Net Worth RevisionPosted: June 4, 2014
Basically just a really quick post to say that I revised the net worth I reported back in Q1 2014. I overvalued our cars by $3,000. Apparently even cheapo used cars still depreciate quite a bit. I didn’t realize this until I was exploring a potential car purchase and immediately dismissed it when I realized just how far my van had fallen in value (from $5,500 to $2,500).
I’m not wild about including depreciating assets in our NW sheet at all, so I may just depreciate the vehicle fleet out by $500 each quarter and then stop reporting it at all.
Just want to be transparent. I was going to change this for Q2’s report, but after debating back and forth for a few weeks I decided to revise Q1 and then start the semi-artificial depreciation in Q2.
Original reported NW: -$12,305
Revised NW: -$15,305
This still represents a gain of $13,643 in a single quarter. I’m still quite optimistic we’ll hit zero (hey, newborn baby NW!) by the end of 2014. Originally I thought this wouldn’t be possible until 2015 at the earliest.