listed shares on the family balance sheet
Net worth is everything you own minus everything you owe. Stocks sits on the owning side — but only at its realisable value, and only after you net off any loan secured against it. The purchase price is history. What the holding is worth today is the only number that belongs on a net worth statement.
- Counts as
- An asset
- Liquidity
- High
- Net off
- Any loan against it
at today's value
Sell today, money in the account within a day
gold loan, home loan, car loan
Gross value is not net worth
If you hold listed shares worth ₹10 lakh with ₹4 lakh borrowed against them, your net worth carries ₹6 lakh, not ₹10 lakh. The most common household error is listing assets at full value while the matching loan sits in a different notebook entirely.
How much is too much
There is no universal right share, but concentration is the risk worth watching. Indian households are famously heavy in property and gold and light in liquid assets, which looks fine on a statement and hurts badly in an emergency. The test: if you needed three months of expenses next week, how much of this would you have to sell at a bad price?
The three-line check
Once a year, ask three things of this holding. Is it worth what I think it is worth? Is there a liability attached that I have forgotten? Could I convert it if I had to? Assets that fail the third question are not wrong to own — they are just wrong to count on.
Where FamTally comes in
FamTally computes net worth from what the family actually holds, nets loans off against the assets they are secured on, and grades every holding for liquidity — so you can see at a glance how much of your wealth you could reach this week. Assets can be tagged to a family member, which matters when the household is more than two people. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Do listed shares count in net worth?
Yes, at today's realisable value, minus any loan secured against them.
Should the home I live in count?
It belongs on the statement, but not in your retirement plan — a home you live in provides shelter, not income. Many families track it separately for exactly this reason.
How do I count a jointly owned asset?
Count the household's share. If the family is the unit you are tracking, count the whole thing and tag it to the members who own it.