Tracking Net Worth with Assets and Debts in BudgetLabs

Learn how to monitor your financial health by tracking assets and debts in BudgetLabs. Use the Financial Lab to view net worth insights, set up accounts with contributions, and create scenarios for projections.

Understanding Net Worth in BudgetLabs

Net worth is calculated as your total assets minus total debts, providing a snapshot of your financial position. In BudgetLabs, access this through the Financial Lab's Insights tab. The net worth section displays current values, historical trends, and projections based on your entered data. Update your assets and debts regularly to keep this accurate. Review the chart by selecting time ranges like 1M, 6M, 1Y, 3Y, or ALL (up to 5 years) to see how your net worth evolves.

Setting Up Assets

Assets include savings, investments, and other holdings. BudgetLabs supports tracking accounts like checking, savings, HYSA, brokerage, 401(k), IRA, Roth IRA, HSA, and 529 plans. Follow these steps to add or edit an asset:

1. Open Assets from the navigation.
2. Tap the add button or select an existing account and tap the pencil to edit.
3. Enter the current balance, interest or growth rate, and optional start date.
4. Scroll to Contributions: Set your contribution amount, cadence (e.g., monthly, biweekly), and employer match if applicable.
5. Save. The asset card now shows contributing stats, and the value history chart includes a dashed projection line based on contributions and rates. If contributions exceed IRS limits for the account type, a warning badge appears.

Managing Debts

Debts represent liabilities like loans or credit card balances. While specific debt entry is handled through transactions and categories, track their impact via net worth calculations in the Lab. To incorporate debts:

1. Add debt-related transactions in Transactions, categorizing them appropriately (e.g., loan payments).
2. For ongoing debts, use Challenges in the Lab to set paydown goals.
3. Open Lab > Insights to see debts reflected in the net worth section, subtracting from assets. Use Scenarios to model debt reduction effects without altering real data.

Viewing Net Worth Insights

To review your net worth:

1. Open Lab and select Insights.
2. Scroll to the net worth section.
3. Review the current total, asset breakdown, debt subtraction, and trend chart.
4. Reorder sections if needed; your layout saves automatically. The forecast integrates contributions from assets for future projections. Compare with cash flow and other sections for a full picture.

Projecting Net Worth with Scenarios

Use scenarios to simulate changes in assets or debts:

1. Open Lab > Scenarios.
2. Create a new what-if scenario by adjusting asset balances, contributions, or adding hypothetical debts.
3. Run the projection to see updated net worth over time.
4. Compare side-by-side with your base scenario before applying any real changes. This helps plan for events like debt payoff or asset growth without affecting your actual budget.

Tracking Progress with Challenges

Set goals to improve net worth:

1. Open Lab > Challenges.
2. Create a challenge for asset growth (e.g., increase savings by $X monthly) or debt paydown (e.g., reduce credit card balance).
3. Set targets, timelines, and track progress via the dashboard.
4. Adjust as needed and monitor how it impacts net worth in Insights. Challenges integrate with your transactions for real-time updates.

FAQ

How often should I update my assets and debts?

Update after major changes like deposits, withdrawals, or payments. BudgetLabs pulls from your transactions, but manually edit balances in Assets for accuracy. Review net worth monthly in the Lab.

Can I forecast net worth growth?

Yes, set contributions in Assets for projections. View the dashed line in value history charts, and use Scenarios for custom what-ifs showing future net worth.

What if I have irregular contributions?

Enter the cadence that matches your pattern (e.g., biweekly). The projection averages them annually. For one-offs, add as transactions and review in Insights.

How do debts affect my net worth view?

Debts subtract from assets in the net worth calculation. Track payments via transactions or Challenges, and see the impact immediately in Lab Insights.

Tags: net worth, assets, debts, financial lab, insights, scenarios, challenges