Net Worth on ER, essentially meaningless
Since, on ER, this number has no set meaning, any comparison must be taken in context.
When an $800K home is not part of one's net worth, the rest of the items that may or may not be included, is meaningless.
Savings account
Life insurance value
Cars
Realtime inflation/deflation amounts
Net sale differentials... taxes, attorney costs, commissions etc.
Assessed value of antiques, collections
Foreseeable gains/losses.
Naturally, if one's Net Worth exceeds $10M, the perspective of value will differ from the hopeful ER member who is feeling good about having attained a Net Worth of $300K.
The difference extends beyond this, for those of us who look to our net worth as the source of income for our waning days, and those who look to preserve their net worth... using only the investment income to live out their days.
We're all different. Good to know that despite the differences, we can all get along...
Wikipedia
Net worth is the value of all the non-financial and financial assets owned minus the value of all its outstanding liabilities.
Investopedia
Net worth is the amount by which assets exceed liabilities. Another way to say this is, it’s the value of everything you own, minus all your debts.
OECD
Household total net worth is the value of total assets (the total amount of financial assets plus the total amount of non-financial assets.
Since, on ER, this number has no set meaning, any comparison must be taken in context.
When an $800K home is not part of one's net worth, the rest of the items that may or may not be included, is meaningless.
Savings account
Life insurance value
Cars
Realtime inflation/deflation amounts
Net sale differentials... taxes, attorney costs, commissions etc.
Assessed value of antiques, collections
Foreseeable gains/losses.
Naturally, if one's Net Worth exceeds $10M, the perspective of value will differ from the hopeful ER member who is feeling good about having attained a Net Worth of $300K.
The difference extends beyond this, for those of us who look to our net worth as the source of income for our waning days, and those who look to preserve their net worth... using only the investment income to live out their days.
We're all different. Good to know that despite the differences, we can all get along...