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Posted on 7/29/13 at 2:40 pm to sneakytiger
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.
Posted on 7/29/13 at 2:46 pm to Zach
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.
Posted on 7/29/13 at 2:49 pm to Zach
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.
Posted on 7/29/13 at 3:02 pm to SmackoverHawg
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 7/29/13 at 3:04 pm
Posted on 7/29/13 at 3:06 pm to Zach
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.
Posted on 7/29/13 at 3:06 pm to Zach
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
Posted on 7/29/13 at 3:07 pm to Zach
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 $100 mill so your net worth is 25cents.
Posted on 7/29/13 at 3:08 pm to SmackoverHawg
quote:
The only way to know your true worth is to liquidate everything into cash.
But if I liquidated everything in cash, I'd have 25 cents. So, why is my net worth prior to liquidation 100M?
Posted on 7/29/13 at 3:10 pm to Zach
quote:
So, why is my net worth prior to liquidation 100M?
nobody said it was
Posted on 7/29/13 at 3:15 pm to Zach
quote:
But if I liquidated everything in cash, I'd have 25 cents. So, why is my net worth prior to liquidation 100M?
I hope you're f$%king with us. 
Posted on 7/29/13 at 3:27 pm to Zach
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?
Posted on 7/29/13 at 3:32 pm to Zach
quote:
Zach
Are you fricking around?
Posted on 7/29/13 at 3:34 pm to Zach
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
Assets = $100M
Liabilities = $100M - $0.25
Networth = $0.25
From your previous example with the $300k home:
Assets = $300K
Liabilities = $200K
Networth = $100k
Posted on 7/29/13 at 3:57 pm to Anfield Road
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.
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. 
Posted on 7/29/13 at 6:34 pm to SmackoverHawg
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.
Posted on 7/29/13 at 6:37 pm to ell_13
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.
Posted on 7/29/13 at 8:54 pm to nolanola
How many kids?
Posted on 7/30/13 at 12:20 am to bulldog95
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?
Posted on 7/30/13 at 4:25 am to jmh5724
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.
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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