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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I track my finances fairly closely, and here is how I approach it.

First, for purposes of my calculations (I have a spreadsheet to record my asset values at set intervals), I value my house at roughly 90% of what I anticipate I could sell it at on the open market, informed mostly by an average of Zillow/Redfin/Trulia. I do this to take into account the equity value if I were to sell, as I'd need to cover commission, seller-side transaction taxes, other sale expenses that may arise, and a bit of buffer for sale price.

Second, using that value, I calculate my "net worth"--which is really just the total value of all our assets. Over the years, the categories have grown, and real estate value net of mortgage is one category.

Third, I also calculate where I stand with respect to my retirement-goal "walk-away" number. This number is a sub-set of net worth. It does not include any of our real estate assets, 529s, cars, personal property, etc. Rather, the walk-away number is based on investment + retirement accounts.

While I don't post numbers here often, if I were to post my "net worth," I would include all real estate equity (calculated as above), including principal residence. If I were to post my goal towards my "walk away" number, it would exclude real estate, among other things. So, for me at least, the answer to your question is a bit nuanced.

I'd presume that when most folks post their "NW," they are including home equity. [/quote]

What do you do with this very precise info?[/quote]

15 years or so ago, I got in the habit of logging into all my financial accounts roughly twice a month to pay bills, ensure charges are accurate, monitor spending on pre-authorized bills (e.g., utilities), watch for unnecessary subscriptions, etc. I started a spreadsheet where I'd log each account value, roughly on the 1st and 15th of each month. This helped me in a few ways. I monitor available cash, to ensure that I was contributing appropriately to investment accounts and not allowing cash to stockpile. I'm currently a K-1 earner, so I also need to be alert to cash flow for liquidity for quarterly tax payments and other larger but periodic expenses.

Over time, having this data has helped me see my financial trajectory. I'm fairly goal oriented, and when I want to achieve certain goals--be it weight loss to financial success--I find that routinely tracking data helps keep me on target. With this data, I can see how my net worth compares to any two points in time, allows me to better balance our asset classes, etc. As we have become more successful and have many more accounts (and now work with a financial advisor), it helps me to have a quick and easy snapshot of our finances at any given time. In addition to net worth growth, I have long had a plan as to asset allocation among various classes, and this longer-term data has helped me track our progress in that direction.

Mostly, I'm perhaps a bit OCD with data. As noted, I started this years ago and haven't quit. I like having the longitudinal data of my own personal finances. I'm sure it is not for everyone, but it is something that works for me. Also having this data allows my spouse, who is not as attuned to our finances, have an ability to appreciate our circumstances. 
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