Author Topic: Defeat the Net Debt  (Read 57295 times)

Dutch Comfort

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Re: Defeat the Net Debt
« Reply #350 on: August 02, 2021, 01:54:42 AM »
Mortgage (EUR 322K)
Liquid Assets (without house value & company pension) EUR 49K

Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)

January 2021 (EUR 291K)
February 2021 (EUR 289K)
March 2021 (EUR 287K)
April 2021 (EUR 285K)
May 2021 (EUR 279K)
June 2021 (EUR 276K)
July 2021 (EUR 273K)

Goal for 2021: (EUR 270K)......

Next month will be the challenge with holiday coming up (and additional spending for this). Just hoping that I can keep away from going backwards.

@Wile E. Coyote CONGRATULATIONS on this big milestone!

Wile E. Coyote

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Re: Defeat the Net Debt
« Reply #351 on: August 02, 2021, 09:47:18 AM »
@Wile E. Coyote CONGRATULATIONS on this big milestone!

Thanks, Dutch Comfort!  Good luck with the holidays! 

TyGuy

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Re: Defeat the Net Debt
« Reply #352 on: August 03, 2021, 09:41:24 AM »
@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!

TyGuy

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Re: Defeat the Net Debt
« Reply #353 on: August 03, 2021, 09:57:29 AM »
Debts:
Mortgage: 243,716

Student Loans: 21,456 (Currently in Forbearance)


Assets:
Savings: $1,501
Taxable 1: $4,835
Taxable 2: $2,039


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)


Another month moving in the right direction, the numbers should continue to increase in speed in their downward plunge in the coming months!

joe189man

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Re: Defeat the Net Debt
« Reply #354 on: August 04, 2021, 09:34:01 AM »
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

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

July 2021 Update
Net Debt: (-$423,426-$35,058) = -$458,484 + $22,738 = -$435,746 (+$5,296) (+$13,832 since i started tracking)
Net All: -$458,484 + $520,857 = $62,373 (+$30,532)
Net Incl. House: ~$679k

Once the car and student loans are paid off (~$35k) this may take some time to get exciting as building the taxable and savings from ~$23k now to ~$400k +/- of the mortgage will take years

frugalecon

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Re: Defeat the Net Debt
« Reply #355 on: August 04, 2021, 08:14:15 PM »
@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!

As the OP of this thread, I am delighted to see others defeat the net debt.

Wile E. Coyote

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Re: Defeat the Net Debt
« Reply #356 on: August 04, 2021, 09:17:58 PM »
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.

Thanks, @TyGuy and @frugalecon!  It feels great!  This thread makes me very happy, so I plan on sticking around to celebrate with others!

Arbitrage

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Re: Defeat the Net Debt
« Reply #357 on: August 19, 2021, 04:17:00 PM »
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. 

joe189man

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Re: Defeat the Net Debt
« Reply #358 on: August 19, 2021, 04:39:39 PM »
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!

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #359 on: August 27, 2021, 08:14:53 AM »
August Update:

Debts:
$15200 > $15300
$0 > $80500
$12900 > $128000
$150000 > $150900
$155000> $153800
$250000 > $250000

Assets:
$23300 > $241500
$207200 > $226000

Totals $467500 - $778500 = -$311000

Pretty much right back where we started two years ago. On the plus side, the reason I've not updated in a while is that I've been super busy. The house renos (which at this point are effectively a gut and rebuild job on about 80% of the structure) are nearing completion and the house is hitting the market in about two or three weeks for about $520k. With the way the market has been in my region, $50k over asking is not unrealistic. Mathematically-inclined readers will note that selling the house will move me from a net debt of about $310k to a net positive of $200k+. I've also relocated halfway across the country, back to my home region, where a comparable house is $180k and I can rent for peanuts. The new job is a 20% raise over the old one, with more interesting projects, a virtually unlimited creative license, and excellent growth prospects. Oh and I'm getting another degree, so that I can get the additional professional qualifications I need to manage a project which is likely to become a decade-long restructuring of infrastructure management policies in my region. This is ten years of grinding finally starting to pay dividends. Hoping my next update is the last one in this thread!

Spoiler: show
Past history:
Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700
April 2020: $314500
May 2020: $324200
June 2020: $292400
July 2020: $280300
August 2020: $269800
September 2020: $254500
October 2020: $265200
November 2020: $244600
December 2020: $225500
January 2021: $153000
February 2021: $149500
March 2021: $127500
April 2021: $119600
May 2021: $259000
August 2021: $311000

Dutch Comfort

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Re: Defeat the Net Debt
« Reply #360 on: September 01, 2021, 02:58:47 AM »
Mortgage (EUR 322K)
Liquid Assets (without house value & company pension) EUR 49K

Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)

January 2021 (EUR 291K)
February 2021 (EUR 289K)
March 2021 (EUR 287K)
April 2021 (EUR 285K)
May 2021 (EUR 279K)
June 2021 (EUR 276K)
July 2021 (EUR 273K)
August 2021 (EUR 273K)

Goal for 2021: (EUR 270K)......

Still on track. Happy that summer holidays and back to school expenses did not take a big bite out of the stash and we could keep the total debt the same.

