NET WORTH CHANGE || 2024 Q2 UPDATE

Hi! I’ve seen other people exclude their house from their net worth to share their “liquid net worth,” but those people also exclude their mortgage from their liabilities! Either include both or exclude both! So in your case, I would say your true net worth is $525k and your liquid net worth is $262k (excluding house/mortgage). Great video! :)

Good morning ❤ I appreciate you sharing this kind of video and when I am in a position to be able to calculate mine I look forward to sharing as well. If I could inspire someone to grow wealth would be so amazing. It works if you keep going. I look forward to your next video. Have a great day

I love watching these videos. I've always been scared to make one and show my own numbers, but after your encouragement maybe I will. Thank you for being brave enough to share!

Katie, I hope you read. This topic I DO have an opinion on what you track and how., I think my input is better than the :"money guys too" as it relates to how to track the primary home. First, you should ABSOLUTELY count real estate in your net worth calculation. And while you can track what you paid for it as one value. You should also track its current value too. (Which I getg from the web on sites like Zillow or Redfin. ) Just using purchase price can GREATLY impact the calc. Let me use my situation as an example. I purchased my home over 40 years ago for $140K. Do you think NOW it is worth that much? I wont tell you how much I am listing it for, but its a MUCH MUCH bigger number than that. Second you are right and wrong. If Marc wants to access his IRA prior to 55 there are iRS regulations he could use to access it without penalty. Rule 72(t) is the correct term. It allows for penalty-free withdrawals from retirement accounts like IRAs, 401(k)s, and 403(b)s before age 59 1/2, but with strict conditions I strongly recommend if you want to pursue that that he research it, as many accountants are NOT aware of the details. I am as one of my close friends did this. And accesses the 401K I think at 52. Now I will go back to your video as I have not watched it all yet. Not sure why you dont access the other way? Perhaps I am misinterpting something.

I have a seperate category where I track our liquid networth. Cars and primary homes are still assets, albeit not always appreciating assets and don't generate cash flow. But you could liquidate those and receive cash, which makes it an asset in my eyes.

I track our networth which includes ALL assets (except for things like jewelry and collectibles, I don't count those) and then I track our liquid networth (cash, retirement accounts, brokerage accounts, etc.). I don't count our rental properrties towards liquid net worth because it is not liquid.

I personally like the money guys way, with the amount house purchased for. I also track my " invested " assets separately as that's my financial flexibility amounts.

It makes no sense to me to not include a house, which is an appreciating assets, bc when you pass, it will be liquidated or inherited. And while I wouldn’t do this, it’s also possible to pull out some of the equity on the house without even selling it.

Hi katie! I can't wait to watch this one! 🙌🏽🙌🏽🙌🏽

Great video

I personally don't like the money guy way of using your homes purchase value into net worth. If you're trying to estimate what something is worth using an old outdated number doesn't help. Do you value your stock portfolio at what you paid? No. Do you value your car at what you paid? No. Why value the house that way? I understand being conservative in estimating the value of a house but being 200k off of the real value does nothing for you. If you want to take out the house altogether and get liquid net worth that also works.

Congrats on being a 1/2 millionaire!

whether or not you share to much info or not, i don't know. but what i do know is that you are the number one personal finance mom on YT and i absolutely ur channel. i really look forward to every new video release because i know it's gonna be great. i know you taking a little break for the summer and i definetely approve, but im still excited for the August budget with me video next week. love and appreciate what you do. thank you!!!!!!!!!!!!!!!!!

Ugh hubby & I need to do this. Thank you for sharing 😊❤😊

correcting my last comment. meant to say absolutely LOVE your channel!!!!!!!!!!!!!!!!!!!

Congrats 🎉 you’ll be a millionaire in no time. Great update.

I don't think it makes any sense not to count your house. If you're at the age of retirement and you need money you could move out of the house and sell it because at that time your kids will be adults and already moved out, so no need for all that space. So if you're short on money in retirement you would still sell it and find something smaller and cheap to live in

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I would count the house as an asset using a realistic value of the house. I agree that if you don't use the house in the asset, you need to delete the mortgage from the liability side. If you don't have the house, you won't have the mortgage either.

Great ❤ Video You should count the house but if you aren’t going to count the house you shouldn’t count the mortgage because if you are thinking of in regards to retirement you most likely would be down sizing it witch means it was sold if that makes sense

I always enjoy seeing this and I always learn something new each time! I appreciate you sharing it so much! ❤❤

Love this kind of video!! It shows your growth and places you need to work on.

That video was very informative. I’d always say don’t count the house but that doesn’t make sense early on. Yay on your half-millionaire status.

