How's this for a touchy subject: Household Net Worth?

[Sun]

I was at a homeschool gathering a couple of nights ago where the talk turned to net worth, the housing market, missing out on an income by staying home, and all sorts of related financial topics. I hadn't really thought about net worth before (hangs head), which is a little ironic because I once held a job where I had to track employee participation in retirement planning. Hearing the other moms talk about it made me realize that it's completely related, but I'd never once thought about it. It seemed like something only rich people did. I came home and immediately calculated my family's net worth, which was eye-opening and probably a good thing to have done.

 

Have you thought about it? Do you know yours? Is it worth knowing or tracking it? Does knowing it motivate you or depress you? :crying: It does a little bit of both to me!

 

Here's an article about net worth in the US, with tables showing averages for different income levels and ages.

 

Here's a net worth calculator. Basically you add up all of your assets (checking and savings account balances, any mutual funds, retirement funds, stock holdings, house value, car resale value, etc.) and subtract any debts (mortgage on house, car loans, school loans, credit card debt, etc.)

 

Once you know yours, you can vote in the poll. I had a lot of trouble coming up with options for it. After doing more reading about net worth, I had to go back and add more categories at each end of the poll. Please don't beat me up for the poll choices. I was just trying to capture a wide range of options. :coolgleamA:

[Dandelion]

I know the ballpark range of ours. DH keeps all of the statements and documentation related to our finances, and could quickly add up our exact net worth from that, but I don't think he tracks it per se. We actively manage our investments but only periodically review our net worth. I think it's important to have a general idea of your household net worth as part of understanding your overall financial situation.

[StaceyinLA]

I voted but it could vary slightly since dh's ultimate retirement income will depend on a couple of things (age of retirement, years retired, etc.) My guess is it's gonna be in the next level including retirement, but I didn't want to overstate.

 

This is just our personal assets. If you count dh's net business assets, it's a greater number.

[Mama Geek]

We know what ours is and try to actively manage it. We have no debt, we have savings in bank accounts as well as IRA's.

[SKL]

It depends on how you define household. Does it include the other people who live here but aren't related to me? ... I don't know my net worth because a bunch of it is invested in young businesses (which also have debt). ... Re wanting to know - I don't care actually. I've had my ups and downs and it doesn't change who I am. When I was in my mid-20s my net worth was in the negative six figures, and it didn't define me except to make me really dislike debt.

[Laura Corin]

I'm pretty clear about it: I know what's in our saving account; I know what equity we have in our house and in our rental property. We don't have much in investments beyond that.

 

Laura

[Dory]

We relook it over a couple times a year. In fact dh was just going over where we're at as I was reading this post. It should continue to grow substantially over the next 5 years as our debts are paid off and we finish setting things up.

[speedmom4]

I watch Suze Orman every week and she has a segment where she calculates the net worth of a viewer. She doesn't include car value but does include car debt in her equation.

 

I think it's important to know your net worth to help plan for the future.

 

Elise in NC

[Catwoman]

We know pretty much to the nickel.

 

I should mention, though, that our business is a CPA practice, so I guess it makes sense that we would keep a close eye on our finances. :rolleyes:

Personally, I couldn't live any other way. I need to know what I have, how much that money is earning, and whether or not we'll need more for the future.

 

It would be very difficult to plan for things like retirement, without knowing your financial situation, and I think it's also very easy to overspend or overextend yourself when you're not keeping track of how much money you have and where it's going.

 

I didn't vote in the poll because I don't divulge that kind of specific information.

[Crimson Wife]

I have a general sense and know where to look if I wanted the exact figure since DH tracks it. It is respectable given our age, but the majority of it is tied up in either retirement savings or house equity that are not terribly liquid. We're definitely far from being in the 10% of Bay Area households that have a liquid net worth of $1M+.

[Kathryn]

I care about it: zero percent. We have what we have. We have the (very limited) options for financial growth that we have. And that's that. I don't feel touchy about it; I have no feelings about it at all. Not motivated, not depressed. Nothing.

 

I agree 100%. On the last question, I voted I wish I'd never looked, but it's actually "I don't care."

[jeninok]

We have a better net worth than we do a day to day cash flow. I am fine with that, the nest egg we are building makes me feel much better about our life as older people.

