Hello, and welcome to our January 2017 Statement of Net Worth Update. I’m sorry it is so delayed but as I said in my previous post, Christmas and some mighty big insurance changes have knocked us on our butt this month.
First of all, we pay our insurance in full every 6 months so we can take advantage of the 5% discount for doing so. It’s always a bit of a stretch to pull this off, but this month our policy went up $50 from the last statement, then we added the Dart which added $400+ dollars to the policy but then we made sure my son had full coverage on his car which made the policy go up another $350! Great googly moogly! So now we are “behind” again. Being behind means I have to wait for payments to post in order to give the update on our Net Worth.
We did hit over negative 70,000 in Net Worth but I am committed this year to not have any other decreases in our net worth. It is onward and upward from here! I am pretty sure we are done shuffling around assets and taking on new debts… Except for the new doors, I forgot about that. Eh. And new Furnace/AC…. Okay maybe one more decrease. I am terrible! Okay, on to the breakdown!
Our Home went up in value $96 which I was feeling pretty good about until I looked at our very first Statement of Net Worth and saw it was worth $75,373! It still hasn’t made up that huge $1,452 decrease in value we saw in November! I was wondering if that big decrease was due to the house that sold a couple doors down that I told you guys about in a previous blog, but I looked up the address and found it sold in 3/2015 for $25,000! What a buy! I can’t blame the decrease on that house anymore but in any case, we are still recovering nicely. The landscaper comes back in April and we are planning to plant petunias and break up some huge mums I have in the front of the house. I’m certain the increased curb appeal will amount to an increase in home value.
The HHR is off the books and now belongs to my son. I hope he enjoys it for many years to come.
My 401(k) went up $113 but we should be seeing some huge increases in this account in the coming months! My work has changed from a 2% contribution they just gave with no contribution necessary on my part, to 4% matching. I of course will be contributing 4% now and getting the company’s 4% so I’m excited to see how this grows over the coming months!
3 accounts increased in value this month: The Dart loan, CP Visa, and Navient. Wait, I can explain!
Dart – We refinanced our loan through our local credit union for a .25% interest rate reduction and also to add GAP insurance for $399 since we owe nearly $5,000 more than the car is worth. GAP insurance will cover 100% of the loan in the event that our car is totaled plus give us an additional $1,000 to go toward the purchase of a replacement vehicle. I was happy to add this insurance and I feel much better knowing it’s in place now. We are seeing a $461 increase in this account due to the $399 cost of GAP insurance and because we had no payment due in January. Not the smartest decision I know but I did need that $250 since I was short on paying the bills on the last pay day of the month.
CP Visa – We used this card for Christmas purchases and have been paying it down $100/week so we are only seeing a $118 increase in this account. We have put our cards away and hope to have this account paid in full by August so that we can start using that $100/week toward saving for a down payment on another home.
Navient – Like I said in previous blogs I was keeping an eye on this account to see how much it grows even when I make my minimum Income Based Repayment Plan payment. It only grew $114 this month vs. $161 last month. I called Navient and they advised me that my account accrues about $275 of interest every month. I have listed in my 2017 Goals blog post that I intend to start sending an additional $175/mo on top of my Income Based Repayment Plan amount of $90.61/mo in or around 4/2017. I will keep you posted! I intend to write a blog post in the future detailing each of my Navient student loans, their amounts, and interest rates. The smallest loan is around $1,200 and I know I will be able to knock that one out quickly. I can’t wait to get started!
So, due to the HHR coming off the books, and adding GAP insurance to the Dart loan we are once again seeing a decrease in net worth. We have to stop getting deeper in the hole! This blog keeps me accountable, and without it I wouldn’t even realize just how much trouble we are in. We now have a negative net worth of $70,620 with a decrease of $3,651 this month.
Coming up in February 2017:
- An increase in net worth!
- An increase in 401(k) – D account due to increased contributions
Thank you for reading!