Net Worth at 30 - Page 5 - TigerDroppings.com

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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
69187 posts

re: Net Worth at 30


quote:

Vehicles count as a liability, no equity in a vehicle


That is incorrect, it's pretty simple assets - liabilities = net worth






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JL
LSU Fan
Member since Aug 2006
2289 posts

re: Net Worth at 30


I'm an idiot





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HeadyMurphey
LSU Fan
Los Santos
Member since Jan 2008
15772 posts
 Online 

re: Net Worth at 30


quote:

Vehicles count as a liability, no equity in a vehicle.


My 03 Ford says differently. That truck has been paid off for 6 years!






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10860 posts
 Online 

re: Net Worth at 30


quote:

My 03 Ford says differently. That truck has been paid off for 6 years!


Then you own a depreciating asset.






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HeadyMurphey
LSU Fan
Los Santos
Member since Jan 2008
15772 posts
 Online 

re: Net Worth at 30


quote:

Then you own a depreciating asset.


So I don't have about 4K in equity in my truck Doesn't really matter anyway






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10860 posts
 Online 

re: Net Worth at 30


quote:

So I don't have about 4K in equity in my truck


Well, you may today. In a month or a year? Who knows.






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jjbodean1970
LSU Fan
Morgantown, WV
Member since Mar 2006
6477 posts

re: Net Worth at 30


quote:

That is incorrect, it's pretty simple assets - liabilities = net worth







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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
69187 posts

re: Net Worth at 30


quote:

Well, you may today. In a month or a year? Who knows.



that's the thing about net worth, it's at one point in time.....changes every day






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Zach
LSU Fan
Member since May 2005
63466 posts

re: Net Worth at 30


I'm not kidding around. I'm confused by this quote:

quote:

Assets minus liabilities. You had $100k net worth based on the info you gave (unless you are referring to liquid net worth).


It was from Sneakytiger.

This was my post:

quote:

At 30 my net worth was zero. Using today's dollars I had a 300K house with 100K down (equity). I did not have 200K in savings and stocks. So, that's zero.


So,
Assets... 100K equity in home
Liability... 200K debt

My conclusion: I have no net worth.
Sneaky's conclusion: I have 100K in net worth.







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ell_13
USA Fan
Alex Box
Member since Apr 2013
22017 posts

re: Net Worth at 30


Equity is net. It's an asset worth 300k that you owe 200k on. So you have a net worth of 100k.





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Lsut81
USA Fan
Member since Jun 2005
64193 posts
 Online 

re: Net Worth at 30


quote:

So,
Assets... 100K equity in home
Liability... 200K debt


Your worth is the value - amount owed

If you were to sell everything you had at market price and pay off all debt, how much money would you have?






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Cold Cous Cous
LSU Fan
TD OG
Member since Oct 2003
13536 posts

re: Net Worth at 30


Think of it this way:
quote:


Assets... 300K home
Liability... 200K debt
Net... 100K (ie, your equity)






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
69187 posts

re: Net Worth at 30


I give up





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Anfield Road
Mississippi St. Fan
Rocket City
Member since May 2012
912 posts
 Online 

re: Net Worth at 30


The only way you get zero or negative net worth from your home is if the value of your home decreases such that its value is less than the remaining amount that is owed.





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Zach
LSU Fan
Member since May 2005
63466 posts

re: Net Worth at 30


quote:

If you were to sell everything you had at market price and pay off all debt, how much money would you have?

So, if I could sell my home for 300K then I would get back my 100K equity. Got it.

So, what kind of debt is liability if home debt is not? And what if I can't sell it for 300K?



This post was edited on 7/30 at 12:37 pm


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Lsut81
USA Fan
Member since Jun 2005
64193 posts
 Online 

re: Net Worth at 30


quote:

So, if I could sell my home for 300K then I would get back my 100K equity. Got it.


Yes, so your worth would be 100k

quote:

what kind of debt is liability if home debt is not?


Don't ask me questions I don't have an answer to

quote:

And what if I can't sell it for 300K?


If the market price for your home is currently $250k, then your net worth would be $50k. Same as any stocks that you have, as they fluctuate in price, so does your worth.







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Zach
LSU Fan
Member since May 2005
63466 posts

re: Net Worth at 30


quote:

The only way you get zero or negative net worth from your home is if the value of your home decreases such that its value is less than the remaining amount that is owed.

Well, you just answered the question in my last post. Thanks.






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Zach
LSU Fan
Member since May 2005
63466 posts

re: Net Worth at 30


I think I see the definitional difference.
My view of net worth was:
Assets v. Owed
Yours is:
Assets v. Liabilities

I viewed:
Owed = Liabilities

Happily, I owe nothing and have no liabilities. I could calculate my net worth by putting my house on the market, but I don't want to ever sell. This is my home till I pass into that great golf course in the sky.






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Latebloomer
LSU Fan
Passing through
Member since Jul 2012
151 posts

re: Net Worth at 30


Zach - anything you owe is a liability. It doesn't matter if its credit card balance, student loans, a mortgage, car loan or $50 to your best friend. All of your assets will fluctuate as to their value - stocks, 401k, house or other properties.

I used to run the loan department of a bank and helped people put together their financial statements - you list all your assets on 1 side and liabilities on the other. Then you subtract "what you owe" from "what you have" to get your net worth. I never include anything such as furnishings, jewelry, cars, beanie baby collection. Usually not worth what you paid for them.






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anc
Member since Nov 2012
1704 posts

re: Net Worth at 30


Didn't read the entire thread so this may have been mentioned, but in the Millionaire Next Door, the formula is this:

Annual Income x Age/10

If someone who makes 80k at 30 has more than 240k, they are doing well.







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