Hello, and welcome to our October 2018 Statement of Net Worth Update! I was disappointed when I wrote our last report because we came very near to hitting a milestone in our journey: Getting to the negative teens!
Well, we are there now! I’m happy to report that we skipped right over -$19,000 and went right to -$18,000.
House – Our home fell a little bit more in value this month. In September I mentioned that we were doing some outdoor work to help spruce up the curb appeal. In the last few weeks we have done some interior work, too!
We have removed the last of the carpet in our home to reveal the beautiful hardwood floors in the master bedroom. In my son’s former bedroom, the floors are a little sadder. I have a goal of sanding his floor myself with a palm sander. Our bedrooms are so small that a drum sander would be very difficult to maneuver. Wish me luck!
HSA – I had to pay a $230 dentist bill for my daughter because of a problem with insurance. I’m hoping for a reimbursement eventually from the insurance company. My daughter’s father and I both cover her under our dental insurance, and both companies were arguing about who had to pay first. It was so long and drawn out that the dentist insisted on payment and that I take it up with the insurance companies myself.
I also got a new pair of prescription sunglasses at a cost of $191, because my old ones have my old prescription which is very different from my current prescription. I struggle with wearing contacts, so if I want to protect my eyes from the sun, I need prescription sunglasses. Switching between prescriptions is bad for your eyes. I tried wearing my old sunglasses on very bright days a couple of times and got a headache immediately from the eye strain.
I could have just changed the prescription in my current sunglasses, but to be honest I wasn’t enjoying their look anymore, and getting a brand new pair was only about $50 extra so I went with that route instead. Not the most frugal decision, but I’m happy with it.
My orthodontist also took out their $85. We are almost done paying for braces!
Home Depot – Last month I told you guys that we were doing some power washing, and edging of our lawn. What I didn’t mention (because it was not yet reflected in the balance) is that these 2 items were put on our Home Depot card with 0% interest. I know, we aren’t winning many awards in the frugal department this month! This account increased $175, and we will be increasing our payments to $200 per month.
We intend to have a balance on this card going forward for home improvement projects. Currently we are paying off a furnace, which I thought would save us a ton of money but oddly enough we are burning about the same amount of gas as our old 1950s furnace. Strange.
We are only a few months away from having the balance paid off, and I have no idea what our next project will be!
Here are some ideas:
- Replacement of Central AC – I’m a little jaded with this option, because I thought we would save so much with the furnace, but the new one uses as much as the old! Who’s to say a new AC won’t do the same thing?
- Flooring in the kitchen – Take a look at my old blog post Small Scale Home Renovations
- Laundry Room Sink – This one is a little more complicated now than when I wrote the above article. Our laundry room sink drains in to a hole in the floor which sometimes emits an odor which is disgusting. I would like to have our washer drain line re-routed directly in to our pipe and eliminate the need for a laundry room sink entirely. If we do that, I of course would like to have the hole in the floor filled in. Then, we could look in to getting a half bathroom set up. Can you see how this is snowballs?
- New Shower – We would like to get rid of our bath tub and just have a stand up shower. Our daughter protested loudly to that one, but she’s 17 and will be out of the house soon.
So, in closing, we are a few months away from Home Depot being paid off, and no idea what we would like to work on next.
CP Visa – We were able to pay off this account entirely! We do not intend to carry a balance month-to-month, so this account will be deleted in the next update.
Great Lakes – We had enough money left over after paying off CP Visa, that we were able to pay $300 additional to this account!
Planned Debt Payoff/Life Update
Well, I gave a little Life Update above in regards to home improvement plans.
Since we have paid off CP Visa which was our last “high interest” (9.5%) debt I have decided that the money I earn from overtime will go toward home projects. These are small DIY projects or handyman hires for the things we can’t do ourselves. I may or may not post my new Home Improvement Savings Account Balance and report on the changes. Maybe I will, it sounds fun. Here are the upcoming projects with overtime money:
- Scrape off popcorn ceiling in all 3 bedrooms – DIY project. All we need is the scraper and respirator masks for this.
- Refinish Hardwood Floors – This will be a DIY I’ll test out in my son’s old bedroom first. Cost will be sandpaper and finish.
- Quarter round installation for all 3 bedrooms – This will be a handy man hire and will cost anywhere from $72 -$84 per room to install.
- Blinds – This is a DIY project and will cost about $50 per bedroom.
- Back Upper Patio – I have a company picked out to install railing around the roof of the kitchen nook addition. There is a door leading out there that we had to board up per our home insurance policy since it was not gated. This will cost about $750 for materials and installation. I think this will have a huge impact on the value of our home!
Last month I estimated we would have $1,025 extra to go toward debt payoff, and I was right! It may have helped that I wrote last month’s post only a few days away from October 1st.
At the end of October I project we will have about $1,850 extra to go toward debt payoff. Here is the current debt snowball:
- Great Lakes – $3,144 (4.7% Interest)
- SL #1 – $1,938 (5.75% Interest)
- SL #2 – $3,535 (5.35% Interest)
If you are wondering why Great Lakes is first on the debt snowball, it is because this one account has a minimum payment of $50 per month and once it is paid off that extra money can go toward paying off other debts.
I have 6 Navient Accounts with interest rates above 5% which I will name SL #1, SL #2, etc. Once all 6 of those are paid off, our debt free journey will be over! But don’t fear, it’ll take a while. I’m not going anywhere.
Don’t forget you can follow me on Instagram @networthnegative for daily updates on our debt free journey.
Thanks for reading!