Car loan payments and budgets

[Derrick Hudson]

On Thu, Apr 26, 2012 at 04:38:33PM -0700, skerit wrote:
[...]
| Because, no matter how you look at it, in the end those loan payments are an
| expense.
[...]
| Or am I missing something here?

To explain it a litle different than others have already explained it:
    * not all outflows are expenses *

The loan payments are certainly an outflow from your checking account
(or cash or whatever), and you certainly do need to remember that
portion of your income is not available for other uses, but it is not
actually an expense.  If you were to deposit funds in another account,
say an IRA, that deposit is not an expense even though it reduces your
available cash.  It is simply a shift in where you have your assets
and the liquidity of them.

-- 
A)bort, R)etry, D)o it right this time
 
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