Reserve Fund and Net Worth Report
After creating a reserve fund, why is the net worth report reflecting a higher amount by the $$'s allocated to the reserve fund? When I set up the fund, I assumed it was taking $$'s away from my regular assets by that amount and not using it for consumption and thereby putting it aside as a safety net. I am not adding any additional $$'s to the reserve after the initial funding and am assuming no return on those dollars (just using it as a pure emergency fund). Shouldn't my net worth report make no mention of those reserve funds since they were just taken out of regular assets and my consumption report be lower over my lifetime by some amount associated with those reserve funds vs. not setting a fund up at all? Thanks, Larry
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