I knew it was coming, but...

[thyme4change]

The check for the downpayment on the car, and the check for the second installment for the contractor for the bathroom cleared on the same day. My checking balance (and my net worth) dropped by $11,000 in one day. I hate that.

[Colleenz]

and my net worth) dropped by $11,000

A little silver lining is this is not quite true. The upgrade to the bathroom should make the house worth more.

[alabamagal]

Jun 21, 2011 8:10:05 GMT -5 Colleenz said:

and my net worth) dropped by $11,000

A little silver lining is this is not quite true. The upgrade to the bathroom should make the house worth more.

Some of the car downpayment may add equity to the car, but if it is a new car, that amount may have been used up immediately as depreciation.

[thyme4change]

The upgrade to the bathroom should make the house worth more.

I'm not counting on that. Even if it does add value, it won't be 100%. The minute the first hammer swung, I lost at least a little money.

I guess technically the car is an asset. As an accountant, I use the traditional accounting rules to determine net worth.

[swamp]

I understand where you're coming from.

Go home, have a drink by the pool and relax. You deserve it.

[Deleted]

Jun 21, 2011 8:18:31 GMT -5 thyme4change said:

The upgrade to the bathroom should make the house worth more.

I'm not counting on that. Even if it does add value, it won't be 100%. The minute the first hammer swung, I lost at least a little money.

I guess technically the car is an asset. As an accountant, I use the
traditional accounting rules to determine net worth.

What rules are those??

[thyme4change]

So, are you bragging or complaining here?

I saved a long time for both of these purchases. This board tries to make you feel bad about every dollar you spend - but at least I followed most of the "Ifs..." for both of these purchases.

- "If" you save up enough cash...
- "If" you doing it for yourself and not thinking it is an investment...
- "If" you are willing to lose $X on depreciation...
- "If" you research...

blah, blah, blah

[thyme4change]

What rules are those??

Really? Cars aren't assets?

A trucking company would just expense their vehicles as a cash purchase and not put them on the books as capex and apply depreciation?

(You are a better accountant than I am - so maybe I'm getting it wrong.)

[Deleted]

Jun 21, 2011 8:24:20 GMT -5 thyme4change said:

What rules are those??

Really? Cars aren't assets?

A trucking company would just expense their vehicles as a cash purchase and not put them on the books as capex and apply depreciation?

(You are a better accountant than I am - so maybe I'm getting it wrong.)

I am just confused. Under traditional accounting rules both your car downpayment and the bathroom remodel downpayment would be assets, so your net worth would not change as of the checks clearing.

Look at that. I just saved you $11k. I think that deserves some karma. ;D

[resolution]

The money is already spent, so the time for thinking about it is done. Just relax and enjoy your new stuff. Go out with your hubby for a spin in the new car.

[wodehouse]

One's net worth will decrease every time you buy a new pair of shoes. So what? It costs money to live. Enjoy.

[thyme4change]

I am just confused. Under traditional accounting rules both your car downpayment and the bathroom remodel downpayment would be assets, so your net worth would not change as of the checks clearing.

Probably - they are both cap-ex projects. I guess I don't know anything about building improvement accounting - although this is mostly maintenance, I just happen to get to improve it while I'm in there. As I said, I'm not counting on this bathroom model moving the needle on the value of the house (although there is debate on the value of the house in a $50k range, so who knows.)