You may have noticed that our vehicle values in the assets section of our Net Worth Updates have remained the same since March. We take good care of our cars, but they still depreciate. Therefore, we must make an adjustment to our balance sheet to account for the current value of the vehicles.
I had planned to adjust our vehicle values annually using the Kelly Blue Book value. However, now that I am faced with taking a $4,800 adjustment in one month. . . I'm rethinking my plan. For the first time since beginning this blog, we will post a negative change to our net worth in December.
To avoid this big hit and the associated sorrow every year, we will begin depreciating our vehicles in January at $200/month.