Do you include savings/checking account in net worth?

[UnrealizedPotential]

In the past I haven't included either one. But then I realized that there is over 11k every month between the two, and they are pretty much within 2k of that yearly. So I started including it in my net worth calculations. Am I wrong? What do you do regarding this?

 

[Fedup]

No not really. They are considered it spending money.
Edit to add that I usually have about $20k in there earning zero interest. When it falls down below this level, I feel like I'm living from paycheck to paycheck time again.

 

[KB]

I include the balance of all my bank and investment accounts in my net worth, which I calculate monthly. I have a separate net worth that includes the value of my house, my projected value of pensions and SS. The cash and invested accounts are mostly what I compare each month.

I don't include any personal items or cars in either amount...

 

[Fermion]

I include them when calculating Net Worth but don't include them when calculating Fake Net Worth.

 

[pb4uski]

Yes, I include all financial accounts, our homes, cars, boats, etc but stop there. I do not bother to include personal property (furniture, equipment, tvs, laptops, etc.).

 

[W2R]

Depends on why I want to calculate net worth.

So far, the main reason why I would do that, is to answer net worth polls on this forum. So, I include my checking account. But I do not include the change under my couch cushions. Well, not usually.

 

[Rustic23]

It's your net worth, heck, include the value of your cat if you want. My point is it's yours. I know about what my net worth is, but let's face it, it's just for me and DW's nice to know list. I can't see, other than comparing to my neighbor's of what value it is.

 

[swakyaby]

I'd have to say it depends on the size of the account. I carry a large enough balance in my 2 savings accounts, about $200,000, that I include it in my net worth. My checking account, which fluctuates between $400 and $3,000, I do not.

 

[Meadbh]

Yes.

I do not calculate fake Net Worth.

 

[scrabbler1]

I include it although it ain't much, maybe $3k on average. My checking account is mainly a conduit where money comes in from some of my mutual funds held elsewhere, and money goes out to pay the bills. I keep a small buffer, over the minimum amount needed in the checking account to avoid monthly fees, to cover small, unforeseen expenses in a given month. Any excess funds in the checking account beyond the desired buffer go back into my mutual funds. That happens a few times a year.

 

[NW-Bound]

My checking accounts and all my credit card accounts are included in Quicken for auto-download. So, whatever balance in these accounts, positive as well as negative, shows up in Quicken's total.

I need to do the autodownload to know about expenses, and when to replenish the checking account. It's not for networth tracking.

I do not bother to track assets like the two homes, let alone vehicles, and other junks. When I am ready to sell the home(s), I will think about the value(s).

 

[bobandsherry]

Since you are calculating net worth then definitely. Also include any credits card outstanding as reductions.

 

[Blue Collar Guy]

I do, its a large number. I do not include furnishings, car, jewelry. Those 3 items wouldn't make a blip on my net worth.

 

[Tadpole]

I include savings but not checking.

 

[sengsational]

I don't calculate a total net worth, but do calculate an investable net worth that includes almost everything.

I scrape the web pages of almost all of the institutions where I have a relationship. Given most institutions have a savings component, the low balance accounts, checking accounts, etc come along for the ride. But I don't bother with credit cards (they're paid off monthly), and don't bother with DW's checking, which she usually does a good job of emptying every month.

 

[Ronstar]

I don't do net worth calculations because I don't find including all of my assets to be indicative of anything important. I do an investment summary where I include my checking balance.

 

[bw5972]

In the past I haven't included either one. But then I realized that there is over 11k every month between the two, and they are pretty much within 2k of that yearly. So I started including it in my net worth calculations. Am I wrong? What do you do regarding this?

Net Worth is a specific financial term/concept. It includes all current assets (even the change in your sofa) minus all current liabilties, if you want to plan you finances excluding your checking balances that is fine, just don't muddle Net Worth into the discussion.

Just my opinion.

 

[Danmar]

If material you should include it. If not material who cares? Is this a trick question?

 

[pb4uski]

I'll admit that I pay little attention to our net worth and more attention to the size of our retirement portfolio. The difference is our homes and vehicles that we hae no plans to sell so their value is not particularly relevant to our retirement finances.

 

[jimbee]

Net worth = assets - liabilities

Checking and savings accounts are assets.

 

[Koolau]

Savings accounts and checking are just about the only numbers I keep more or less in mind at all times. I want to know if any expenditure might cause me to get into invested funds. I do keep a significant balance in these two just so I don't find myself micromanaging my investments to tweek out enough funds to cover a purchase. It's just easier. SO when I do a NW, maybe once a year, I do include my significant check book/savings balances. YMMV

 

[523HRR]

Net worth = assets - liabilities

Checking and savings accounts are assets.

+1

Why would these assets not be counted in net worth? Pretty sure the IRS will count them when valuing one's estate.

 

[H2ODude]

No, only investments included. I don't even include paid for house since I'll always need it or its value equivalent to live in. Damn sure wouldn't include my half interest in a sailboat....it eats in about five years what it's "net worth" is...

 

[audreyh1]

All assets are included in my net worth. So yes, this includes checking and savings as well as unpaid credit card balances.

I also look at my liquid assets which excludes the house. The house is the only real asset I include in Quicken.

 

[cranberryjoe]

I use the Net Worth report in Moneydance to calculate my net worth. It includes all my financial accounts, including checking and savings, and subtracts my current debt (credit cards only since my house and car are paid off). I think it would include the value of my house and car if I tracked them in Moneydance, but I don't so it doesn't.