Hello and welcome to our February 2018 Statement of Net Worth Update!
Remember last month when I said that I could enjoy having only 8 liability accounts for a couple of months? Well, I found a great deal on a car that I loved so we went ahead and purchased one early!
You guys would be proud of me. I researched the KBB value of the value of the car as a private party sale before I bought it. This is the value that I assign to cars on our Net Worth Statements. When we bought the Dodge Dart I mistakenly looked at the KBB value when buying from a dealership and compared that amount to what we were paying and thought we were getting a good deal! Then, when I added it to our Net Worth Statement I found us once again thousands of dollars under water. Not this time! Not only did we get a great deal on a car that I am absolutely smitten with, the purchase of it actually increased our net worth. We are getting smarter and smarter with each car purchase. Keep an eye out for a future post depicting how we got our 2012 Chevy Sonic for $4,700!
You’ve already learned a little bit about the star of the Asset show, our new Chevy Sonic. I adore this car. I’m absolutely in love.
The only asset that decreased this month was the Dodge Dart and that’s mostly because I had been guessing at the mileage in previous statements. I took note of the actual mileage and I found I was off by about 5,000 miles! I corrected it and we had the huge decrease reported. I am going to check in every month to see what the mileage actually is before reporting from now on.
The Savings – Taxes account will be zeroed out on our next Statement of Net Worth because we didn’t need the savings at all. We got a refund! So this money will be going toward Navient.
Again, the star of the show is the new Sonic account at $5,000. I am so happy that under the Assets column the Sonic is worth $505 more than the liability. For the first time ever I am not upside down on a car loan.
The loan term is 36 months at 4.3% interest. This is a little higher than I’d like to pay, and higher than the financing we had set up through my credit union (3.49%). But it was part of the negotiating process, and we can always refinance in a few months with our credit union. In fact, I think that we can get our credit scores even higher and maybe qualify for an even lower interest rate than originally offered to us.
The interest rate on the Dart loan was 3.99% at our credit union. Since we were approved for the Sonic at 3.49%, they went ahead and did a one-time interest rate reduction for the Dart and brought it down to 3.49% as well. So, we should start seeing a slightly larger decrease in this account each month going forward.
Another unexpected change happened over on the Navient account! Check out that decrease of $1,681! No, I didn’t make that much extra to send from my Shipt paychecks. I only paid about $200 extra! It turns out that I signed an agreement stating that if I made my first 12 payments after graduation on time, a certain portion of my loans would be forgiven! Hooray for responsibility!
Planned Debt Pay Off
In January 2018 I stated that I thought we would be able to pay about $1,000 extra to our Personal Loan, but the process of purchasing our car cost us a lot of money:
- $52 Oil Change for Lease Return
- $108 on Used Car Inspection
- $159 Car Detail for Lease Return
- $253 Partial Payment of Tax, Title, and Plates on Sonic
After parting with all that money, we were left with $200 extra to send to our Personal Loan account. A far cry from $1,000 but it’s something and I think it’s understandable! I am proud of us nonetheless.
Here’s our updated debt snowball for February 2018
- Personal Loan – $2,037 (9.5% interest rate)
- CP Visa – $3,825 (9.5% interest rate)
- PMI – $5,252
At the end of February I estimate that we will have about $500 – $750 extra to send to debt. I look forward to checking in and reviewing the actual amount we were able to send!
We increased our net worth in February by $3,940 for a total Net Worth of (38,408)! We are getting closer and closer to becoming worthless.
Please don’t forget to follow me on Instagram for daily updates on our journey to a positive net worth.
Thanks for reading!