Author Topic: Race to Positive Net Worth  (Read 14788 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

Greyweld

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Re: Race to Positive Net Worth
« Reply #109 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.
If you're torturing yourself to save money, you're just a slave to something else that you don't enjoy.
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BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #110 on: April 27, 2018, 11:49:16 AM »
Here comes April, still recovering from the weird stock market :-D

Student loan: -3,339€ at 0.75%
Bank loan: -8806€ at 3.3%
Credit Card: -355€ (paid full each period)

Investments and liquidity: 5472€
Car: 3,000€

NW: -4,028€ (Up 394€ over February)

Feels a bit like like an uphill battle right now. Double down for May!

PacificEve

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Re: Race to Positive Net Worth
« Reply #111 on: April 27, 2018, 04:59:50 PM »
I want to be in on this.  I'm scared to post my numbers because I'm ashamed but I'll get the courage soon.

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #112 on: April 28, 2018, 03:37:31 AM »
PacificEve don't be ashamed, you entered the race and that is half the way to finishing it! Everone in his/her pace, but we're getting there.

Trifele

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Re: Race to Positive Net Worth
« Reply #113 on: April 28, 2018, 06:52:40 AM »
I want to be in on this.  I'm scared to post my numbers because I'm ashamed but I'll get the courage soon.

Welcome @PacificEve !  Come on in.  Don't worry -- many of us started way in the negative.  My journey to positive was really slow, but I got there, and so will you! 

MrUpwardlyMobile

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Re: Race to Positive Net Worth
« Reply #114 on: April 28, 2018, 08:33:02 AM »
I want to be in on this.  I'm scared to post my numbers because I'm ashamed but I'll get the courage soon.

It’s a positive motivational group here.  People don’t look down on people for being broke. I used to comment that homeless people had net worths that were more than a hundred thousand dollars higher than my net worth. Eventually, things got better.  Participating in net worth threads has been awesome. I’m seeing huge growth month over month now.
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JonnyFromCanada

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Re: Race to Positive Net Worth
« Reply #115 on: April 28, 2018, 11:17:28 AM »
Okay, I was in the process of moving the US from Canada last time I posted in this thread, I had a low-wage factory job,and I was living in my buddy's condemned house. It was a weird time in my life haha. I've been living in the US for 6 months now so things are normal again. New numbers:

Canadian accounts:
Line of Credit: -$8,100 CAD (only $6100 US)(My only debt!)
RRSP: +$4,000 CAD
Chequing accounts: +$400ish.

Canadian Accounts overall: -$3,600 CAD

US Accounts:
Chequing: +$730
CD: +$760
Roth: $430
US accounts overall: +$1,930 US.

(-$3,600 CAD = -$2,802 US)

New net worth = -$872 USD


I'm moving to a new town on Sunday (tomorrow). I was stressed out about the idea of getting an auto loan for a used car, when I've been doing so well lately. It would really slow my progress down and stress me out. So, I'm just not gonna do it. There are a couple good bike stores where I'm moving, and a cycling club. I'm just gonna bike to work, and if I get sticky and sweaty, I'm just gonna live with it. I would rather bear that burden that go in debt a whopping $6000 plus having to pay gas and insurance every month.

I'm excited to update this again in a few months and move into a different thread! :)
Goals:
-Pay off LOC (Was $6,000 - now $6,000)
-Pay off auto loan (Was $8,000 - now $8,000)
-Build up US retirement fund (was $0, now $712)
-Build up emergency fund (was $0, now $845)

PacificEve

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Re: Race to Positive Net Worth
« Reply #116 on: April 30, 2018, 10:58:54 AM »
I'm at -$70,919 net worth.  No reason why it shouldn't be under $70k by my June birthday.  So I'm racing to under $70k right now.

Trifele

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Re: Race to Positive Net Worth
« Reply #117 on: April 30, 2018, 12:09:13 PM »
I'm at -$70,919 net worth.  No reason why it shouldn't be under $70k by my June birthday.  So I'm racing to under $70k right now.

Great goal, PacificEve.  Go you!

talltexan

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Re: Race to Positive Net Worth
« Reply #118 on: May 04, 2018, 08:29:45 AM »
I think this kind of forum is great for sharing personal details. PacificEve, do you think you can make a plan to turn that -$70,000 into a zero in two years?

shinn497

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Re: Race to Positive Net Worth
« Reply #119 on: May 21, 2018, 10:06:05 PM »
I'm at - 4k ish (- 6.5k + 2.5k in investments).

I think i could be positive in july!

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #120 on: May 30, 2018, 11:51:43 AM »
Update for May:

Student loan: -3,220€ at 0.75%
Bank loan: -8,557€ at 3.3% (small extra payment of 50€ incl.)

CC, Investments and liquidity: 5912€
Car: 2,900€

NW: -3,235 (Gaining almost 800€)

I like.

SeaKayEl

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Re: Race to Positive Net Worth
« Reply #121 on: June 16, 2018, 01:48:25 PM »
It appears the closest race to my current state is "Race to 10k." 

I'd like to break this down into an even smaller increment:  Race to 0. 

