A Panoply of Milestones

 

I’m celebrating a panoply of milestones today. Three of them at once.  It’s milestone of milestones posts.

Milestone 1:  Over 142,598 in assets.

My assets totaled at the time of this writing are $146,204 to be more precise. This means I now have more in assets than I ever had in debt (-$142,598). This is a big psychological boost.

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I’m Worthless: from -$142,598 Net Worth to Zero

This is a big milestone for me. I’m completely worthless, guys….  FINALLY! 🙂

I now have a positive net worth for the first time in my entire adult life.

When I started this blog, I was in a ton of debt and didn’t have a dime of savings. Don’t believe me? See the crime scene for yourself.

November 2012 Net Worth

April 2017 Net Worth

Today, I have a small (and growing) retirement fund and have almost halved my total debt.

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Goodbye 2016: The Year in Debt Review (+ Net Worth)

bye-2016

It is that time of year again. Check out my past reviews:

  •  2014 Year in Debt – I still want to be the ‘umm, no’ cat in that post when I grow up.🙂
  •  2015 Year in Debt – What an emotional and financial roller coaster! It was a year of health and job loss scares.

 

2016-clipart

In 2016, I started off the year with worthy goals and lots of optimism. In January, I got hit with a $750 bill for short term disability over-payment because my employer hadn’t calculated taxes properly following my surgery in 2015. Next, I paid off the last bit of medical related credit card debt and was now credit card debt free AGAIN. In February, I had a temporary panic about potentially losing my cheap (for this area) rented room. Panic is the right word, given that so much of my potential to make progress on this debt hinges on my ability to continue paying below market rent for my room.

By March, I focused my attention on my student loan debt. As the Spring season began, Read More

Net Worth and 2016 Goals for Double Debt Single Woman

 

DDSW 2016 Goals

I began this blog in the Winter of 2012 and at that time I had a six figure negative net worth. I had no assets. My financial picture was entirely comprised of liabilities. I had been completely oblivious to the financial dire straits I’d put myself into until that point in my life. My student loans were coming off of forbearance and there was no way I could afford the minimum payments. It was game over. In January of 2013, I gave up my studio apartment, sold or gave away almost everything except my clothes and books and moved into a rented room.   Read More

2015 Financial Goals for Double Debt Single Woman + FS-DAIR

Happy New Year!

2015 techno

It is that time of year again. I unveil my 2015 financial goals. Before I do, I’ll look back at my recent yearly goals.

2014 Goals:

  • Pay off  remaining $22,770 balance in credit card debt
  • Open and contribute to 401k up to point of employer match when eligible

2014 Outcome: [partial success]

  • Paid off $16,780 in credit card debt  [remaining balance: -$5,990]
  • Paid $8,720 in student loan interest [0.o -Yeah, this is insane.]
  • Opened and contributed to retirement funds [+$6,578 (including employer match)]

In the footer and sidebar, I have added a tracker for my retirement and other savings to help me have a fuller picture of my finances.

financial picture

2015 Goals:

  • Pay off remaining credit card debt of $5,990
  • Reach $20,000 in retirement savings
  • Reduce student loan debt to $108,000
  • Save $6,000 in savings  (Yes, my lack of an emergency fund is scary.)
  • Pay cash for an international trip – $??

My student loan goal doesn’t look like much of a drop, but you have to remember that the first $750 that I pay each month is just going to interest, not principal. So it will take nearly $15k in payments to get from $113k to $108k.

Undoubtedly, I have some more thinking to do to figure out how to prioritize all of these goals. Save for retirement or pay down debt?

Will a noble samurai rescue me from my quandry? Enter FS-DAIR

Financial Samurai has posted a formula for determining how to prioritize debt repayment vs. retirement funding. His FS-DAIR (Financial Samurai Debt and Investment Ratio), looks like the tool I’ve been hoping to find for a while now. How does it work? This chart lays it all out in a clear format.

FS-DAIR
Source and Image Credit: FinancialSamurai.com

Basically, any debt that you have carrying 10% or higher in interest, should be paid off post-haste, at the expense of any investing (beyond the 401k employer match). Once your debts have interest rates at 9% and below, things get interesting.  Read Sam’s FS-DAIR post for examples of how this works. For instance, Sam uses the following as an example for someone deciding how much to put toward student loans vs 401k.

fs-dair example
Source: FinancialSamurai.com

My student loan debt is made up of many separate loans with different fixed interest rates. I will need to run the numbers to see how this would shape my plan of attack. I’ll do a follow-up post on this in the not too distant future. Thanks, Sam for lending me a sword to use in my battle!

Net Worth – Double Debt Single Woman – January 2015

As my debt drops in 2015, I’ll be tracking my Net Worth.  My first goal will be to see it drop down into the 5-digit zone. Soon you will also be able to track it here @Rockstar Finance. I will be pretty low on the ranked list, but I will be gunning for higher and higher slots. Watch out Finance Phoenix and Feisty Finance!

Networth Jan 5 2015

“Debtor’s prison is real, and opportunity cost is a bitch.” (DDSW)