Setting up a Net Worth spreadsheet

[Uncle Scrooge]

Hello all,

I finally created a Google Docs spreadsheet a couple months ago that tracks my income, assets, debts, NW, performance of investments, savings rate, etc. However, I don't know what to do about employer contributions to our 401k accounts. Should I add this amount to my income so it looks like I earned more this year? Or should I not include it in income and have it look like my 401k had a really good performance?

Also, how do you get the value of your house? Do you use Zillow to look it up or do you use something else? I bought my house a few years ago, but the "value" is down almost 10% of what I paid for it according to Zillow. Should I just use their number or what I paid for it?

Thanks for the help!

[MDM]

However, I don't know what to do about employer contributions to our 401k accounts. Should I add this amount to my income so it looks like I earned more this year? Or should I not include it in income and have it look like my 401k had a really good performance?

Call it income - if you stopped working, the employer contributions would stop also.  Your 401k investments, however, would continue to generate investment returns.

As for the house - until you get close to selling it, the value is somewhat irrelevant.  You could track its basis: purchase price plus any capital improvements.

[Uncle Scrooge]

Thank you for your response. I will follow your advice!

[forummm]

Your house value is pointless for FIRE funds unless you plan to sell the house in FIRE. If you're going to stay in it, the value of the house won't be producing any income for you. But if you downsize, whatever equity you take out could go to work for you. I do pay attention to my mortgage balance because that is related to how much I need to FIRE. I have an adjustable rate, so the decision to hold or pay off early is less obvious to me.