Budgeting prototype

[Robert Uhl]

Derek Atkins <warlord at MIT.EDU> writes:
> 
> What about paying a mortgage?  I don't really consider paying that
> down to be a transfer of assets (even though technically it is) -- I
> just look at it as an "expense" where I'm reducing the outstanding
> balance on the Liability.

It's not just a `technicality': that's what it _is_.  It's not an
expense, although it is something which needs to be budgeted.

> Obviously my house equity increases at the mortgage liability
> decreases, but for my budget I don't really care about that.

Why not?  It's useful to know where one's assets are and how they are
appreciating, so one has a handle on the situation.

A budget needs to handle income, expense and asset transfers, no?

> I also don't particular care how I pay for the liability, either,
> although I do sort of see your point about where the money is coming
> from; transfering from one liability to another seems not to really do
> much good (although it might be important for budgetary reasons?).

Paying your mortgage with a credit card would be an example of
transferring funds from one liability to another:-)

-- 
Robert Uhl <ruhl at 4dv.net>
The people who once bestowed commands, consulships, legions, and all
else, now concerns itself no more, and longs eagerly for just two
things--bread and circuses.                             --Juvenal