Comments on: How Discounting the Value of Your Home Could Keep You Out of Financial Trouble http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/ Money Tips for a Better Life Sat, 20 Mar 2010 00:29:02 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: karla (threadbndr) http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-598 karla (threadbndr) Fri, 26 Jan 2007 18:37:23 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-598 I do two 'net worth' calculations each quarter. One with my house and the accrual accounts (for taxes, insurance, future house upgrades, saving for new car, etc) and one without the accruals, primary residence, personal property and vehicles. The first is my 'classic' net worth, but the one I acutually use for my personal financial ratios and tracking is the second one. I think the 'adjusted' net worth tracks my actual liquid and uncommitted assets much better. That's the one I pay attention to. I know too many people who are 'house rich and savings poor'. It's an easy trap to fall into. I do two ‘net worth’ calculations each quarter. One with my house and the accrual accounts (for taxes, insurance, future house upgrades, saving for new car, etc) and one without the accruals, primary residence, personal property and vehicles.

The first is my ‘classic’ net worth, but the one I acutually use for my personal financial ratios and tracking is the second one. I think the ‘adjusted’ net worth tracks my actual liquid and uncommitted assets much better. That’s the one I pay attention to.

I know too many people who are ‘house rich and savings poor’. It’s an easy trap to fall into.

]]> By: Get Rich Slowly » Carnival of Personal Finance: Financial Superheroes Edition http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-372 Get Rich Slowly » Carnival of Personal Finance: Financial Superheroes Edition Mon, 08 Jan 2007 20:02:55 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-372 [...] Discounting the value of your home could keep you out of financial trouble, according to Ben at Money Smart Life. By doing this, “your net worth will reflect the financial value you’re building while also setting the realistic expectation you can actually turn your home into that amount of cash.” [...] [...] Discounting the value of your home could keep you out of financial trouble, according to Ben at Money Smart Life. By doing this, “your net worth will reflect the financial value you’re building while also setting the realistic expectation you can actually turn your home into that amount of cash.” [...]

]]> By: Get Rich Slowly » Carnival of Personal Finance: Financial Superheroes Edition http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-373 Get Rich Slowly » Carnival of Personal Finance: Financial Superheroes Edition Mon, 08 Jan 2007 20:02:55 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-373 [...] Discounting the value of your home could keep you out of financial trouble, according to Ben at Money Smart Life. By doing this, “your net worth will reflect the financial value you’re building while also setting the realistic expectation you can actually turn your home into that amount of cash.” [...] [...] Discounting the value of your home could keep you out of financial trouble, according to Ben at Money Smart Life. By doing this, “your net worth will reflect the financial value you’re building while also setting the realistic expectation you can actually turn your home into that amount of cash.” [...]

]]> By: moneysmartz http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-360 moneysmartz Sat, 06 Jan 2007 18:20:52 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-360 Good point mbhunter. That's money we owe the bank, a mortgage is probably the biggest liability most people have. Good point mbhunter. That’s money we owe the bank, a mortgage is probably the biggest liability most people have.

]]> By: mbhunter http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-349 mbhunter Fri, 05 Jan 2007 08:23:27 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-349 I don't include my home's value, but I do include my mortgage as a liability when I calculate my net worth. I have to live somewhere, and it keeps me working a little harder. ;) I don’t include my home’s value, but I do include my mortgage as a liability when I calculate my net worth. I have to live somewhere, and it keeps me working a little harder. ;)

]]> By: Ashish Mohta http://moneysmartlife.com/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/comment-page-1/#comment-341 Ashish Mohta Wed, 03 Jan 2007 18:44:40 +0000 http://www.moneysmartlife.com/2007/01/03/how-discounting-the-value-of-your-home-could-keep-you-out-of-financial-trouble/#comment-341 Might not be the right place but came to notify a serious thing. PS: I would like to notify about a Major risk in wordpress that i was able to find.Its major hack in wordpress having a risk of 7/10.I am not advertising but do look at my post <a href="http://www.technospot.net/blogs/index.php/2007/01/03/all-wordpress-user-update-your-template-php-file-to-avoid-html-injection-and-being-hacked/" rel="nofollow">html-injection-and-being-hacked</a>.Please do notify about this to other bloggers.I had a talk with Matt(Wordpress) on email about it Might not be the right place but came to notify a serious thing.

PS: I would like to notify about a Major risk in wordpress that i was able to find.Its major hack in wordpress having a risk of 7/10.I am not advertising but do look at my post html-injection-and-being-hacked.Please do notify about this to other bloggers.I had a talk with Matt(Wordpress) on email about it

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