It’s time for another Net Worth Update, and time to see how my debt progress is going! It’s hard to believe that we’ll be debt free in 3 years – with $100K of debt!
But, before I get started, I have to tell you that I failed you in my Q2 Net Worth Update. I neglected to include 2 loans into my Net Worth Calculations and into Personal Capital, so the number I gave you was totally wrong! I feel really bad, but it’s going to make this update look terrible! Let’s start with a look at our Debt Progress:
As you can see, it doesn’t look like we made much progress, but we actually did, it was just that last quarters update wasn’t accurate and I didn’t realize it. Over the last 3 months we paid off: $402.52 in credit cards, $190.49 on our mortgage, $1,500 on our Personal Loan, and$121.19 towards my student loans, for a total of $$2,133.20 towards our total debt!
Right now, the Personal Loan is our priority, seeing as it is from a family member, so the $500 extra we have in our budget every month goes to them. We are also putting everything over and above the $500 payment into savings to (hopefully) make a lump sum payment by the end of November this year and pay the whole thing off. Right now, the lump sum payment fund is sitting at $507.50. We will need a lump sum of $3,854 to pay it off in November, $1,600 of which will be taken are of by an extra check from work, and the rest is up to us! Additionally, from July until November, we can definitely put $650 a month towards it, so that will definitely help!
I’m not going to address the auto loan situation here. I’ve talked it to death, and all we can do now it pay it off as soon as the Personal Loan is gone. If you want to read more about it you can check out any of my budget updates.
I use Personal Capital to track my net worth as well as how my (few) investments with Betterment.com are doing. Right now my focus is paying off debt as opposed to saving, but tracking the positive (net worth) as opposed to the negative (debt) really helps me stay motivated! According to Personal Capital our Net Worth is sitting right at $43,761.30! That doesn’t seem very high, but remember, I’m only 23. I have 17 more years before 40, when I want to be able to retire. This means I have about $600,000 more to go until retirement!
*Personal Capital is the best, free, online investment advisor and financial tracker. You can Personal Capital
The decrease as entirely do to me realizing that I didn’t have all of our debt in there….OOOPS! My bad…..
I use a free debt paydown tracker from Vertex42 Templates to track when our Debt Free Date will be. In the top section, I enter every debt, along with interest rate, amount, payment amount, and the order in which I want to pay them down.
In the bottom section it shows me how many month to pay it off and how much interest I will pay in total. I played around with the order or debts to pay until I found one that allowed me to pay the Personal Loan first, followed the the highest interest rate through the lowest.
On the second page is where the magic happens:
You can’t see it, but the spreadsheet gives us the amortization table for each loan, along with our debt-free date, which right now is April of 2017, so we are just under 3 years away. (Except the mortgage. We plan to rent our old house out within the next 4 years, so I’m not in a hurry to pay off the mortgage) Hard to believe with more than $100,000 of debt, isn’t it? That doesn’t even account for the promotion I will (hopefully) get soon, so even though watching my net worth go down can be super depressing, this debt payoff calculator helps to keep things in perspective for me!
So, what do you think? Retiring by 40 sounds aggressive, I know, but if you would like more information about how I plan to make it happen, check out How much Money to Retire by 40?
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