December 2017 Statement of Net Worth Upate

Hello and welcome to our December 2017 net worth update! We were able to pay off our Equinox lease this month and I am so excited! Cue the confetti! We paid $475 a month on this debt and it is going to free up so much money in the future. Even though it was a 0% interest debt, we went forward with paying it off because of the sheer amount of money it would free up.

That’s our big update for this month! We had some short comings as well that were kind of sort of planned. We usually do splurge for Black Friday so we went ahead and did that but we didn’t spent very much at all. We got a couple of Christmas presents so those are taken care of, my husband got a new recliner for his game room, and I bought some Hunter rain boots and a North Face jacket. I also got an Ancestry DNA kit for myself which I have been wanting for eons.

But, even though we had our little splurge session above (about $500 worth) we were still able to pay off debt which I am ecstatic about. Without further ado, on to the breakdown!

December 2017 Breakdown

Assets

Looks like the home is on the rise again! When I checked Zillow.com our home is projected to raise 7.2% in the next year bringing it to $90,000! Don’t mind if I do!

The car insurance fell a bunch because we paid the car insurance this month. I have our car insurance come out of our credit card automatically every 6 months, so we get a 5% discount from the insurance company for paying in a lump sum and we earn 1.5% from our credit card rewards program for paying it through them! Discounts on discounts? Yes, please.

The Savings – Emergency account is growing unusually because I have been chucking my tax savings from Shipt in to it since I don’t have a Savings – Tax  account currently. Hubby is also earning bonuses now and he wants to open another savings account to keep that separate for big ticket items in the future. Not sure where he’s going with that, but it’s his bonus so he can do what he pleases. Anyway, I think a trip to the bank is in the future in order to set up a Savings – Bonus and Savings – Tax account so we can track these more accurately.

All other assets are fluctuating as normal.

Liabilities

We have two stars of the show over on this side of the ledger. The first being that the Equinox is at a zero balance! Hooray! Seriously, where is the confetti?

The second is *drumroll* our Navient account for the first time EVER in the 14 months that I have been tracking our net worth for the world to see did not grow! We are now in for 11 more months of increased payments due to the reevaluation of my income based repayment plan, and Shipt looks like it’s something I’m going to be doing for the long haul. I feel really comfortable that I have worked out the kinks in my learning curve and I know exactly what I’m doing now.

I’m pulling an average of one order per weeknight 4 nights a week, and 2-3 orders on Saturdays which makes it possible for me to pay $50-$75 per week on my student loan in addition to my regular monthly payment.

The Visa went up a bit because my hubby took off without me to make his recliner purchase so he didn’t have the credit card with him that we pay off every month. And I haven’t paid it off because I’m still a sort of naughty human who is trying to break the “debt is okay” mentality.

Debt Pay Off

I’m not sure how much debt we will be paying off this month with Christmas coming up, but I do think we are going to be paying some extra.

Our smallest 3 debts as of 12/1/2017 are:

  1. Navient #9 – $939 (6.5% interest)
  2. Home Depot – #2,450 (0% interest)
  3. Personal Loan – $2,75 (9.5% interest)

This is where I’m going to stray from the Dave Ramsey debt snowball method. Home Depot isn’t costing me anything to pay off slowly, and I’ve broken this down to an amount to bring the balance to $0 way before the promotional period expires for our new furnace. In or around April I may start focusing on this debt because we need a new central A/C unit. The one we have currently uses so much electricity so I think replacing it will pay for itself and I plan on using the 0% option again when that time comes.

I mentioned last month that I’m not particularly motivated to throw even more money at Navient #9 than I already am because it doesn’t change my payment in the short term.

I am choosing to work on our personal loan next. It has the highest interest rate that we currently pay, and paying it off will reduce our bills $150 per month for good. Our CP Visa account is also 9.5% but once we pay extra money on to it, it’s possible, and maybe even probable that we will just re-spend that money so it won’t necessarily stay paid down. However, once the personal loan is done, and depending on what’s going on with how long that takes we may work on the CP Visa Account or Home Depot next. But, that’s at least 2-3 months in the future. We will cross that bridge when we get to it.

I am also still waiting on the 0% balance transfer option from Capital One which just has not wanted to spawn for me! If that comes available, we will be getting rid of both CP Visa and the personal loan! If that were to happen, I’d probably be forced to work on my student loans next since some of them have the next highest interest rates at 6.5% and lower.

But again, I’m getting ahead of myself.

Conclusion

We were able to pay off $1,518 worth of debt this month and we increased our net worth $3,359 in one month! Our net worth is now $(43,049). Since we started our journey our net worth has increased almost $25,000! That’s amazing for only a little over one year! I am betting that we will become worthless in 2018! 🙂

Thank you so much for reading!

