YTD 2026 Networth tracking thread

[highsulphur]

Primary residence needs to be excluded, but the debt associated with it needs to be included according to the definition of networth. So a big negative for me after working for many years according to that definition(we have to work to clear mortgage)

Thats quite nonsense to include debts but not home equity. Strictly speaking, if you have negative networth (all assets minus all liabilities), you would likely better off filing for bankruptcy.

Where do you get this definition?

 

[d9_lives]

Primary residence needs to be excluded, but the debt associated with it needs to be included according to the definition of networth. So a big negative for me after working for many years according to that definition(we have to work to clear mortgage)

What's the logic behind exc.the primary residence in networth calc.?

 

[OngHuatHuat]

What's the logic behind exc.the primary residence in networth calc.?

The primary residence is often excluded from net worth calculations because it is considered a personal asset rather than an investment or liquid asset. The main reason behind this exclusion is to provide a more accurate representation of an individual's financial liquidity and overall wealth, focusing on assets that can easily be converted to cash or used for investments.

Including the primary residence in net worth calculations could significantly inflate the net worth of individuals, especially those who live in expensive real estate markets. Excluding it helps to create a more balanced view of their financial standing. However, it's essential to note that net worth calculations may vary depending on the specific context or purpose for which they are being used.

 

[OngHuatHuat]

Debt associated with the primary residence is taken into account when calculating net worth because it reflects the true financial obligations of an individual or household. While the primary residence itself is excluded as a personal asset, the debts related to it are considered liabilities.

Including the primary residence debt in net worth calculations helps provide a more comprehensive picture of an individual's overall financial health. It acknowledges that even though the home is not considered a liquid asset, there are financial responsibilities tied to it, such as mortgage payments. By considering these debts, the calculation can give a more accurate representation of an individual's ability to manage their finances, meet their obligations, and assess their financial stability.

In summary, excluding the primary residence debt would overlook an essential aspect of an individual's financial situation and wouldn't give a complete assessment of their net worth. Taking both assets and liabilities into account provides a more balanced and informative view.

 

[limster]

as this is the internet, I guess everyone is free to use their own definition of net worth, depending on who their audience is and the purpose of sharing their networth.

for example, if you want to benchmark yourself against a certain wealth report, like Wealth-X, then you of course need to use whatever defintion they are using for net worth ....

if you include HDB value as part of your net worth, in a few years time all 4 and 5 room flat owners will be millionaires.... so the exact calculation depends on your purpose....

 

[sohguanh]

Debt associated with the primary residence is taken into account when calculating net worth because it reflects the true financial obligations of an individual or household. While the primary residence itself is excluded as a personal asset, the debts related to it are considered liabilities.

Including the primary residence debt in net worth calculations helps provide a more comprehensive picture of an individual's overall financial health. It acknowledges that even though the home is not considered a liquid asset, there are financial responsibilities tied to it, such as mortgage payments. By considering these debts, the calculation can give a more accurate representation of an individual's ability to manage their finances, meet their obligations, and assess their financial stability.

In summary, excluding the primary residence debt would overlook an essential aspect of an individual's financial situation and wouldn't give a complete assessment of their net worth. Taking both assets and liabilities into account provides a more balanced and informative view.

This is a very good piece of explanation. While readers may debate over it, I subscribe to it. But I would like to add if say one rent out some rooms of his primary residence to earn rental income this portion can be calculated as part of one net worth ? Logical ?

 

[bo_tak_chek_bbfa]

Debt associated with the primary residence is taken into account when calculating net worth because it reflects the true financial obligations of an individual or household. While the primary residence itself is excluded as a personal asset, the debts related to it are considered liabilities.

Including the primary residence debt in net worth calculations helps provide a more comprehensive picture of an individual's overall financial health. It acknowledges that even though the home is not considered a liquid asset, there are financial responsibilities tied to it, such as mortgage payments. By considering these debts, the calculation can give a more accurate representation of an individual's ability to manage their finances, meet their obligations, and assess their financial stability.

In summary, excluding the primary residence debt would overlook an essential aspect of an individual's financial situation and wouldn't give a complete assessment of their net worth. Taking both assets and liabilities into account provides a more balanced and informative view.

If you don't include the value of your primary residence in your net worth, then you also don't include the debt but calculate it as part of your spending. I think that makes more sense.

