Auto loan (4 yr, 0%): $16,490.78
Auto loan (4 yr, 0%): $16,490.78
Why the heck would you make extra payments on an interest-free loan? Even a simply savings account would be a better use of funds!
I have the same interest rate on my mortgage and I wouldn't recommend paying extra on that either (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/). See the Investment Order post (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153).
Edit: In re-reading the original post it seems you may be investing in taxable to get it above the sum of your debts. I approve of this method.
Auto loan (4 yr, 0%): $16,490.78
Why the heck would you make extra payments on an interest-free loan? Even a simply savings account would be a better use of funds!
I have the same interest rate on my mortgage and I wouldn't recommend paying extra on that either (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/). See the Investment Order post (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153).
Edit: In re-reading the original post it seems you may be investing in taxable to get it above the sum of your debts. I approve of this method.
Yes, I never said I was making extra payments on a zero percent car loan! When I bought the car I was planning to pay cash, but after negotiations were over the saleman said, "Hey, if you have good credit you could get a zero percent loan." When someone hands me hundreds of dollars for free, I generally take it.
I am not surprised boarder42 has weighed in. Part of the purpose of the thread is to highlight the value of working both sides of the ledger. But you still need to make scheduled debt payments!
Auto loan (4 yr, 0%): $16,490.78
Why the heck would you make extra payments on an interest-free loan? Even a simply savings account would be a better use of funds!
I have the same interest rate on my mortgage and I wouldn't recommend paying extra on that either (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/). See the Investment Order post (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153).
Edit: In re-reading the original post it seems you may be investing in taxable to get it above the sum of your debts. I approve of this method.
Yes, I never said I was making extra payments on a zero percent car loan! When I bought the car I was planning to pay cash, but after negotiations were over the saleman said, "Hey, if you have good credit you could get a zero percent loan." When someone hands me hundreds of dollars for free, I generally take it.
I am not surprised boarder42 has weighed in. Part of the purpose of the thread is to highlight the value of working both sides of the ledger. But you still need to make scheduled debt payments!
Almost all our savings is in tax-advantaged accounts, so our case isn't terribly interesting.
Mortgage: ~$64k
After-tax: ~$62k
Net: -$2k
In truth, I might just be a weirdo who likes to track things.
Total Debt: $242,395.85
Total Taxable: $145,732.19
Net: ($96,663.66)
(Don't worry, CC is paid off each month, but there is a "balance" on the last day of the month.)I'm not including our credit cards because they are paid from checking/savings accounts and not from our invested brokerage account.
(Don't worry, CC is paid off each month, but there is a "balance" on the last day of the month.)I'm not including our credit cards because they are paid from checking/savings accounts and not from our invested brokerage account.
Hmm - I'm confused. I pay my mortgage from my checking/savings account - can I discount that too ;)
Or, to re-word this. Assuming either I go crazy and decide all debt is bad, or I start living off investments, either way, I'll have to pay the mortgage and credit cards from my investments. But as long as I have (active) income streaming into my checking, that's paying both. So I don't understand your distinction.
I also just want to have enough in investments to cover "all" debt (obviously, at a point in time, with things improving forever after), so I just thought I'd be happier to have "all" that when I complete this challenge, rather than "almost" all that, but not counting some CC debt that happens to be sitting there.
Mortgage: ~$64k
After-tax: ~$62k
Net: -$2k
Mortgage: ~$64k
After-tax: ~$62k
Net: -$2k
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k
Net Debt defeated, I guess?
This might be awhile...
As of today
Mortgage: ~400k
Mortgage: ~359k
Taxable: ~121k
Net: ~(638k)
I'm gonna sidle on in here as one of the little peanuts in this thread....
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
I am going to include retirement accounts (401k, IRA x2, solo 401k). We are still working towards maxing all these out, one of these days we will get there and can move to taxable (but that will probably be several years from now).
Our Debt: 189,160
Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Taxable: 0
Retirement: 114,767
Net Investments:
11/30/2018: 202,112
Mortgage: $160k
Porsche: $38k
Total debt: $198k
Vanguard brokerage: $170k
[12/4/2018] Net: ($28k)
[11/1/2018] Net: ($31k)
[10/1/2018] Net: ($21k)
[9/4/2018] Net: ($36k)
[8/2/2018] Net: ($37k)
Looking like about a half year to go.
Mortgage: $160k
Porsche: $38k
Total debt: $198k
Vanguard brokerage: $170k
[12/4/2018] Net: ($28k)
[11/1/2018] Net: ($31k)
[10/1/2018] Net: ($21k)
[9/4/2018] Net: ($36k)
[8/2/2018] Net: ($37k)
Looking like about a half year to go.
Or two Septembers @15k each
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting Retirement: 114,767
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k
Net Debt defeated, I guess?
Joining this as I plan to spend the next two years tackling my debt and not saving money. I really regret not tackling my debt sooner so here we go
Car loan - 4022
Student loan - 26,798.05
Total = -30,820.05
Plan - Pay of car first so I can have the extra cash flow. I finally realized why people do the debt snow ball. That extra 323 a month that I will get from paying my car can be thrown at the student loan.
Goal - Debt free by 24 months.
Hope: Income increases. Not having a high income sucks although I am taking steps to increase my income.
If your goal was to improve your "net debt" position over 2018q4 (in which the SP500 was down 13%), then--yes--paying down your debt was actually the way to do that.
If only someone could have told us in advance about that market decline.
If your goal was to improve your "net debt" position over 2018q4 (in which the SP500 was down 13%), then--yes--paying down your debt was actually the way to do that.
If only someone could have told us in advance about that market decline.
Yep, I missed the memo. I thought for sure following the Top is in thread would let me know when to sell!
Mortgage: ~396kMortgage: ~395k
Mortgage: ~358k
Taxable: ~117k
Net: ~(637k)
This looks like a fun one to get in on. Most of my accounts are tax advantaged.Seems like a good time for an update
Mortgage $171,460
Auto 0% $29,469
Total debt $200,930
Taxable $151,681
Net -$49,249
I suppose I could take my emergency fund and invest it in taxable and complete this challenge, but my wife likes the security of having the cash. I'm trying to convince her to at least move it to Ally so we lose less money from inflation. Still will be fun to try to work on investing more to taxable though.
I'm gonna sidle on in here as one of the little peanuts in this thread....
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
I'm gonna sidle on in here as one of the little peanuts in this thread....Depending on what the debt you hold is, IE interest rate etc., you may want to pay it down before investing in a taxable account. Otherwise, seems like you have a solid plan going and congrats on improving your situation.
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
Well, taxable is still $0; that hasn't changed. :) That being said, HSA and 401k are on track to max for this year, and I've been plonking money into rebuilding my EF after some heavy end-of-life vet bills. I'm seriously hoping I'll be able to plonk at least a little bit into a Roth + taxable accounts this year as well -- we'll see!
Tax-advantaged: 42k
Cash: 15k
Debt: 27k
Why not refinance that 6.8% debt lower first? At nearly 7% I would consider paying it off or down before adding to a brokerage account. I used 5% as my threshold for loan paydown as 7% is even with average expected returns.
Get some quotes for refinancing. Earnest gave me good rates once I had some money in my retirement accounts. I would think almost anywhere would beat 6.8% unless you need it on some type of IBR plan.
Hey @frugalecon, what a great idea! I can't believe I've missed this thread until now. I love this concept and the one about tracking the number of days of your post-FIRE life your investments have purchased are two incredibly powerful tools in the pre-FIRE arsenal.
I can't play, because I got there some time ago, but I sure as hell can sit on the curb and clap as you go by.*
*The actual quote is, "We can't all be heroes because someone needs to sit on the curb and clap as they go by." It's from Will Rogers, who's right up there with Yogi Berra and Dorothy Parker for quotable quips that are still relevant.
@sisto It looks like I'll be able to refinance these to under 5% -- so killing the 5%+ debt in a weird way. :) (Thanks to you and @therethere for poking me to look into this; it wasn't a good move three years ago, but it's a good move now.)That's great!!!
Just found this thread, but I realized today that I’ve hit this number. Or very close to it. By Friday I’ll be solidly over the line.
House $132,706 + car $8253 + student loan $7289 = $148,248
Accounts (HSA, IRAs, 401K) = $148,157
Feels like a big milestone.
Goal: knock debts down below taxable.
Yikes, this one could take a while:Mortgage: -211,575
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
Mortgage: ~395kMortgage: ~394k
Mortgage: ~357k
Taxable: ~110k
Net: ~(642k) :(
Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
Investments: $210KOuch! Hopefully it's short term pain for long term gain.
Mortgage: -$235K
Auto: -$6.3K
Net Debt
04 JAN 2019: -$43K
15 FEB 2019: -$31K
$12,000 in progess in a month-and-a-half. Not bad! Of course, that's mostly investment gains, but it's more impressive when you consider that I lost ~$8,000 on a 401(k) rollover this month due to employer match contributions that were not fully vested when I left :(
$12,000 in progess in a month-and-a-half. Not bad! Of course, that's mostly investment gains, but it's more impressive when you consider that I lost ~$8,000 on a 401(k) rollover this month due to employer match contributions that were not fully vested when I left :(Ouch! Hopefully it's short term pain for long term gain.
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
I am joining in as well. So far over years, I failed to build substantial taxable investments. Something always comes up that eats away money I try to set aside in taxable. This year my focus is to increase taxable investments. I will try to throw as much as I can save staring this year. Wish me luck.
Starting Mortgage = 112900
Starting Brokerage = 3100
Starting EF = 12800
NET:
19 Jan = (97000)
Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
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Mortgage: ~394kMortgage: ~392k
Mortgage: ~356k
Taxable: ~114k
Net: ~(636k)
Mortgage: $157k
Porsche: $35k
Total debt: $192k
Vanguard brokerage: $193k
[3/23/2019] Net: $1k
[3/1/2019] Net: ($10k)
[2/1/2019] Net: ($17k)
[1/4/2019] Net: ($31k)
[12/4/2018] Net: ($28k)
[11/1/2018] Net: ($31k)
[10/1/2018] Net: ($21k)
[9/4/2018] Net: ($36k)
[8/2/2018] Net: ($37k)
Calling it even before the next loan payments... Net debt defeated!