Dolores

July 2017 Net Worth Update

Hello, there. Pardon the lack of enthusiasm, I am a bit annoyed at myself. You see, here I am ready to write out my August Statement of Net Worth, and I find I never posted July! And then when I go to post my July Statement of Net Worth I find that I never even wrote it!

So now I’m going to try to write this post a month later, and try to conjure up the level of enthusiasm I would have had, had I wrote it on time! On to the breakdown!

Statement of Net Worth. July

Assets

The house and the Dart continue to fall in value, sadly.

Our savings account appears to have fallen a great deal, but that’s because I ran our numbers just after paying the bills, so the holding account was at $0. Normal fluctuations there.

Liabilities

We have a new account here: My husband opened up an Amazon Store card. This is a card I have been interested in for a while due to the 5% cash back on regular purchases, and special financing options (0%) on purchases greater than $150. He purchased parts to build a new computer. This is 0% interest for the next 6 months, so we will be decreasing this by $100/mo in order to pay it off before the promotion ends.

Other than adding the Amazon account, all our other liabilities decreased nicely! Aside from Navient, of course. I’ll come for that eventually…

Debt Payoff

At the end of June, we were able to pay off RAC: $127.43, and we were able to pay an additional $206 on our next smallest debt, Vermuelen’s! $100 remains to pay on this debt.

Our smallest 3 debts now are:

  1. Vermuelen’s – $100
  2. Radiology – $346
  3. Amazon – $516

You may notice that Radiology is at the same balance as our June 2017 Statement of Net Worth. I had another math error somewhere along the way, this is the correct balance.

We have a very modest increase in net worth of $484. World’s better than an decrease! So we again are at an all time high net worth: $(65,669)!

Thank you so much for following my journey.

XOXO,

Dolores

Small Scale Home Improvement Goals

 

I have mentioned previously how I am trying to increase not only the value of our home so that it can help our Statement of Net Worth but I am also trying to increase our intrinsic value of our home.

My goal here is to make the home as comfortable for us as possible so that we stay here as long as possible. We however are not going to go overboard with a $15,000 kitchen and bath renovation! I have listed a few small things that we can improve over time that will not break the budget but will make our home so much more enjoyable.

Dishwasher

The dishwasher has been broken for quite some time. It is old, clunky, and doesn’t wash dishes all that well. I have gone through different phases of rinsing the dishes really well before putting them in the dishwasher to washing the dishes and then putting them in the dishwasher to rinse and sanitize.

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One day, I went to throw a load of laundry in while the dishwasher was running, and realized it was raining in the basement!! The dishwasher was literally pouring water through the floor and through the ceiling of the basement!  And it was falling directly in to my laundry room sink so I had never noticed because I had never happened to go in to the basement while the dishwasher was running. What makes matters worse is that the water was raining right next to an electrical box. We were risking our home every time I ran the dishwasher and I even didn’t know it.

New dishwasher: About $500

Floor

I have tried to get the dishwasher replaced before with a tax return a few years ago but learned that the laminate flooring was actually built up around the dishwasher. We were told by the Sears installer that we would have to completely rip up the floor in order to put a new dishwasher in. Which I’m kind of okay with because look at this floor!

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It was like this when we moved in and it’s probably damaged due to the leaky dishwasher.

We have original hardwood throughout the house so you would wonder why they covered it up with a fake wood sticker, but my husband pointed out that it was probably so the transition to this added room would match.

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Ripping up a whole floor is way out of our budget, though. I was told by another handyman that we could actually lift up the counter top, swap out the dishwasher and then put the counter back down and re-caulk it. That will be the plan, and I would like to of course replace the flooring (cover it up) at some point with a realistic tile like this:

http://www.homedepot.com/p/Armstrong-CeraRoma-16-in-x-16-in-Cliffside-Beige-Groutable-Vinyl-Tile-24-89-sq-ft-case-A6207161/202709126

Approximate cost for flooring materials for approximately 124 SF: $300+

Garbage Disposal

I would really like a garbage disposal and I think it would make my life easier because my family is constantly throwing scraps in the sink with their dishes as if we have one!

http://www.homedepot.com/p/InSinkErator-Badger-5-1-2-HP-Continuous-Feed-Garbage-Disposal-BADGER-5/100091168

Garbage disposal: About $100

Speaking of the laundry room sink….

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This thing is dark and scary looking. Especially with our old washer that used a ton of water! Sometimes it would get clogged and I would have to reach down in to the murky depths to clear hair and lint out of the drain while imagining dead mice and other scary things that I might be touching that I couldn’t see!

When we bought the house, the hot water faucet was broken, and when we swapped out the old washer and dryer my husband had a hard time with the pipes because they are so old and corroded.