[Carrie12345]

We are finally about to reach the point where net worth picks up speed! It matters very much to me b/c I see my parents and inlaws who are all about to reach retirement age. One set is trying to figure out how and if they can actually retire soon. The other absolutely can't if they want a dry roof and decent food. I can't allow us to go down that same road.

[HRAAB]

My dh tracks all things financial and does a financial statement for us each year. Retirement is not that far off for us, so I feel it is very important to see where we are. Dh has tracked this information, even when we were first married.

[Orthodox6]

We have the resources to calculate this number. We would not share it with strangers, though. Such figures are highly mutable, anyway.

[Tita Gidge]

It wouldn't let me vote if I only answered one question. I don't know or care, so I've delegated that responsibility and any corresponding worry.

 

I know we have no debt, and our homes and cars are paid for. Our business is in the black but our stock investments aren't expected to fully recover. I'm not worried about my retirement years.

 

 

[Elinor Everywhere]

I've thought of it, but had never sat down and figured it out. If the economy holds steady (or please, improves), we'll be fine for retirement in 15 years, with only a mild change of lifestyle. But that's a big "IF".

[Parrothead]

I know the amount. I keep track of it. I'm not overly proud nor am I ashamed.

[Aslana]

We have almost what we have. Meaning our debt to household worth ratio is about even. Which isn't exactly good. Our household worth should be higher than our debt. But with school loans and mortgage and other (non-essential stupid debts) we are about even.

 

We would have to literally sell every single thing we own, right down to the very threads on my clothes, in order to break out of the debt. But, I don't worry about this because this will all be taken care of soon enough.

[happymomofboys]

We have a negative net worth because we have a mortgage. Otherwise we are debt-free. When my husband was working we had a growing savings and were on target to pay off our mortgage early. Then he lost his job. Now we're just thankful that we had that savings to fall back on. It gave him options and he was able to go back to school for retraining. I'm grateful that we have a roof over our heads, food to eat, and I didn't have to immediately drop homeschooling to get a job to feed my kids.

 

I come from a poor background. My father was raised dirt-poor and rose above it. I grew up lower-middle to middle-class and then when Dad had a massive heart attack and went on disability we were back to being poor again. For my husband and I, knowing our net-worth is valuable, but it doesn't mean anything to us. It's just a number that we do our best to raise as we can.

[dontknow]

I know it in an instant since I use Quicken for all things financial related. Have been for many years and have always found it helpful to budget, etc....

 

Inside of that number some people may or may not include Life Insurance info - I don't.

 

I find the Net Worth thing interesting and yet, don't care.... Life changes too quickly to be proud of it.

[Audrey]

I know it because I do our finances and I track that. For me, it is good to know that the farm is a huge asset -- especially on those days when it is just so #*$&*#! hard.

[magnificent_baby]

I don't know our result, and it doesn't really matter to me. We are in fairly good shape at the moment, and should be for retirement. DH does all our finances and we have a good retirement manager so I'm not worried.

[Sun]

It was just odd for me because it had never once occurred to me that it was a number that would be relevant for anyone who wasn't rich. Talking to those other moms was kind of an, "oh, duh!" moment that it could apply to anyone. I'd never thought about it in terms of retirement planning, and I feel a bit foolish that I hadn't thought about it. We've been really trying to buckle down on savings lately, so seeing the numbers has been eye-opening for me.

[Prairie~Phlox]

I really don't care. I can't take anything with me when I die, we have a roof over our heads and food in our stomach.

[Catwoman]

I really don't care. I can't take anything with me when I die, we have a roof over our heads and food in our stomach.

 

But if you don't keep track of your finances, how can you be sure you will always have those things? What about emergencies? What if any of you need long term care? There are so many unforeseen possibilities. (And it would be great if I was one of the people who could go through life without worrying about that stuff, but I'm not, and neither is my dh!)

 

And I don't know about anyone else, but although I know I can't take it with me when I die, I want to be able to leave a healthy inheritance for my ds (and wife and his children, if he gets married and has kids.)

[Melissa in Australia]

I know down to the last 1000.