Awesome RWD! Congratulations!
CONGRATS!!!!
I am joining in as well. So far over years, I failed to build substantial taxable investments. Something always comes up that eats away money I try to set aside in taxable. This year my focus is to increase taxable investments. I will try to throw as much as I can save staring this year. Wish me luck.
Starting Mortgage = 112900
Starting Brokerage = 3100
Starting EF = 12800
NET:
19 Jan = (97000)
Congratulations RWD, so what's the next challenge for you? The race to 1M?Thanks! Yeah, that is probably the next big milestone. Hovering around $700k net worth right now.
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18
Mortgage: 197,600
Taxable: 29,922
Net Taxable: 167,678
Retirement: 162,233
Net Retirement: 5,445
Yikes, this one could take a while:Mortgage: -211,575
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
Taxable: 107,649
Net debt is -103,926
My taxable account hasn't quite recovered from the late fall drop, and all new contributions so far have gone to tax advantaged accounts.
10/18 - ~(638k)Mortgage: ~391k
11/18 - ~(637k)
12/18 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 -
Mortgage: ~392k
Mortgage: ~356k
Taxable: ~116k
Net: ~(632k)
I am happy to announce that I have beat the net debt. My taxable accounts finally have more than my mortgage and my 0% interest loan combined which is the only debt I carry. I float cc debt every month, but it's part of the budget and gets paid in full. I was close for a while and was just recently able to buy some more Vanguard to put me over the top.Congratulations! Another graduate, so exciting.
I am happy to announce that I have beat the net debt. My taxable accounts finally have more than my mortgage and my 0% interest loan combined which is the only debt I carry. I float cc debt every month, but it's part of the budget and gets paid in full. I was close for a while and was just recently able to buy some more Vanguard to put me over the top.Congrats!
@Kierun They are all important milestones along the way to our FIRE goals. This goal isn't all that important for everyone because some debt is ok to hold. So the liquid NW is definitely a much better one to hit.For sure, this is just a fun metric to see for me, not a particular goal to hit. The true goal is to hit FI. And this debt will be with me for a long time as I'm comfortably in the DPOYM club.
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
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Had the wrong balance for our mortgage so we took a step back in debt as well as in taxable due to filling Roth for 2019.
Mortgage: $164.7k @ 3.625% (no PMI)
2nd mortgage: $49.3k @ 4.89%
Car loan: $15.5k @ 0%
Taxable: $11k
Total: $(218.5k)
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I will join, hoping to cross the $0 net debt mark by end of this year. I have no car loans, just a mortgage against various accounts.
04/01/2019: Net: $23,593.99
Big jump there, market gains helped a lot?I will join, hoping to cross the $0 net debt mark by end of this year. I have no car loans, just a mortgage against various accounts.
04/01/2019: Net: $23,593.99
05/06/2019: Net: $17,737.44
10/18 - ~(638k)5/19 -
11/18 - ~(637k)
12/18 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 - ~(632k)
4/19 -
Mortgage: ~391k
Mortgage: ~356k
Taxable: ~121k
Net: ~(626k)
Got a sweet raise that takes effect next month and should be a great sign for my bonus too. Excited to bump up my taxable savings starting June.Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
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Had the wrong balance for our mortgage so we took a step back in debt as well as in taxable due to filling Roth for 2019.
Mortgage: $164.7k @ 3.625% (no PMI)
2nd mortgage: $49.3k @ 4.89%
Car loan: $15.5k @ 0%
Taxable: $11k
Total: $(218.5k)
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Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
Almost a 10k drop in 2 months, I'll take that. Can't wait for my bonus (post 401k) that will go squarely towards the 2nd mortgage. Hoping for a nice chunk there.
I will join, hoping to cross the $0 net debt mark by end of this year. I have no car loans, just a mortgage against various accounts.
04/01/2019: Net: $23,593.99
05/06/2019: Net: $17,737.44
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18
Mortgage: 197,600
Taxable: 29,922
Net Taxable: 167,678
Retirement: 162,233
Net Retirement: 5,445
4/1/19
Mortgage 1: 194,859
Mortgage 2 (Income Producing Rental but Still Debt): 214,044
Taxable: 39,184
Net Taxable: 369,719
Retirement: 184,669
Net Retirement: 185,050
11/18 - ~(637k)Mortgage: ~388k
12/18 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 - ~(632k)
4/19 - ~(626k)
5/19 -
Mortgage: ~389k
Mortgage: ~355k
Taxable: ~120k
Net: ~(624k)
Next milestone will be a big one, congrats on this one!11/19 - ~(637k)Mortgage: ~388k
12/19 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 - ~(632k)
4/19 - ~(626k)
5/19 -
Mortgage: ~389k
Mortgage: ~355k
Taxable: ~120k
Net: ~(624k)
Mortgage: ~355k
Taxable: ~144k (adding in DW's account)
Net: ~(599k)
Thanks! Yes, definitely looking forward to being under 500k, I'm guessing it'll be mostly from debt payments as almost all of our savings go to tax-advantaged accounts.Next milestone will be a big one, congrats on this one!11/19 - ~(637k)Mortgage: ~388k
12/19 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 - ~(632k)
4/19 - ~(626k)
5/19 -
Mortgage: ~389k
Mortgage: ~355k
Taxable: ~120k
Net: ~(624k)
Mortgage: ~355k
Taxable: ~144k (adding in DW's account)
Net: ~(599k)
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-33500 As of today 4-9-2019.
Looks like everyone is doing amazing! Aiming for 20 months for net zero. Here goes!
-33500 As of today 4-9-2019.
Looks like everyone is doing amazing! Aiming for 20 months for net zero. Here goes!
We are currently at-22900.00
Plugging away at it. I think I can, I thin I can....
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
1/19 - ~(642k)Mortgage: ~386k
2/19 - ~(636k)
3/19 - ~(632k)
4/19 - ~(626k)
5/19 -~(624k)
6/19
Mortgage: ~388k
Mortgage: ~355k
Taxable: ~144k (added in DW's account)
Net: ~(599k)
04/01/2019: Net: $23,593.99
05/06/2019: Net: $17,737.44
06/04/2019: $18,693.47
We are not to the point of starting to put money into taxable but I would love to see our investments overshadow our debts, without consideration for equity, so I like this tracking measure.
Starting Debt: 189,160
Starting Rental Debt: 127,721 (it is a debt, income producing but still a debt)
Starting Taxable: 0
Starting 401K/IRA: 114,767
Spent the last 2 months going in the wrong direction. Some decisions were made that I was not included in, some decisions were made that are better for my well-being but not the bank account, and some decisions were made that we will not see the financial impact of for a few months. Posting to keep myself accountable and so that looking back on these numbers in the (hopefully not to far off) future will remind me that things that seem huge and overwhelming can be overcome.
04/01/2019: Net: $23,593.99
05/06/2019: Net: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
Missed a month because I took a 30 day roadtrip. Things will slow down since roommates are moving out so I will have less $$$ to throw at this.
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18
Mortgage: 197,600
Taxable: 29,922
Net Taxable: 167,678
Retirement: 162,233
Net Retirement: 5,445
4/1/19
Mortgage 1: 194,859
Mortgage 2 (Income Producing Rental but Still Debt): 214,044
Taxable: 39,184
Net Taxable: 369,719
Retirement: 184,669
Net Retirement: 185,050
6/1/19
Mortgage 1: 193,934
Mortgage 2 (Income Producing Rental but Still Debt): 212,909
Taxable: 42,489
Net Taxable: 364,354
Retirement: 198,262
Net Retirement: 166,092
Doing this really helps with the motivation. It's tempting to focus on the debt side and see how slowly it is reducing - but to see the asset side continue to increase and know I'm buying more "perpetual money-making machines" keeps me staying the course.
2/19 - ~(636k)Mortgage: ~385k
3/19 - ~(632k)
4/19 - ~(626k)
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19
Mortgage: ~386k
Mortgage: ~354k
Taxable: ~147k
Net: ~(593k)
04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
Missed a month because I took a 30 day roadtrip. Things will slow down since roommates are moving out so I will have less $$$ to throw at this.
Bonus gets paid this month so u switched to high pretax 401k, will move back to lower pre and high post tax 401k starting next month. Next year I'll plan it a little more aggressively.Got a sweet raise that takes effect next month and should be a great sign for my bonus too. Excited to bump up my taxable savings starting June.Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
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Had the wrong balance for our mortgage so we took a step back in debt as well as in taxable due to filling Roth for 2019.
Mortgage: $164.7k @ 3.625% (no PMI)
2nd mortgage: $49.3k @ 4.89%
Car loan: $15.5k @ 0%
Taxable: $11k
Total: $(218.5k)
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Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
Almost a 10k drop in 2 months, I'll take that. Can't wait for my bonus (post 401k) that will go squarely towards the 2nd mortgage. Hoping for a nice chunk there.
One thing I could also consider is post-tax Roth with conversions as time goes on. My plan offers it but not sure of the benefits if that vs brokerage. Time to do some more research.
Edit: seems like after-tax 401k with conversion is a no brainer so I will go that route. I actually dropped my standard pre-tax percentage so it won't get filled up until closer to the end of the year (it's irrelevant for our match) in favor of a higher after-tax 401k deduction.
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Mortgage: $(385.8k)
Student Loan: $(31.3k)
Taxable: $168.4k
Net: $(248.7k)
3/19 - ~(632k)Mortgage: ~383k
4/19 - ~(626k)
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19
Mortgage: ~385k
Mortgage: ~354k
Taxable: ~145k
Net: ~(594k)
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k
Net Debt defeated, I guess?
