Date: Sat, 19 Aug 2006 03:58:39 -0500
From: "Sgt.Sausage" 
Newsgroups: misc.invest.financial-plan
Subject: Re: "Good" breakdown of expenses
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> emailforian@gmail.com wrote:
>
>>>I also am curious if paying down debt counts as savings in these numbers.
>>>
>>>Two people, two mortgages. One is interest only, the other, a 15 yr std
>>>mort. It would seem to me that the payments toward principal for the
>>>second guy should count as savings, no?
>>>JOE
>>
>>
>> In my opinion, no.  Home equity doesn't count as savings.  You can't
>> spend your home equity without moving or incurring debt.
>>

That's the silliest thing I ever heard. *ALL* assets, even hard cash
work that way. You can't utilize the value stored in 'em without either
borrowing against them or selling them. You either put it up as colatoral
or you lose (sell (move in the case of a house, sell in the case of other
assets)

Even with cold-hard-greenback-American-FRN-Cash: You either have
to borrow against it (incurring debt) or spend it (lose it).

There is *no* (None, nada, zilch) asset class in which you can both
have your cake (keep it) and eat it to (spend it).

(a) Given: I've got 10 bazillion dollars in stock.  AND
(b) I have to sell it to spend it, THEREFORE
(c) It's not savings.

According to this twisted logic, savings doesn't exist in *any* form.

What gives?



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