Quote:
Originally posted by AVM
A liability is anything that could potentially/or already, does not generate revenue. And or depreciates in value.
Thus, I would also categorize a car as a liability. But then again, I'm not like most. To me, your car should reflect 5% (or if a must, 10% max) of your annual income.
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A car can be used to generate revenue though, if you use it for deliveries, etc, and expense it properly. Or if you have a classic car, it could apprciate in value.
5% of annual income? hmmm interesting. That sounds about right.