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Add ability to to categorize mortgage as "expense" rather than "debt"

The way you currently factor in a mortgage makes sense logically, but some people approach mortgages a bit differently in regards to calculating FIRE, and it would be cool if this tool supported more flexibility in that regard.

What I feel is missing is a way to categorize your current liquid net worth, WITHOUT factoring in the mortgage debt.

In some FIRE calculations, the mortgage payment is simply an expense that the total investments need to cover. So you would be FIRE if your total investments are 25x (your expenses + your annual mortgage payment).

Currently I can have a “FIRE” milestone be triggered if either my Total Net Worth or Liquid Net Worth reach a certain level, but both of those factor in the negative amount of the debt, so it doesn’t seem possible to calculate FIRE in the way I described above.

1 vote

Tagged as Suggestion

Suggested 18 February 2022 by user Sean

Moved into Completed 27 February 2022

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  • 18 February 2022 Sean suggested this task

  • 18 February 2022 Kyle Nolan approved this task

  • avatar
    Kyle Nolan

    Hey Sean, this is an interesting idea. Did you notice that in the Chart Options –> Calculation Options, there is a switch for “Include financed assets as Debt”? Currently that just affects the Net Worth plot… but I wonder if I should consider expanding its effects into other areas, or adding another checkbox to indicate that it should apply to liquid net worth calculation.

    18 February 2022
  • avatar
    Sean

    Hi Kyle! Yes, I did notice that toggle. It might make sense to expand that functionality or add another checkbox next to it - the only concern is that option is under the “Chart Options” drop down menu, which as a user implies to me that those options only change the visualization of the graph, not any actual under-the-hood calculations. It might make more sense to have that be somewhere else in the settings? My first instinct was to to look at the settings for the mortgage under “Other Assets” to see if there were any controls specific to that asset. But either way, just having the option would be cool!

    18 February 2022
  • avatar
    Kyle Nolan

    Thanks Sean, I think that’s a sensible place to put this. I just drafted up an initial implementation which seems to work, and I’ll deploy that to the early access channel as soon as I finish the other features I currently have in progress locally. The notification system on changemap isn’t the greatest, but if you want to reach out via the ProjectiFi discord or by email, I’ll let you know when this is ready for you to test it out!

    19 February 2022

  • 19 February 2022 Kyle Nolan moved this task into In progress

  • avatar
    Kyle Nolan

    Draft of this is now in the early access site: https://projectifi-201a2–dev-xsmyy9im.web.app/.

    Check it out and let me know what you think!

    19 February 2022
  • avatar
    Sean

    Just tried it out - looks great! Thanks Kyle!

    20 February 2022

  • 27 February 2022 Kyle Nolan moved this task into Completed