Mortgage: ~$51k
After-tax: ~$48k
Net: -$3k
So totals:That's a crazy amount of debt (but at good rates) how much of it is callable?
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
So totals:That's a crazy amount of debt (but at good rates) how much of it is callable?
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
4/19 - ~(626k)Mortgage: ~381k
5/19 - ~(624k)
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19
Mortgage: ~383k
Mortgage: ~353k
Taxable: ~163k
Net: ~(573k)
Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
You acknowledge how exposed to the market you are.Good considerations for sure! I'm currently putting everything into debt repayment. 100% of savings, or 79% of after tax income. I'm siphoning off just enough off of that to fill my taxable accounts. In the long run, I expect it to all work out such that once the debts are paid I won't have to invest any more, since my current assets will have grown to FI proportions. It's a reverse mustachian move. Borrow heavily, use it to invest up front, then pay interest and principal for ten years rather than saving for ten years and buying as cash becomes available. Provided interest on debt remains below investment growth, which I expect it will for at least the first few years, I come out ahead when all is said and done.
Are you putting 100% of available cash flow into building up the asset side? Is reducing that % something you'd consider?
I also read the Financial Samaurai blog, and--he is much more risk averse--he suggests multiplying your effective interest rate by 10. So if your debts are student loans that are charging 5% interest, put 50% of your cash flow directly against those. Should smooth out your progress.
And, yes, it may make things take longer.
I also read the Financial Samaurai blog, and--he is much more risk averse--he suggests multiplying your effective interest rate by 10. So if your debts are student loans that are charging 5% interest, put 50% of your cash flow directly against those. Should smooth out your progress.
And, yes, it may make things take longer.
QuoteMortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
4 months later, cheating somewhat by including HSA.
Mortgage: $162217 @ 3.625% (no PMI)
2nd mortgage: $46668 @ 4.89%
Car loan: $13169 @ 0%
Taxable #1: $31086
Taxable #2: $6500
HSA: $12800
Total: $(171668)
@achvfi, why did your taxable drop so much?FTFY, 'cuz I want to know, too.
5/19 - ~(624k)Mortgage: ~380k
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19
Mortgage: ~381k
Mortgage: ~353k
Taxable: ~162k
Net: ~(572k)
@achvfi, why did your taxable drop so much?FTFY, 'cuz I want to know, too.
Fun goal. I feel it's unfair for those of us without a mortgage or any other debt (renters). I do plan to get a new mortgage within the next 2 years, perhaps my goal should be against that future debt. Average mortgage for this area will approach 1M. While we are FI for our current living costs with renting, I've decided to not purchase a home here until we are FI including the new mortgage for this area. Our business continues to thrive, so I am optimistically hoping to hit FI with high mortgage sometime in 2020. The past 5 years have been surreal, sometime I'll journal it when it's all over. Taxable assets are difficult to estimate, as I have a lot tied up in my business for cash flow purposes, so I'll just go with a super conservative estimate with actual Vanguard brokerage investments + emergency fund.
Current Taxable: ~ 440 K
No other debts
Projected mortgage: 1M
6/19 - ~(599k) (added in DW's account)12/19
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19
Mortgage: ~380k
Mortgage: ~352k
Taxable: ~169k
Net: ~(563k)
June 2019:
Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
All figures in Canadian dollars:
Stock market $350k
Corporate account $35k
HELOC - $(300)k - interest is deductible as the entire amount was borrowed to make above stock market investments
Mortgage - $(15)k - will be paying off next month
Vehicle loan @ 0% - $(20k)
Net - $50,000
In Canada we cannot deduct mortgage interest on our tax returns. Our strategy has been to pay down the mortgage aggressively, then reborrow the funds on a HELOC to make stock market investments. The profits on the stock market investments have been used to pay down the mortgage, which increases the limit on the HELOC, and are then reborrowed to make more stock market investments. I have $85k room on the HELOC, but $300k is the most I'm comfortable borrowing at this time.
7/19 - ~(593k)1/20
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19
Mortgage: ~378k
Mortgage: ~352k
Taxable: ~172k
Net: ~(558k)
Mortgage: ~$29k
Car: ~$20k
After-tax: ~$36k
Net: -$13k
Looks like you need to figure out how to redirect that mortgage firehose and there are only very few more exciting problems to have.Mortgage: ~$29k
Car: ~$20k
After-tax: ~$36k
Net: -$13k
Mortgage: ~$14k
Car: ~$18k
After-tax: ~$43k
Net: $11k
Back in black! Or...green. At least for the moment. We have some hefty expenses coming up, but on the bright side the mortgage will be gone in a couple months.
Looks like you need to figure out how to redirect that mortgage firehose and there are only very few more exciting problems to have.
8/19 - ~(594k)2/20
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
1/20
Mortgage: ~377k
Mortgage: ~351k
Taxable: ~165k
Net: ~(563k)
Mortgage: $0
Car: ~$18k
After-tax: ~$30k
Net: $12k
You won't regret feeding the Roth, nice progress!
09/19 - ~(573k)03/20
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
01/20 - ~(563k)
02/20
Mortgage: ~375k
Mortgage: ~351k
Taxable: ~170k
Net: ~(556k)
10/19 - ~(572k)04/20
11/19 - ~(563k)
12/19 - ~(558k)
01/20 - ~(563k)
02/20 - ~(556k)
03/20
Mortgage: ~374k
Mortgage: ~350k
Taxable: ~152k
Net: ~(572k)
04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
Wasteful month, didn't tell myself no enough. Now that roommates moved out things will slow down.
Could this move very quick now, @frugalecon . Assuming the markets continue to recover that is ...
Just chiming in to say steady as she goes...it's likely to be a bumpy ride for a good long while, but eventually it will smooth out. Keep your eyes on the horizon and you'll get there.
04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
04/10/2020: $21,466.73
Slide back and it had nothing to do with the current world problem. Glad I am considered essential, with this lockdown but expenses went down significantly.
11/19 - ~(563k)05/20 -
12/19 - ~(558k)
01/20 - ~(563k)
02/20 - ~(556k)
03/20 - ~(572k)
04/20 - ~(579k)
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18
Mortgage: 197,600
Taxable: 29,922
Net Taxable: 167,678
Retirement: 162,233
Net Retirement: 5,445
4/1/19
Mortgage 1: 194,859
Mortgage 2 (Income Producing Rental but Still Debt): 214,044
Taxable: 39,184
Net Taxable: 369,719
Retirement: 184,669
Net Retirement: 185,050
6/1/19
Mortgage 1: 193,934
Mortgage 2 (Income Producing Rental but Still Debt): 212,909
Taxable: 42,489
Net Taxable: 364,354
Retirement: 198,262
Net Retirement: 166,092
Doing this really helps with the motivation. It's tempting to focus on the debt side and see how slowly it is reducing - but to see the asset side continue to increase and know I'm buying more "perpetual money-making machines" keeps me staying the course.
8/1/19
Mortgage 1: 193,004
Mortgage 2 (Income Producing Rental but Still Debt): 212,147
Taxable: 46,884
Cash/EF: 46,473
Net Taxable: 311,794
Retirement: 216,119
Net Retirement: 95,675
Some nice market gains + realizing I hadn't been including my EF. It's cool to know I could knock out one of the mortgages in a moment if I had to - and will be even better when I have enough that I could knock out both.
04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
04/10/2020: $21,466.73
05/08/2020: $9,994.30
06/01/2020: $8,018.36
A few purchases were returned and being considered essential showed a benefit. Making myself tighten my belt so I can get this done by July.
01/20 - ~(563k)07/20
02/20 - ~(556k)
03/20 - ~(572k)
04/20 - ~(579k)
05/20 - ~(545k)
06/20
Mortgage: ~369k
Mortgage: ~349k
Taxable: ~174k
Net: ~(544k)
Bonus gets paid this month so u switched to high pretax 401k, will move back to lower pre and high post tax 401k starting next month. Next year I'll plan it a little more aggressively.Got a sweet raise that takes effect next month and should be a great sign for my bonus too. Excited to bump up my taxable savings starting June.Thanks for the clarification, in that case we are way way behind defeating the net debt.Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.
Mortgage: $161k @ 3.625% (no PMI)
2nd mortgage: $49.5k @ 4.89%
Car loan: $18.5k @ 0%
Taxable: $14k
Total: $(215k)
At my current rate we are paying off $1300 in principal each month and saving about $1400 a month on the taxable side so about a $2700 swing each month. I guess without any market impact that means 79.63 months. I am eligible for a bonus and intend to put that towards the 2nd mortgage this year and next. My wife isn't in on the FIRE idea but our joint account is used to pay all 3 of these debts, I am solely contributing to my taxable account.
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Had the wrong balance for our mortgage so we took a step back in debt as well as in taxable due to filling Roth for 2019.
Mortgage: $164.7k @ 3.625% (no PMI)
2nd mortgage: $49.3k @ 4.89%
Car loan: $15.5k @ 0%
Taxable: $11k
Total: $(218.5k)
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Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%
Taxable: $17634
Total: $($209787)
Almost a 10k drop in 2 months, I'll take that. Can't wait for my bonus (post 401k) that will go squarely towards the 2nd mortgage. Hoping for a nice chunk there.
One thing I could also consider is post-tax Roth with conversions as time goes on. My plan offers it but not sure of the benefits if that vs brokerage. Time to do some more research.
Edit: seems like after-tax 401k with conversion is a no brainer so I will go that route. I actually dropped my standard pre-tax percentage so it won't get filled up until closer to the end of the year (it's irrelevant for our match) in favor of a higher after-tax 401k deduction.
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As far as this thread is concerned I gave not made a ton of progress unfortunately.
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04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
04/10/2020: $21,466.73
05/08/2020: $9,994.30
06/01/2020: $8,018.36
07/01/2020: $4,370.98
Could have done better but I bought a few very unnecessary things. Looks like I may be done in August now.
