Many Happy Returns The Unbalanced Sheet: What Is Your Net Worth, Really?
50 snips
Oct 8, 2025 Discover the complexities of calculating net worth beyond simple assets minus liabilities. Explore whether to include your home and how to value your unique property. Debate the role of pensions, student loans, and small business equity in your financial picture. Learn about different metrics and the importance of tracking net worth over time. Plus, tackle the intriguing question of how much money it takes to be considered rich and reflect on the relationship between wealth and personal happiness.
AI Snips
Chapters
Transcript
Episode notes
Include Your Home And Mortgage
- Include your primary residence on your net worth spreadsheet along with any mortgage debt to reflect your largest asset.
- Value it fairly and account for transaction costs if you consider the money realisable.
Value Property Using Realistic Sale Costs
- Use online estimates, estate agents, or recent comparable sales to value your house and update regularly.
- Subtract realistic transaction costs when calculating realisable net worth from property.
Put Vehicles At Resale Value
- Include cars and physical valuables in net worth only at their current resale value, not the purchase price.
- Skip low-value items and get professional valuations for high-value collectibles.