Net Worth and Forecast Documentation

How to read this document

Sections move from purpose → concepts → calculation process → worked examples → edge cases. Formula boxes use plain mathematical notation for clarity; they are conceptual summaries, not API contracts.

• Point lists call out operator-visible behaviour.
• Callouts mark warnings, limitations, or important qualifications.
• Worked examples use round numbers so you can reproduce the arithmetic by hand.

Purpose and scope

Net worth is a household balance-sheet view built from entered assets, included goal balances, and debts. Forecasts extend explicit assumptions; they are not predictions or advice.

• Organize current asset and debt values
• Normalize supported currencies for reporting
• Explore contribution and amortization scenarios
• Keep assumptions visible and editable

Balance-sheet identity

The result is only as current and complete as entered records. It is not equivalent to liquid cash, taxable wealth, or an independently verified valuation.

• Assets contribute positive value.
• Debts reduce net worth.
• Goal balances contribute only when designated for inclusion.
• Transfers between included assets should not create wealth.

Assets

Assets can represent cash, investments, property, or other supported holdings. Enter a reasonable current value and update it under a consistent household policy.

• Keep valuation dates meaningful.
• Avoid counting the same holding in multiple records.
• Separate market value from purchase price.
• Use notes to identify estimation sources.

Debts

Debt records represent outstanding liabilities, not merely original principal. Interest, fees, payment timing, and lender calculations can make a real payoff amount differ.

• Update current principal or balance consistently.
• Distinguish secured and unsecured obligations where useful.
• Do not subtract the same liability through another manual adjustment.
• Confirm official payoff figures with the lender.

Included goal balances

A savings goal may track funds that are also represented by an asset. Include it in net worth only when doing so does not duplicate an already counted balance.

Currency normalization

The reporting currency enables addition across records. Original currencies remain economically relevant, and converted totals can move even when local-currency balances do not.

• Rates are informational.
• Rounding follows currency precision.
• FX movement is not the same as a deposit or repayment.
• A bank's executable rate can differ.

Current values and history

A timeline may use recorded valuation points or calculations from currently available data. Unless explicitly labeled as a stored snapshot, do not assume every point proves exactly what appeared on a past screen.

Forecast boundary

A forecast should expose starting value, contribution or payment, rate assumption, interval, horizon, and relevant exclusions.

Recurring-investment (SIP) concept

A systematic investment plan scenario models repeated contributions and assumed compounding. Actual investments fluctuate, incur costs, and may lose value.

Debt amortization concept

Amortization scenarios separate payments into interest and principal under a stated rate and schedule. Real lenders may use daily accrual, variable rates, fees, or prepayment rules.

• A payment below accrued interest may not reduce principal.
• Extra principal can shorten a modeled schedule.
• Rate changes invalidate a fixed-rate scenario.
• Use lender statements for authoritative balances.

Combined projection

A combined scenario may grow modeled assets while reducing modeled debts. The resulting projected net worth depends on every assumption and should be read as a range of possibilities, not a target promise.

• Test conservative and adverse assumptions.
• Separate deposits from modeled returns.
• Separate debt payments from interest.
• Keep inflation and taxes in mind even when not modeled.

Editing assumptions and records

Changing a starting balance, inclusion flag, currency, rate, contribution, payment, or horizon can materially change the output. Save or export assumptions when comparing scenarios.

Reconciliation workflow

Edge cases and omissions

• Negative asset values should be represented according to the supported model.
• Credit limits are not debt balances.
• Undrawn facilities should not be treated as cash.
• Accrued taxes and fees may be omitted unless entered.
• Illiquid assets may need discounts outside the product.
• Variable-rate debts require refreshed assumptions.

Privacy, advice limits, and what we do not publish

AccountHouse is a household tracking and organisation tool. It is not a bank, payment processor, tax advisor, or investment advisor. Forecasts, health scores, balances, and alerts are informational.

• Household data is scoped to your household; other families cannot see your ledger.
• Public documentation explains product behaviour and calculation concepts, not proprietary internals.
• Exact scoring weights, anomaly thresholds, cryptography parameters beyond high-level algorithms, and operational detection rules are reserved.
• Net-worth records are highly sensitive and should be shared only with intended household members.
• Forecasts omit or simplify market volatility, taxes, fees, inflation, defaults, and changing rates unless explicitly represented.