Article Series: Discover the Best Australian Personal Finance App for Your Finances!

MoneyFormula App

PART 6 - Track Your Net Worth & Your Debt Profile in the Personal Finance App

Personal Finance App Bob & Jill Finances.

Bob & Jill's Story

In PART 6, Bob & Jill are super happy to discover their latest net worth is over $280,000 using the Personal Finance app.

Personal finance app topics covered in this MoneyFormula article:

Accounts, assets & debts

Know your debt profile

Net worth vs wealth view

Set up your wealth view

Wealth view accounts

New to MoneyFormula? Find out how to supercharge your personal finances and unlock the thousands of dollars you are missing out on: Personal Finance App Overview.

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If you've read barefoot investor or would like to manage your money like a pro, MoneyFormula will make your life easy and help you save! My experience has been fantastic, and any questions I had, Matthew was able to answer efficiently. Could not reccomend MoneyFormula enough!

Accounts, Assets & Debts in the Personal Finance App

MoneyFormula provides you with three great summary views of your accounts, assets and debts and this article we'll go through each and see how they will help you manage your personal finances.

Let's take a quick look at each before we dive into the details.

1. Your Debt Profile

The Debt Profile shows you all of your debt accounts and automatically groups them up under the different debt types giving you a summary of your total debt and monthly repayments.

Personal Finance App Net Worth - Debt Profile Overview.

2. Your Net Worth

The Net Worth view gives you an overall picture of everything you own (your assets) and owe (your debts), including your personal use assets (like your house, cars, home contents) and let you see your total net worth.

In the diagram below Bob & Jill can instantly see their overall net worth is currently over $280,000.

Personal Finance App Net Worth Overview.

3. Your Wealth View

The Wealth View is a filtered version of the Net Worth view that just shows your wealth assets, for example, your superannuation, shares, investment properties, etc. These are the assets you can use to generate income or sell if you need to.

When you select the Wealth View, all of your personal use assets (or non-wealth assets) drop to the bottom of the screen as we can see in the personal finance app screen below.

Personal Finance App Net Worth - Wealth View Overview.

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Know Your Debt Profile using the Personal Finance App

The Debt Profile gives you are really good overview of your debts.

As you add your debt accounts to MoneyFormula they are automatically placed into one of four debt types: Bad Debts, My Mortgage, Investment Loan and Other Debt.

Personal Finance App Net Worth - Debt Profile Types.

Debt Type Totals

We can dive into the detailed views using either option at the top or the bottom of the screen.

Personal Finance App Net Worth - Debt Profile Details.

In the detail view you can review your Total Debt by debt type. Looking at Bob & Jill's debts we can see they have 1.17% Bad Debts and that the Mortgage category is their main debt.

Personal Finance App Net Worth - Debt Totals by Type.

Personal Finance App Net Worth - Debt Type Totals.

Debt Type Accounts

If we select the Show Accounts option we can see the different accounts and where MoneyFormula has placed them.

Personal Finance App Net Worth - Debt Accounts by Type.

Personal Finance App Net Worth - Debt Type Accounts.

Debt Type Repayments

The detail view also lets us check the Total Repayments by debt type and here we can see that Bob & Jill's Bad Debt is 5.9% of the monthly payments and the Bad Debt is costing them $203 dollars a month.

Personal Finance App Net Worth - Debt Repayments by Type.

Personal Finance App Net Worth - Debt Type Repayments.

... and as before, we can select the Show Accounts option to see the debts under each debt type along with the minimum repayment required on each.

Personal Finance App Net Worth - Debt Repayments by Account.

Personal Finance App Net Worth - Debt Account Repayments.

Track My Progress - Debt Repayments

As a quick side note and while we are looking at the total debt repayment amounts ...

It's worth pointing out that the total debt repayment amount is automatically placed on your Money Flows as part of tracking your progress so that you can check how much of your income is going on debt.

From the dashboard if we select Track My Progress

Personal Finance App Net Worth - Track My Progress.

... and then looking at the Money Flows screen we can see that the total debt repayment of $3,423 is automatically shown in the table under expenses and that for Bob & Jill it uses up 36% of their income each month.

Personal Finance App Net Worth - Income Used on Debt Repayments.

Or looking at this another way, if Bob & Jill were debt free tomorrow they would have 36% more income available to them each month.

All of the figures above in the Debt Profile and the Money Flows screens are automatically updated as the debt balances change over time.

Net Worth vs Wealth View in the Personal Finance App

Like the debt profile we can also dive into the detail views of the total Net Worth and Wealth View screens.

Personal Finance App Net Worth - Detailed View.

... which will show you the breakdown of your totals by asset type.

Personal Finance App Net Worth - Totals by Asset Type.

... and you can expand further to see the accounts under each category, by selecting Show Accounts, giving you full visibility over your Wealth Assets and Net Worth assets.

In this example we are looking at the accounts in the wealth view so any personal use assets are greyed out and set to $0.00 (e.g. "Our House"). You can toggle the Wealth View and total Net Worth using the option under the chart.

Personal Finance App Net Worth - Totals by Account.

As well as the asset view, within the Net Worth detail screen we can also view all debt types and optionally show all of the accounts within them.

Personal Finance App Net Worth - Totals by Debt Type.

Set Up Your Wealth View in the Personal Finance App

Now that we've had a look at the three screens, let's look into the options on how to set up your Wealth View and the assets included in it.

By default MoneyFormula uses the terms Wealth View and Wealth Asset for this group of assets and is automatically set up for you.

As an alternative, if you are following The Barefoot Investor approach you can use the names Grow Bucket and Grow Asset throughout MoneyFormula if you prefer. This option is available under your User Profile.

Personal Finance App Net Worth - Wealth View and Wealth Assets.

Wealth View Accounts in the Personal Finance App

MoneyFormula lets you choose the assets you want to include in your Wealth View and you can add and remove assets and accounts at any time.

When viewing an asset account you can check the Wealth Asset (Grow Asset) flag to see whether it is currently included in your Wealth View (Grow Bucket).

Personal Finance App Net Worth - Wealth Asset Flag on Accounts.

When you create or edit an asset account you will be given the option to "Add to Wealth View?" and adding or removing an asset is as simple as selecting Yes or No.

Personal Finance App Net Worth - Add to Wealth View Option.

Track My Progress - Wealth Assets

Similar to your total repayments, the total of your Wealth Assets is also included on the money flows diagram (bottom right corner) so that you can see the latest balances of all your wealth assets along with your emergency fund balance.

The current balance of the Wealth Assets is kept up to date automatically as you manage your accounts, update balances and add/remove assets from your wealth view.

Personal Finance App Net Worth - Money Flows Wealth Asset Total.

What Next?

In this article we've covered the three views that automatically summarise all of your accounts, assets and debts so that you always have the latest debt profile, net worth and wealth view numbers at your fingertips.

Bob & Jill discovered that their latest Net Worth is over $280,000, which is great, but they also discovered that over 35% of their income currently goes on debt. This has motivated them further to look into how to pay down their debts faster and free up their income.

PART 7 - Paying Down Debt FASTER

In PART 7 - MoneyFormula Paying Down Debt, Bob & Jill will review the different debt strategies available to crush their bad debts and run the mortgage planning reports to see what works best for them.

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For more information on how to supercharge your personal finances and unlock the thousands of dollars you are missing out on refer to the Personal Finance App Overview.

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PLEASE NOTE: The information in this article is general in nature. It does not take into account your personal objectives, financial situation or needs. Please speak to a qualified financial adviser if you need specific advice on your finances.