Reply to What is net worth and why does it matter?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]When you talk about your finances, do you think purely in net worth or something else? Why is net worth a measuring stick of wealth?[/quote]

I have no idea what mine is. I have a vague idea. We invest via direct deposit each month, I've faithfully been maxing out my 401k since age 22 , have backdoor roths, and have 2 investment properties.  I know I will have enough to retire, send my kids to college, and leave some money behind when I die.

As far as knowing my net worth? No. I go over these things on an annual basis when we meet with our CPA to do taxes.[/quote]

You meet every year with your CPA, but have no idea of your net worth?  Sorry, not trying to badger, but that sounds weird.  We don't have a CPA, but just looking at my mint account gives me a good sense of our net worth to the minute. [/quote]

Agreed.  It's a good idea to have a handle on your finances.  If you can do a backdoor roth and purchase property, you can look up your NW.  [/quote]

What is the point? My NW is constantly changing. I already have a handle on my finances, so much so that I only see in my bank account 50% of my NET income, the rest is invested or put in an account for future real estate investments as they present themselves.  Market fluctuations between equities and real estate, retirement fluctuations, tax loss harvesting...I'm not going to change anything knowing my day to day NW. I of course have a round idea of what it is, based on the numbers last March and knowing how the market is doing in general, but I'm 40, not anywhere near retirement, and don't see need to cash in any of my chips anytime soon.

I can assure you, after investing in both 401k, roth and taxable accounts for the last 18 years faithfully, plus real estate, my NW is more solid than most. Certainly not a a place that i need to monitor it on a daily basis.

I don't use mint, but I have moved a lot of money into Wealth Front in the last 18 months because of their automatic tax loss harvesting feature. That account has the capability to look at my entire financial picture, but I'm not so comfortable having all of my finances consolidated and viewed by one platform.[/quote]

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