It was a record year in many respects. I made more than ever and spent less than I'd spent in the last 5 years. I also grew my net worth by more than 23%, which is not a record but a pleasant surprise which becomes harder to accomplish the more you accumulate.
In terms of accounting, I've adjusted the value for "cars" based upon the expected depreciation of my vehicle and my sailboat. I've also adjusted the "other assets" to reflect the current buy-out formula for equity in my business. As always, I struggle with this "funny money" because it's obviously not liquid and just because we have a "buy-out" formula for the owners of the business doesn't mean that's what someone else would pay (i.e., they may pay more, or less). It also doesn't account for taxes whereas all other assets are net of taxes (although the taxes should be long-term capital gains on a buy-out and be relatively low). Anyway, it's obviously an asset, but difficult to measure, so the basis I use is a combination of the contentiously-negotiated buyout formula and the approximate liquidation value to arrive at a reasonable approximation.
Time to go sailing. Happy new year, everyone. |