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Curious, net worth calculation.

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  • Curious, net worth calculation.

    When one is married (considered as an unit) and calculating net worth, how does one represent that number?  Is it net worth per person in that unit or net worth of that unit together (and so would actually be (net worth/2)/person?

    Is there a common understanding when net worth is discussed, ie always expressed as per person, always total divided equally by two if married?

    How did you come up with your net worth number if you are married?  Please state whether spouse works outside the home, and if your partner works outside the home, does that person work full or part time.

    I will go first, I calculate and express net worth as an unit since both partners work. One works 0.85, the other FT.

    Thanks in advance for answering and tolerating this "survey".

     

     

  • #2
    I read about couples that keep finances separate, but that wouldn't work for us. Duties are not evenly split. I earn money; she makes sure everything else happens like clockwork.

    So we track net worth as a household. As a single income household, it only makes sense. I don't post it directly on my site, but we're a few spots down from WCI on the RSF net worth tracker.

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    • #3
      Married to another physician. Net worth as a couple. Why not? There's no sign that we will not be a couple with collective assets in the future. If there were, I might see it differently.
      My Youtube channel: https://www.youtube.com/channel/UCFF...MwBiAAKd5N8qPg

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      • #4
        Couple is a unit no matter if two income or split duties -- a mixed pot, hard to separate a cookie out to individual ingredients once mixed.  Even the chips are mixed up -- as it should be IMHO

         

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        • #5
          One should (IMO) calculate this as a single number, regardless of if you're single or a couple.  Comparing the two on a per person basis is comparing apples to oranges and will depend on the purchasing power that it provides those different individuals.  For some people $1M would last them a lifetime while others would blow through that faster than Richard Pryor in Brewster's Millions.  Also, since couples have shared resources, the marginal effect of adding one person to the equation has a lesser impact on spending, thus making the couple net worth extend further.  So it makes little sense to understand what the net worth is doing on a per person basis.  And since it makes little sense to compare your net worth to others, just focus on what your combined net worth does for you both on a combined basis, since that unit is who the money is working for.

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          • #6
            When I talk about my net worth I do not include my husbands assets.  We married late in life so I just use mine.

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            • #7


              For some people $1M would last them a lifetime while others would blow through that faster than Richard Pryor in Brewster’s Millions.
              Click to expand...


              This reference alone makes up for any disagreement we've ever had.

              One of my all-time favorite movies.
              An alt-brown look at medicine, money, faith, & family
              www.RogueDadMD.com

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              • #8
                Together.

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                • #9
                  We calculate our net worth together as a physician couple. I work full-time, my wife works .3. We have both joint and separate bank accounts (for guilt free spending on the little stuff). We do all our taxes together and make all of our financial plans (budgeting, retirement, etc.) together. So it makes sense to just consider us one unit.

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                  • #10
                    Together.

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                    • #11
                      Lol. Anyone knowing the brewters millions reference really puts a date in us ?

                      Right next to trading places. Loved the use of the stamp.

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                      • #12
                        For financial planning purposes, we calculate the household net worth unless there is a need to do otherwise, such as one spouse qualifying for a loan/refinancing. If there is a pre-nup in place, especially if the couple resides or has resided in a CP (community property) state, calculating per person may be desirable in some situations.

                        Put me in the Brewster's Millions awareness camp   .
                        Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                        • #13
                          Marriage. The original partnership. We started out at -$45k net worth when we were married many years ago (sorry, Not a Dr....) We have gone from DINK (Dual Income No Kids) to DIOK (Dual Income One Kid) to SIMK (Single Income Multiple Kids)

                          We (or should I say "I" as my wife doesn't care) calculate it as one number. And I do it monthly.

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                          • #14


                            We have gone from DINK (Dual Income No Kids) to DIOK (Dual Income One Kid) to SIMK (Single Income Multiple Kids)
                            Click to expand...


                            My family is totally SICK (Single Income, Couple Kids)

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                            • #15
                              My net worth is my wife's net worth too.

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