Finally have a budget, in the 'black'!

[jmjj215]

Re: Finally have a budget, in the 'black'!

No one would ever be in the black.

I disagree! I'm in the 'black' by that definition also. Until we get our first house in a year or so. We'll still be very positive on the net worth side though. You would have to borrow more than your home is worth (or experience a drop in housing prices) to be upside down (in the red so to speak) on your home.

[gakline]

Re: Finally have a budget, in the 'black'!

Black
A description of a positive balance on a company's financial statements.

Investopedia Says: The phrase "in the black" is widely used to refer to the condition of companies that have been profitable in their last accounting period. This term is derived from the color of ink used by accountants to enter a positive figure on a company's financial statements.

[PFJournal]

Re: Finally have a budget, in the 'black'!

Congratulations! Once you've got that CC debt under control, you should look at using the money you were putting into reducing debt each month into an investment (such as a mutual fund).

So I sortof knew what is was, but I kept changing it and even though lately that was for the better I still hate doing anything twice . So I finally have it where I think it has been the same for a couple months and I wrote it out and everything, first time in my life I had a budget that came up to under my income! which is not to say I have always lived over income (quite the opposite), just that when I had plenty I never wrote it out. (not the best idea to plan for the future)

It leaves me with about 200 to send on the CC each month, which will take 2 years to pay off (according to the wonderful calculator on here .) which is far to long, though we will be getting some bonuses to put torwards it in the spring. Anyway 2 years is too long!

[TBH]

Re: Finally have a budget, in the 'black'!

Go, PrincessPerky, go!

I remember that feeling of relief when we were back "in the black". We were spending more than we earned for about six months after DS was born, because I had lost my full time job, the kid's daycare ate up a lot, etc. Luckily we had a very big emergency cushion (and we sure needed it). It just felt like we were hemorraging money. When we finally upped the income and reduced the spending enough that it all balanced out, I felt like I could breathe again.

[PrincessPerky]

Re: Finally have a budget, in the 'black'!

Breathing is good . And thanks for all the congrats.

I talked to DH the other day about using the leftover after we have the CC paid for, he suggestied making a bigger EF first. Which since he is training people in India to do half his job makes sense, there isa good chance he will have to train them to do the other half later.

[baselle]

Re: Finally have a budget, in the 'black'!

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]

Re: Finally have a budget, in the 'black'!

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]

Re: Finally have a budget, in the 'black'!

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

[niki_the_tiger]

Re: Finally have a budget, in the 'black'!

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]

Re: Finally have a budget, in the 'black'!

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]

Re: Finally have a budget, in the 'black'!

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]

Re: Finally have a budget, in the 'black'!

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