 

[OngHuatHuat]

This is a very good piece of explanation. While readers may debate over it, I subscribe to it. But I would like to add if say one rent out some rooms of his primary residence to earn rental income this portion can be calculated as part of one net worth ? Logical ?

To be frank, no other country in this world has a room rental market that is as buoyant as that of Singapore.

 

[OngHuatHuat]

If you don't include the value of your primary residence in your net worth, then you also don't include the debt but calculate it as part of your spending. I think that makes more sense.

Their argument is that you cannot simply sell off your primary residence(coz if you do that, you will have no place to live), yet every month you have to work hard to serve mortgage, so that is a liability.

 

[d9_lives]

The primary residence is often excluded from net worth calculations because it is considered a personal asset rather than an investment or liquid asset. The main reason behind this exclusion is to provide a more accurate representation of an individual's financial liquidity and overall wealth, focusing on assets that can easily be converted to cash or used for investments.

Including the primary residence in net worth calculations could significantly inflate the net worth of individuals, especially those who live in expensive real estate markets. Excluding it helps to create a more balanced view of their financial standing. However, it's essential to note that net worth calculations may vary depending on the specific context or purpose for which they are being used.

If one downgrades to a cheaper primary residence, one's total net worth will immediately increase?

Ex:
A has 5M and bought a 4M condo as primary residence. Just because.
B has 2M and bought a 0.9M hdb as a primary residence.

By your logic, A has lower net worth than B?

I have difficulty in understanding this logic.

 

[chopra]

Have you moved everything to bonds?

no.

iwda qqq eimi mainly


Read HWZ Forum Rules!

 

[chopra]

Can you share how you do xirr?

excel spreadsheet formula…



Read HWZ Forum Rules!

 

[thretiredDad]

If one downgrades to a cheaper primary residence, one's total net worth will immediately increase?

Ex:
A has 5M and bought a 4M condo as primary residence. Just because.
B has 2M and bought a 0.9M hdb as a primary residence.

By your logic, A has lower net worth than B?

I have difficulty in understanding this logic.

If revhappy decides to buy a condo
instead of renting
or is a SPR In the first place
paying CPF
his net worth will drop by 90%?
Even a randomly bbfa picked from edmw
will be richer than him?
the mod Can close this thread

 

[d5dude]

Primary residence + CPF are excluded from net asset calculation according to definition of net worth. So you are doing much better than most of us.
My networth is a big negative up to date according to the definition.

Not sure about CPF since that depends on age and other factors, but primary residence is definitely considered part of networth, well at least the portion that can be withdrawn as cash after liquidating the property. It wouldnt make sense for it to not count towards net worth since some people have most of their networth in their primary residence and they can sometimes be worth millions.

 

[d5dude]

Their argument is that you cannot simply sell off your primary residence(coz if you do that, you will have no place to live), yet every month you have to work hard to serve mortgage, so that is a liability.

There is always the option of moving to a cheaper country, rent or downgrade to a cheaper property. I personally know people who have >80% of their networth tied up in their primary residences, and they live in GCBs.

One should not confuse networth with liquid networth or investable networth, they are different things.

 

[hwmook]

If one downgrades to a cheaper primary residence, one's total net worth will immediately increase?

Ex:
A has 5M and bought a 4M condo as primary residence. Just because.
B has 2M and bought a 0.9M hdb as a primary residence.

By your logic, A has lower net worth than B?

I have difficulty in understanding this logic.

Don't worry, just use your own logic. Assests are part of networth. Primary residence can be sold so its still part of one networth. I cannot accept those people who don't own a residence have a higher networth, it simply make no sense.

 

[limster]

A has 5m, he buys a 4.5m condo

B has 2m, he buys a 1m condo

B qualifies as an accredited investor, A doesn't

 

[d9_lives]

A has 5m, he buys a 4.5m condo

B has 2m, he buys a 1m condo

B qualifies as an accredited investor, A doesn't

C has 1.4M, he owns nothing, he rents.
C > B > A in term of net worth?

This is just incredible.

 

[hwmook]

A has 5m, he buys a 4.5m condo

B has 2m, he buys a 1m condo

B qualifies as an accredited investor, A doesn't

Accredited investor and wealth got no direct correlation. You earn 300k PA with zero networth also accredited investor. What does it really prove? Accredited investor just mean a bigger carrot for the banks.

 

[Mephist0pheLes]

Dec 22: 822k
Jul 23: 953k

the figure will fall by about 100k soon for housing downpayment. looks like wont reach 1 mil anytime soon