and could only dream of 227K mortgage 

[649tom]

2 minutes ago, KDave said:

Compared to a few people I know who are up to their eyeballs in debt, no savings, needing to use overdraft and or credit card to get through till pay day - I would say you are doing alright 👍

Oh and many of them rent and could only dream of 227K mortgage 

Thanks I feel better now. We've worked very hard to get where we are. Both my partner and I came from poor families and have never had a penny of debt luckily. One day we'll be worth £1M lol

[Paul]

Luxury! We used to have to get out of the lake at three o'clock in the morning, clean the lake, eat a handful of hot gravel, go to work at the mill every day for tuppence a month, come home, and Dad would beat us around the head and neck with a broken bottle, if we were LUCKY!
Well we had it tough. 
We used to have to get up out of the shoebox at twelve o'clock at night, and LICK the road clean with our tongues. 
We had half a handful of freezing cold gravel, worked twenty-four hours a day at the mill for fourpence every six years, and when we got home, our Dad would slice us in two with a bread knife.
I had to get up in the morning at ten o'clock at night, half an hour before I went to bed, drink a cup of acid, work twenty-nine hours a day down mill, and pay mill owner for permission to come to work, and when we got home, our Dad and our mother would kill us, and dance about on our graves singing 'Hallelujah.'
But you try and tell the young people today that... and they "highly skeptical!"