Do Non Boglehead Type People Know Their Net Worth?

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bigtex
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Do Non Boglehead Type People Know Their Net Worth?

Post by bigtex » Tue Feb 19, 2019 4:37 pm

Would you say non boglehead types or those that aren't that great with saving / investing money even know or track their net worth? I guess I am wondering how these surveys that track net worth are accurate when I feel like most people probably don't know their own net worth.

aIIan
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by aIIan » Tue Feb 19, 2019 4:39 pm

I would guess that most people wouldn't even know how to calculate their net worth.

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TomatoTomahto
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by TomatoTomahto » Tue Feb 19, 2019 4:42 pm

aIIan wrote:
Tue Feb 19, 2019 4:39 pm
I would guess that most people wouldn't even know how to calculate their net worth.
Heck, we BHs have disagreements about what is or isn’t included in net worth.
Okay, I get it; I won't be political or controversial. The Earth is flat.

pdavi21
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by pdavi21 » Tue Feb 19, 2019 4:46 pm

It's impossible to know your real market net worth until you are purchased.

Yes, my guess is most people know their net worth.
Where they tend to know less about is whether it's going up or down and why.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

retiredjg
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by retiredjg » Tue Feb 19, 2019 4:52 pm

I don't see any point in knowing my net worth. It's a useless number in my opinion.

Mike Scott
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by Mike Scott » Tue Feb 19, 2019 4:58 pm

I don't track net worth because I would not use that information for anything. OK, that is not exactly true... I do remember the moment I realized our net worth had switched from negative to positive. That felt pretty good and still does. Given a couple of minutes, I could give you a pretty good guess of net worth depending on your definition of net worth.

NotWhoYouThink
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by NotWhoYouThink » Tue Feb 19, 2019 5:01 pm

I wouldn't trust most people to give me an accurate estimate of their net worth. Most wouldn't know it, and many would lie.

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Stinky
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by Stinky » Tue Feb 19, 2019 5:02 pm

Yes, I"m sure that some non-Boglehead folks calculate their net worth.

But I expect that a higher percentage of Bogleheads than non-Bogleheads do the calculation, because Bogleheads (at least somewhat) focus on their finances.
It's a GREAT day to be alive - Travis Tritt

Nowizard
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by Nowizard » Tue Feb 19, 2019 5:05 pm

The Boglehead approach is only one of many, so it is very likely that there are many who are quite invested in investing who know their net worth, including most financial consultants who depend on not investing their clients in index funds in order to support themselves.

Tim

JBTX
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by JBTX » Tue Feb 19, 2019 5:08 pm

A lot of people don't even have material net worth.

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bengal22
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by bengal22 » Tue Feb 19, 2019 5:11 pm

bigtex wrote:
Tue Feb 19, 2019 4:37 pm
Would you say non boglehead types or those that aren't that great with saving / investing money even know or track their net worth? I guess I am wondering how these surveys that track net worth are accurate when I feel like most people probably don't know their own net worth.
I am sure that there are millions of non-bogleheads that know their net worth. They just have a different financial and investment outlook.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley

nick evets
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by nick evets » Tue Feb 19, 2019 5:14 pm

bigtex wrote:
Tue Feb 19, 2019 4:37 pm
Would you say non boglehead types or those that aren't that great with saving / investing money even know or track their net worth? I guess I am wondering how these surveys that track net worth are accurate when I feel like most people probably don't know their own net worth.
I'm sensing you have a different question....?

I would say, sure -- why not? How much ya' got minus whatcha owe? Obviously I'm being sarcastic, and there are nuances to the finer points especially for business owners, but why wouldn't non-forum members be able to arrive at an approximation?

Now, if you think they're intrinsically less honest, or more likely to fudge the numbers, than anonymous strangers on an internet forum....

khh
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by khh » Tue Feb 19, 2019 5:20 pm

nick evets wrote:
Tue Feb 19, 2019 5:14 pm
Now, if you think they're intrinsically less honest, or more likely to fudge the numbers, than anonymous strangers on an internet forum....
I had similar thoughts when I made the 3 comma club...

H-Town
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by H-Town » Tue Feb 19, 2019 5:20 pm

bigtex wrote:
Tue Feb 19, 2019 4:37 pm
Would you say non boglehead types or those that aren't that great with saving / investing money even know or track their net worth? I guess I am wondering how these surveys that track net worth are accurate when I feel like most people probably don't know their own net worth.
I'd imagine that they will include whatever they have in checking/saving accounts and the market value of their house and call it net worth. They would conveniently ignore the credit card debts, tuition loan, car loan, mortgage, etc. Or some variation of the above.

bloom2708
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by bloom2708 » Tue Feb 19, 2019 5:25 pm

Tracking your net worth (no matter how you do it as long as you do it consistently) is good.

Are you trending positive? Staying flat. What is the market doing? How much are you saving vs. spending.

Do you care if these are your 3 net worths?

-$500k
$0k
+$500k

Yes, you care. If you get into the details and want to list your house with 7% discount or value your pre-tax 401k as 78% of the full value (tax), go ahead. Just be consistent.

Dave Ramsey always says simply tracking your net worth will increase your net worth by 10-20%. Do things that vault you forward. Not backwards.
Last edited by bloom2708 on Tue Feb 19, 2019 5:26 pm, edited 1 time in total.
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RickBoglehead
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by RickBoglehead » Tue Feb 19, 2019 5:26 pm

bigtex wrote:
Tue Feb 19, 2019 4:37 pm
Would you say non boglehead types or those that aren't that great with saving / investing money even know or track their net worth? I guess I am wondering how these surveys that track net worth are accurate when I feel like most people probably don't know their own net worth.
Have you asked them? :D
Avid user of forums on variety of interests-financial, home brewing, F-150, PHEV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.

bigred77
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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by bigred77 » Tue Feb 19, 2019 5:31 pm

The vast majority of the population could not tell you their household networth with any degree of accuracy.

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Re: Do Non Boglehead Type People Know Their Net Worth?

Post by LadyGeek » Tue Feb 19, 2019 5:59 pm

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