Net-worth, Assets, Loans & Appreciation
Explanation of Terms and Features
George
Last Update vor 2 Monaten
Projecting Net Worth:
- 🌀All Accounts AKA Combined Mode: When you enable the Net Worth feature in this mode by selecting 🌀All Accounts and checking the Net Worth box under Range, all your accounts will be projected together. It will forecast your regular accounts, loans, and assets to provide an accurate overview of how your net worth may evolve over time.
Tips for maximizing this feature:
- Setting Up Loan Plans: When you create a loan plan, such as a mortgage or car loan, you’ll set the "Transfer to" field to your Lender Account, where your debt is recorded.
- Setting Up Assets with Liens: When adding assets like a car or house, there is no transfer field. Instead, you’ll use the "Lien at" field under the Optionals section. This field should also be linked to your Lender Account.
- Appreciation & Depreciation Rates:
- For assets like a house, you can set an Appreciation Rate. For example, the national average for home appreciation is around 5%.
- For assets like cars, you can set a Depreciation Rate. A common rule of thumb is approximately -10% annually.