I’d love this one:

http://www.homedepot.com/p/BigTub-Utilatub-Combo-40-in-x-24-in-Polypropylene-Single-Floor-Mount-with-Pull-Out-Faucet-P-Trap-and-Supply-Lines-in-White-28CF/203155730

New laundry room sink and faucet: About $200

Interior Doors

We have old fashioned bedroom and bathroom doors with the old fashioned doorknobs, the kinds that screw on to a square pole. Our door handles are completely stripped out so they go flying off their poles and sometimes they go missing.

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My daughter is taking advantage of the situation by using it as a way to lock her door. This is a safety concern however; if there was a fire we would have to bust her door down!

Not to mention the bathroom door. Our husky, Aspen is a bit claustrophobic. We tried kenneling him and he would poop and pee in his kennel and pace and try to chew his way out, and actually broke a tooth! So we tried leaving him in the bathroom while we were gone to work and school for the day. He pooped and peed and paced in there, too and it would take forever to get the smell out of the house, and well, this happened:

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We have since discovered if we leave him loose in the house while we are gone and make sure that our house is completely dog proof all he does is take a nap on the sofa (where he’s not allowed) and looks out the window. I just have to sweep off the sofa every day, and I’m okay with that.

I found some really great door handles on Amazon for $12. Similar door handles with privacy locks run about $30 at Home Depot.

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We were advised by the handyman that we could fill the old door holes, sand them down and repaint them so they look nice, and drill a larger hole for the more modern door handles . This would be ideal since our house is very old, these doors all have very odd dimensions, however I’m not sure if that idea will work on our bedroom door. It has a weird block of wood that I’ve never really noticed before, and I’m not sure what that’s all about.

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Cost of modern-izing doors: Unknown! My handyman quoted me a price of $75 per door and then promptly stopped answering my calls. I also don’t know if I need new doors, or if the ones we have can be salvaged so I can’t even make a good estimation of what that would be.

One of my best friends advised me of an app called ThumbTack where you can list the work you need done along with pictures, and handymen will bid to do your work for you! I got some quotes for doing that work but then we had to go to the funeral in NYC so I haven’t followed up on them yet.

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And finally, the furnace and air conditioner. I have a HVAC company coming out today at 3pm to give a quote on a new system through Home Depot’s 24 month 0% interest financing. If the system costs $4,000 this will increase our monthly bills about $175 a month but I have faith that it will make our electric and gas bills so much more affordable. Also, it increases our value of the home because it will be more comfortable and the heat will reach to all the rooms in the house.

Our air conditioner is from the 1980s and our furnace is much older than that and they are both very inefficient!

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*UPDATE*

I originally wrote this post on March 11, 2017 and today is March 21, 2017. The HVAC Company did come out and quoted us $7,100 for both the furnace and the air conditioner. This would have increased our bills $300 a month for 24 months which I was sure we could afford, but my husband talked some sense in to me.

He said that right now everything is perfect, but we should figure our bills on what we could afford if one of us lost our income. That’s a huge factor because with Home Depot 0% financing, the fine print is that if you are ever late on your payment, or if you take longer than the 24 months to pay off your purchase, then you agree to pay your regular interest rate amount retroactively, back to the date of the original purchase! I already knew this of course, but I hadn’t thought so far as to think “What if something happens?”

So long story short, we decided to just go with the furnace for now. The cost of the furnace alone is $3,852 and will get us the Wi-Fi thermostat installed which will also help with the cost of cooling in the summer because we can change the heat and AC from our phones, and also set up schedules with the app.

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Shannon over at financially-blonde.com often asks what our “sacred cow” is. You can only have one, and I think mine is home improvements and/or 0% financing. I know that this will decrease my net worth quite a bit, but having a comfortable sanctuary to come home to is more important to me. And, as long as we always keep that buffer I think the risk we assume when taking on a new loan is minimal.

Finally, here is a repair that we have finally accomplished! Meet our old bathroom sink, Mr. Sink Face.

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Oh, how I hated Mr. Sink Face. I hated it because there was no cabinet space, it was bolted to the wall and sloped downward so everything slid off of it (phones, toothbrushes, soap dispensers). My son, who has Spina Bifida couldn’t lean on the sink to support himself while brushing his teeth and washing his face. It was hugely inconvenient.

When we got our income tax refund my husband and I split it in half to use on each of our “sacred cows”. His is travel, mine is home improvements. We each had $340 that we put in a cash envelope.  I posted the job for the interior doors on Thumb Tack, but we know that didn’t work out. In the meantime, I saw someone on one of those Facebook For Sale groups selling a vanity with attached sink for $75! I quickly jumped on that, talked her down to $70, got my husband and his friend to install everything, and now we have this:

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I am in love.

Do you have a sacred cow? Tell me what yours is in the comment section!

As always, thank you so much for reading!

XOXO,

Dolores