04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
04/10/2020: $21,466.73
05/08/2020: $9,994.30
06/01/2020: $8,018.36
07/01/2020: $4,370.98
Could have done better but I bought a few very unnecessary things. Looks like I may be done in August now.
07/21/2020: $1,499.88
Finished just a bit earlier since my check showed up earlier and also sold a few things I didn't need on eBay. Birthday helped since a few people didn't want to go shopping so they gave cash.
Congrats!04/01/2019: $23,593.99
05/06/2019: $17,737.44
06/04/2019: $18,693.47
07/30/2019: $6,753.27
09/03/2019: $7,110.79
04/10/2020: $21,466.73
05/08/2020: $9,994.30
06/01/2020: $8,018.36
07/01/2020: $4,370.98
Could have done better but I bought a few very unnecessary things. Looks like I may be done in August now.
07/21/2020: $1,499.88
Finished just a bit earlier since my check showed up earlier and also sold a few things I didn't need on eBay. Birthday helped since a few people didn't want to go shopping so they gave cash.
Total Debt: $167,266So close! Great progress, frugalecon!
Total Taxable Assets: $156,651
Net Debt:
[08.01.2020] ($10,615)
[07.01.2020] ($14,810)
[06.01.2020] ($23,983)
[05.15.2020] ($29,995)
[05.01.2020] ($32,441)
[04.02.2020] ($39,721) (global pandemic made the car go in reverse)
[03.01.2020] ($36,672)
[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
Total Debt: $167,266So close! Great progress, frugalecon!
Total Taxable Assets: $156,651
Net Debt:
[08.01.2020] ($10,615)
[07.01.2020] ($14,810)
[06.01.2020] ($23,983)
[05.15.2020] ($29,995)
[05.01.2020] ($32,441)
[04.02.2020] ($39,721) (global pandemic made the car go in reverse)
[03.01.2020] ($36,672)
[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
02/20 - ~(556k)08/20
03/20 - ~(572k)
04/20 - ~(579k)
05/20 - ~(545k)
06/20 - ~(544k)
07/20
Mortgage: ~368k
Mortgage: ~348k
Taxable: ~180k
Net: ~(536k)
Mortgage: $0
Car: ~$18k
After-tax: ~$30k
Net: $12k
This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
As the OP, I will weigh in that when I started this thread, I conceived it as being the net of debts vs. the taxable financial assets in our various accounts. (So non-retirement.) I don’t include the value of the house. It is sort of, if I need to pay everything off today, how much am I short? I started it in part because of all the debates over mortgage payoffs vs. investments. You can work both sides of the ledger to reduce your net debt. Hope that helps.
Cheers,
Frugalecon
03/20 - ~(572k)09/20
04/20 - ~(579k)
05/20 - ~(545k)
06/20 - ~(544k)
07/20 - ~(536k)
08/20
Mortgage: ~366k
Mortgage: ~347k
Taxable: ~189k
Net: ~(524k)
Don't be sad. Everybody has to start somewhere, and you've managed to get yourself into a house already, hooray! I am concerned that your reserves are a bit low if something big on the house breaks, so maybe start with beefing up your EF a bit.This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
As the OP, I will weigh in that when I started this thread, I conceived it as being the net of debts vs. the taxable financial assets in our various accounts. (So non-retirement.) I don’t include the value of the house. It is sort of, if I need to pay everything off today, how much am I short? I started it in part because of all the debates over mortgage payoffs vs. investments. You can work both sides of the ledger to reduce your net debt. Hope that helps.
Cheers,
Frugalecon
Makes sense. So to jump in.
Mortgage: -312,399.80
Saving account: 1,122.28
RRSP: 6000
RRSP SO: 1200
Net Debt: - 304,078
Well that calculation made me sad :/
Don't be sad. Everybody has to start somewhere, and you've managed to get yourself into a house already, hooray! I am concerned that your reserves are a bit low if something big on the house breaks, so maybe start with beefing up your EF a bit.This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
As the OP, I will weigh in that when I started this thread, I conceived it as being the net of debts vs. the taxable financial assets in our various accounts. (So non-retirement.) I don’t include the value of the house. It is sort of, if I need to pay everything off today, how much am I short? I started it in part because of all the debates over mortgage payoffs vs. investments. You can work both sides of the ledger to reduce your net debt. Hope that helps.
Cheers,
Frugalecon
Makes sense. So to jump in.
Mortgage: -312,399.80
Saving account: 1,122.28
RRSP: 6000
RRSP SO: 1200
Net Debt: - 304,078
Well that calculation made me sad :/
This is a classic case for cranking up the investments in lieu of mortgage acceleration. Invest first, so your investments will eventually do a lot of the lifting for you. Once your investment accounts balloon, as they inevitably will with time, you can consider mortgage obliteration.
Feel free to start a Case Study or ask questions over on the Don't Payoff Your Mortgage thread. We welcome discussion on both sides of the topic and we don't bite ;-)
Don't be sad. Everybody has to start somewhere, and you've managed to get yourself into a house already, hooray! I am concerned that your reserves are a bit low if something big on the house breaks, so maybe start with beefing up your EF a bit.This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
As the OP, I will weigh in that when I started this thread, I conceived it as being the net of debts vs. the taxable financial assets in our various accounts. (So non-retirement.) I don’t include the value of the house. It is sort of, if I need to pay everything off today, how much am I short? I started it in part because of all the debates over mortgage payoffs vs. investments. You can work both sides of the ledger to reduce your net debt. Hope that helps.
Cheers,
Frugalecon
Makes sense. So to jump in.
Mortgage: -312,399.80
Saving account: 1,122.28
RRSP: 6000
RRSP SO: 1200
Net Debt: - 304,078
Well that calculation made me sad :/
This is a classic case for cranking up the investments in lieu of mortgage acceleration. Invest first, so your investments will eventually do a lot of the lifting for you. Once your investment accounts balloon, as they inevitably will with time, you can consider mortgage obliteration.
Feel free to start a Case Study or ask questions over on the Don't Payoff Your Mortgage thread. We welcome discussion on both sides of the topic and we don't bite ;-)
Thanks for the kind words!
We had 34K in savings the begging of the year. But we changed the roof, the thermopump and then I freaked out and we payed the car (:/ ) So now we restart the emergency fund and hopefully we can bounce fast ^^
I did a case study https://forum.mrmoneymustache.com/case-studies/budget-and-how-to-proceed/msg2691166/#msg2691166
The payment of the card should have freed 390$ a month but I bumped the mortgage payment with 250$ a month.
Don't be sad. Everybody has to start somewhere, and you've managed to get yourself into a house already, hooray! I am concerned that your reserves are a bit low if something big on the house breaks, so maybe start with beefing up your EF a bit.This looks like the place for me \o/. I have a question though when you calculate your net debt do you include the price of the house if it sells as an asset? Or just the money that you have right now?
As the OP, I will weigh in that when I started this thread, I conceived it as being the net of debts vs. the taxable financial assets in our various accounts. (So non-retirement.) I don’t include the value of the house. It is sort of, if I need to pay everything off today, how much am I short? I started it in part because of all the debates over mortgage payoffs vs. investments. You can work both sides of the ledger to reduce your net debt. Hope that helps.
Cheers,
Frugalecon
Makes sense. So to jump in.
Mortgage: -312,399.80
Saving account: 1,122.28
RRSP: 6000
RRSP SO: 1200
Net Debt: - 304,078
Well that calculation made me sad :/
This is a classic case for cranking up the investments in lieu of mortgage acceleration. Invest first, so your investments will eventually do a lot of the lifting for you. Once your investment accounts balloon, as they inevitably will with time, you can consider mortgage obliteration.
Feel free to start a Case Study or ask questions over on the Don't Payoff Your Mortgage thread. We welcome discussion on both sides of the topic and we don't bite ;-)
Thanks for the kind words!
We had 34K in savings the begging of the year. But we changed the roof, the thermopump and then I freaked out and we payed the car (:/ ) So now we restart the emergency fund and hopefully we can bounce fast ^^
I did a case study https://forum.mrmoneymustache.com/case-studies/budget-and-how-to-proceed/msg2691166/#msg2691166
The payment of the card should have freed 390$ a month but I bumped the mortgage payment with 250$ a month.
I will vouch for the fact that @Dicey is the cat’s pajamas. She is always rooting for people to succeed, and she bucked me up when I was dealing with a crazy situation.
Total Debt: $162,217That might be the best reason to be a cheerful motherfucker* I've ever seen. Congratulations!
Total Taxable Assets: $163,648
Net Debt:
[09.30.2020] $1,431 NET DEBT DEFEATED (Note: I am the OP, so I have been along for the whole ride so far. Good luck to everyone else! And may I never rejoin you!)
[09.01.2020] ($3,804)
[08.01.2020] ($10,615)
[07.01.2020] ($14,810)
[06.01.2020] ($23,983)
[05.15.2020] ($29,995)
[05.01.2020] ($32,441)
[04.02.2020] ($39,721) (global pandemic made the car go in reverse)
[03.01.2020] ($36,672)
[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
Total Debt: $162,217That might be the best reason to be a cheerful motherfucker* I've ever seen. Congratulations!
Total Taxable Assets: $163,648
Net Debt:
[09.30.2020] $1,431 NET DEBT DEFEATED (Note: I am the OP, so I have been along for the whole ride so far. Good luck to everyone else! And may I never rejoin you!)
