Author Topic: Net Worth  (Read 11736 times)

MoneyChief

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Re: Net Worth
« Reply #15 on: June 29, 2017, 09:03:40 am »
I like the idea of a quick survey. If we have just a few questions we can use survey monkey. I'll happily promote it in my next blog post. What we need to do is define the questions. We can use a dropdown for age, and need to do the same for occupation, though we'll need quite general categories for that. For net worth if we work in actual whole numbers we don't need to worry about the categories. Any other thoughts?

Together with the net worth per occupation numbers, I would also be very interested to see how much debt people are carrying. I think you will also have to specifically state what people should be adding as net worth and debt items. People play insane mind games with themselves. I know this one woman who told me she has no debt. Later on she admitted to having student loans. When I asked her whats up with that, she told me she doesn't see her student loans as debt, instead she sees her student loans as an "investment". Lol, maybe she was embarrassed about her loans, or maybe not.

santoshlv426

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Re: Net Worth
« Reply #16 on: June 29, 2017, 12:54:14 pm »
To keep it simple, I'd seek answers to the following

State your...

1. House Value
2. Car Value
3. Outstanding Mortgage and Car Loan.

Asset Net Worth = 1 + 2 - 3

4. Cash
5. Pension/Provident and or RA (Sum it all up)
6. Total investments (Shares, unit trusts, bonds) Value

Net Worth = Asset Net Worth + (4+5+6).

Age
Occupation
Still Working or Retired.

I think not to make it too complex, that should cover it.

MoneyChief

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Re: Net Worth
« Reply #17 on: June 29, 2017, 01:43:15 pm »
To keep it simple, I'd seek answers to the following

State your...

1. House Value
2. Car Value
3. Outstanding Mortgage and Car Loan.

Asset Net Worth = 1 + 2 - 3

4. Cash
5. Pension/Provident and or RA (Sum it all up)
6. Total investments (Shares, unit trusts, bonds) Value

Net Worth = Asset Net Worth + (4+5+6).

Age
Occupation
Still Working or Retired.

I think not to make it too complex, that should cover it.

What about businesses you own?

gcr

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Re: Net Worth
« Reply #18 on: June 29, 2017, 01:55:30 pm »
I have previously made comments regarding the intended survey, and, as much as the intent is to make it simple, by its very nature it will produce conflicting results because the parameters are open to interpretation. As an example I will answer your 1st 3 questions:-
House R 1.6 million (municipal valuation)
Car R400,000 (purchased in 2014 for R 650,000 deflated for loss of value over time)
Outstanding debt bond R34,000 and car loan R 94,000 - R 128,000

Realistically my house has no worth to my estate until I die nor my car as it is a depreciating asset so it does not constitute any part of what I can net wealth
Also with point 5 - my pension which I receive monthly merely enables me to live comfortably and I don't have to look elsewhere to augment the pension to survive, and there is scope within that pension to meet all my monthly commitments, and ultimately save funds to service all my debt, and make annual capital reductions on my motor vehicle. My bond is in place with the above outstanding amount due to me making a large capital reduction on the car, and my bond is also used when I want to buy shares on the open market
So if I plugged in all my numbers I think it will skew your survey and I don't doubt that others on this forum will also skew the results and it will be life cycle based. Without being unkind even the fact that you have been unemployed for 2 years will skew the results probably the other way - so if you are trying to get a creditable dispersion - then you won't
Needless to say forge on with your survey and lets see what the results show 
   
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein

conradl

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Re: Net Worth
« Reply #19 on: June 29, 2017, 05:01:41 pm »
I tend to agree with GCR on this. I am an engineer working for a large engineering company and earn relative to my peers a median salary. However, my net worth is probably significantly more than those earning significantly more due to my chosen lifestyle ie making occupation not that relevant. Patrick himself is a good example too...

MoneyChief

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Re: Net Worth
« Reply #20 on: June 30, 2017, 03:06:44 pm »
Realistically my house has no worth to my estate until I die nor my car as it is a depreciating asset so it does not constitute any part of what I can net wealth

Are you serious? Have you been reading Robert Kiyosaki books?

gcr

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Re: Net Worth
« Reply #21 on: June 30, 2017, 06:47:10 pm »
Realistically my house has no worth to my estate until I die nor my car as it is a depreciating asset so it does not constitute any part of what I can net wealth

Are you serious? Have you been reading Robert Kiyosaki books?
No but obviously you have - your point being?
Not everything that counts, can be counted, and, not everything that can be counted counts - Albert Einstein