I was here reading the balance sheets of some companies and always saw the value of “depreciation” of the assets of the company and that entering the costs and consuming some money. It is impressive, you build your factory, land, shed, machinery, parking, guardhouse, paint wall and make all the interior finishes and from that moment there at the opening something is already getting old, degrading, needing future maintenance , Suffering intemper from the action of the sun and rain, depredation of vandals and employees, automobiles as well and among other things.
I as a professional liberal and also a member of a small service company I have been noticing these things and trying to make a parallel of the life of a LLC for the life of a PF. Until the age of 27 I never had a PJ and never had it in my family, but it’s a very different thing, with bank account, accountant, monthly tickets, “birth certificate”, some registration numbers and the famous CNPJ, “Alvará” that the city hall charges every year (the license is a card in the same format as the IPTU – yes, the license is a tax you pay for your LLCto exist). So basically I opened LLC out of nowhere and alone and without much knowledge of what it would be, it’s a very different thing, just know who it is, including an exclusive bank account for LLC and manager as well as the card.
Well, come on, I see myself a bit like PJ in my PF, because I try to undertake in my work, contributing a lot (growth), paying few dividends (for myself), reinvesting in myself (increase in the portfolio) and working Hard to grow as fast as possible. Today I began to think about my “depreciation.” Depreciation of the own PF and the money that would cost this depreciation, which in the case the idea is to maintain the life of the PF as it is, which means all fixed costs + future expenses and the depreciation itself of the physical assets (real estate + car ).
I have no idea how the guys calculate the depreciation of the PCs with big assets, maybe they put a monthly amount that can be changed by changing all the things that break, adding to the maintenance performed and further repairs (doing something like a ” Internal insurance “). We pay so much insurance for insurers but we do not pay for ourselves. Actually the idea of this post, and thing that I have never seen in a book or in the blogosphere is that I am thinking of paying INSURANCE FOR MYSELF. Crazy is not it? I’m gonna explain.
I already have car insurance, personal accident and liability, are 3 and give a 6k per year of expense by joining these 3 insurance, if it is to add health insurance (which also consider as insurance will give more 6k annually, 12k total). That is, on average my fixed cost with insurance is 1k monthly, not bad even because it gives just under 5% of my income so you can take it for now. And the insurance I want to pay me? It is as if it were a provision for expected and unexpected future expenses, something OUTSIDE the emergency reserve, because the RE will serve for emergency, unemployment, unforeseen or something, my own insurance money will not, it will serve a Future car exchange (I do not intend for the next 5 years), a change of city (likely in the next 5 years), a new AP furniture (if I move), and also include depreciation of furniture, cell phone, computer and so on.
In other words, it is just money that I will “name” to exchange, repair, buy new things and pay more or less non recurring expenses like the one I said. The good thing is that if I join, I can make a profit, for example, if I want to buy a 50k car five years from now, I can withdraw some of that money from my own insurance that would already have been profitable, It is as if it were a consortium to the contrary, in which I pay for myself a future expense, but which in the case is unforeseen and will not be an emergency, besides being able to assist in case of more complex medical or dental treatment 6k to do a tooth implant + canal + consultation and exams, it is expensive because it was with a bucomaxil dentist that they charge more expensive and it is all private).
So that’s basically it, I’m going to start this little reserve for these maintenance things and future expenses so as not to mess with the contributions, nor to sell any of the equity and to stay even more calm. I also have to spend money with a dentist this year (a couple of years I have not spent) and I’m going to SESI same, it’s good, cheap, reliable (materials, sterilization and everything is apparently clean). It was the depreciation of things in the house, which you sometimes need to change or buy a new one, or break and you spend to fix it.
I do not know if this already has a more specific name or if it already exists and I’m thinking that I invented something new, but this post I did after having an insight, I already had some and I wrote the topic on the mobile to post after. The simplest idea is this: separate a little money every month just to keep what you already have, because after anything bought it will give you expense, the more things you have, the more expenses you will have, and it is good to be Prepared for them.