It's great that you are willing to share your number … I have a new social network in Beta where others can do the same ( naturally: shareyournumber.com ) … AJC.

AJC.

It's great that you are willing to share your number … I have a new social network in Beta where others can do the same ( naturally: shareyournumber.com ) … AJC.

AJC.

I've been reading a lot of personal finance blogs lately because I an trying to get organized in my financial life as well. Thanks for your insight and personal revelations! I am inspired to continue.

I really liked Rich Dad, Poor Dad when I was younger, and agree with some of the principles, but too many people link Rich Dad, Poor Dad to investing in real estate with very little money down and other 'get rich quick' schemes that aren't reality, safe, or good wealth building principles.

Robert Kiyosaki isn't as smart as he tries to pretend… go read some of his articles on Yahoo Finance and you'd quickly find out that guy doesn't know much about many of the topics he pretends to be an expert on. I think he may be good at educating people and perhaps even good at real estate (though during the boom where he created most of his real estate wealth, everyone made money because the market was practically going straight up!). That said, don't blindly follow Robert Kiyosaki… I've actually come to dislike him the more I read of his books and his very lame articles… Rich Dad, Poor Dad may be fake or real, but it has some good principles for many beginners to read, but don't blindly follow his advice and go buy expensive real estate that you can't afford.

BTW, I really like the layout of your site and your quality articles!

I do count the value of a company I own based on current market values. I don’t think anyone can count on future values as part of net worth. Your Money or Your Life (which I don’t think is 100% accurate but close enough) defines it as “what if you had to sell everything you own today – how much would you have.” So if the company was going to be worth that much in the future – and others would recognize that – it would be worth a lot today. If its cost is much less today, then it may be that other investors don’t view it as a sure-fire thing like you might. What you take from the company as pay, however, is a rock-solid figure that is worth exactly what it is worth – dollars in pockets.

All in all, net worth is not the absolute best measure of your financial position anyway, just one of many. Cash flow is important, debt to income, etc. are also good measuring sticks.

Ps. When you’re calculating your net worth… do you count the value of a company that you own lock stock and barrel or just the dividends that you take from that company.

For example, I have a company that I think will be turning over $8 mil/year withing six years. Am I worth what the company is valued for sale or am I worth what I take from the company as pay?

I couldn’t understand some parts of this article, but it sounds interesting