In June, my net worth dropped 2.75%. Not a surprise, to be honest. My retirement accounts tanked. I spent some money. Same old, same old.
I’ve decided from now on, I want to track the value of my car in my net worth update. Why? Well, at some point in the distant future, I may want to buy a different car, and this car will be used as trade-in, I’m sure. Not that I’m thinking about buying a new car. I’ve had this car for 6 years this month, it runs wonderfully, rarely gets driven now that I live in an area with good public transportation (though I won’t give it up – I do need it at least once a week), and most importantly, I own it free and clear.
I don’t plan on tracking other possessions, because the resale value of those is so hard to calculate, and really, it doesn’t make as much sense. If I ever buy a house, I will want to track the value of that (also hard to calculate) because it will make that huge mortgage debt seem less painful.
congratulations on trakcing your car! I always think a glaring problem with the way most people monitor their finances is failing to account for vehicle depreciation. Depreciation can be a huge cost that most people don’t factor in when doing their budget, they only think of petrol and insurance.