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The slightly less-negative net worth

I know it’s been forever since I’ve posted. And it’s not like nothing’s happening. I’ve just not gotten around to it. I think at the time I posted last, we’d just moved and gotten a larger-than-expected return on our security deposit. (And now I know why-in SF landlords are required to pay interest on the security deposit, so if you leave the place as you found it and you have an honest building manager to attest to that, then you actually make money. Nice.)

So we used that money to pay taxes and to book tickets and a hotel for a meeting we were both going to. Then when we got that reimbursement we paid off hub’s credit card.

Oh right-that’s the important part-WE HAVE NO MORE CONSUMER DEBT!!!!

Now that feels good.

We do still have some student loan debt (a measly $34,000) but those interest rates are super-low. 2.14%, and um, 0%. So that helps.

But whatever. The next goal on the list was to save money up to a minimum emergency fund of $5,000 before we stopped using contraception and tried to have a kid (saving every available penny while TTC and while preggers so we actually have money when there’s a kid). So we were all set to be setting aside money for 6 months or more because our saving rate isn’t what we’d like. Ideally, we’d be hitting $1,000/month, and we can’t find any logical reason why we haven’t yet, but we have not. Not even once (since we moved). I guess our self-restraint isn’t so hot. We were turning out focus to this new savings plan when we suddenly received a $5,000 check from hub’s grandmother. Cool, so goal reached. Okay, that’s all I’m gonna say about that.

But as a fun exercise, I decided to take a look at how our debt, savings, and net worth are doing. Over the past year or so, they’ve all been going in the right directions (albeit slowly). When will our net worth cross zero? I’ve a feeling it’ll be a long time. We’ve been killing about $770/month in debt on average before now, but with the new baby plan we’re going to knock that down to minimum payments ($395/month) and shift all the rest to savings (so it’ll go from about $100/month to ?). Maybe the rate of increase in net worth will be the same, but since we’re currently at -$28,000, it’ll be a while. According to my estimates, if everything continued at the current rates, our net worth will be 0 (not negative) in 32 months. Yay for financial freedom!

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This entry was posted on August 3, 2013 by in personal finance journey and tagged , .
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