should mortgage be included in net worth calculations?

Discussion in 'Politics' started by billwald, Oct 1, 2011.

  1. billwald

    billwald
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  2. Salty

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    I looked at the link, but where does it state that Ramsey is not adding his mortage in on his balance sheet?
     
  3. revmwc

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    What mortgage Dave doesn't have one he keeps everything paid off or that is what I get when I hear him talk. He advacates being totally debt free including no car notes and no mortgage.
     
  4. Ruiz

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    I went to the link and the person who says what Dave says is in the comment.

    To yell "debt free" on the show you must be debt free of everything except your home. Dave Ramsey encourages everyone to be debt free of everything and he lives this way. He leases/leased his building until he can get the cash to buy it outright because he did not want to incur debt. Yet, he realized that in the baby steps, you can't put off everything until the house is paid off. Later in his baby steps, he advocates paying off even his house.
     
  5. targus

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    Of course a mortgage needs to be included in the calculation of net worth.

    "Net" is the key word in "net worth".
     
  6. Ruiz

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    I agree, net worth should be the net, including the positive after the negetives are taken into account.

    Which means that many farmers are millionaires, even though they barely make a decent living. Their networth is positive because of farm equipment, land, and livestock but most can barely afford the payments on everything.
     
  7. billwald

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    That's what "dirt poor" means. <G> Farming requires much more faith than I have.

    There are all kinds of breaks for big farms but the small farmers I have talked to are not paying themselves minimum wage. In WA state the minimum wage just went over $9. $9.04?
     

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