Author Topic: Race to Positive Net Worth  (Read 7787 times)

SwordGuy

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Re: Race to Positive Net Worth
« Reply #100 on: December 26, 2017, 08:28:14 PM »
First off, great progress!  Bravo!


Federal student loan (6.25%): 56000
2) Two pensions.  Reasonably solid funding (public service), and should provide significant income assuming I work until at least age 60.  One is vested, 2nd needs 3 more years of work to vest.
3) PSLF (Public Service Loan Forgiveness).  Assuming Congress doesn't mess with it, in 4 years I'll have whatever remains on my Federal student loan forgiven.  Since I'm currently on a income-based payment plan and only paying interest, this will be substantial - around 50K!  (that will be a really good month for my NW!)

I'm getting married in 2018, so while it will be a wonderful year in some regards, it won't be the best year financially for me.  Questions:
- should I include the pensions in my NW?  If so, then I would most likely have positive NW, but I'm not sure how to calculate it...

If you quit or laid off today, do you lose the pension?   Because if you do, the answer is "No."   If yes, I can't help you with how to calculate it, google would be your friend.


- should I include the fed loan that will (should) be forgiven in 2021? 

Until it's forgiven, you owe it.   So it stays in the calculation until it's gone, one way or the other.

Now, I have a question for you.   Why would getting married be bad for you financially?   Are you spending crazy money on the wedding?  If so, just don't! ;)   Otherwise, it should be a financial benefit, with two incomes and shared expenses. 

SwordGuy

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Re: Race to Positive Net Worth
« Reply #101 on: December 26, 2017, 08:30:14 PM »
Congrats to all of you who have won your race to positive net worth or are making solid progress towards it!

It's a big win!

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #102 on: December 27, 2017, 07:50:50 AM »
2017 wrap-up time:

Student loan: -3,810 at 0.75%
Bank loan: -9,596 at 3.3%
Credit Card: -392 (paid full each period)

Investments and liquidity: 5914
Car: 3,400

NW: -4,484
2017 gain: 7,192!

Thanks to the community for keeping up the spirit!

Optimiser

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Re: Race to Positive Net Worth
« Reply #103 on: January 01, 2018, 02:33:53 PM »
January: -57,500
February: -58,300
March: -50,400
April: -43,900
May: -46,300
June: -38,200
July: -41,300
August: -40,200
September: -33,200
October: -30,900
November: -34,000
December: -30,800

MrUpwardlyMobile

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Re: Race to Positive Net Worth
« Reply #104 on: January 01, 2018, 05:14:25 PM »
I used to joke with my wife that homeless people have a higher net worth than 90% of America. They have nothing other than the contents of their shopping cart, but they own everything in the cart. 0 is a huge goal and a major milestone. It took me a long time to hit it. I always hear people say "use the bank's money to make you money" I am very reluctant to do this. I have one rental with a lien on it. It is a positive cash flow property so I consider it a success. You guys are all on your way and are actually killing it based on the numbers you posted. The $10k number will find you soon based on the way you are going. 10 becomes 25 faster than you think. Stay the course, you are headed in the right direction!
I used to make the same joke.

EarlyInJourney

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Re: Race to Positive Net Worth
« Reply #105 on: January 10, 2018, 07:56:43 PM »
Thanks for the reply, SwordGuy.  My replies in red:

First off, great progress!  Bravo!


Federal student loan (6.25%): 56000
2) Two pensions.  Reasonably solid funding (public service), and should provide significant income assuming I work until at least age 60.  One is vested, 2nd needs 3 more years of work to vest.
3) PSLF (Public Service Loan Forgiveness).  Assuming Congress doesn't mess with it, in 4 years I'll have whatever remains on my Federal student loan forgiven.  Since I'm currently on a income-based payment plan and only paying interest, this will be substantial - around 50K!  (that will be a really good month for my NW!)

I'm getting married in 2018, so while it will be a wonderful year in some regards, it won't be the best year financially for me.  Questions:
- should I include the pensions in my NW?  If so, then I would most likely have positive NW, but I'm not sure how to calculate it...

If you quit or laid off today, do you lose the pension?   Because if you do, the answer is "No."   If yes, I can't help you with how to calculate it, google would be your friend.
One state pension is secure, in that I worked in the position for 8+ years, got vested, and it's fully mine.  The other is in the state I currently work in.  I still need 3 years to get vested and get my employer's contributions, but if I did quit or get laid off before that, I would at least get my contributions back (approx. 12K).

- should I include the fed loan that will (should) be forgiven in 2021? 

Until it's forgiven, you owe it.   So it stays in the calculation until it's gone, one way or the other.
Gotcha.  Yeah, that's certainly technically true.

Now, I have a question for you.   Why would getting married be bad for you financially?   Are you spending crazy money on the wedding?  If so, just don't! ;)   Otherwise, it should be a financial benefit, with two incomes and shared expenses.  The -being- married will be great for me - my fiance makes more than I do, has more saved, and is reasonably frugal (maybe not by MMM's high standards, but certainly by American society's).  The -getting- married part is the expensive part, at least by my standards.  It could be worse, but I figure my share will be around 10K.  Not crazy money, but definitely more than is strictly necessary.  But yeah, I truly want to marry this woman, and the wedding experience is pretty important to her, so I'm all in.  Also, for years I've been telling her, I don't want "stuff", I want experiences/memories...Time to put my money where my mouth is!  ;-)