Managing your assets and debts

The Net Worth page allows you to use PocketSmith to track financial assets and debts that may not have accounts, such as your house and home loan 🏠 or car and car loan 🚗

Learn how to add assets or debts, manage money owed toward an asset, or edit asset/debt details!

Adding an asset to the Net Worth page

1. Go to Reports > Net Worth

2. Select + Asset 

   
   

   

3. Select the asset type  Property, Vehicle, Investment or Other asset

   
   

   

4. Enter the details of the asset

   
   

   

5. If you want to link the asset to a loan or mortgage, select Yes to the option Do you want to manage money owed on this asset?

   Otherwise, select No

   
   

   

   
   

   • If you selected Yes, click on the Save & continue button. You will be taken to another window. See the Managing money owed toward an asset section of this user guide below

   • If you selected No, proceed to the next step

6. If you want to set an interest or depreciation rate for the asset, select Yes to the option  Do you want to set interest/depreciation for this asset?

   Otherwise, select No

   
   

   

   
   

   • If you select No, click Save to finish adding the asset and go back to the Net Worth page

   • If you select Yes, click the Save & continue button and proceed to the next step

7. You can then add an interest or depreciation rate to the asset, including the frequency of when the rate will be applied. See: Appreciation and depreciation settings.

   
   

   Note

   The current value will override any interest applied between the purchase date and the current date (the date the asset was added to PocketSmith).

   If you'd like the current balance to reflect the original purchase value + interest follow the steps outlined here

8. Click Save and reload Net Worth to add the asset to your Net Worth report

Adding a debt to the Net Worth page

1. Go to Reports > Net Worth

2. Select + Debt 

   
   

   

3. Select the debt type, e.g. Vehicle loan, Investment Loan, Loan or Other debt

   
   

   

4. Enter the details of the debt

   
   

   

5. If you want to link the debt to an asset, select Yes to the option Do you want to group this liability with an existing asset?

   Otherwise, select No

   
   

   

   • If you selected Yes, click on the Save & continue button.  You will be taken to another window.

   See the Managing money owed toward an asset section of this user guide below

   • If you selected No, proceed to the next step

6. If you want to add an interest or depreciation rate for the debt, select Yes to the option Do you want to set interest/depreciation for this debt? 

   Otherwise, select No

   
   

   

   • If you select No, click Save to finish adding the debt and go back to the Net Worth page

   • If you select Yes, click the Save & continue button and proceed to the next step

7. You can then add an interest or depreciation rate to the debt, including the frequency of when the rate will be applied. See: Appreciation and depreciation settings.

   
   

   Note

   The current value will override any interest applied between the purchase date and the current date (the date the debt was added to PocketSmith).

   If you'd like the current balance to reflect the original draw-down balance + interest follow the steps outlined here

8. Click Save and reload Net Worth to add the debt to your Net Worth report

Managing money owed toward an asset

If you've added an asset to Net Worth, you may want to manage the debt owing to the asset. For example, a home loan for a house 🏠  or a loan for a car 🚗

You can manage multiple debts for a single asset.

You can find out how to add an asset here.

1. Existing asset: To manage money owing on an existing asset, select the asset from the Net Worth page and then select  Manage money owing from the left menu.

   
   

   

   
   

   New asset: If you want to manage the money owing on an asset at the time you are first adding the asset, select Yes to the question Do you want to manage money owed on this asset? 

   Then click Save and continue 

   
   

   

2. Select whether the money owed is already represented by an account in Pocketsmith or if you want to create a new debt in your Net Worth

   
   

   

3. If you select  From an existing account in PocketSmith, you will be able to choose the account to link from the drop-down list. You can link a single asset to multiple accounts.

   
   

   

   
   

   If you select To be tracked as a debt, you will be able to enter the name of the debt, the amount of the debt, whether it is a Loan, how often the interest is paid and the annual interest rate on the debt.

   
   

   

   
   
4. When you have added the linked account or liability, click Save

Appreciation and depreciation settings

You can set an annual rate at which an asset or debt appreciates or depreciates. You can also select how often you would like the value change for this to be calculated:

Editing the details of an asset or debt

Once you have added an asset or debt to the Net Worth page, you can edit it at any time. This allows you to change the value, the interest and the accounts linked to the net worth item. 

1. Head to the Net Worth page (Reports > Net Worth)
2. Click on the name of the asset or debt that you want to edit

3. Update the details as necessary and click Save

   
   

Updating the value of an asset or a debt from the Calendar page

There may be times when you would like to update the value of an asset on a particular date. For example, keeping your property value up to date so that this is reflected in your Net Worth.

It's best to do this via the Calendar page.

1. Head to the Calendar page

   
   

   

2. Select the asset or debt from the left menu

   
   

   

3. Navigate to the date you'd like the value change to occur on, and click the balance on that day

   
   

   

4. Enter the new value for the asset or debt, then click Update Balances

   
   

   

5. The value of your asset will now be updated from that day, without altering any previous balances

   
   

   Note

   Please note that blue flag forecast adjustments are only visible when 'Show actuals in history' is unticked

   

6. If you notice your current balance has not been updated, you will need to delete any blue flag budget correction events that occur between the date of the value change, and the current date. To do this, just click on the blue flag event, and click Delete Balance 

   
   

   

Tips for viewing assets and debts on the Calendar page

You can view your assets or debts on the Calendar page by clicking on their name under the Other Assets and Liabilites section of the left menu.

Viewing the consolidated balance of an asset and it's linked debt or debt account on the Calendar and forecast graph

You can also choose to view the value of the asset minus the debt / debt account on the Calendar and forecast graph. This is useful for viewing changes to the value of your stake in the asset over time, including forecasting into the future.

An Asset with an Associated debt:

An Asset with a Linked debt account:

To include or exclude the associated debts, click on the three-dot menu that appears when you hover over the end of the row and select the debt you wish to view in conjunction with the Asset. 

The Calendar and graph will update accordingly.

Deleting an asset or debt

There may be times when you'd like to delete an asset or debt. For example, if you've accidentally added a debt as an account and as a debt. Please note that this action is permanent, so please be sure that you really want to remove the asset/debt before doing so!

You can delete the asset/debt as follows:

1. Head to the Net Worth page (Reports > Net Worth)

2. Click on the asset or debt that you wish to delete

   
   

   

3. Then select 'Delete this asset/debt'

   
   

   

4. When prompted click YES, I WANT TO DELETE THIS ASSET/DEBT

   
   

   

5. In the confirmation field, type DELETE then click CONFIRM

   
   

   

Troubleshooting: Interest rate/budget events not updating asset/debt balance

If you've added an interest rate, or a repeating budget, to an asset or debt, you may notice that the 'current value' (that was set when the asset/debt was added to PocketSmith) overrides any interest added to the balance, or any budget events, since the purchase or draw-down date.

To fix this you will need to delete the original value change blue flag event from the calendar.

1. Head to the Calendar page and select the Asset/debt in the Calendar sidebar.

   
   

   

2. Click on the blue flag event on the date the asset/debt was added, and click  Delete Balance