[09.01.2020] ($3,804)
[08.01.2020] ($10,615)
[07.01.2020] ($14,810)
[06.01.2020] ($23,983)
[05.15.2020] ($29,995)
[05.01.2020] ($32,441)
[04.02.2020] ($39,721) (global pandemic made the car go in reverse)
[03.01.2020] ($36,672)
[02.01.2020] ($38,955)
[01.06.2020] ($44,380) (Transferred out of taxable for backdoor Roth)
[12.22.2019] ($40,825) (Alas, had to withdraw $$ from taxable to pay for some home repairs)
[12.02.2019] ($33,885)
[11.02.2019] ($37,740)
[10.07.2019] ($43,292)
[9.06.2019] ($46,479)
[8.03.2019] ($47,514)
[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000)
[4.03.2019] ($58,280)
[3.02.2019] ($62,770)
[2.02.2019] ($68,065)
[1.03.2019] ($76,999)
[12.03.2018] ($80,591)
[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
*If you don't get this reference, you're not reading Sailor Sam's journal and you're really missing out.
Congratulations!
NET DEBT DEFEATEDCongrats!
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18
Mortgage: 197,600
Taxable: 29,922
Net Taxable: 167,678
Retirement: 162,233
Net Retirement: 5,445
4/1/19
Mortgage 1: 194,859
Mortgage 2 (Income Producing Rental but Still Debt): 214,044
Taxable: 39,184
Net Taxable: 369,719
Retirement: 184,669
Net Retirement: 185,050
6/1/19
Mortgage 1: 193,934
Mortgage 2 (Income Producing Rental but Still Debt): 212,909
Taxable: 42,489
Net Taxable: 364,354
Retirement: 198,262
Net Retirement: 166,092
Doing this really helps with the motivation. It's tempting to focus on the debt side and see how slowly it is reducing - but to see the asset side continue to increase and know I'm buying more "perpetual money-making machines" keeps me staying the course.
8/1/19
Mortgage 1: 193,004
Mortgage 2 (Income Producing Rental but Still Debt): 212,147
Taxable: 46,884
Cash/EF: 46,473
Net Taxable: 311,794
Retirement: 216,119
Net Retirement: 95,675
Some nice market gains + realizing I hadn't been including my EF. It's cool to know I could knock out one of the mortgages in a moment if I had to - and will be even better when I have enough that I could knock out both.
6/1/20
Mortgage 1: 188,262
Mortgage 2 (Income Producing Rental but Still Debt): 208,263
Taxable: 55,912
Cash/EF: 33,796
Net Taxable: 306,817
Retirement: 265,942
Net Retirement: 40,875
Cool to see the progress over the last year. Even with DW going to part time this year - and then going to no time soon (Kid # 1 in Aug!) been able to put $50k in retirement while continuing to slowly whittle down both mortgages. Goal is be in the green in Net Retirement by next year.
04/20 - ~(579k)10/20
05/20 - ~(545k)
06/20 - ~(544k)
07/20 - ~(536k)
08/20 - ~(524k)
09/20
Mortgage: ~364k
Mortgage: ~347k
Taxable: ~189k
Net: ~(522k)
05/20 - ~(545k)11/20
06/20 - ~(544k)
07/20 - ~(536k)
08/20 - ~(524k)
09/20 - ~(522k)
10/20
Mortgage: ~363k
Mortgage: ~346k
Taxable: ~201k
Net: ~(508k)
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18 Net Debt*: 5,445
* Did not account for Rental Property Mortgage
4/1/19 Net Debt: 185,050
6/1/19 Net Debt: 166,092
8/1/19 Net Debt: 95,675
6/1/20 Net Debt: 40,875
10/1/20 Net Debt: 9,254
NET DEBT DEFEATED (LEVEL 1)!
Next goal (level 2) is to save enough in After-Tax accounts to be able to pay for one of the mortgages. There's also a possibility that I convert Mortgage 1 into a rental property and get a new mortgage for the primary home which would put me back in the Net Debt race. Also fully anticipating a stock market correction which would put me back in the red. But for the moment, holy cow - did not think the stock market would keep on going up like it has since June.
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18 Net Debt*: 5,445
* Did not account for Rental Property Mortgage
4/1/19 Net Debt: 185,050
6/1/19 Net Debt: 166,092
8/1/19 Net Debt: 95,675
6/1/20 Net Debt: 40,875
10/1/20 Net Debt: 9,254
NET DEBT DEFEATED (LEVEL 1)!
Next goal (level 2) is to save enough in After-Tax accounts to be able to pay for one of the mortgages. There's also a possibility that I convert Mortgage 1 into a rental property and get a new mortgage for the primary home which would put me back in the Net Debt race. Also fully anticipating a stock market correction which would put me back in the red. But for the moment, holy cow - did not think the stock market would keep on going up like it has since June.
NET DEBT DEFEATED (LEVEL 1.1)!
11/24/20
Net Debt (Including Cash/EF): 49,456
Net Debt (Excluding Cash/EF): 3,058
To keep myself motivated I'm putting some sub steps in between level 1 and level 2 of the net debt defeat. Beating Level 1.1 means that I could defeat my Net Debt and still keep my EF fully funded. The remaining steps:
Level 1.0 - All my liquid money (Pre-Tax, Post-Tax, After-Tax, Emergency Fund) can pay off all debts. Doing this would leave me broke but with 2 paid off properties. - Reached 10/1/20
Level 1.1 - Most of my liquid money (Pre-Tax, Post-Tax, After-Tax) can pay off all debts. Doing this would leave me with an Emergency Fund and with 2 paid off properties. - Reached 11/24/20
Level 1.2 - Some of my liquid money (Post-Tax, After-Tax) can pay off all debts. Doing this would leave me with most of my retirement (Pre-Tax), Emergency Fund, and paid off properties.
Level 2.0 - After-Tax money can pay off all debts. At this point I can decide whether to get rid of the debts in one shot or keep them going and keep adding to the investments.
Hello,
I've been reading this thread for the past few months and I am now ready to join, as the whirlwind of buy my first home is now slowing down. I am currently making out my 401k but contributions have been slow to my taxable accounts. Additionally, I drew upon my taxable accounts for the down payment on my new home, as well as to pay for some of the immediate renovations I performed. I am now in a position to begin increasing my taxable account, though I expect the progress to be slow over the next 12-15 months before it starts increasing with some intensity. Additionally, I am not including what is in my CC or Checking (I keep a 2-3k buffer in my checking as well) as the amount is negligible in my opinion. I also have access to 5k at anytime that is "banked" as comp time for work, but it is advantages for me to leave it banked as my payout rate increases with my rate of pay, which is near average market returns (I consider this as part of my emergency fund, as this is not part of vacation/sick time, which would come as an additional payout if I were to lose my job). I look forward to making some headway on this journey with you all!
Debts:
Mortgage 247,206.01 (2.9% interest, so I only pay an extra $100 or so a month, as the prospect of killing the loan several years earlier, helps create momentum for me internally)
Student Loans: 21,456.11 (These are currently sitting at 0% due to COVID, so I have not made payments on them since April, when interest resumes (at ~3.8%) I will begin making significant payments, as I want them gone.
Assets:
Savings: $1,000 (I would like to get this back up to 5K)
Taxable 1: $3,887.66
Taxable 2: $2,432.56
Net Debt: (261,341.90)
Please feel free to weigh in on my plan (but I will likely stay commited to paying off my student loans quickly once interest returns, as it would give me major motivation and piece of mind going forward). My plan is as followed: Continue to max out take advantaged accounts (401k and IRA), increase savings to 5k (In high interest rate account), pay $1,000 a month on student loans (until completed), increase taxable accounts with remaining cash left over each month (likely to only be small amounts for the next 12-15 months).
@TyGuy , what kinds of assets do you own in the taxable accounts? Seems to me like you could have that account be at parity with your student loan within six months, depending on your savings rate and market dynamics (sooner if you pause your 401(k) contributions).
06/20 - ~(544k)12/20
07/20 - ~(536k)
08/20 - ~(524k)
09/20 - ~(522k)
10/20 - ~(508k)
11/20
Mortgage: ~361k
Mortgage: ~346k
Taxable: ~212k
Net: ~(495k)
If one gives away pieces of their mind, how long before peace of mind becomes impossible to achieve? Asking for a friend.
If one gives away pieces of their mind, how long before peace of mind becomes impossible to achieve? Asking for a friend.If ignorance is bliss then perhaps the more one gives away the more possible for peace of mind to be achieved
Or for Mustachian Principles to take root...If one gives away pieces of their mind, how long before peace of mind becomes impossible to achieve? Asking for a friend.If ignorance is bliss then perhaps the more one gives away the more possible for peace of mind to be achieved
07/20 - ~(536k)01/21
08/20 - ~(524k)
09/20 - ~(522k)
10/20 - ~(508k)
11/20 - ~(495k)
12/20
Mortgage: ~360k
Mortgage: ~345k
Taxable: ~230k
Net: ~(475k)
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926
Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: -86,269
January 2020
Mortgage -202,002
Taxable 132,135
Net Debt -69,867
August 2020
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
December 2020
Mortgage 198,930
Taxable: 163,567
Net Debt: -35,363
January 2021
Mortgage: -198,022
Taxable: 169,263
Net Debt: -28,759
Getting really close!!!
08/20 - ~(524k)02/21
09/20 - ~(522k)
10/20 - ~(508k)
11/20 - ~(495k)
12/20 - ~(475k)
01/21
Mortgage: ~358k
Mortgage: ~345k
Taxable: ~230k
Net: ~(472k)
Mortgage: $(372.0k)
Student Loan: $(27.1k)
Taxable: $313.3k
Net: $(85.8k)
Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)
Jul 2020: ($191.8k)
Jan 2021: ($85.8k)
Wow...taxable investments up about $100k in 6 months. I knew that I'd been plowing a lot of money into taxable but that still threw me for a loop.
Of course, with the plan to buy a second house (planning to buy the new house before we move and sell the old house), these numbers could get really bad for a bit.
@Arbitrage , just want to offer a word of encouragement to you going through a "two house" phase: we were there for about five months ending roughly a year ago, and the large taxable account made it possible. Having those extra resources--we were able to borrow against them rather than sell--made it simple to swing the financing on two houses. Wishing you all the best!
