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Do you include savings/checking account in net worth?
Old 07-01-2017, 12:25 PM   #1
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Do you include savings/checking account in net worth?

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?
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Old 07-01-2017, 12:28 PM   #2
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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.
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Old 07-01-2017, 12:34 PM   #3
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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...
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Old 07-01-2017, 12:38 PM   #4
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I include them when calculating Net Worth but don't include them when calculating Fake Net Worth.
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Old 07-01-2017, 12:42 PM   #5
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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.).
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Old 07-01-2017, 12:43 PM   #6
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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.
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Old 07-01-2017, 12:46 PM   #7
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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.
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Old 07-01-2017, 12:48 PM   #8
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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.
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Old 07-01-2017, 12:49 PM   #9
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Yes.

I do not calculate fake Net Worth.
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Old 07-01-2017, 12:56 PM   #10
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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.
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Old 07-01-2017, 01:35 PM   #11
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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).
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Old 07-01-2017, 01:43 PM   #12
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Since you are calculating net worth then definitely. Also include any credits card outstanding as reductions.
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Old 07-01-2017, 01:47 PM   #13
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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.
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Old 07-01-2017, 01:50 PM   #14
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I include savings but not checking.
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Old 07-01-2017, 02:00 PM   #15
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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.
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Old 07-01-2017, 02:16 PM   #16
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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.
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Old 07-01-2017, 02:20 PM   #17
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Quote:
Originally Posted by UnrealizedPotential View Post
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.
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Old 07-01-2017, 02:31 PM   #18
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If material you should include it. If not material who cares? Is this a trick question?
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Old 07-01-2017, 02:50 PM   #19
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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.
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Old 07-01-2017, 02:59 PM   #20
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Net worth = assets - liabilities

Checking and savings accounts are assets.
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