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Our house has a decent amount of equity thanks to the insane housing market here (it's worth 50% more than when we bought it in 1999). Even though that's part of our net worth, I don't feel comfortable counting on it.

I think it's extremely reasonable to consider your house equity part of your net worth, provided that you have a corresponding house expense in your FIRE plans. You have to make some provision for housing in FIRE, and if you're counting that, you really have to offset that with equity.

Of course, if you intend to FIRE in your present house, it's a bad idea to count the equity. Instead, you should count the remaining mortgage as something you have to pay off before you FIRE. Doing it any other way doesn't make sense, since you can't spend house equity in order to pay your housing costs, which are a major part of anyone's expenses.

- Gus
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