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Everything you listed is still an asset even with debt attached. Cars boats it makes no difference
As long as you're rightside up on the loan. Unfortunately it's not uncommon for people to be upside down on car loans, given how fast cars depreciate and how long the average car loan has grown to be. If you can't sell the item for more than what you owe on it, it's not an asset.
As long as you're rightside up on the loan. Unfortunately it's not uncommon for people to be upside down on car loans, given how fast cars depreciate and how long the average car loan has grown to be. If you can't sell the item for more than what you owe on it, it's not an asset.
No it's not as long as you are right side up it's still an asset in either case.
A credit card with a 10k balance is debt with no asset. A 10k car loan with a 8k car isn't the same as the first because there is an assets associated with it
Everything you listed is still an asset even with debt attached. Cars boats it makes no difference
If you have a loan on anything and you can't pay it back you'll have one of two choices: sell the item (if you can) or give it back (if you can) and once the item is out of your possession there really isn't much to claim as an asset, now is there...
If you have a loan on anything and you can't pay it back you'll have one of two choices: sell the item (if you can) or give it back (if you can) and once the item is out of your possession there really isn't much to claim as an asset, now is there...
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
No it's not as long as you are right side up it's still an asset in either case.
A 10k car loan with a 8k car isn't the same as the first because there is an assets associated with it
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.
Jojo,
you are doing OK, not great but not bad either. I don't find your expenses outrageous either.
Having said that your husband is right. It won't hurt to save a little bit more regularly. Open a savings account (or a savings bond account at treasurydirect.gov) and set up and automatic transfer of money regularly from your usual checking account into it. You won't miss it.
On a balance sheet even assets that are upside down are still assets. One side of the balance sheet is the value of all your assets, the other side is a list of all your liabilities. There isn't any netting of each individual item to determine if it is an asset.
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