Use Your Net Worth and Wealth View Winning Combo For a Full Picture of Your Finances

If you are new to MoneyFormula you will have noticed there is both a Net Worth and a Wealth View in the Manage My Accounts section, something you don't often see in other budget apps.

Not sure what the difference is, and which one you should be looking at?

Let's go through them.

Your Net Worth is the traditional way to measure what you are worth.

It adds up everything you own - your home, car, bank accounts, investments, superannuation, the lot - and subtracts everything you owe. Every debt, every credit card, every loan.

Simple. Straightforward. And it includes everything.

It gives you a snapshot of your complete financial position at any point in time, and as you manage your accounts it updates automatically so you can see your progress over time.

The Wealth View takes a different approach.

Instead of including everything, it only shows the accounts you have tagged as Wealth Assets - the assets that are actually working towards building your long term wealth.

This means you can exclude personal use items like your home, your vehicles, and your home contents, and get a cleaner picture of the assets that are genuinely growing your wealth.

Think investments, superannuation, rental properties, shares, and savings accounts working towards your goals.

Here is why having both views is powerful.

Your Net Worth shows you the big picture - your complete financial position including everything you own and everything you owe. It is the number you reach for when someone asks "what are you worth?"

Your Wealth View focuses on what really matters for building long term financial freedom - the assets you can actually use to get there.

Take your home as an example. It might add $800,000 to your Net Worth, which looks great on paper. But if you live in it, it is not generating income or building your wealth in any practical sense.

The Wealth View strips that out so you can focus on what is actually working for you.

One number tells you where you stand. The other tells you where your investments are heading.

But a quick word of warning, your Net Worth and Wealth View numbers are only as good as the accounts and assets you are tracking. And this is where budget apps can vary quite a bit.

You need a budget app that lets you capture everything you will ever own and owe, so your Net Worth (and Wealth View) actually reflects your true wealth.

The good news, this is where MoneyFormula has got you covered with one of the most extensive Asset, Debts and Savings lists in Australia:

Bank Accounts
(transaction, savings, offset, everyday)

Properties
(your home, investment properties)

Shares & Funds
(ASX shares, ETFs, index funds, managed funds)

Cryptocurrencies
(Bitcoin, Ethereum, Cardano, Dogecoin)

Superannuation
(industry super fund, SMSF, public sector, corporate)

Other Assets
(cars, boat, caravan, gold bullion, home contents)

Credit Cards
(rewards, low rate, 0% rate, interest free period)

Buy Now Pay Later
(Afterpay, Zip)

Personal Loans
(car loans, payday loans, debt consolidation)

Mortgages
(variable, fixed, split, p&i, interest only)

Investment Loans
(margin loans, line of credit, investment properties loans)

Other Debt
(ATO tax debt, HECS-help)

Wealth Goals
(emergency fund, house deposit, crush bad debt, crush mortgage)

Rewards Savings
(holiday, new car, wedding, renovation)

So as you can see, MoneyFormula covers everything (with its continually updated list) to give you the most complete Net Worth and Wealth View coverage in Australia.

Setting up your Wealth View is straightforward. Go into any account in MoneyFormula and tag it as a Wealth Asset.

Good candidates are investments, superannuation, rental properties, shares, and savings accounts that are actively working towards your financial goals.

Your home, your car, your home contents - these can stay in your Net Worth without cluttering up your Wealth View.

As you manage your accounts in MoneyFormula, both views update automatically.

Check your Net Worth to see your overall position. Check your Wealth View to see how well you are building long term investments. Keeping both numbers moving in the right direction is a pretty good feeling.

Realising that most people were trying to track their wealth with half a picture, MoneyFormula was the first budget app in Australia to introduce the Net Worth and Wealth View winning combination back in July 2023.

This full wealth picture, along with the other innovations MoneyFormula is known for (real time wealth goal tracking, simple budget and spending reviews, full mortgage tracking, etc) gives you the best chance of success, from your day to day budget right through to your long term wealth.

So if you are curious about what you've been missing out on, and want to find out what the difference between your Net Worth and Wealth View will be, head over to the MoneyFormula Manage My Accounts section and give it a go!