From: BreadWithSpam@fractious.net
Newsgroups: misc.invest.financial-plan
Subject: Re: "Good" breakdown of expenses
Date: Tue, 15 Aug 2006 17:54:41 -0500
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"emailforian@gmail.com"  writes:

> > > I'd like to see how the Government is calculating 'savings'.
> >
> > Income - Spending = "Savings"

> > Whether you use some of that income to pay down *principal*
> > on a debt or you put it in the bank, if it's not spent, it
> > adds to savings.
> >
> 
> Yes, we have been through this, and, again, I disagree.  It all depends

Disagree all you like, but that's how the government defines it
and it's really the only consistent way to do so.

> on your definition of "savings".  I define it as *money* or liquid
> investments (not home equity) that I have put aside and can readily

> I think if you ask most people "how much do you have in savings...",
> very few people will include their home equity as part of their answer.

"what's your net worth?"  Some folks include their home equity
and others don't.  Leaving it out makes it a relatively useless number.

What's you *liquid* net worth typically excludes home equity, but
that's a little more subtle.

>  Thus, we can disagree on how we define the word "savings" but I think
> my definition comports with the common understanding of the term.


define things as you like.  but don't expect folks to know
exactly what you mean if you redefine terms which do have
specific definitions already.

-- 

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