Hello and welcome to our July 2018 Statement of Net Worth Update! I mentioned in our last update that I thought things would be looking up from here on out, and so far things are going well! We were able to pay off one of our debts this month, and it feels incredible!
House – The housing market is definitely done with the crazy uptick in value that we have seen over the last few months. Can’t complain! It was a fun ride up. In March 2018 our home was worth $82,450. Now it is worth $89,163 so we saw a $6,713 increase in just 4 months.
401(k) – X – I’m not typically too concerned with fluctuations in the stock market, but I wanted to mention that this account is from my husband’s old employer. We are trying to figure out the process of rolling it over to his new employer’s plan or perhaps opening a Roth IRA. I listen to a lot of personal finance podcasts so I know what we should do in theory, but actually opening an account and getting it rolled over is scary and confusing. We always back off because we’re afraid the check will come in our name and be treated as an early withdrawal. Due to this, his account has sat stagnant for a while and is starting to accumulate fees.
The good thing about these monthly updates is that we have to face every month that this account hasn’t yet been dealt with. Just this past week as we were collecting all our numbers, my husband remembered that he hadn’t completed the new employer’s 401(k) election. If we weren’t checking this monthly, who knows how long it would have taken to realize he wasn’t contributing at all?
Another good thing is that now that his new account is open, it looks as though we can access the routing number and account number for the old account to roll over electronically. This was information we didn’t have before and why we kept getting nervous.
Emergency Fund – We have a fully funded emergency fund again. Hooray!
HSA – I used $147 from this account for new glasses. It is so good to see again. My glasses went missing and after a few weeks of being blind and relying only on my prescription sunglasses, I had to finally break down and get a new pair. Luckily I was overdue anyway so our insurance covered a good portion.
No Increases this month! Yeah!!
Personal Loan – Say goodbye to this account! We were able to pay it off, and it will be off the breakdown next month.
CP Visa – After paying off the above account, there was even a little money left over to go toward paying this one off!
Navient – We only decreased $6 in this account this month. That’s because I haven’t made any additional payments to Navient since May 11. As of the writing of this article, I have been a little better about getting myself on schedule again for my side hustle.
I am trying to come to terms with how lucky I am that I have a side hustle where I can set my own hours, and make nearly $20 per hour. I am also trying to keep in mind the mantra popular with people on a debt free journey: This is temporary.
Someone else recommended getting a visual tracker to help with my motivation to keep going. I have just filled it out and set it up at work, and I’m already excited to fill in more lines.
Planned Debt Pay Off/ Life Update
As of 7/27/201 I expect us to have about $1,000 remaining to go toward debt pay off. Here is our updated snow ball for the end of July:
- CP Visa – $3,475 (9.5% interest rate)
- Great Lakes – $3,630 (4.7% interest rate)
- Navient SL #1 – $2,375 (5.75% interest rate)
We are approaching out debt free journey with a combination snowball/avalanche method. Great Lakes is above Navient #1, because my husband’s one student loan is not on an Income Based Repayment Plan so we are paying $50.60 a month to this account. Paying it off will free up $50.60 per month to go toward other bills. Paying off the Navient Student Loan #1 will have an unknown impact on my Income Based Repayment Plan, but I imagine it will be much less than Great Lakes.
Some other things coming up include:
I’m getting braces in less than a month! Yikes! We are doubly insured for dental and vision, so this actually won’t cost that much. About $75 per month. There’s a 5% discount for paying in full, but only if it’s paid in cash so I would have to forfeit my tax savings by using our HSA. Since we are in the 12% bracket this wouldn’t be a savings for me, so monthly payments from our HSA it is.
I have an important test coming up in August in Chicago for my new position, so I’ll need to cash flow the hotel stay for that. We paid $150 from last month’s budget for this test and if (I mean when) I pass I will have that $150 reimbursed. The hotel stay will be reimbursed as well. This test will determine my trajectory for becoming a Senior Radiation Safety Coordinator which could have a big impact on our debt free journey. Wish me luck! The test is August 9th.
In July, we reduced our debt $2,299 and increased our net worth by $5,277 for a total of $(22,035)!
As always, thank you for reading. I hope you will follow me on Instagram @networthnegative for daily updates on our debt free journey.