“Net Worth” Archive
Buried somewhere deep inside my life insurance application is an awful question…
‘What is your total net worth?’
I calculated my mortgage debt, subtracted my tiny home value, added my student loan debt and my auto loan debt, and then subtracted my liquid cash. The total? An astonishingly huge negative number representing my net worth.
Not wanting to stop at the large, large, large negative number, I added the amount in our retirement accounts (though technically locked up for the next 27 years under mounds of government and ESOP paperwork).
I landed at a number closer to zero but still negative none the less.
I received the following question from my insurer:
PLEASE EXPLAIN WHY YOUR TOTAL NET WORTH IS A NEGATIVE NUMBER.
Yes, they wrote it in all caps. As if I needed a reminder that I’ve made some pretty large financial snafus. Little do they know that if my number landed anywhere close to zero, they’d find me dancing excitedly like a lunatic on top of the bus I take every day.
I sent a long explanatory e-mail to the agent and figured she’d understand. Instead, I received a disdainful, ‘Fine. I’ll alert your Case Manager.’
Certainly I can’t be the only one with an insanely underwater mortgage that throws off my net worth right? Let’s do a poll. Is your net worth a positive or negative number?
And if you see 14 comments after I post this that say ‘positive’ and you’re about to say ‘positive’ as well, say ‘negative’ just to make me feel better.
I plugged the numbers into NetWorth IQ today and our net worth is now at a negative $21,038. It’s hard to believe that three years ago our net worth was at a negative $55,131. It gives me a little perk-me-up because right now it feels like time is standing still. We are waiting for another payment to arrive so we can pay off more of our credit card debt.
A little off-topic, but I designed a little avatar that displays next to my posts. It was difficult trying to find a picture to put there. I wanted something that represented me. For some of you long time readers, you may remember that I started it was purple and green on here then I changed to gray and blue. With those colors, I didn’t feel at home here. Our debt reduction rate also slowed down – although that could be just a coincidence. I asked everyone what they thought and a few of you said that the purple and green matched my personality.
Being in debt can be a dark place. The purple and green sure brightened it up LOL. Just loading up the site in my browser made me feel more optimistic. So with my avatar I decided to go with a simple purple and green theme with my name in it
I’ve been a slacker since July with posting financial details. That’s when things got busy with life and I let the details slide. As long as our debt was going down and we spent less than we earned – in my mind we were doing alright. I’m almost done with our income and spending report and I hope to have that posted this weekend.
I do have an update for our net worth and the little graphic in the left sidebar is updated. It is so nice to still see that line going up. Our net worth as of January 31st is ($23,489). You can see all of the detail on my NetWorthIQ profile.
There are a few things to note. Our car has finally decreased in value to around $4K, probably due to the lower gas prices now. For quite a while, it was hovering comfortably above $5K. If gas prices go up again, there is a chance the value could go up since it is a fuel efficient car (not a hybrid, though).
During one of the last net worth updates I posted, I received a few comments about my retirement fund. I wasn’t updating it, even though the value was very likely changing. I’m sure it has lost value with everything that is going on right now. Since there wasn’t even $3K in it and I am no longer contributing to it, I decided to remove it from our net worth. It’s not money that I plan on pulling from anyways. The rest of our assets we can sell/pull from if we need to.
There is one other thing missing from our net worth. Back in October, I sold this blog to Jeffrey Strain (from SavingAdvice.com and FreeMicroLoan.com and other sites too). That is sitting in a separate savings account earning interest and I am pulling a salary from it monthly to equal the income I would normally make from this site. There is still money in account, but since the sale price is not public it is not on our net worth.
Part of the sale agreement was to keep blogging here for six months. That means that my commitment per the terms of sale ends March 31st. Our credit card debt will probably not be paid off by then, so I’ll be here for a while longer after that. Some of you have asked me to keep blogging. You will still see me around here because I am looking forward to following the next blogger and participating in the comments. You’ll also probably see me around other debt blogs as well. I haven’t had the time to read many of your blogs lately, and I’d like to get back into doing that. I’ve also thought about finding a blogging gig somewhere. If that doesn’t materialize, at the very least I will join a forum. If I do, I will announce on here. I’d like to thank those that shared your opinion about me still giving updates now and then – you’re right.
