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>No, because your net worth is not negative. If I borrow money to buy a car, and I have no substantial savings, then for sure my net worth is negative because
by NovemberWhiskey 3y ago
>No, because your net worth is not negative.
If I borrow money to buy a car, and I have no substantial savings, then for sure my net worth is negative because a car is a depreciating asset.
- lapcat 3y agoIt really depends on what "substantial" and "easily" mean. If you're truly living paycheck to paycheck, then you are actually in danger, because paychecks can easily stop, e.g., layoffs, and then you won't be able to "easily" afford your car payment. This is not even mentioning other unexpected expenses that can arise and suddenly make your easy car payments not so easy.