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The March 2016 Wealth Report!

in Assets, Blog, Debt
The March 2016 Wealth Report

What Happened in March?

Hey again to all of y’all learnin’ people. March was an interesting month. That Learning Gal and I made some new goals and floated some new ideas for our future, such as getting a duplex for our first home. Living out of one side and renting out the other! We discussed what method we truly want to pursue for our financial independence. Do we want rental properties? Equities? Something else? As of now, it looks like rental properties are looking pretty appealing, but we’ll get there when we get there. It is a 5-10 year plan after all!

That Learning Gal and I also decided around the time we get married, we are going to combine our assets, income, etc. on the site, as it would only make sense at that point (we’re going to be combining bank accounts in the near-ish future). Other than that, not a lot has changed as far as the course goes regarding our net worth. So, let’s get on to the fun stuff!

Assets

Cash

The first and typically easiest to understand category. Cash is the most liquid of all assets. Like most sane people (well, I guess depending on your level of mistrust in government and business), I don’t keep my cash stuffed under a mattress or in a shoe box. I keep my money reserves in a bank. We currently have 6 different accounts between the two of us. This large number of bank accounts will decrease once we are married (some of our second bank’s accounts will merge together) and I am going to get rid of my first bank’s accounts. I use my first bank’s checking account for income and expenditures, and I use my second bank’s accounts as emergency fund/savings money. I’m going to get into it in a post in the future, but an emergency fund is an almost universally lauded way to keep yourself from getting screwed in the event of a financial emergency. Between my bank accounts, I currently have the following amount at the end of January:

  • Bank 1
    • $4742.60
  • Bank 2
    • $4909.85
  • Total
    • $9652.45

The plan is to keep at least $10k between the two of us for our emergency fund, and that number – at least for me – is up! Which is always good to know your safety net is a little bit bigger.

Vehicles

The value of my vehicle hasn’t changed from the last report, so it remains the same.

  • 2003 Chevrolet Monte Carlo
    • $2968.00
  • Total
    • $2968.00

Investments

Here we start getting into equity and debt instruments. As stated previously, I am a young pup entrant into the workforce. I have only been working for a year and a half, but I have been able to acquire at least some investments despite a large amount of student loans. Matching employer 401k plans is a no brainer since it is free pre-tax money. I currently add 4% to get the employer match of 4%. I will also acquire a 4% profit-share in early March every year.

  • 401k
    • Fidelity Freedom K 2055 Fund
      • Approx. 80% stocks
      • Approx. 20% bonds
    • Current Market Value
      • $3814.51
    • I added a 4%, $2480, profit sharing to my account, in addition to some more contributions.
  • Roth IRA
    • Vanguard Retirement 2035 Fund
      • Current Market Value
        • $1914.98
      • This is still down from the $2007 dollars I added in April, 2015
  • Total
    • $5729.49

As you can see, and as you know (I hope), things have continued to be a little shaky for markets. Low commodity prices such as oil, slower global growth, and problems in China have all contributed to lackluster performance of the equity markets worldwide. Growth has recovered somewhat though, and that is always good!

Debt

Now we get to the fun part of the report…debt! If there is one thing that humanity has conjured up that creates more misery than debt, then I haven’t seen it yet (well…war is pretty bad, I guess). So, our debt is pretty rough. Between the two of us, we are around the national average of $30,000 dollars each.

  • Private Loan
    • $12,930.83
  • Government Loans
    • $25,989.05
  • Total
    • $38,919.88

Hell, yess! The gap is closing! It is pretty amazing/exciting to see that scale tick towards that $0.00 net worth. We are paying $2100/month on our student loans right. That is close to half of our net pay…kind of depressing, but the fact that we’re dropping it like a rock always has a good positive effect on the mind.

I’ve also shifted heavily to paying down the private loan since the interest is 6.4%. This is higher than any of our government loans, so it takes precedent for pay-off first. Saving more on interest is always a good thing.

Finally Tally

And now, the final net worth for March is (drum roll, please)….

Net Worth for March = -$20,569.94

My net worth increased by $5k since the last report. I do want to apologize for my lackadaisical stance towards creating reports. I promise you these reports will occur on the monthly from here on it. So, stick around because you’re going to see some amazing things happen.




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