09/20 - ~(522k)03/21
10/20 - ~(508k)
11/20 - ~(495k)
12/20 - ~(475k)
01/21 ~(472k)
02/21
Mortgage: ~357k
Mortgage: ~344k
Taxable: ~235k
Net: ~(466k)
Wow this is a sobering, sad and interesting exerciseBeg to differ with you, joe. This is a great exercise, but just one metric. The curve seems steep, but good earning/saving/investing habits definitely snowball. Keep at it and success will come. When it does, you'll be shocked at how your NW continues to
Wow this is a sobering, sad and interesting exerciseBeg to differ with you, joe. This is a great exercise, but just one metric. The curve seems steep, but good earning/saving/investing habits definitely snowball. Keep at it and success will come. When it does, you'll be shocked at how your NW continues togrowblow up.
This is one of my favorite threads. I salute all of you who are fighting the good fight. Keep on keeping on. It is absolutely worth it.
Wow this is a sobering, sad and interesting exerciseBeg to differ with you, joe. This is a great exercise, but just one metric. The curve seems steep, but good earning/saving/investing habits definitely snowball. Keep at it and success will come. When it does, you'll be shocked at how your NW continues togrowblow up.
This is one of my favorite threads. I salute all of you who are fighting the good fight. Keep on keeping on. It is absolutely worth it.
I heartily endorse Dicey's comments! Even though my net debt is now defeated, I still read the thread to cheer on others who are still on the journey.
Did I read correctly that someone scored a 15-year mortgage at 1.75% rate?
That is fantastic, 100 bps below mine (although I have a 30 year term). Treasury yields spiked above 1.6% last week, you may soon be able to lap your mortgage by buying rock-solid bonds and pocketing the spread.
Saw this thread from DPOYM Club and thought I would join as well for motivation:
10/1/18 Net Debt*: 5,445
* Did not account for Rental Property Mortgage
4/1/19 Net Debt: 185,050
6/1/19 Net Debt: 166,092
8/1/19 Net Debt: 95,675
6/1/20 Net Debt: 40,875
10/1/20 Net Debt: 9,254 NET DEBT DEFEATED (LEVEL 1)!
NET DEBT DEFEATED (LEVEL 1.1)!
11/24/20
Net Debt (Including Cash/EF): 49,456
Net Debt (Excluding Cash/EF): 3,058
To keep myself motivated I'm putting some sub steps in between level 1 and level 2 of the net debt defeat. Beating Level 1.1 means that I could defeat my Net Debt and still keep my EF fully funded. The remaining steps:
Level 1.0 - All my liquid money (Pre-Tax, Post-Tax, After-Tax, Emergency Fund) can pay off all debts. Doing this would leave me broke but with 2 paid off properties. - Reached 10/1/20
Level 1.1 - Most of my liquid money (Pre-Tax, Post-Tax, After-Tax) can pay off all debts. Doing this would leave me with an Emergency Fund and with 2 paid off properties. - Reached 11/24/20
Level 1.2 - Some of my liquid money (Post-Tax, After-Tax) can pay off all debts. Doing this would leave me with most of my retirement (Pre-Tax), Emergency Fund, and paid off properties.
Level 2.0 - After-Tax money can pay off all debts. At this point I can decide whether to get rid of the debts in one shot or keep them going and keep adding to the investments.
| Date | Taxable | Debt | Net Debt |
| 7/19/18 | 188,396 | (411,531) | (223,135) |
| 11/30/18 | 170,091 | (410,692) | (240,601) |
| 4/20/19 | 213,783 | (455,927) | (242,144) |
| 9/7/19 | 161,458 | (427,394) | (265,937) |
| 10/29/19 | 168,049 | (431,419) | (263,370) |
| 3/23/20 | 128,735 | (363,541) | (234,805) |
| 6/23/20 | 170,776 | (288,434) | (117,657) |
| 11/16/20 | 146,290 | (269,851) | (123,561) |
| 1/8/21 | 155,006 | (264,053) | (109,047) |
| 1/21/21 | 183,736 | (263,886) | (80,150) |
| 3/15/21 | 203,424 | (259,029) | (55,605) |
I'm not sure how I missed this thread. I really like the idea and it has been fun to read through everyone's journey. I went back through some of my spreadsheets and pulled together what I would have posted had I found this thread in 2018 and will update as I go:
Date Taxable Debt Net Debt 7/19/18 188,396 (411,531) (223,135) 11/30/18 170,091 (410,692) (240,601) 4/20/19 213,783 (455,927) (242,144) 9/7/19 161,458 (427,394) (265,937) 10/29/19 168,049 (431,419) (263,370) 3/23/20 128,735 (363,541) (234,805) 6/23/20 170,776 (288,434) (117,657) 11/16/20 146,290 (269,851) (123,561) 1/8/21 155,006 (264,053) (109,047) 1/21/21 183,736 (263,886) (80,150) 3/15/21 203,424 (259,029) (55,605)
Taxable includes bank account and taxable investment accounts. Debt includes all debt (mortgage, HELOC, CC even though balance paid in full each month, Student Loans). Not all that interesting now that I look at it, but I look forward to eliminating the Net Debt.
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926
Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: -86,269
January 2020
Mortgage -202,002
Taxable 132,135
Net Debt -69,867
August 2020
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
December 2020
Mortgage 198,930
Taxable: 163,567
Net Debt: -35,363
January 2021
Mortgage: -198,022
Taxable: 169,263
Net Debt: -28,759
Getting really close!!!
Wow this is a sobering, sad and interesting exercise
Numbers as of 3/10/2021
Net Debt:
Mortgage ($427,242.21) - (30 year at 2.875%)
Student Loan 1 ($6,750.34)
Student Loan 2 ($25,323.95)
Car Loan ($16,710.40)
Total ($476,026.90)
Assets:
Brokerage $1,049.24 - (just opened in the last few weeks)
Emergency Fund $20,000.00
Cash $5,400.00 - (to be used to pay off the Student Loan 1 in a large chunk)
Total $26,449.24
Net Debt: ($449,577.66)
Retirement: $431,363.43
Net All: ($18,214.23)
Net incl. House: ~$598,731.00
hmmm.... I thought we were doing ok, maybe we havesomea lot of work to do
10/20 - ~(508k)04/21
11/20 - ~(495k)
12/20 - ~(475k)
01/21 - ~(472k)
02/21 - ~(466k)
03/21
Mortgage: ~355k
Mortgage: ~344k
Taxable: ~231k
Net: ~(467k)
Mortgage (EUR 328K)
Liquid Assets (without house value & company pension) EUR 41K
Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)
January 2021 (EUR 291K)
February 2021 (EUR 289K)
March 2021 (EUR 287K)
Goal for 2021: (EUR 270K)......
Slowly but surely...... Filed our tax return and expect a nice refund which will be directed towards the mortgage. This will help in getting the net debt position down a little towards the 2021 goal!
Making excellent progress...it looks like two of your large debts don't move down in principal at all...are those student loans that are temp "paused"?
Making excellent progress...it looks like two of your large debts don't move down in principal at all...are those student loans that are temp "paused"?
So my debts are not really moving, but they are counterbalanced by assets that are performing quite well. Pretty much all growth since April 2020 has been through appreciation only, as I've put basically no new money in (it's gone towards a speculative angel investment which I don't count as part of my net worth and towards saving for the contractor).
The current plan is basically to finish the house, then get hit by a $180k bill which will directly increase my debt and set me back severely in this particular race since the house value doesn't count. After that, either cash in the house for $480k or better, or receive a $2000 monthly revenue from rental while negating my housing costs. Either way, I'm then free to put my cash flow against debt and deleverage. By the time I'm done deleveraging, I should be FI.
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926
Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: -86,269
January 2020
Mortgage -202,002
Taxable 132,135
Net Debt -69,867
August 2020
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
December 2020
Mortgage 198,930
Taxable: 163,567
Net Debt: -35,363
January 2021
Mortgage: -198,022
Taxable: 169,263
Net Debt: -28,759
Getting really close!!!
March 2021
Mortgage: -196,197
Taxable: 183,236
Net Debt: -12,961
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926
Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: -86,269
January 2020
Mortgage -202,002
Taxable 132,135
Net Debt -69,867
August 2020
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
December 2020
Mortgage 198,930
Taxable: 163,567
Net Debt: -35,363
January 2021
Mortgage: -198,022
Taxable: 169,263
Net Debt: -28,759
Getting really close!!!
March 2021
Mortgage: -196,197
Taxable: 183,236
Net Debt: -12,961
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
August 2018
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
February 2019
Mortgage: -211,575
Taxable: 107,649
Net debt is -103,926
Also February 2019
Mortgage: 210,176
Taxable: 123,907
Net Debt: -86,269
January 2020
Mortgage -202,002
Taxable 132,135
Net Debt -69,867
August 2020
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
December 2020
Mortgage 198,930
Taxable: 163,567
Net Debt: -35,363
January 2021
Mortgage: -198,022
Taxable: 169,263
Net Debt: -28,759
Getting really close!!!
March 2021
Mortgage: -196,197
Taxable: 183,236
Net Debt: -12,961
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
11/20 - ~(495k)05/21
12/20 - ~(475k)
01/21 - ~(472k)
02/21 - ~(466k)
03/21 - ~(467k)
04/21
Mortgage: ~353k
Mortgage: ~343k
Taxable: ~243k
Net: ~(453k)
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
| Date | Taxable | Debt | Net Debt |
| 7/19/18 | 188,396 | (411,531) | (223,135) |
| 11/30/18 | 170,091 | (410,692) | (240,601) |
| 4/20/19 | 213,783 | (455,927) | (242,144) |
| 9/7/19 | 161,458 | (427,394) | (265,937) |
| 10/29/19 | 168,049 | (431,419) | (263,370) |
| 3/23/20 | 128,735 | (363,541) | (234,805) |
| 6/23/20 | 170,776 | (288,434) | (117,657) |
| 11/16/20 | 146,290 | (269,851) | (123,561) |
| 1/8/21 | 155,006 | (264,053) | (109,047) |
| 1/21/21 | 183,736 | (263,886) | (80,150) |
| 3/15/21 | 203,424 | (259,029) | (55,605) |
| 5/10/21 | 226,955 | (254,851) | (27,896) |
Net Debt has been defeated today!!!! House goes on the market Saturday.