Everything still seems very surreal. By the end of this month, we should be able to get our credit card debt to close to $4K. Only a little bit more to pay off and we could technically use our savings to pay off the rest. It’s hard to describe, but I feel like asking my son to pinch me. After three years at reducing debt, so much of it has become second nature…extra money automatically went towards our credit cards. What will it be like without having credit card debt? I guess only time will tell.
The numbers are in for July, and our net worth increased by 1.67% ($417). It has been very slow going lately in regards to debt reduction. As long as our net worth isn’t decreasing, that’s a good thing.
I do hope that things kick up a little bit here and the rate of debt reduction increases. I think we will be able to pay a good chunk of debt this month, but I’m holding on that after last week’s fiasco. It was not a good feeling to see that we only had $21 in our checking account. Talk about a close call! Part of my debt reduction strategy is to run our checking account low so there is no temptation to overspend. But that was way too close.
I am going to double and triple check our finances to make sure I do not miss anything this month. Once I’m sure everything is covered, then it will be time to pay some more debt. If we can pay $500 extra this month I will be very happy. Come September, things should be picking up.
June was a tough month. We were only able to increase our net worth by 1.33% ($338). Even though it wasn’t our best month, I am still very happy with it. After all, our net worth broke the negative $25K mark and it now sits at $24,995.
As always, you can see all of the numbers on my NetWorthIQ profile.
July will be an interesting month because we spent some money to go visit our relatives. We’ll have to wait and see what the rest of July brings. But I know one thing – the money we spent on that trip was well worth it. It is very difficult to live so far from our families. I have more to say about that tomorrow.
May ended up being a great month for our net worth. We had some help, though, with our economic stimulus payment. All of that ($1,500) went straight towards our debt
I’ll probably be posting our May spending this weekend and we’ll review more things that enabled us to increase our net worth last month. I can tell you right now that our income was a big help. It was higher than normal again in May.
To see our complete net worth, you can always check out our NetWorthIQ.com profile.
This month will probably be a little interesting. I believe there will be an increase in our net worth but not as much as the last two months because our income will be more “normal.” The plan for June is to continue beefing up our savings account balance. Our debt reduction will stall for a little bit, but that’s okay. We’re still on track for meeting our debt-payoff goal date (May of 2009).
Speaking of goals, back at the end of 2007 I listed a few an update a little while ago. As of today, we have paid off $8,100! Woohoo! We are way ahead of schedule
Wow! April has been an awesome month for us. If we had months like April every month, we’d be debt free in no time. In all, we were able to pay down our credit card debt by $2,300.
Some of you may be wondering how April ended up being such a great month. Here are the unusual things that happened in April:
- My husband sold an expensive piece of old business equipment.
- I sold a year’s worth of advertising on here and received an upfront payment.
- I worked overtime for extra money.
Combine the above with the normal money we have been contributing on a monthly basis and we paid off our debt by $2,300. I am still amazed how everything added up. I want every month to be April!!
With that, our net worth now stands at ($27,616). As always, you can see the whole picture at my NetWorthIQ profile.
May should be a great month too if we get our economic stimulus payment as scheduled. But I’m not holding out for it. If we manage to have the money to bring our credit card debt under the $10K amount, I am going to do it the first chance we get
My DebtLarge Graph
- Current: $27,305
- Paid: $70,796
- Original: $98,101
- Emergency Fund: $1500
- IRS Savings: $
- Broken Down:
CC #1: $0 ($64) CC #2: $0 ($240) CC #3: $0 ($650) CC #4: $0 ($785) CC #5: $0 ($1,500) CC #6: $0 ($1,886) CC #7: $0 ($1,984) CC #8: $0 ($2,135) CC #9: $0 ($7,145)
- CC #10: $8,570 ($14,561)
CC #11: $0 ($24,388) Credit Line #1: $0 ($182) Credit Line #2: $0 ($182) Auto #1: $0 ($16,579) Auto #2: $0 ($25,819)
- Cons. Loan: $18,735 ($20,000)
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