Managing your assets and liabilities

The Net Worth page allows you to use PocketSmith to track financial assets and liabilities that may not have accounts, such as your house and mortgage 🏠 or car and car loan 🚗
Learn how to add assets or liabilities, manage money owed toward an asset, or edit asset/liability details!
In this user guide

Adding an asset to Net Worth

1
Head to the Net Worth page ( Reports > Net Worth)
2
Select Add Asset from the toolbar
3
Select the asset type  Property, Vehicle, Investment or Other
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 

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 liability to Net Worth

1
Head to the Net Worth page ( Reports > Net Worth)
2
Select  Add Liability from the toolbar
3
Select the liability type, either  Loan or  Other debt over $1000
4
Enter the details of the liability
5
If you want to link the liability 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, then click Save & continue button. You will be taken to another window. See the Managing money owed toward an asset section of this user guide below for more detail on this
  • If you select No, proceed to the next step
6
If you want to add an interest rate for the liability, select Yes to the option Do you want to set interest/depreciation for this liability? 

Otherwise, select No
  • If you select No, click Save to create the liability and return to the Net Worth page 
  • If you select Yes, click Save & continue and proceed to the next step
7
You can then add an interest rate to the liability, including the frequency of when the rate will be applied  

Note

The current value will override any interest applied between the draw-down date and the current date (the date the liability 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 liability 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 mortgage 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 liability 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, for instance, if your mortgage is split up over multiple loans If you select To be tracked as a liability, you will be able to enter the name of the liability, the amount of the debt, whether it is a mortgage, how often is the interest paid and the annual interest rate on the debt

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

Editing the details of an asset or liability

Once you have added an asset or liability 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 liability that you want to edit
3
Update the details as necessary and click Save

Note

You can only update the value of an asset or liability on the current date or on the original purchase/drawdown date from the Net Worth page. In order to update the value on a different date, it's best to use the Calendar page. 

This means that any changes to the value/balance of the asset or liability will be accurately reflected on the calendar, and, ultimately, in your Net Worth graph.

For detail on how to do this see below

Updating the value of an asset or liability 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 any historical balances intact in order to accurately reflect these value changes as part of your Net Worth - you might have added an interest calculation to an asset or liability, but over time this interest value might vary from the actual interest applied.

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

1
Head to the Calendar page
2
Select the asset or liability 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 liability, 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 liabilities on the Calendar page

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

Viewing an asset with a linked liability on the Calendar

If you have chosen to link a liability to an asset, you can click the information icon beside the asset's value to view a summary of the amount owing, as well as the current Consolidated balance.

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

You can also choose to view the value of the asset minus the liability 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.

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

The Calendar and  forecast graph will update accordingly.

Deleting an asset or liability

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

You can delete the asset/liability as follows:

1
Head to the Net Worth page ( Reports > Net Worth)
2
Click on the asset or liability that you wish to delete

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3
Then select ' Delete this asset/liability'

4
When prompted click YES, I WANT TO DELETE THIS ASSET/LIABILITY
5
In the confirmation field, type DELETE then click OK

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

If you've added an interest rate, or a repeating budget, to an asset or liability, you may notice that the 'current value' (that was set when the asset/liability 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/Liability in the Calendar sidebar.
2
Click on the blue flag event on the date the asset/liability was added, and click  Delete Balance 

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