I absolutely do not count the equity of my house. What’s the point? Just to get a higher net worth number? My house equity isn’t real until I sell, even then, I’d have to account for the next house. I’d rather be more conservative and realistic. This number is only for me.

Hello Katie! Interesting! Thanks for sharing!! Great net worth update!! 💜🌻🌷I didn’t know about the purchase price as a way to calculate net worth. When I did mine, I added an estimate of my home repairs as a liability to try to have a more realistic picture but I know there are so many factors that involve the sell of a home. So I may try it this way. 💜🌻🌷

Good video! 💗💗u r doing great in increase ur assets

I wouldn't get wrapped up too much about how to count your house. Just pick something and go with it. The main thing is how net worth is changing. For me the house is part of our wealth building strategy for a variety of reasons, so it is in the net worth (using zillow numbers now, pre-zillow, we used appraisals from frequent refinancing). For me, it is to include it. You just have to know that all of your net worth isn't available for retirement spending, but that isn't really a problem.

Way to stay amazing and consistent. You keep me motivated to save and attack my debt. Thank you!!❤

it will be nice if you can format your numbers lol

Yay on being a half millionaire! Very exciting!

You are doing an awesome job

I count both my houses. One is an inherited home that I rent out to a family member.

Hey half-millionaires!! 🎉🎉🎉😊

The net worth is to be calculated with the current market values. That goes for all assets and liabilities. Using the purchase price of the house but the current investment portfolio value creates an inconsistency. And I agree that the house value should be included in the net worth. I don't see why it shouldn't when you include the mortgage in the liabilities. Great video, thanks for sharing 👍🏽

Hi Katie, I've never heard of ppl saying not to count the house. I thought anything u could sell for money counted lol. I think what u said makes the most sense, seeing progession in both liabilities decreasing and assets increasing is the most important regardless of what youre including. Great update! Btw ur spreadsheet says ur assets are Q1, at frist i thought u were comapring ur q2 liabilities to q1 assets lol

What percent did you put down on your house and on your car? Never fun to see you're underwater.

Very fun to see over 300k in retirement though!

Congrats on being half millionaires! I track both net worth numbers and our portfolio numbers, which tracks liquidity (no primary home or cars). 😊

Have you considered Roth IRA and Roth conversions?

I think it only makes sense to count the house in networth. In theory, you could take a HELOC to leverage that asset even without selling and moving.

This is a great update! It's always so encouraging to see the progress over time! I would say as long as you're counting the same way each time it's good!

Yay to half millionaires! 🎉

Hi Katie! I like how you show all 3 net worth numbers! Yay for being half millionaires 🎉🎉🎉❤❤❤

Who is advising these people to exclude their house value? Simply google the definition of assets will tell you that assets are anything of monetary value that can be used to settle debt at a time. If you are only counting how much you paid for the house and not it's current value, what would you do to the other investments account, like 401K? Will you only count the amount you deposited or it's current value? smh

Ooo, very interesting. I love how you did it in the different ways. For me, I count my house as an asset, but, I know I will need to sell it in the future to get the investment from it. I bought it with that in mind. As I age, I do not want to own a home. Great video and you are making amazing progress.

Morning Katie!!
I understand viewing it both ways… it’s knowing what’s liquid versus what would take work to make liquid! Sexually important to know both sides of the equation!! I appreciate these videos from you!!

Congratulations on your progress!

I don’t count our house because #1 it’s a liability and #2 you have to sell the house to get that money. Also, I don’t count our car.

The value of your home is part of your net worth, just like the value of your 401K or brokerage account. We have our savings goals and that is what I care about but I do keep track of our net worth and include our home. I have a friend that his home is about 65% of his total net worth. I think it should be about 25% or less. Keep up the good work you guys are killing it!

Currently reading: Boom and Bust A Global History of Financial Bubbles by William Quinn and John Turner

I'm late to this one but I love that you're willing to share your numbers. Our numbers are in the same ballpark as yours but we finished paying off our debt last year once we hit this income level (a rapid shift for us after leaving the military). We have pensions, max out Roth IRAs and 401k. We're at a point now where we can spend more, maybe start traveling, I don't know. It takes a big shift in mindset to go from debt to saving to spending with fewer restrictions. So far it's in the form of kid activities. $300 on one kid's sport here, $180 on another kid's sport there, oh but now we need shoes and gear too, those were just registration fees. That stuff adds up SO quickly.

I am such a dork…I update my net worth on the last day of every month. It is so awesome to see it increasing year after year.

Thank you for sharing this! It makes sense to me to include both the house value and mortgage liability to show equity (or how upside down). Yes, I’d have to sell to get that cash but for me, it’s still a helpful number. Thanks!

Awesome video. You're doing great!

You can get a cash offer monthly from Carvana for free. We get an offer from them online every month and use that number for its worth.