fall classic
Well, according to this month’s net worth chart, I made less than $1,000 improvement this month, despite my saving over $1,500 and getting rid of over $500 of debt. My car is getting old. I mainly track its net worth because I want to keep track of how much I owe on it compared to its value. This month, car depreciation, combined with stock and IRA value losses, really dragged down my progress on paper. I’ll just think about it this way: look how much worse it would have been if I hadn’t paid off so much debt and saved so much money. My IRA balance would also be worse if I hadn’t made a "rescue" contribution late this month to pull it up from being down by 30%. I knew my progress this month would not have been as good as other months, because of some of the car maintenance and other expenses I wanted to face before getting laid off again. Hey, I did what I had to do - what I was supposed to do. I invested. I saved. I paid off debt. And even though my car depreciated, it’s running very well, it’s in excellent condition, it’s as beautiful as the day I picked it off the lot, and perhaps most importantly, it’ll take me to any interview I need to get to with no problem. The last thing you want when facing unemployment is an unreliable car - been there, done that - it wasn’t cool at all. So goes the month of October 2008.
One more thing. This is the two year anniversary of my wake up call to get my finances in order. Since October 2006:
- I have improved my net worth by $36,415. That’s a 51% improvement.
- I have totally eliminated my credit card debt.
- I have credit scores that are consistently near 800.
- I have saved over three months’ living expenses in an emergency fund.
- I have saved almost $14,000 for my dream of home ownership.
- I pulled my car loan balance down to less than the worth of my car.
- I finally started investing in stocks and retirement mutual funds.
- I changed my earning potential by getting certified in my profession.
- I have prioritized charitable giving on a regular basis.
- I finally got my student loan balances down into the principal amount borrowed.
Heh, you say “two-year anniversary of my wake-up call” like you’re a recovering
spendalcoholic. Great job, Ant!BTW, I tagged you as a favorite read on my blog. If you’re into the idea of writing 7 random things about you, check out my 10/31 post and give it a shot.
Comment by MoneyMateKate — October 31, 2008 @ 3:24 am
Wow, you’ve come along way Baby. Good job.
Comment by Amber C — October 31, 2008 @ 9:18 am
You have made great progress in two years. That is excellent to be able to look at it like that.
Comment by S23 — October 31, 2008 @ 11:10 am
why don’t you take some of your cash and pay off your car balance
I know that I could, but right now my cash is for two specific purposes. The first is an emergency fund. The second is for a down payment on a home. Right now my focus is asset gathering and not debt elimination. But if it were debt elimination, I’d be prioritizing a variable rate student loan right now over my car note - that’s always been the plan. If I paid off the loan or the car right now, it would take me even longer to move into my home because I’d have to rebuild my My Own Home fund. Part of me wants to work on that loan now, while the interest is low, but the other part - the ’bout-to-be-laid-off part - wants as much cash in my “pocket” as possible, house-ready or not.
Comment by Moneymonk — October 31, 2008 @ 11:50 am
Congrats! You really have a ccomplished so much.
Comment by FrugalChick — October 31, 2008 @ 1:29 pm
Great progress!
Comment by Laura @ no more spending — November 1, 2008 @ 6:45 pm
Congratulations Sistah Ant, you are truly living up to your pseudonym. I definitely believe in eliminating debt but I agree with you, when facing a possible layoff stashing cash is the best plan.
Comment by Ms. Money Chat — November 4, 2008 @ 8:19 pm