Net Worth at 30 | Page 4 | TigerDroppings.com

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aaronb023
LSU Fan
Boxtard Baseball Club
Member since Feb 2005
11081 posts

re: Net Worth at 30


quote:

I was wondering how long it would take, most people here don't even know how to calculate net worth.




I once had a friend try to tell me he was a millionaire because he had a million in assets.






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Zach
LSU Fan
Member since May 2005
65926 posts

re: Net Worth at 30


quote:

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

I really don't understand that definition. A mortgage is a liability. You owe it.






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


quote:

really don't understand that definition. A mortgage is a liability. You owe it.

Then what does your equity in the home count as? An asset. It's only a net liability if you have zero or negative equity. Essentially it's the value of the home - what you owe= net equity.

Of course, the only way to know for sure is to sell the home, but this is how you calculate it.






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11919 posts

re: Net Worth at 30


quote:

I really don't understand that definition. A mortgage is a liability. You owe it


You only owe the mortgage. You get to keep the equity minus commissions and closing costs if you sell. What's so hard to understand? The equity is an asset unless you default on the mortgage.






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Zach
LSU Fan
Member since May 2005
65926 posts

re: Net Worth at 30


quote:

Then what does your equity in the home count as? An asset. It's only a net liability if you have zero or negative equity. Essentially it's the value of the home - what you owe= net equity.


That's absurd logic.
IE, let's say that I buy a home for 100 Million Dollars.
My down payment is 25 cents.

Therefore, by your logic I do not have a liability of 999,999.75?



This post was edited on 7/29 at 3:04 pm


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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


quote:

Therefore, by your logic I do not have a liability of 99,999.75?

If it appraises for 100 million, then yes. Like I said, it's all on paper unless you sell. When I have to figure my net worth for things, I have to include values of my businesses. What you can sell it for is what it's worth, but for paperwork sake, there are ways to calculate it. Doesn't mean that's what it's REALLY worth. The only way to know your true worth is to liquidate everything into cash.






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
72677 posts
 Online 

re: Net Worth at 30


quote:

IE, let's say that I buy a home for 100 Million Dollars. My down payment is 25 cents.


if the home is your only asset then your net worth is 25 cents






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


quote:

That's absurd logic.
IE, let's say that I buy a home for 100 Million Dollars.
My down payment is 25 cents.

Therefore, by your logic I do not have a liability of 999,999.75?

Actually, yes you have a liability of $999,999.75 but you have an asset worth $100 mill so your net worth is 25cents.






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Zach
LSU Fan
Member since May 2005
65926 posts

re: Net Worth at 30


quote:

The only way to know your true worth is to liquidate everything into cash.

But if I liquidated everything in cash, I'd have 25 cents. So, why is my net worth prior to liquidation 100M?






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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
72677 posts
 Online 

re: Net Worth at 30


quote:

So, why is my net worth prior to liquidation 100M?


nobody said it was






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


quote:

But if I liquidated everything in cash, I'd have 25 cents. So, why is my net worth prior to liquidation 100M?

I hope you're f$%king with us.






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Sigma
Michigan State Fan
Fairhope, AL
Member since Dec 2005
2215 posts

re: Net Worth at 30


quote:

That's absurd logic.
IE, let's say that I buy a home for 100 Million Dollars.
My down payment is 25 cents.

Therefore, by your logic I do not have a liability of 999,999.75?


Why has no one pointed out that $100,000,000 - 0.25 =/= $999,999.75?







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schlow mo
Mississippi St. Fan
New Orleans
Member since Feb 2010
5207 posts

re: Net Worth at 30


quote:

Zach


Are you fricking around?






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Anfield Road
Mississippi St. Fan
Liverpool Fan
Member since May 2012
965 posts

re: Net Worth at 30


Prior to liquidation,

Assets = $100M
Liabilities = $100M - $0.25
Networth = $0.25

From your previous example with the $300k home:
Assets = $300K
Liabilities = $200K
Networth = $100k






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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


At least Zach is asking the question. Many on here don't know what we're talking about half the time (or more). Then call us dumbasses. Nothing wrong with getting educated.





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ell_13
USA Fan
Alex Box
Member since Apr 2013
26499 posts

re: Net Worth at 30


I'm 26 with a net of 50k-60k. I lucked out and married a girl who had zero student debt and actually got paid as a teachers assistant while she got her masters. My student loans are still at 9k. In 4 years, the only debt we should have is the mortgage barring any accident with cars or something else unforeseen.





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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: Net Worth at 30


quote:

I'm 26 with a net of 50k-60k. I lucked out and married a girl who had zero student debt and actually got paid as a teachers assistant while she got her masters. My student loans are still at 9k. In 4 years, the only debt we should have is the mortgage barring any accident with cars or something else unforeseen.






Keep it up.






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LSUBrad5277
LSU Fan
North Louisiana
Member since Jan 2011
12640 posts

re: Net Worth at 30


How many kids?





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jmh5724
LSU Fan
Member since Jan 2012
338 posts

re: Net Worth at 30


Are vehicles figured the same way as a house? For example, I currently owe 36k on my vehicles. KBB says my vehicles are currently worth 45k. Is that +9k net worth or do they only truely become an asset once they are paid off because of depreciation?





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JL
LSU Fan
Member since Aug 2006
2326 posts

re: Net Worth at 30


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

I just turned 30 and have been saving pretty well since i started working. My net worth is sitting at $355k. This is in my house, 401k, and outside investments. I'm looking to start investing in something outside the market but my job prevents me from managing any type of real estate. I keep hoping somebody i trust asks me to invest in their business but hasn't happened yet.






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