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12-31-2017, 03:22 PM
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#141
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,183
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Quote:
Originally Posted by REWahoo
I'll follow your question with another - since GAAP doesn't apply, does it really make a difference how one individual on this forum accounts for their spending?
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Why yes, yes it does. Traditionally, forum members want their way of doing anything to be the one correct way and all other methodologies to be considered "wrong."
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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12-31-2017, 03:22 PM
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#142
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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I had a few stocks that went bankrupt. I called it investment loss, but perhaps should have classified it as "educational expenses".
Why, the IRS even allows tax deduction for it, just like it does tuition costs.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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12-31-2017, 03:24 PM
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#143
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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This could be true however I'm on day 3 of at least 4 days of weather that won't go above zero, so I'll sit at the keyboard and argue about anything.
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12-31-2017, 03:24 PM
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#144
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,692
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Quote:
Originally Posted by REWahoo
I'll follow your question with another - since GAAP doesn't apply, does it really make a difference how one individual on this forum accounts for their spending?
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Not to me, my original comment was how I'd show the spend.
Quote:
Originally Posted by bobandsherry
I'd show the spend as an asset and then take depreciation (estimate) each year.
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I didn't address how you or anyone else should.
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12-31-2017, 03:26 PM
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#145
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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No you won't.
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Numbers is hard
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12-31-2017, 03:27 PM
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#146
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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It's either argue or shop so I better argue...
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12-31-2017, 03:29 PM
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#147
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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It is true that there's a lot of residual value in a car, even though one loses a bunch after signing the paperwork, even earlier than after driving off the dealer lot as the proverbial saying goes.
And so, depreciating it over a number of years is the correct accounting principle. However, I would need to keep track of my vehicle values to update my networth, and as I do not even keep track of my homes, I will forget about my vehicles (which are old and not worth much anyway).
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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12-31-2017, 03:59 PM
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#148
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Thinks s/he gets paid by the post
Join Date: Nov 2015
Posts: 2,692
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Quote:
Originally Posted by NW-Bound
It is true that there's a lot of residual value in a car, even though one loses a bunch after signing the paperwork, even earlier than after driving off the dealer lot as the proverbial saying goes.
And so, depreciating it over a number of years is the correct accounting principle. However, I would need to keep track of my vehicle values to update my networth, and as I do not even keep track of my homes, I will forget about my vehicles (which are old and not worth much anyway).
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I really make it easy, I just lease and know what my expense is each year and don't have any unusual hits to me spend for "one time" purchase or maintenance items.
Based on my lease payments it would take over 9 years for my car to "fully depreciate" (purchase price including taxes / monthly lease payment).
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12-31-2017, 04:03 PM
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#149
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Thinks s/he gets paid by the post
Join Date: Nov 2013
Location: Bay Area
Posts: 2,745
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You are absolutely wrong on that.
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12-31-2017, 04:19 PM
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#150
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Quote:
Originally Posted by bobandsherry
I really make it easy, I just lease and know what my expense is each year and don't have any unusual hits to me spend for "one time" purchase or maintenance items.
Based on my lease payments it would take over 9 years for my car to "fully depreciate" (purchase price including taxes / monthly lease payment).
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When you lease or rent, the money is really gone so it's a lot easier. No argument there.
Come to think of it, many of my big expenses in recent years were for home repairs or improvements. There should be some residual values there, as even a repair is still worth something as it means my roof will not demand more money for a few years, or the exterior stain will not cause me grief for a while, etc... Tracking all that is tough, as who knows if the plumbing will not take its turn to cost me an arm or at least some fingers, or the AC, or the sewer line, etc...
And so, I just watch out for these non-recurrent expenses, and hope that they will not take turn hitting my checkbook every year. None did this year.
Fingers crossed...
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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12-31-2017, 04:26 PM
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#151
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Posts: 1,639
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Quote:
Originally Posted by bobandsherry
It's all good. But as point of reference, if you had $30K cash and "spent" it by buying a stock or gold, would you consider that a spend of this year? What about if you had $300K and "spent" it on a home?
As you started this thread though it's all for fun, so indeed let's just party on.
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I put anything that I paid cash for as an expense, unless it's savings. Putting money in savings (or stocks, etc) obviously isn't an expense. Having said that, it does make for some really odd looking years. For example, my normal spending is around $100K - $130K. My spending for 2012 was over $500K since I bought a house and 2 cars using cash.
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12-31-2017, 04:44 PM
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#152
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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The title of this thread is SPENDING summary, not expense summary. Spending implies outflow of money.
Perhaps we should start another thread about withdrawal rates... (Which are not as tightly correlated to spending as you might think since folks have pensions, SS, rental income, etc.)
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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12-31-2017, 04:50 PM
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#153
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Are we going to have a "thread fork", similar to the bitcoin blockchain fork?
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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12-31-2017, 05:13 PM
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#154
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Posts: 2,471
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Quicken has a lot more detail, I am sharing only my top 10 expenses
1) Medical $19,500.00
2) Travel $14,600.00 2016 $30,000.00
3) Groceries $6,400.00
4) Pets $5,600.00
5) Auto $2,300.00
6) Dining $1,600.00
7) Household $1,500.00
8) Liquor $1.400.00
9)Recreation $1,300.00
10) Electric $1,000.00
all other categories are less than 1% of spending each.
__________________
For me experiences are not good or bad, just different
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12-31-2017, 08:40 PM
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#155
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Posts: 1,639
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Quote:
Originally Posted by rodi
The title of this thread is SPENDING summary, not expense summary. Spending implies outflow of money.
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Not sure I understand the difference. I would assume most people equate "spending" with "expenses" at least as it pertains to their personal finances (i.e. not accounting terminology).
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12-31-2017, 09:08 PM
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#156
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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Quote:
Originally Posted by PatrickA5
Not sure I understand the difference. I would assume most people equate "spending" with "expenses" at least as it pertains to their personal finances (i.e. not accounting terminology).
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My comment was in reaction to the discussion of applying depreciation to assets like new cars... I guess I look at spending as $$$ out of my wallet at the time it's spent.... not offsetting it with the asset, then depreciating the asset.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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01-01-2018, 06:58 AM
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#157
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Full time employment: Posting here.
Join Date: May 2015
Location: Atlanta suburbs
Posts: 633
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2017 over 2016 expense +5.4%
Increases in medical premiums drowned out reductions everywhere else.
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01-01-2018, 08:05 AM
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#158
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,139
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Yes. The only asset we count in assets is our house. All vehicles and other bought items are treated as expenses/spending. We don’t track vehicle or other purchased asset depreciation.
If we sell a vehicle (as opposed to a trade-in) or other item then the cash is booked as a credit in the given category. We do this for sold old camera gear all the time.
__________________
Retired since summer 1999.
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01-01-2018, 08:34 AM
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#159
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Thinks s/he gets paid by the post
Join Date: Mar 2011
Location: North TX
Posts: 1,833
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2 peeps & a dog
2016 - $56,654 (lots of house remodeling)
2017 - $43,661 (lots of frugal travel)
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01-01-2018, 08:58 AM
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#160
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Location: Back woods of Fennario
Posts: 1,170
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I find the range of values under the category "groceries" fascinating. Thanks to all that have shared.
__________________
"Time wounds all heels...." - Groucho Marx
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