Calculating Net Worth - formulation dilema
So it should be pretty easy to calculate net worth, right?
add up all investments and and securities subtract all debts.
some schools of thought though is you cant really include your personal residence, as it skews the valuation.
ok, so back out the residence, but then shouldnt also back out the mortgage?
my house is worth about 400k.
i owe no consumer debt, but my mortgage is an M1 super mortgage and my balance is $240,000.
I list my total debt as 240k., but if i wouldnt have that much debt if not for leveraging to buy my house.
point me to the right formula please.
add up all investments and and securities subtract all debts.
some schools of thought though is you cant really include your personal residence, as it skews the valuation.
ok, so back out the residence, but then shouldnt also back out the mortgage?
my house is worth about 400k.
i owe no consumer debt, but my mortgage is an M1 super mortgage and my balance is $240,000.
I list my total debt as 240k., but if i wouldnt have that much debt if not for leveraging to buy my house.
point me to the right formula please.