Congratulations @Arbitrage! No more debt for you!

joe189man

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Re: Defeat the Net Debt
« Reply #361 on: September 01, 2021, 10:10:30 AM »
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


TyGuy

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Re: Defeat the Net Debt
« Reply #362 on: September 02, 2021, 02:21:39 PM »
Debts:
Mortgage: 242,465

Student Loans: 21,456 (Currently in Forbearance)


Assets:
Savings: $1,601
Taxable 1: $4,999
Taxable 2: $2,222


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)


I will likely max out my 401k this month and should begin to see significant increases in my taxable accounts after that! Keep up the steady progress everyone!

Wile E. Coyote

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Re: Defeat the Net Debt
« Reply #363 on: September 02, 2021, 07:25:35 PM »
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!

Yes, congratulations, Arbitrage!!  I love to see the net debt defeated!

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #364 on: September 19, 2021, 05:50:47 AM »
August Update:

Debts:
$15300 > $15400
$0>$29700
$80500 > $80500
$128000 > $127200
$150900 > $150900
$153800> $153500
$250000 > $250000

Assets:
$241500 > $239200
$226000 > $227300

Totals $466500 - $807200 = -$340700

One more update necessary. The house is on the market though, and I've found a place to rent in my new city that is less than half of what I was paying for upkeep on the house. Hoping for a good offer!

Spoiler: show
Past history:
Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700
April 2020: $314500
May 2020: $324200
June 2020: $292400
July 2020: $280300
August 2020: $269800
September 2020: $254500
October 2020: $265200
November 2020: $244600
December 2020: $225500
January 2021: $153000
February 2021: $149500
March 2021: $127500
April 2021: $119600
May 2021: $259000
August 2021: $311000
September 2021: $340700

Dutch Comfort

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Re: Defeat the Net Debt
« Reply #365 on: October 01, 2021, 03:11:09 AM »
Mortgage (EUR 322K)
Liquid Assets (without house value & company pension) EUR 50K

Net debt
July 2020 (EUR 314K) - started tracking
December 2020 (EUR 293K)

January 2021 (EUR 291K)
February 2021 (EUR 289K)
March 2021 (EUR 287K)
April 2021 (EUR 285K)
May 2021 (EUR 279K)
June 2021 (EUR 276K)
July 2021 (EUR 273K)
August 2021 (EUR 273K)
September 2021 (EUR 272K)

Goal for 2021: (EUR 270K)......

Slow and steady wins the race....... Still working towards my 2021 goal and it seems doable!
Already got 20K done this year, which feels like a huge amount!

« Last Edit: October 01, 2021, 03:27:59 AM by Dutch Comfort »

joe189man

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Re: Defeat the Net Debt
« Reply #366 on: October 01, 2021, 10:35:11 AM »
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

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)

We are still thinking 2027 to 2028 to have the brokerage equal the mortgage

We are shooting for FIRE around ~3 years later ~2031 - 4 years ahead of my last guesstimate

ETA:

Since my first post here in march our total net debt has decreased ~$21,600 and we have freed up ~$1,100 a month in debt payments that are now paid off.
« Last Edit: October 01, 2021, 10:42:00 AM by joe189man »

TyGuy

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Re: Defeat the Net Debt
« Reply #367 on: October 01, 2021, 11:09:23 AM »
Debts:
Mortgage: 241,213

Student Loans: 21,456 (Currently in Forbearance)


Assets:
Savings: $1,602
Taxable 1: $5,363
Taxable 2: $1,886


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)


Less than $600 of space left in my 401k for the year which means I will have additional found to put into my taxable beginning on my next pay check until the end of the year. Additionally, I would like to get my cash savings up to 5k by years end, as an increased emergency fund. Lastly, my goal for the end of the year is to have a net debt of less than 248k.

diapasoun

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Re: Defeat the Net Debt
« Reply #368 on: October 08, 2021, 03:04:14 PM »
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!)

frugalecon

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Re: Defeat the Net Debt
« Reply #369 on: October 08, 2021, 08:08:05 PM »
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!)

Good for you, diapasoun! Itís true that you might once again have net debt, but you will have seen that it can be defeated.

An Unassuming Moose

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Re: Defeat the Net Debt
« Reply #370 on: October 15, 2021, 08:25:35 AM »
August Update:

Debts:
$15400 > $15400
$29700>$34800
$80500 > $80500
$127200 > $126400
$150900 > $150900
$153500> $153800
$250000 > $250000

Assets:
$239200 > $244400
$227300 > $223700

Totals $468100 - $811800 = -$343700

I expected more damage to be honest. It's not been an especially good market month, and I had to move money around to finish paying for renovations. The house sold though, and I'm quite satisfied with the price. Just have to wait for closing on November 4th. Hoping to knock out some serious debts at that time.

Past history:
Spoiler: show
Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700
April 2020: $314500
May 2020: $324200
June 2020: $292400
July 2020: $280300
August 2020: $269800
September 2020: $254500
October 2020: $265200
November 2020: $244600
December 2020: $225500
January 2021: $153000
February 2021: $149500
March 2021: $127500
April 2021: $119600
May 2021: $259000
August 2021: $311000
September 2021: $340700
October 2021: $343700