February 24, 2006
Money matters
from - RSA
I. AssetsI think that I have a net worth somewhere between 0 and minus $50,000, mainly due to a house mortgage. Oh, well. Of course, on a global scale, I am very rich: if you earn more than $47,500 (just above the median household income in the U.S.), you earn more than 99% of the rest of the world. ::
Interest-earning assets held at financial institutions
Passbook savings account
Money market deposit accounts
Certificate of deposit
Interest-earning checking accounts
Other interest-earning assets
U.S. Government securities
Municipal or corporate bonds
Stocks and mutual fund shares
Rental property
Mortgages held for sale of real estate
Amount due from sale of business or property
Regular checking accounts
U.S. savings bonds
Home ownership
Vacation homes and other real estate
IRA and Keogh accounts
401K and thrift savings plans
Motor vehicles
Other financial assets
II. Liabilities
Secured liabilities
Margin and broker accounts
Mortgages on own home
Mortgages on rental property
Mortgages on other homes or real estate
Debt on business or profession
Vehicle loans
Unsecured liabilities
Credit card and store bills
Doctor, dentist, hospital, and nursing home bills
Loans from individuals
Loans from financial institutions
Educational loans
Other unsecured liabilities
Posted by RSA at February 24, 2006 01:20 PM
if you earn more than $47,500 (just above the median household income in the U.S.), you earn more than 99% of the rest of the world.
That is an incredible tidbit of information. I really think that most of us know this we just do not give it enough serious thought. In this great country of ours it is so simple to get by financially. Most of our problems stem from the fact that we make $47,500 per year but spend $95,000.
Simplify, simplify. My God, if Thoreau could only see us now.
We sit at a banquet table the likes of which has never been seen before and still we cannot get enough to eat.
I have no idea what I am worth to the bankers but I hope that my worth to my family is equal to their worth to me. You can't put a dollar figure on that.
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Posted by Buck on February 24, 2006 05:34 PM Link to comment |
If the reason for you negative net worth is your mortgage then you are probably ahead of the game because the mortgage is offset by the actual property.
Most lenders won't lend you more for the house than it is worth, so unless you live in a an area that has seen a "pop" in the housing bubble your house is likely appreciating in value.
If you're like me, this doesn't make you wealthy but it does keep you above $0
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Posted by m on February 25, 2006 09:48 PM Link to comment |
Thanks, m, that's a good point that I'd forgotten about. I was just thinking about what I owed on my mortgage compared with what I had in the bank (loosely speaking). There has been some appreciation that offsets what I owe--I think just about bringing me even to $0. Cool!
Buck, I really wish it were easier to simplify. I think more people would jump on the bandwagon.
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Posted by RSA on February 26, 2006 11:51 AM Link to comment |