April 2021
Mortgage: -195,408
Taxable: 195,475
Congratulations Morning Glory! It's so great to see people successfully defeat the net debt!!
May Update:Hey, happy birthday!
Debts:
$15200 > $15200
$129200 > $129000
$0 > $150000
$155700> $155000
$249900 > $250000
Assets:
$218500 > $233000
$211900 > $207200
Totals $440200 - $699200 = -$259000
Right. So the bloodbath has begun, but it's intentional and calculated, so we're not actually worried, are we? I mean, we've been in way worse shape before...
Past history:Spoiler: show
May Update:Hey, happy birthday!
Debts:
$15200 > $15200
$129200 > $129000
$0 > $150000
$155700> $155000
$249900 > $250000
Assets:
$218500 > $233000
$211900 > $207200
Totals $440200 - $699200 = -$259000
Right. So the bloodbath has begun, but it's intentional and calculated, so we're not actually worried, are we? I mean, we've been in way worse shape before...
Past history:Spoiler: show
By "bloodbath" are you referring to the cost of renovations or birthday bacchanalia?
| Date | Taxable | Debt | Net Debt |
| 7/19/18 | 188,396 | (411,531) | (223,135) |
| 11/30/18 | 170,091 | (410,692) | (240,601) |
| 4/20/19 | 213,783 | (455,927) | (242,144) |
| 9/7/19 | 161,458 | (427,394) | (265,937) |
| 10/29/19 | 168,049 | (431,419) | (263,370) |
| 3/23/20 | 128,735 | (363,541) | (234,805) |
| 6/23/20 | 170,776 | (288,434) | (117,657) |
| 11/16/20 | 146,290 | (269,851) | (123,561) |
| 1/8/21 | 155,006 | (264,053) | (109,047) |
| 1/21/21 | 183,736 | (263,886) | (80,150) |
| 3/15/21 | 203,424 | (259,029) | (55,605) |
| 5/10/21 | 226,955 | (254,851) | (27,896) |
| 6/1/21 | 184,221 | (253,871) | (69,651) |
March 2021
Net Debt: -$476,026.90 + $26,449.24 = -$449,577.66
Net All: -$476,026.90 + $431,363.43 + 26,449.24 = -$18,214.23
Net incl. House: ~$598,731.00
April 2021 update
Net Debt: -$474,369 + $27,063 = -$447,306 (+$2,272)
Net All: -$474,369 + $444,994 + $27,063 = -$2,312 (+$15,902)
Net incl. House: ~$614k (+~$15k)
May 2021 Update
Net Debt: -$472,153 + $21,168 = -$450,985 (-$3,679) - Taxes were brutal this year
Net All: -$472,153 + $461,598 + $21,168 = $10,613 (+12,925) - Positive overall
Net incl. House: ~$633k
*Congratulations! You'll probably hit $1M before you hit Walrus status, lol. Keep up the good work!March 2021
Net Debt: -$476,026.90 + $26,449.24 = -$449,577.66
Net All: -$476,026.90 + $431,363.43 + 26,449.24 = -$18,214.23
Net incl. House: ~$598,731.00
April 2021 update
Net Debt: -$474,369 + $27,063 = -$447,306 (+$2,272)
Net All: -$474,369 + $444,994 + $27,063 = -$2,312 (+$15,902)
Net incl. House: ~$614k (+~$15k)
May 2021 Update
Net Debt: -$472,153 + $21,168 = -$450,985 (-$3,679) - Taxes were brutal this year
Net All: -$472,153 + $461,598 + $21,168 = $10,613 (+12,925) - Positive overall
Net incl. House: ~$633k
This is my 300th post*
June 2021 Update
Net Debt: -$461,929 + $20,887 = -$441,042 (+$9,943)
Net All: -$461,929 + $493,133 = $31,841 (+$21,228)
Net incl. House: ~$650k
Mortgage (rental) 385kMortgage (rental) 376k
Vanguard brokerage 773k
388k
Looking to Buy a primary home in 2020...good challenge to stay net positive.
12/20 - ~(475k)06/21
01/21 - ~(472k)
02/21 - ~(466k)
03/21 - ~(467k)
04/21 - ~(453k)
05/21
Mortgage: ~352k
Mortgage: ~343k
Taxable: ~252k
Net: ~(443k)
| Date | Taxable | Debt | Net Debt |
| 7/19/18 | 188,396 | (411,531) | (223,135) |
| 11/30/18 | 170,091 | (410,692) | (240,601) |
| 4/20/19 | 213,783 | (455,927) | (242,144) |
| 9/7/19 | 161,458 | (427,394) | (265,937) |
| 10/29/19 | 168,049 | (431,419) | (263,370) |
| 3/23/20 | 128,735 | (363,541) | (234,805) |
| 6/23/20 | 170,776 | (288,434) | (117,657) |
| 11/16/20 | 146,290 | (269,851) | (123,561) |
| 1/8/21 | 155,006 | (264,053) | (109,047) |
| 1/21/21 | 183,736 | (263,886) | (80,150) |
| 3/15/21 | 203,424 | (259,029) | (55,605) |
| 5/10/21 | 226,955 | (254,851) | (27,896) |
| 6/1/21 | 184,221 | (253,871) | (69,651) |
| 7/2/21 | 198,709 | (242,325) | (43,616) |
| Date | Taxable | Debt | Net Debt |
| 7/19/18 | 188,396 | (411,531) | (223,135) |
| 11/30/18 | 170,091 | (410,692) | (240,601) |
| 4/20/19 | 213,783 | (455,927) | (242,144) |
| 9/7/19 | 161,458 | (427,394) | (265,937) |
| 10/29/19 | 168,049 | (431,419) | (263,370) |
| 3/23/20 | 128,735 | (363,541) | (234,805) |
| 6/23/20 | 170,776 | (288,434) | (117,657) |
| 11/16/20 | 146,290 | (269,851) | (123,561) |
| 1/8/21 | 155,006 | (264,053) | (109,047) |
| 1/21/21 | 183,736 | (263,886) | (80,150) |
| 3/15/21 | 203,424 | (259,029) | (55,605) |
| 5/10/21 | 226,955 | (254,851) | (27,896) |
| 6/1/21 | 184,221 | (253,871) | (69,651) |
| 7/2/21 | 198,709 | (242,325) | (43,616) |
| 7/31/21 | 338,899 | (235,863) | 103,036 |
@Wile E. Coyote CONGRATULATIONS on this big milestone!
@Wile E. Coyote CONGRATULATIONS on this big milestone!
Thanks, Dutch Comfort! Good luck with the holidays!
@Wile E. Coyote CONGRATULATIONS on this big milestone!
Thanks, Dutch Comfort! Good luck with the holidays!
I second the Congratulations, what a great milestone to reach!
I second the Congratulations, what a great milestone to reach!
As the OP of this thread, I am delighted to see others defeat the net debt.
First house sold! Big changes...
Mortgages/HELOC: $(372.0k) -> $(1,067k) -> $(544k)
Student Loan: $(27.1k) -> $(26.3k) -> $(25.5k)
Taxable: $313.3k -> $273.2k -> $673.7k
Net: $(85.8k) -> $(820.1k) -> $104.2k
Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)
Jul 2020: ($191.8k)
Jan 2021: ($85.8k)
Apr 2021: ($820.1k)
Aug 2021: $104.2k
I suppose that the net debt has been defeated.
First house sold! Big changes...
Mortgages/HELOC: $(372.0k) -> $(1,067k) -> $(544k)
Student Loan: $(27.1k) -> $(26.3k) -> $(25.5k)
Taxable: $313.3k -> $273.2k -> $673.7k
Net: $(85.8k) -> $(820.1k) -> $104.2k
Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)
Jul 2020: ($191.8k)
Jan 2021: ($85.8k)
Apr 2021: ($820.1k)
Aug 2021: $104.2k
I suppose that the net debt has been defeated.
Awesome Congratulations!
The same day as my last post we initiated a cash out refinance, see last update below
https://forum.mrmoneymustache.com/throw-down-the-gauntlet/defeat-the-delta/msg2882627/#msg2882627
The result of that action was several debts are gone, freeing up ~$950 a month in cash flow, but increasing the mortgage payment by $150 a month, for a net positive of~$700 a month
September 1, 2021
Debts
Mortgage - $465,000 (30 year @ 2.875%)
Student Loan 1 - $15,827
Total Debt - $480,827
Cash/Taxable
Cash - $20,050
Taxable - $5,122
Total - $25,172
Net debt
$25,172 - $480,827 = -$455,655 (-$19,909 from last month)
Total Investable Assets and Cash
$540,398
Total Net All
$540,398 - $455,655 = $84,743 ($22,370+ MoM)
The net result of the refinance is by end of year, the student loan will be paid in full, and we should be putting $30k+ per year in the brokerage
I guesstimate that by ~2028 the Brokerage account will equal the remaining mortgage balance, i may do annual updates from here on out
I'm gonna sidle on in here as one of the little peanuts in this thread....
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
I'm gonna sidle on in here as one of the little peanuts in this thread....
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
Lil peanuts checking in a few years later! Just this year I started being able to save enough to go beyond maxing a 401k and an IRA, and just started a taxable account (plus I've been continually paying down the student loans....).
Taxable: $1,484.91
Debt: $11,414.15
Net: -$9,929.24
I'm hoping that in the next six months I'll have defeated the net debt just with the taxable account alone! \o/
(Of course, this is in preparation for my partner and I buying a house... which will explode that again. Still. It's so good to see this fall by 2/3 in just three years!)
