- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
2
Posted on 7/30/13 at 6:50 am to yellowfin
I'm an idiot
Posted on 7/30/13 at 7:26 am to JL
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!
Posted on 7/30/13 at 7:34 am to HeadyMurphey
quote:
My 03 Ford says differently. That truck has been paid off for 6 years!
Then you own a depreciating asset.
Posted on 7/30/13 at 7:36 am to VABuckeye
quote:
Then you own a depreciating asset.
So I don't have about 4K in equity in my truck
Doesn't really matter anywayPosted on 7/30/13 at 7:50 am to HeadyMurphey
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.
Posted on 7/30/13 at 8:14 am to yellowfin
quote::kige:
That is incorrect, it's pretty simple assets - liabilities = net worth
Posted on 7/30/13 at 8:18 am to VABuckeye
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
Posted on 7/30/13 at 12:10 pm to SmackoverHawg
I'm not kidding around. I'm confused by this quote:
It was from Sneakytiger.
This was my post:
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.
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.
Posted on 7/30/13 at 12:15 pm to Zach
Equity is net. It's an asset worth 300k that you owe 200k on. So you have a net worth of 100k.
Posted on 7/30/13 at 12:20 pm to Zach
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?
Posted on 7/30/13 at 12:27 pm to Zach
Think of it this way:
quote:
Assets... 300K home
Liability... 200K debt
Net... 100K (ie, your equity)
Posted on 7/30/13 at 12:32 pm to Zach
I give up
Posted on 7/30/13 at 12:33 pm to Zach
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.
Posted on 7/30/13 at 12:36 pm to Lsut81
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 7/30/13 at 12:37 pm
Posted on 7/30/13 at 12:40 pm to Zach
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.
Posted on 7/30/13 at 12:41 pm to Anfield Road
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.
Posted on 7/30/13 at 12:47 pm to Lsut81
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.
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.
Posted on 7/30/13 at 12:58 pm to Zach
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.
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.
Posted on 7/30/13 at 1:06 pm to nolanola
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.
Annual Income x Age/10
If someone who makes 80k at 30 has more than 240k, they are doing well.
Page 5 of 8
Popular
Back to top
Follow TigerDroppings for LSU Football News