In this guide you can learn how to add assets, manage money owed toward an asset, or edit asset details!
Adding an asset to the Net Worth report
- Select + Asset
- Select the asset type
- Enter the details of the asset
- 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?
- 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.
- If you selected No, proceed to the next step
Otherwise, select No
- 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?
- 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
Otherwise, select No
- 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.
- Click Save and reload Net Worth to add the asset to your Net Worth report
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.
Managing money owed toward an asset
If you've added an asset to the Net Worth page, 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. 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? 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. Then click Save.
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:
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:
When you have added the linked account or debt, click Save.
Appreciation and depreciation settings for an asset
You can set an annual rate at which an asset appreciates or depreciates.
You can also select how often you would like the value change for this to be calculated.
- Select the Asset from the Net Worth page
- Click into the Interest & depreciation tab
- Customise the settings as required
- Click Save and reload Net Worth
You can then view your depreciation value changes on the Calendar when looking at the asset.
Editing the details of an asset
Once you have added an asset to the Net Worth page, you can edit it at any time.
- Head to the Net Worth page (Reports > Net Worth)
- Click on the name of the asset
- Update the details as necessary and click Save
Note
You can only update the value of an asset 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 will be accurately reflected on the calendar, and, ultimately, in your Net Worth graph.
Updating the value of an asset 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.
- Head to the Calendar page
- Select the asset from the sidebar
- Navigate to the date you'd like the value change to occur on, and click the balance on that day
- Enter the new value for the asset, then click Update Balances
- The value of your asset will now be updated from that day, without altering any previous balances
Note
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
Please note that blue flag forecast adjustments are only visible when 'Show actuals in history' is unticked
Tips for viewing assets on the Calendar page
You can view your assets on the Calendar page by clicking on their name under the Other Assets and Debts 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:
You can deselect the linked account or associated debt as needed, the Calendar and graph will update accordingly.
Deleting an asset
There may be times when you'd like to delete an asset.
Please note that this action is permanent, so please be sure that you really want to remove the asset before doing so!
You can delete the asset as follows:
- Head to the Net Worth page (Reports > Net Worth)
- Click on the asset that you wish to delete
- Then select 'Delete this asset'
- When prompted click YES, I WANT TO DELETE THIS ASSET
- In the confirmation field, type DELETE then click CONFIRM