Here is my rough breakdown of where I am at today:

April 2017
Student Loans: -$124,000
Mortgage: -$133,000
Investments: $88,000
Net Worth: -$170,000

Question.  Shouldn't your home value be counted in this?  If your home is worth $150,000, your Net Worth would be -$20k right?

I was thinking the same thing. Assets - Liabilities. Value of house minus the mortgage owed.

Unless OP is upside down $133k on the house.

Wow, how could I have overlooked this?  I also haven't added my two cars either.  I'm such a rookie.

End of April Update (Revised):

Student Loans: -$122,551.68
Mortgage: -$133,024.59
House Value: $213,725 (Zillow Estimate)
Car 1: $7,500 (Edmunds Estimate)
Car 2: $10,300 (Edmunds Estimate)
Investments: $101,808.61

Net Worth: $77,757.34

Ummmmmmm.....
I know I just created this thread....but I can't wait to be able to graduate to the next level up!

As sometimes happens, unforeseen changes occurred in my life.  At the time I last posted, I had a partner and a house.  Currently I don’t have either...so I am back for my second go-around to $0.

Current Status
Student Loans: $92,294.60
Personal Debt (loan from family member): $1500
Retirement Investments: $17,312.07
Emergency Fund: $1,051.43
Cash (payout from house-just received): $20,306

Net worth: -$55,125.10

Great job on everyone’s progress while I have been gone!  Very motivating!

ElleFiji

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Re: Race to Positive Net Worth
« Reply #122 on: June 17, 2018, 09:32:11 AM »
@SeaKayEl

Resetting finances is hard. A massive push backwards. But you'll be a zero again in no time!

SeaKayEl

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Re: Race to Positive Net Worth
« Reply #123 on: June 20, 2018, 04:12:52 AM »
@SeaKayEl

Resetting finances is hard. A massive push backwards. But you'll be a zero again in no time!

Thanks ElleFiji—all it takes is one step at a time

shinn497

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Re: Race to Positive Net Worth
« Reply #124 on: June 29, 2018, 01:44:54 AM »
I'm at - 4k ish (- 6.5k + 2.5k in investments).

I think i could be positive in july!

Ayo its nearly july but that direct deposit just hit (yeah I stayed up for it).

As of it I am EVER so close.

investments: 2550

Student Loans: 1900
Medic debt: 750
Cable bill debt: 90

Net: - 190

ALMOST THERE

Technically I am net worth positive because of cash, but I run a zero based budget so I am not counting that since it is all going to be gone this month.

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #125 on: June 29, 2018, 10:59:32 AM »
Nice shinn, next month probably!

I made a huge jump thanks to my investments. I plan on cashing most of it out during July, I already converted some gains to cash. Here it goes:

Update for June:

Student loan: -3,102€ at 0.75%
Bank loan: -8,199€ at 3.3% (major extra payment)

CC, Investments and liquidity: 7,713€
Car: 2,800€

NW: -788€ (Gaining around 2,500€!)

Wow. I Never thought I would see 3 digits that soon. That is 148% of my target increase for September already :-) I did not plan further because of job change at that time point. Up Up!

Trifele

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Re: Race to Positive Net Worth
« Reply #126 on: June 29, 2018, 03:02:56 PM »
Wow @shinn497 and @BobTheBuilder  -- you are almost there!!  [cheering wildly from the sideline!]

What's next for the two of you?  The Race to $10k thread?  Lots of nice people there.

shinn497

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Re: Race to Positive Net Worth
« Reply #127 on: June 29, 2018, 03:15:40 PM »
I have a couple milestones 25k net worth next year. Then 65 after that then 100k and onto a MILLLION . I have a spreadsheet with plans.

Also doubling down on work to increase my salary so I can save moar. And oyu know japan and anime conventions and stuff.

BobTheBuilder

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Re: Race to Positive Net Worth
« Reply #128 on: June 30, 2018, 02:35:49 AM »
Yes, race to 10k will be the next step.

In the best case scenario, I will be looking at several hundreds to 1k more after taxes after October. My preference is on not moving, since we rent quite cheaply here, and work much closer to home. In that case, 10k is doable in 2019! More detailled, that would be upping the EF, automating the increased pay down on the bank loan and filling investment accounts with MSCI World for a while.

SeaKayEl

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Race to Positive Net Worth
« Reply #129 on: July 06, 2018, 10:44:56 AM »
June:
Student Loans: $92,294.60
Personal Debt (loan from family member): $1500
Retirement Investments: $17,312.07
Emergency Fund: $1,051.43
Cash (payout from house-just received): $20,306

Net worth: -$55,125.10



CURRENT STATUS:
Student Loans: $91,510.90
Personal Debt (loan from family member): $1,250
Retirement Investment: $18,026.52
Taxable Investment: $20,625.42
Emergency Fund: $1,302.65

Net worth: -$52,806.31
« Last Edit: July 06, 2018, 10:46:52 AM by SeaKayEl »

SeaKayEl

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Re: Race to Positive Net Worth
« Reply #130 on: July 21, 2018, 02:16:00 PM »
Thanks to Manchester from the "Saving to 10K" thread, I have charted out my progress.