The rich are treated differently. When Bill Gates donates 30% of his net worth to charity he's praised as a generous hero. When I do it they tell me they don't accept donations under a dollar.
Knowing your net worth today is valuable. Knowing where it's headed over the next 5, 10, or 30 years is transformational. Cashflow Companion's Net Worth Projection feature lets you model your financial future by applying growth rates and annual contributions to every account on your balance sheet so you can better plan for your future.
It's straightforward in the app, but this guide will help you make sure you're using it strategically to model real scenarios—including paying down debt.
Getting to Net Worth Projection
- Tap Balance Sheet in the bottom navigation
- Tap the Net Worth row (showing your current net worth amount) or the button at the top right that looks like a graph.
- You're now on the Net Worth Projection screen
Before you can project anything, you'll need at least one asset or liability on your balance sheet. If you haven't set those up yet, see our complete guide to getting started.
The Projection Settings
At the top of the screen, you'll see global settings that apply to your overall projection:
Projection Horizon
Use the slider to choose how far into the future to project—from 1 year to 30 years. A shorter horizon is useful for near-term planning. A longer one shows the dramatic power of compound growth and consistent debt payoff.
Cash Growth Rate
This is the annual growth rate applied to your cash (checking account) balance. For most people, this should be a small negative number like -3 to represent inflation eroding your purchasing power. If your cash earns interest in a high-yield savings account, you could set it to match that rate instead.
Cash Annual Contribution
The dollar amount you expect to add to (or withdraw from) your cash balance each year, above and beyond your normal income and expenses. For most people, this is 0—your cashflow forecast handles the day-to-day. But if you're planning to build up a specific cash reserve (in your main checking account), enter that annual target here.
Per-Account Growth Rates & Contributions
Below the global settings, you'll see every account from your balance sheet. Tap any account to expand it and set two values:
- Growth Rate (%): The annual percentage the account's value is expected to change. Positive for growth, negative for depreciation or debt paydown.
- Annual Contribution ($): The dollar amount you add to (or remove from) this account each year.
The projection applies both the growth rate and the contribution to calculate the account's future value year by year.
Setting Up Your Assets
Here's how to think about growth rates and contributions for common asset types:
Example Asset Settings
| Account | Growth | Contribution | Why |
|---|---|---|---|
| 401k | 10% | $10,000/yr | Historical stock market average + annual contributions |
| House | 3% | $0 | Average home appreciation, no cash added |
| Car | -10% | $0 | Vehicles depreciate roughly 10-15% per year |
A negative growth rate on an asset like a car models depreciation. The car's projected value will decrease each year, which is realistic and keeps your projection honest.
Modeling Debt Payoff
This is where the projection gets powerful. Liabilities—car loans, mortgages, student loans—can be modeled to show them shrinking over time using negative contributions.
The key insight: a negative annual contribution on a liability represents your yearly payments toward that debt. As you pay down the balance, that liability shrinks, and your net worth grows—even if your assets stay flat.
Example Liability Settings
| Account | Growth | Contribution | Why |
|---|---|---|---|
| Car Loan | 0% | -$7,200/yr | $600/mo payments, no interest accrual on balance |
| Mortgage | 0% | -$16,800/yr | $1,400/mo payments reducing principal |
Why Growth Rate Is 0% on Loans
You might think a loan's growth rate should be its interest rate. But the interest is already baked into your monthly payment amount. Your $600/month car payment already covers both principal and interest. Setting the growth rate to 0% and the contribution to negative your annual payments models the balance declining as you pay it off—which is exactly what happens in reality.
If you wanted to model a scenario where you're only paying interest and not reducing principal (like an interest-only mortgage), you'd set the growth rate to the interest rate and the contribution to $0. The balance would stay roughly flat, which matches that scenario.
Reading the Projected Net Worth Chart
At the bottom of the screen, you'll see a chart showing your projected net worth over the time horizon you selected. It shows two key numbers:
- Today: Your current net worth (total assets minus total liabilities)
- Year X: Your projected net worth at the end of the projection horizon, shown in green
The chart plots every year in between, so you can see the trajectory. Most people see a curve that starts slow and accelerates—that's compound growth in action. The combination of appreciating assets, consistent contributions, and shrinking debt creates a powerful upward trajectory.
Scenarios Worth Modeling
The projection feature is most useful when you play with the numbers. Try these scenarios:
What if I increase my 401k contributions?
Change your 401k annual contribution from $10,000 to $15,000 and watch the 10-year difference. The extra $5,000/year, compounded at 10%, adds far more than $50,000 over a decade.
What if I make extra mortgage payments?
Increase your mortgage's negative contribution. If you currently pay $16,800/yr, try -$20,000/yr to see how an extra $3,200 in annual principal payments accelerates your payoff and boosts net worth. Remember that extra contributions will go 100% to pay down principal.
What if the market underperforms?
Change your stock growth rate from 10% to 6% and see the impact. This helps you plan conservatively rather than relying on best-case returns.
Tips for Accurate Projections
- Be conservative with growth rates. It's better to be pleasantly surprised than to plan around overly optimistic returns.
- Update periodically. As account balances change and you make new financial decisions, update the starting balances on your balance sheet. The projection recalculates automatically.
- Don't forget depreciation. Cars, equipment, and other physical assets lose value. Use a negative growth rate to keep the projection realistic.
- Account for all debt payments. Every loan payment you make is money building your net worth. Make sure each liability has its annual principal payment entered as a negative contribution.
The Big Picture
Net worth projection isn't about predicting the future perfectly. Markets will fluctuate. Life will throw curveballs. The value is in seeing the general trajectory: am I on a path toward financial freedom, or do I need to change course?
When you can see that your current savings rate, debt payments, and investment returns put you at $600,000 in net worth in 10 years, it's motivating. When you can see that bumping your contributions by $200/month gets you there 2 years faster, it's actionable. That's the power of projection.
"The best time to plant a tree was 20 years ago. The second best time is now."
Open the net worth projection, enter your numbers, and see where you're headed. Then decide if you like the destination—or if it's time to change the inputs.