We are debt free :hurray: :hurray: :hurray: :hurray:

[PrincessMommy]

Not comfortable answering the poll as this is a public forum and there's been a few people here who've been stalked. But, my husband keeps close track on our net worth and investments. He's within 10yrs of retirement age, so it's important. After watching my parents not keep track and have a miserable financial mess when my dad sold the business and retired, I'm very thankful my dh cares enough to do this.

[Jane in NC]

This to me is a far more telling number than household income. As the CFO of our household, I track it all.

[delaney]

We have car loans, a mortgage, credit cards....I really don't care. I live life and enjoy. Good for Dave Ramsey and Suzie Orman. They take people's money telling them how to live. Kind of ironic I think. As long as we pay our bills and my kids are happy I am good.

[kiwik]

Lets see I have a mortgage. I have about $1200 worth of retirement savings because I joined the voluntary scheme last year and you get a lump sum to start. My credit card is far too high because I had to use it to pay childcare for a couple of years. I have almost enough to pay my power bill but if I lose my court case and have to pay a fine for an offence I didn't commit plus court costs I am in big trouble. Apparently innocent until proven guilty has changed to we will believe the policeman is infallible and you must prove he made a mistake. Ok rant over.

 

Hopefully I will pay of my mortgage and the universal pension will still exist when I am old. Or my kids will have very high paying jobs and want to look after me. (probably not).

[dm379]

^{I calculate it yearly when I do our taxes. We have enough. I'm working right now to finish paying off our mortgage and get more invested. Theoretically, dh can retire in 7 years and neither of us will have to work again if I keep bringing in the small amount I do. He'll only be 39 so I doubt it'll happen but that's our goal. Not sure why my font is off or why I can't use the paragraph function.}

[Soror]

I keep track, although not to the penny. I am happy with where we are at, although we of course could be doing better or worse. We try to do well not so we can take it with us but so we aren't in a situation of trying to live off of social security and eating dog food. Not caring about it sounds so fun and care-free but not so much whenever you are older or unable to work for any reason then you really have to live a life without choices. We will not be Rockefellers here but are trying to do the best we can with our modest income, without living like misers. I'd like for dh to have the option to retire early as well.

[flyingiguana]

Well, if we count the house, suddenly we're a lot wealthier, But that's only because the housing prices around here are too high. And because we had the luck to buy in at the beginning. But it's really kind of irrelevant, because we'd have to sell the house to get the money, and once we sold it, we'd have nowhere to live unless we bought something else, which would cost even more. I mean, assuming we stayed in the area, because we kind of have to, given that our jobs are here and that it's unlikely we'd get jobs anywhere else.

[2squared]

But if you don't keep track of your finances, how can you be sure you will always have those things? What about emergencies? What if any of you need long term care? There are so many unforeseen possibilities. (And it would be great if I was one of the people who could go through life without worrying about that stuff, but I'm not, and neither is my dh!)

 

And I don't know about anyone else, but although I know I can't take it with me when I die, I want to be able to leave a healthy inheritance for my ds (and wife and his children, if he gets married and has kids.)

 

:iagree:

 

I don't care to take anything with me or to leave anything behind, but I do care to not be a burden to anyone while I am here. I also care about providing my kids with a solid roof over their heads, food in their stomachs, and quality education. Budgeting, saving, and insuring (against financial loss) are all critical to accomplish our financial "needs."

 

Some days I wish I didn't care about tracking our financial picture, but I don't know how we could make wise choices without knowing. I can't sleep well at night without a sizable emergency fund, a budget that includes savings, and fully funded retirement. We can't know how much to save for retirement if we don't know our net worth and our net worth projections. We can't know if we have adequate emergency savings if we don't have a monthly budget.

 

I'm not the type of person who is comfortable with "things just work out." I plan and I execute my plans, and sometimes those decisions are heart-wrenching. My dh is either quitting his job or asking for a reduction in pay. Neither option is acceptable for me (since the reduced pay wouldn't be enough for us to save for emergencies or retirement), so I am interviewing next week to go back to work as our bread winner. My oldest three kids will be in public school next week (private next year or the year after), and my dh is likely to end up as our SAHP. This is heart-wrenching for me, and I have cried buckets of tears, but our financial security is more important to me than my desire to be at home with my kids......and my desire is all-encompassing. Difficult, difficult times for us.

