Hello, and welcome to our April 2018 Statement of Net Worth!
We are a lot later than usual because we are still recovering from all that went wrong in March. Murphy is continuing to kick our butts in April, but we are almost through it now! The future looks bright. May is a 5 Pay Day month for me, and June is a 3 Pay Day month for my husband’s biweekly paychecks so we should be recovering nicely soon, and saying goodbye to our Personal Loan soon along with its $150/month minimum payment. That’ll be a nice reduction in monthly expenses.
But, as for April we could only make our minimum payments and it took us a few pay days in to April to be able to cover those expenses. But, even though we have had a couple tough months our debt continues to fall and our net worth continues to grow.
House – The housing market is doing something wacky. These numbers are all a snapshot in time at around 4/9/2018 when I was able to make my last minimum payment for the bills due in April. Since I am now writing this 10 days later, the house value is continuing to sky rocket according to Zillow. The one year forecast has our home pegged to reach nearly $100k. That’s unthinkable to me, and now instead of being excited, I’m watching this cautiously. Are we heading in to another bubble?
Our real estate company recently posted a Facebook Live video stating they have stacks of files for pre-approved buyers, and not enough homes for them to buy. Demand is high and people are missing out on opportunities because they are beat out by other buyers, so they are settling for homes they don’t love, which I find sad. I wonder how long this will continue, and if the market will fall by the time we are ready to move on to purchasing our first rental property. Let’s hope so!
Savings – Emergency – Again, since I am privy to information I wouldn’t normally have when I should be writing these posts, I can tell you that we had to use some money from our Emergency Fund for my son’s car repair so we will see this asset decrease next month. I also need a car repair, but I’m not sure how much that will be and if we will be able to swing it or need to dip further in to our Emergency Fund.
There was only one small increase in Liabilities this month. Since we were only able to make our minimum payments, all our balances decreased as usual with the exception of the CP – Visa account.
I was able to make a few extra payments to Navient with my side hustle at Shipt resulting in a decrease of $331, which I am proud of.
Planned Debt Pay Off/ Life Update
My husband is now about 6 weeks in to his new position, and he likes it! Adjusting to the biweekly paycheck has been a struggle. The typical way that we would break up our spending money when we both were paid weekly would look like this:
Wednesday – $100 for gas and spending (usually takeout)
Friday – $100 for groceries
We used to do $50 a week budget for groceries and $50 a week for spending cash ($20 each for my husband and myself and $10 for my daughter), but since nixing the grocery budget we haven’t been able to do the spending cash. I feel like this is resulting in lots more debit and credit swipes for takeout and overall decreased happiness. Having that pocket money to save up or to spend on whatever we chose made us happy!
Since he now gets paid every other Friday I assumed that if we tucked an extra $100 in to Savings – Reg and then took it out on Non-Pay Friday that it would work out just the same. In theory, yes but it just doesn’t seem to be a smooth transition at all! Maybe that’s because of the tough couple of months we had.
I base my husband’s paychecks off 45 hours per week, and his last couple of checks have been nearly $200 more than my projection. For now, instead of adjusting my projection I’ve decided to continue with the “base” projection at 45 hours and whatever extra, is extra. This is allowing us to take our spending cash out again which hopefully will reduce the amount of swiping in our checking account. Last week I had to take $100 extra out of Savings – Reg on 3 separate occasions because we were burning through it so fast! It really was an off month. With this new tweak, I’m hoping the money I project to have in savings at the end of the month will STAY in savings!
Last month I projected we would have another $375 to send to our smallest debt, but we didn’t have anything extra at all. In fact we weren’t able to cover all of our April bills until April 8th.
At the end of April (only a few days away now as I write this) we again won’t have any extra money to send to debt. We will be able to pay all of the May bills by May 2nd instead of the last payday of April which will be April 25th.
I’m really looking forward to May and June when we will have excess savings and things will get exciting again!
The smallest 3 debts in our Debt Snowball as of April 2018 are:
- Personal Loan – $1,366 (9.5% interest rate)
- CP Visa – $3,754 (9.5% interest rate)
- PMI – $5,003
Although we had a tough couple of months we still increased our Net Worth by $3,950 for a total Net Worth of $(33,400)! The nice, round numbers are continuing!
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Thanks for reading!