Debt repayment is not an expense
Posted 1 year 2 weeks ago by Philip Brewer
Over and over again, in budgeting articles and even books on personal finance, I see sample budgets that include debt repayment as if it were an expense. This shows a fundamental misunderstanding of what debt is. Your debt repayment is not an expense, it's an internal transfer. The only part that's an expense is the interest. The rest of the money was spent some time in the past, when you incurred the debt.



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