Author Topic: Race to Positive Net Worth  (Read 10729 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.
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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!  ;-)

Trifele

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Re: Race to Positive Net Worth
« Reply #106 on: January 27, 2018, 06:11:33 AM »
@EarlyInJourney -- No need for a wedding to be expensive. There are several threads about throwing a mustachian wedding on the forum if you want to read up about it.  You can elope of course, but it is also totally possible to have a beautiful and meaningful day for a crowd on the cheap.  Of course, you first have to get your SO on board.  :)

It's been a while since I stopped by this thread, but just want to say -- well done everyone!  I'm an alum of the starting-deep-in-debt class, and I can say from experience that getting to zero is huge.  You can do it!

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #107 on: February 27, 2018, 03:42:59 AM »
First two month of 2018 were challenging. Car insurance up front and bleeding from 1000 small cuts. Emergency budget is now in place to keep the cash flow positive. Still money in the emergency fund, but that number needs to go up again. Need to replace expensive computer parts for my Ph.D. and the washing machine might give out soon. Major car mainenance due in March. Hiccup in taxes let to me receiving 200€ less after taxes in Jan and Feb which will return to me only next year after filing... Hoping for a non-catastrophic March and planning for the worst.

On the bright side, I received my first dividends of 17.50€ :-D

Student loan: -3,575€ at 0.75%
Bank loan: -9,202€ at 3.3%
Credit Card: -309€ (paid full each period)

Investments and liquidity: 5401€
Car: 3,200€

NW: -4,483€ (Up 1€ over December...)

How are you guys doing?

Optimiser

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Re: Race to Positive Net Worth
« Reply #108 on: March 05, 2018, 02:38:12 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
Jan 2018: -28,300
Feb 2018: -24,300

nairnejay

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Re: Race to Positive Net Worth
« Reply #109 on: March 06, 2018, 10:06:57 PM »
Hello, I hope I can join in!

I can't wait to start on my savings goals, but first I need to pay off debt.
I'm happy with just getting into positive net worth territory.

Things are a bit of a mess at the moment.
We got a huge tax bill recently. The problem is, we own shares in DH's business (he has two other business partners), which makes our dividends for last financial year appx $40k.
Too bad, we don't get all of it paid out. A couple of thousand K maybe, the rest is owed to us but tied up in inventory.
I'm sure we'll get it at some point... in the meantime however, things are tight, and the ATO want $9000. Plus, we now 'qualify' to pay tax in advance (PAYG). Double whammy.

So here's the numbers:
DH's business loan -$6150 (13.9%)
My car loan - $9900 (15.9%)
Tax Bill - $9333 (8%)
Savings: $0 (just used up EF for car repairs and electricity bill)

Eventually I'll need to pay $2500/quarter once they send me a due date.

Net Worth: -$25,383

I just started a part time job to help*. Debt repayments are at minimum now.
I will be focusing on rebuilding an Emergency Fund, and saving for the Pay As You Go tax.

*I'm a mum of 3, with two at school and one toddler. She's at childcare the two days that I work.

We're pretty much on a rice and beans budget now. (Good thing DH has been vegetarian for 40 years...)

« Last Edit: March 06, 2018, 10:08:31 PM by nairnejay »

Greyweld

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Re: Race to Positive Net Worth
« Reply #110 on: March 08, 2018, 06:50:18 PM »
I'll join in.

Car 1: $12,991.96
Car 2: $35,737.00 <-- Trying to convince the husband to sell this
Mortgage: $155,560.00
Investments: ~$38,000 at last check

Total: -$166288.96

I'm aggressively paying these off. Currently ~T-18 months until we're at positive investments-debts, ~T-24 until we're debt free. Faster if SO will get rid of Car2.
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nairnejay

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Re: Race to Positive Net Worth
« Reply #111 on: March 20, 2018, 04:23:53 PM »
I've had a couple of small wins.

- The ATO tax bill accepted a payment plan, and it is interest free! I don't know why they aren't charging 8%, but that's good for me. I've set it to the minimum possible payment per week. Now I can focus on the interest-generating debts.
- I was also able to set the PAYG tax to $0. I don't know if I'll have a tax bill again at the end of this financial year*, and it's possible that even if I do, I'll get some of the dividends owed to me which will cover it.

*I earn under the tax-free threshold, it's just the business dividends that push me into income-tax-paying territory. It also depends on whether the business has a good year or not...

I've paid the 10% deposit on the tax bill, and next step is to save $1k emergency fund, then pay down other debts.

Here's the numbers:
DH's business loan -$6050 (13.9%)
My car loan -$9900 (15.9%)
Tax Bill -$8400 (0%)
Savings: $0

Net worth: -$24,350
« Last Edit: March 20, 2018, 04:26:07 PM by nairnejay »