Use a different method of determining value based on your "intentions" and item being valued.

When I use the "what could I get for it in a garage sale" method, I am refering to my household possessions - TV, Fridge, Furniture, etc., etc.

To me, real estate should be valued at Current Market Value (or comps). But with that, you need to know WHY your NW might have gone down. If it [your NW] has decreased because real estate has dropped in value (I personally never recall any instance where real estate prices dropped, they just stop going up for a while), then at least you know why and won't think you are losing money through some hole somewhere.

Business earnings and business valuations: Well, seeing as there are something like 25 different ways to value a business, your NW can change drastically depending on the way you value your business.

Whichever way You use though, you should keep using the same way. If you use a different way to calculate your NW everytime you do it, you don't discover anything other than what the new method tells you you are worth.

Funny, I recall The Donald getting upset because Forbes' calculations of his Worth didn't include vacant land he had.

Michael Ross


This can help you increase your Net Worth