[butterflymommy]

About half of our net worth is in real estate, our old house which we're renting out and our current one where we live. The prices here haven't stabilized since the housing bust so I really don't know what our homes are worth. We've been aggressively saving for retirement even when we had almost nothing to save. Whenever we did our annual deposit in the 401ks and IRAs the bankers would tell us they never saw people our age (back then in our 20s) saving. DH watches our net worth down to the nickel but I only have a ballpark idea.

[TravelingChris]

I was surprised by the figure. Why? Because I had done net worths before and they never included pension figures. Now I knew that we really weren't as bad off as the typical net worth things stated (the ones that don't count value of pension), but had no idea how far off we were. Now I am understanding how come I am getting the mail we are getting- it was hilarious to me to be getting mail from people who start managing investments for those who have over 100K US in liquid assets. We certainly don't have that.

 

Now to get my dh to actually plan when he is retiring and get that good second career job (it actually will be sort of the same career, since he is a physicist and probably will continue as one, but no longer active duty).

 

Especially since it is pretty sad that with our net worth, I am worried about paying for a tree removal we will probably need.

[TravelingChris]

I was surprised by the figure. Why? Because I had done net worths before and they never included pension figures. Now I knew that we really weren't as bad off as the typical net worth things stated (the ones that don't count value of pension), but had no idea how far off we were. Now I am understanding how come I am getting the mail we are getting- it was hilarious to me to be getting mail from people who start managing investments for those who have over 100K US in liquid assets. We certainly don't have that.

 

Now to get my dh to actually plan when he is retiring and get that good second career job (it actually will be sort of the same career, since he is a physicist and probably will continue as one, but no longer active duty).

 

Especially since it is pretty sad that with our net worth, I am worried about paying for a tree removal we will probably need.

[Jennifer3141]

What is the point of these threads?

 

Yes, I know our net worth but I don't understand why anyone else would need to know it other than our trustee.

 

If you know your net worth, you probably have one but there are an awful lot of board members really struggling due to medical emergencies, job loss, whatever.

 

It's great if people are just learning how to manage their finances responsibly but I wish we'd have more sensitivity to those going without.

[Mama Geek]

What is the point of these threads?

 

Yes, I know our net worth but I don't understand why anyone else would need to know it other than our trustee.

 

If you know your net worth, you probably have one but there are an awful lot of board members really struggling due to medical emergencies, job loss, whatever.

 

It's great if people are just learning how to manage their finances responsibly but I wish we'd have more sensitivity to those going without.

 

 

I think the point is to find out how many others are aware of their finances and how many aren't. I haven't seen anyone bashing those with less in this thread, it really isn't to make anyone feel bad. I didn't answer the poll because even thought it is anonymous, I just don't want that out there. You have the option of reading a thread and or posting to it, but you also have the option not to. Even when we were very poor college kids both dh and I paid very close attention to the money that we did have and how we spent it. We have always been that way and always will be.

[T'smom]

What is the point of these threads?

 

Yes, I know our net worth but I don't understand why anyone else would need to know it other than our trustee.

 

If you know your net worth, you probably have one but there are an awful lot of board members really struggling due to medical emergencies, job loss, whatever.

 

It's great if people are just learning how to manage their finances responsibly but I wish we'd have more sensitivity to those going without.

 

No kidding. I read this thread because I couldn't believe how many responses there were. It's nobody's business but mine and dh what our net worth is. If the idea is to "raise awareness" in needing to pay attention to these things, there wouldn't be a poll about what people are worth.

[2squared]

Even when we were very poor college kids both dh and I paid very close attention to the money that we did have and how we spent it. We have always been that way and always will be.

 

This is me too. From high school until today, I have always monitored my finances. I have gone through periods with not much, periods with a lot, and periods in between. The periods with not much were scary for me, and knowing our financial situation helped us to get through those periods. I remember a period a couple years ago where I saw us making financial choices that I knew weren't the wisest long-term. Our income was too low, our expenses too high (due to larger family rather than frivolous spending), and it was very, very difficult to make healthy long-term financial choices when other immediate choices seemed just as good. It was really a weird feeling - knowing the wise choice is xxx, but almost not being able to see that choice because our immediate needs seemed more pressing. I can completely see how finances start spiraling downward, and people can't get them turned around.

