Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jojo,
if i were you in this exact circumstance, i would get rid of one car, cut cable, both cells, cut groceries to 200 bucks a month (eat noodles...etc.) for 2 years, and would save every penny for 2 years straight. I'd invest heavily in my 401k and IRA and hopefully after 2 years of HELL, i'd be able to take it a bit easier knowing that i've made up for some lost time.
IMO this is crazy and unnecessary.
Yes they should start or contribute to 401K and IRA.
Not cut lifestyle so much that they are miserable all the time, just to save money.
While I appreciate your attempt at putting a strawman together but said item is still an assets even if it's left your possession it's just no longer yours. Same thing with a house even though you've already conceded that one
Exactly. I'm not creating a sham: You cannot include in your net worth that which isn't yours.
Exactly. I'm not creating a sham: You cannot include in your net worth that which isn't yours.
But you can include assets in which you also carry debt on in your net worth. That's why the calculation is assets minus liabilities. So back to your adjusted statement even cars, boats and jewelry are all assets even if they have debt carrying them and it all fits in the equation
If you owe 10k on a car worth 8k, you're upside down on the loan. On its own the vehicle isn't an asset, it's a liability (specifically a 2k liability).
Now your overall net worth may still be positive if you have other savings or material objects of value to offset that 2k of debt, but that's no thanks to the car.
UHHH...yes it is.
the car that's worth 8k is an asset. you may have a loan of 50k on it, and that 50k is your liability, but the car value (8k) is still an asset.
But you can include assets in which you also carry debt on in your net worth. That's why the calculation is assets minus liabilities. So back to your adjusted statement even cars, boats and jewelry are all assets even if they have debt carrying them and it all fits in the equation
You're nit-picking Low. Go back to my post.. none of my examples demonstrate that I don't know the difference between an asset and a liability. I even walked through the whole process of which part of a mortgage goes to increasing equity (asset) and which part goes to fulfilling the debt (liability).
Originally Posted by Thinking-man View Post
Jojo,
if i were you in this exact circumstance, i would get rid of one car, cut cable, both cells, cut groceries to 200 bucks a month (eat noodles...etc.) for 2 years, and would save every penny for 2 years straight. I'd invest heavily in my 401k and IRA and hopefully after 2 years of HELL, i'd be able to take it a bit easier knowing that i've made up for some lost time.
LOL, I did some of this when I was "building that" small business.
You're nit-picking Low. Go back to my post.. none of my examples demonstrate that I don't know the difference between an asset and a liability. I even walked through the whole process of which part of a mortgage goes to increasing equity (asset) and which part goes to fulfilling the debt (liability).
I'm not nitpicking, you posted something blatantly wrong which I corrected. Then you agreed but only on a house which is simply incorrect.
I'm not nitpicking, you posted something blatantly wrong which I corrected. Then you agreed but only on a house which is simply incorrect.
Whatever. I actually still stand with my argument as you can use the term "asset" in a more generalized sense (take a poll.. ask people what Kim Kardashian's best assets are ). Yes, homes and cars and boats bought with debt are still a part of the net worth equation, but happens when you can't pay off the loan?
repossession and foreclosure.
I personally like owning 100% of my home, 100% of my cars and 100% of my stuff. It's why I don't carry a car loan, a house loan or a CC balance.
Whatever. I actually still stand with my argument as you can use the term "asset" in a more generalized sense (take a poll.. ask people what Kim Kardashian's best assets are ). Yes, homes and cars and boats bought with debt are still a part of the net worth equation, but happens when you can't pay off the loan?
repossession and foreclosure.
I personally like owning 100% of my home, 100% of my cars and 100% of my stuff. It's why I don't carry a car loan, a house loan or a CC balance.
Free and clear is the best kind of asset.
That's simply irrelevant in determining what an asset is
True disclosure though you only own your home outright because someone gave you a bunch of money if I remember correctly so take it easy on the preaching
That's simply irrelevant in determining what an asset is
True disclosure though you only own your home outright because someone gave you a bunch of money if I remember correctly so take it easy on the preaching
You aren't correct. We were gifted some of our downpayment, but only we and we alone paid off the mortgage. We did have the option of borrowing liquidity from a relative, but we were able to work it out on our own. You might remember the temporary risks we took by throwing nearly all our emergency fund at the actual payoff. It wasn't really much of a risk since our savings rate was 50% before clearing the mortgage (and got even better afterwards), we had a little stocks and if the real S hit the F, we could always call on the relatives ... but as I recall you still had an opinion about that, an opinion with the same nit picking sentiment.
Of course that's all over now. We don't need to get back into it, right?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
). Yes, homes and cars and boats bought with debt are still a part of the net worth equation, but happens when you can't pay off the loan?
