Finally have a budget, in the 'black'!

[baselle]

Originally Posted by gakline

No, you don't have to have zero debt. No one would ever be in the black.

Actually, between October 2004 and May 2005 I was in the black by that definition, with zero debt. And right now, I'm within $500 of being in the black again.

[Tree0164]

I think a true defination of being in the black is to be completely debt free. If you have credit cards, student loans, car payments-you owe someone something.

Thinking that you are ahead of the game by just paying the minimum payments is fooling yourself.

[jmjj215]

Tree, I agree with you. Althought I'm comfortable with the idea of getting a mortgage

[niki_the_tiger]

To me, being in the black means zero debt too. Well... maybe having a mortgage would be okay because that is sort of an investment.

[meaghanchan]

To me, you can have a budget period in the black (which means you're spending less than you make)

and yet not be, personally, in the black (if your debts exceed your assets).

I think you have to differentiate. They're two different things- One which is a factor of earnings vs. spending within a certain time frame, the other which is a factor of earnings vs. spending over your entire lifetime.

[cercis]

Technically you are in the black if your assets exceed your debts. This may not mean that you can pay your bills, if you do not have sufficient liquid assets you could have problems. But you would still be in the black.

You can be in the red and still do fine. If you are able to make enough to pay the minimums, etc and most of your assets are liquid.

[jmjj215]

Originally Posted by niki_the_tiger

To me, being in the black means zero debt too. Well... maybe having a mortgage would be okay because that is sort of an investment.

What is you're doing arbitrage w/ a 0% credit card sitting in your ING account for a year earning 3.whatever percent? That's also an investment then