 

We work hard to have multiple levels of income security, too. Dh has his FT job plus he is in the Air Force Reserves. The Reserves provides retirement benefits, affordable healthcare, and an income security net. I am working very PT right now, but I expect to be working FT in the next few weeks. Despite being at home FT for 8 years, my prior education and work history is strong enough for me to be our bread winner. We consider me going to work our "trump card" and one we didn't want to play, but here we are. Now I will work FT, dh will pick up PT work, and dh will remain in the Reserves. Keeping the at home spouse employable is another tool for our financial security.

[Soror]

The way I read the OP was that the primary concern of the thread was not about specific amounts but your thoughts toward it and your own awareness of such things. The actual number is not terribly relative without other details. What one person/family needs and wants will be entirely different than someone else. I don't understand what is offensive about being aware of such things. To me it is like asking about different ways to lose weight being offensive to those you are overweight. Whether or not I keep track of the number on the scale doesn't change the reality of that number but being aware can certainly be useful when trying to manage your weight or money. Everyone needs to manage their money, some people just have more to manage.

[JumpyTheFrog]

What surprised me was that 15% of people with annual incomes over $200k don't save any money! What on earth do they do with it? Even if they have a business they are investing in, I would expect them to add a bit to their IRA or checking account.

[delaney]

If you need to know my finances I would suggest calling Nordstrom :lol:

[justamouse]

But if you don't keep track of your finances, how can you be sure you will always have those things? What about emergencies? What if any of you need long term care? There are so many unforeseen possibilities. (And it would be great if I was one of the people who could go through life without worrying about that stuff, but I'm not, and neither is my dh!)

 

And I don't know about anyone else, but although I know I can't take it with me when I die, I want to be able to leave a healthy inheritance for my ds (and wife and his children, if he gets married and has kids.)

 

This. Totally.

 

Why?

 

Becuase if I die, my kids won't be going back to school, a teacher will have to be hired, and, we've got about 10 years of school left. To plan responsibly for that, we need to know.

[Arcadia]

I know my household net worth since I am the one doing the income tax forms and also did the US census detailed (2nd round) forms which ask a lot more information than IRS.

However I prefer to count only liquid assets. My home value goes up and down and I may not be able to liquidate it when I need the cash so I don't bank on it.

 

What surprised me was that 15% of people with annual incomes over $200k don't save any money!

 

For a double income "young" family earning slightly over $200k before tax, bulk of the income goes to paying off their mortgage, infantcare/childcare expenses, state and federal taxes, property tax, insurance (employee portion), social security, state disability insurance, 401k and others.

Also not saving money is relative, it depends on how the survey question is worded. Just a silly example, if you ask my neighborhood children if they are saving money and even $1 counts, you will probably get a 100% rate for kids over 5 years old because they bank their allowance (including piggy bank).

[SKL]

I used to track it very closely, with the goal to being able to never work again (unless I wanted to). I had just about achieved that goal when the economy crashed, LOL. Since then my first priority is getting my kids ready for the school of hard knocks. I have what most would consider a healthy nest egg, yet I don't rest my future on that. Don't let moss grow on a rolling stone or something like that . . . .

[SKL]

But if you don't keep track of your finances, how can you be sure you will always have those things? What about emergencies? What if any of you need long term care? There are so many unforeseen possibilities. (And it would be great if I was one of the people who could go through life without worrying about that stuff, but I'm not, and neither is my dh!)

 

And I don't know about anyone else, but although I know I can't take it with me when I die, I want to be able to leave a healthy inheritance for my ds (and wife and his children, if he gets married and has kids.)

 

Whether you do or don't keep track of your finances, you still can't be "sure" you'll always have anything. Besides, thinking too much about money depresses me - whether I'm in the black or the red. I have certain "relatively safe" funds designated to certain things (my kids' education being the biggie). Other than that I don't try to project what I'll be able to spend in the future.

[Mergath]

I couldn't care less. There are a million things that could happen that make net worth completely irrelevant, no matter how much one plans. I can't believe people actually sit around and compare specific net worth. How tasteless.