Question 1

How does the NetWorth Reality Check calculate purchase affordability?

Accepted Answer

The calculator compares the price of a purchase against your total liquid and asset net worth to determine the percentage impact. It classifies purchases into risk categories ranging from negligible impact (<0.1%) to severe financial risk (>50%).

Question 2

What percentage of net worth is safe for a major purchase?

Accepted Answer

Generally, everyday purchases should consume less than 0.5% of your total net worth. Major discretionary purchases between 1% and 5% are manageable with planning, while purchases exceeding 10% represent significant capital outlays that require careful liquidity consideration.

Question 3

Is my net worth data saved on any server?

Accepted Answer

No. All financial calculations are executed entirely within your browser on your device. Your data remains 100% private.