I was filling out electronic paperwork for financial aid last night for my masters program and one of the questions asked for my net worth. Basically, I had to add up all of the value in our savings, checking, cash reserves, and investments (like real estate) and then subtract all of our debts. You can't count the house you live in as an investment in this formula.
Considering that our car, house, student loans, and credit cards add up to a larger amount than our savings and checking accounts, we're worthless. Actually we're less than worthless because the debt on our house is worth more than our entire savings and we don't have any investments. Actually, I think I may still owe more on my car than we have saved, although it's getting close to breaking even on that.
This is good because my plan is to die penniless in a gutter somewhere. That'd be too hard to do if I had net worth to get rid of before then.
6 comments:
Yeah. Matt & I bank with BofA and they have this "portfolio" feature that will track all our assets and debts and it is sad. Very sad, indeed.
It's like, emergency fund, schemergency fund. It's a pittance when compared with the mortgage. Sad. And scary.
I'm worthless as well. Difference is, I don't have any material goods to show for it. So I guess my worthlessness is more absolute. Or maybe that makes it less absolute, since my worth could be more readily increased. Either way, I'm worthless.
Mickey, I think the fact that you have no significant debts makes you less worthless than Jacob or myself. You could immediately start building wealth whereas if I win the lottery, I already owe that money to others.
That's a pretty depressing exercise, isn't it? I'm finally, slowly, beginning to be worth a few dollars. I'm 37. So, it takes a while to get better...
I'm actually worth a bit, thanks to my freelance job. My checks from them pretty much go directly into savings, and I have no mortgage and my car and credit cards are paid off. I'm debt freeeeee!
Huh. I always thought you got to count the full value of the house and then subtract the debt you owe on it, in the net worth calculation.
Well, at any rate, I suppose a financial aid application is precisely the place where you want to be worth as little as possible.
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