Quote:
Originally Posted by SnoopyCool
We own our vehicles outright, but I had heard that since they cost $ for maintenance, gas, insurance that they were liabilities. Same with a house.
|
Think of it this way. How much would you end up with if you sold everything you own tomorrow and paid off all of your debts? That is your net worth.
Yes, cars and homes cost money to operate and maintain, but they still have value so they count as assets for the purpose of calculating net worth.
Of course, net worth is constantly changing. Some assets appreciate. Others depreciate. So if you calculate your net worth today and then do it again in a year, you would need to downgrade the value assigned to those cars.