Happy June, folks! The sun is shining here in New York and it’s time for another (a.k.a. My first ever) net worth update.
This is a five-month update, so the numbers may look odd. Also, it’s more of a debt pay-down update than a net worth update, so I may change the title. Here’s the $164,000 in unsecured debt I started out with:
Five months into 2013, that unsecured debt is now at $142,800:
The good: My total debt is down by $21,200. That’s good. In particular, the credit card debt is $22,500 smaller, thanks to some aggressive payments and a larger-than-expected tax refund that went completely to paying off credit card debt. What’s also good is that my remaining credit card balance is at 0% until January 2014, when it will reset to 10%.
The bad: Even though I’ve made $2500 in payments toward the student loans, their current balance is still $1300 bigger than they were at the beginning of the year because they grew like crazy while I was sitting on the deferment period. This is what a big balance with big interest rates will do.
The ugly: I’ve got an ugly fact about the math on these student loans; if I sent $9,000 per year toward my student loans — no easy feat — my balance at the end of the year would actually be higher than at the beginning. The interest would totally wipe out that very hard-fought $9,000 in payments.
By now you may have noticed that this update is missing assets, particularly retirement savings. Those are at a very meager $24,800, split among a Roth IRA, a 401(k), a traditional IRA and the Thrift Savings Plan. Thus, a slightly more accurate net worth would be ($118,000). The red makes it look even sadder.
Alright folks, I’ll put my goals for June in another post tomorrow. Other than that, what am I missing?