How Do You Calculate Net Worth?
Sat Aug 12, 2006 10:26 am
I'd like to know how to calculate my net worth.
How do you account for NP that are spent but can't be liguidated ie training, gormet foods, shop size, painting? An account that has spent a lot of points in this way is more valuable than one that hasn't but how do you put a number on it?
The value of items is easy to calculate but that number doesn't indicate the net worth of an account. or does it?
How do you account for NP that are spent but can't be liguidated ie training, gormet foods, shop size, painting? An account that has spent a lot of points in this way is more valuable than one that hasn't but how do you put a number on it?
The value of items is easy to calculate but that number doesn't indicate the net worth of an account. or does it?
Sat Aug 12, 2006 10:40 am
Personally I'd just guess, or think about what I've spent a lot of my money on over the years, how much I would have spent on it and add it all up.
Sat Aug 12, 2006 3:50 pm
I've never bothered... I guess my pets are worth about 10 million in painting and species and stocks are worth...
Yes, now I remember why I never bothered
Yes, now I remember why I never bothered
Sat Aug 12, 2006 4:00 pm
You can't really.. not if you've been playing for over a year, because prices of things change so frequently. If you bought a baby paint brush a year ago it was well over a million, if you buy it now you can get it for 400-500k easily.
Same goes with other colours and pets, I bought my Draik Egg for 100,000nps (and my krawk!). You'd be hard pressed to find one that cheap now
So really my net worth is only around 2million from what I actually spent.
If you go by prices now.. it's well over 10 million easily!
Same goes with other colours and pets, I bought my Draik Egg for 100,000nps (and my krawk!). You'd be hard pressed to find one that cheap now
So really my net worth is only around 2million from what I actually spent.
If you go by prices now.. it's well over 10 million easily!
Sat Aug 12, 2006 7:06 pm
*bust out accounting class training*
Net worth is calculated by subtracting what you owe, or your liabilites, from what you own, or your assets.
In theory, in Neopets you have nothing that you owe. There is no credit system in Neopets, there is no deferred income (don't ask), and there are no loans. Thus, your liabilities are zero.
You arrange your assets in order of liquidity; that is, you think about things that are cash or can very easily become cash. In my case, that would be cash on hand and stocks.
Then you estimate or actually learn the value of things that you own that are slightly harder to sell - things in your shop, for example, and things in your SDB that you can sell for less than 100k neopoints. Don't forget your neohome furniture.
Then you figure the value of your hard-to-sell items, like expensive battledome weapons and plot prizes.
Finally, you figure the value of your assets that you cannot sell, like your neohome and its gardens. Figure the value based on what you've invested in the security system, carpeting, and wallpaper, and what it cost to build the home. You could also figure this as having a total value of zero, because you cannot possibly gain any money back from it. That's what I'd do.
Add all of those asset value together, and subtract zero (for your liabilities), and thus you have net worth.
Net worth is calculated by subtracting what you owe, or your liabilites, from what you own, or your assets.
In theory, in Neopets you have nothing that you owe. There is no credit system in Neopets, there is no deferred income (don't ask), and there are no loans. Thus, your liabilities are zero.
You arrange your assets in order of liquidity; that is, you think about things that are cash or can very easily become cash. In my case, that would be cash on hand and stocks.
Then you estimate or actually learn the value of things that you own that are slightly harder to sell - things in your shop, for example, and things in your SDB that you can sell for less than 100k neopoints. Don't forget your neohome furniture.
Then you figure the value of your hard-to-sell items, like expensive battledome weapons and plot prizes.
Finally, you figure the value of your assets that you cannot sell, like your neohome and its gardens. Figure the value based on what you've invested in the security system, carpeting, and wallpaper, and what it cost to build the home. You could also figure this as having a total value of zero, because you cannot possibly gain any money back from it. That's what I'd do.
Add all of those asset value together, and subtract zero (for your liabilities), and thus you have net worth.
Sat Aug 12, 2006 9:46 pm
That is a lot of work. I'm not sure its worth the effort to satisfy my curiosity.
When people say their net worth is this or that its just an estimate.
I've noticed that some malls are asking for net worth info as part of the application process. That made me think it was a precise number-it probably isn't.
Interesting, thanks for the replies.
When people say their net worth is this or that its just an estimate.
I've noticed that some malls are asking for net worth info as part of the application process. That made me think it was a precise number-it probably isn't.
Interesting, thanks for the replies.
Sun Aug 13, 2006 2:02 am
I only calculate my net worth by estimating the worth of what my pet has that can be sold.
I count Items, trading cards, weapons, stocks, negg tokens, neohome furniture and anything else I could liquidate in a pinch.
I usually ignore stats, and shop size, and that sort of thing, but if your trying to prove your a "neo-playa" for a guild, then you should probably include anything that cost you more than 500,000 np to acquire, like books, food, and enourmous shops and houses.
I count Items, trading cards, weapons, stocks, negg tokens, neohome furniture and anything else I could liquidate in a pinch.
I usually ignore stats, and shop size, and that sort of thing, but if your trying to prove your a "neo-playa" for a guild, then you should probably include anything that cost you more than 500,000 np to acquire, like books, food, and enourmous shops and houses.