Debts:
Mortgage: $239,973
Student Loans: $21,456 (Currently in Forbearance)
Assets:
Savings: $3,104
Taxable 1: $5,879
Taxable 2: $1,778
2021 Goal: (248K)
Net Debt: Dec 2020 ($261,341)
Mar 2021 ($263,803)
APR 2021 ($262,561)
MAY 2021 ($261,245)
JUN 2021 ($260,156)
JLY 2021 ($258,370)
AUG 2021 ($256,797)
SEP 2021 ($255,099)
OCT 2021 ($253,818)
NOV 2021 ($250,668)
Best month since I started tracking here! Next month should be another good one!
October 2021
Debts
Mortgage - $465,000 (30 year @ 2.875%)
Student Loan paid in full
Cash/Taxable
Cash - $27,075
Taxable - $9,980
Total - $37,055
Net debt
$37,055 - $465,000 = -$427,945 ($27,710 MoM change)
12/20 - ~(475k)12/21
01/21 - ~(472k)
02/21 - ~(466k)
03/21 - ~(467k)
04/21 - ~(453k)
05/21 - ~(443k)
06/21
Mortgage: ~350k
Mortgage: ~342k
Taxable: ~253k
Net: ~(439k)
October 2021
Debts
Mortgage - $465,000 (30 year @ 2.875%)
Student Loan paid in full
Cash/Taxable
Cash - $27,075
Taxable - $9,980
Total - $37,055
Net debt
$37,055 - $465,000 = -$427,945 ($27,710 MoM change)
December 2021
Debts
Mortgage - $463,358
Cash/Taxable
Cash - $27,200
Taxable - $15,917
Total - $43,117
Net debt
$43,117 - $463,358 = -$420,241 ($7,704 change)
06/21 - ~(439k)Mortgage: ~339K
12/21
Mortgage: ~342kMortgage: ~342kSOLD!!!
Taxable: ~266k
Net: ~(76k)
I'm gonna sidle on in here as one of the little peanuts in this thread....
Taxable: $0
Debt: $28,396.63
I just got to the point this last year where I had a positive net worth, my EF fully funded, my car loan paid off, and my HSA and my 401k maxed. This next year, I'd like to max the HSA and 401k, start and max a Roth IRA, and (stretch goals!) start contributing to a taxable account. Doing that would be about half my take-home income.
Lil peanuts checking in a few years later! Just this year I started being able to save enough to go beyond maxing a 401k and an IRA, and just started a taxable account (plus I've been continually paying down the student loans....).
Taxable: $1,484.91
Debt: $11,414.15
Net: -$9,929.24
I'm hoping that in the next six months I'll have defeated the net debt just with the taxable account alone! \o/
(Of course, this is in preparation for my partner and I buying a house... which will explode that again. Still. It's so good to see this fall by 2/3 in just three years!)
Debts:
Mortgage: $236,241
Student Loans: $21,456 (Currently in Forbearance)
Assets:
Savings: $4,124
Taxable 1: $6,375
Taxable 2: $1,051
2021 Goal: (248K)
2022 Goal: (220K)
Net Debt: Dec 2020 ($261,341)
Mar 2021 ($263,803)
APR 2021 ($262,561)
MAY 2021 ($261,245)
JUN 2021 ($260,156)
JLY 2021 ($258,370)
AUG 2021 ($256,797)
SEP 2021 ($255,099)
OCT 2021 ($253,818)
NOV 2021 ($250,668)
DEC 2021 ($248,521)
JAN 2022 ($247,168)
FEB 2022 ($246,147)
Happy with the progress to start the year, I will be working on my tax advantage account first, most of my progress will come the second half of the year!
Debts:
Mortgage: $236,241
Student Loans: $21,456 (Currently in Forbearance)
Assets:
Savings: $4,124
Taxable 1: $6,375
Taxable 2: $1,051
2021 Goal: (248K)
2022 Goal: (220K)
Net Debt: Dec 2020 ($261,341)
Mar 2021 ($263,803)
APR 2021 ($262,561)
MAY 2021 ($261,245)
JUN 2021 ($260,156)
JLY 2021 ($258,370)
AUG 2021 ($256,797)
SEP 2021 ($255,099)
OCT 2021 ($253,818)
NOV 2021 ($250,668)
DEC 2021 ($248,521)
JAN 2022 ($247,168)
FEB 2022 ($246,147)
Happy with the progress to start the year, I will be working on my tax advantage account first, most of my progress will come the second half of the year!
Well done! Considering you have a mortgage, are you forgetting to also calculate home equity in your assets?
Well done! Considering you have a mortgage, are you forgetting to also calculate home equity in your assets?
| 2022 | |
| January | $(300,845.55) |
| February | $(289,082.35) |
| March | - |
| April | - |
| May | - |
| June | - |
| July | - |
| August | - |
| September | - |
| October | - |
| November | - |
| December | - |
| Annual gain |
| 2022 | |
| January | $(300,845.55) |
| February | $(289,082.35) |
| March | $(286,464.95) |
| April | - |
| May | - |
| June | - |
| July | - |
| August | - |
| September | - |
| October | - |
| November | - |
| December | - |
| Annual gain |
Mortgage (EUR 315K)
Liquid Assets (without house value & company pension) EUR 58K
Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)
December 2021 (EUR 260K)
January 2022 (259K)
February 2022 (259K)
March 2022 (257K)
STRETCH Goal for 2022: (EUR 235K)
A nice standard month for investing and paying down mortgage. The goal is still doable, but let's see what the markets have in store for the rest of the year.
Mortgage (EUR 313K)
Liquid Assets (without house value & company pension) EUR 62K
Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)
December 2021 (EUR 260K)
January 2022 (259K)
February 2022 (259K)
March 2022 (257K)
April 2022 (254K)
May 2022 (250K)
June 2022 (251K)
STRETCH Goal for 2022: (EUR 235K)
Yikes..... a backward move....... this is the stock market hit for this month. Hopefully some recovery in the 2nd half of the year.
@UltraStache , Perhaps the balances make you feel like you're late to the game, but the $30,000 in I-bonds just earned a 9.5% annualized rate over the last six months, while I doubt your interest rates are anything close to that, right?
Debts:
Mortgage: $216,024
Student Loans: $21,456 (Currently in Forbearance)
Assets:
Savings: $8,794
Taxable 1: $13,124
Taxable 2: $1,313
Taxable 3: $3,272
2021 Goal: (248K)
2022 Goal: (220K)
2023 Goal: (190K; Stretch 184k)
Net Debt: DEC 2020 ($261,341)
DEC 2021 ($248,521)
DEC 2022 ($226,794)
JAN 2023 ($222,557)
FEB 2023 ($219,331)
MAR 2023 ($217,622)
APR 2023 ($215,242)
MAY 2023 ($213,078)
JUN 2023 (210,977)
May was the most expensive month I've had in the last several years. It should be a low spend summer so I expect to see some healthy progress in this race!
July 2023 (EUR 222K)
STRETCH Goal for 2023: (EUR 210K)
Despite a 3 week spendy holiday, but thanks to markets and an unexpected refund, I could still put in a decrease of the debt this month! As from now...... hopefully no more unexpected expenses for the remainder of the year (I will take unexpected refunds and bonusses, thank you....).
Debts:
Mortgage: $210,914
Student Loans: $21,456
Assets:
Savings: $10,860
Taxable 1: $15,848
Taxable 2: $1,295
Taxable 3: $6,236
2021 Goal: (248K)
2022 Goal: (220K)
2023 Goal: (190K; Stretch 184k)
Net Debt: DEC 2020 ($261,341)
DEC 2021 ($248,521)
DEC 2022 ($226,794)
JAN 2023 ($222,557)
FEB 2023 ($219,331)
MAR 2023 ($217,622)
APR 2023 ($215,242)
MAY 2023 ($213,078)
JUN 2023 ($210,977)
JUL 2023 ($205,630)
AUG 2023 ($200,974)
SEP 2023 ($199,191)
OCT 2023 ($198,131)
The stock market and a large emergency vet bill really slowed my progress this month. Hoping to have a better month in October and with a little help from the stock market, I should be able to reach my yearly goal!
Debts:
Mortgage: $208,347
Student Loans: $21,536
Assets:
Savings: $11,953
Taxable 1: $18,328
Taxable 2: $1,288
Taxable 3: $7,259
2021 Goal: (248K)
2022 Goal: (220K)
2023 Goal: (190K; Stretch 184k)
Net Debt: DEC 2020 ($261,341)
DEC 2021 ($248,521)
DEC 2022 ($226,794)
JAN 2023 ($222,557)
FEB 2023 ($219,331)
MAR 2023 ($217,622)
APR 2023 ($215,242)
MAY 2023 ($213,078)
JUN 2023 ($210,977)
JUL 2023 ($205,630)
AUG 2023 ($200,974)
SEP 2023 ($199,191)
OCT 2023 ($198,131)
NOV 2023 ($196,611)
DEC 2023 ($191,055)
November was an excellent month. If the market hold, I will reach my goal simply by making my mortgage payment this month. My stretch goal remains a possibility as December is a three paycheck month for me, with any excess cash going into my taxable accounts! Good luck to everyone else participating in reaching your yearly goals!
October 2021
Debts
Mortgage - $465,000 (30 year @ 2.875%)
Student Loan paid in full
Cash/Taxable
Cash - $27,075
Taxable - $9,980
Total - $37,055
Net debt
$37,055 - $465,000 = -$427,945 ($27,710 MoM change)
December 2021
Debts
Mortgage - $463,358
Cash/Taxable
Cash - $27,200
Taxable - $15,917
Total - $43,117
Net debt
$43,117 - $463,358 = -$420,241 ($7,704 change)
January 2022
Debts
Mortgage - $462,534
Cash/Taxable
Cash - $30,225
Taxable - $25,500
Total - $55,225
Net debt
$55,225 - $462,534 = -$407,309 ($12,932 change) ($42,269 swing since march of last year)