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General Discussion => Throw Down the Gauntlet => Topic started by: frugalecon on July 28, 2018, 08:09:24 PM

Title: Defeat the Net Debt
Post by: frugalecon on July 28, 2018, 08:09:24 PM
Goal: knock debts down below taxable.

Debts:

Mortgage (15 yr, 3.125%): $231,802.02

Auto loan (4 yr, 0%): $16,490.78

Total:$248,292.80

Taxable:

Brokerage: $103,776.36
Emerg Fund: $40,853.77

Total: $144,629.13

Net:($103,663.67)

Go!
Title: Re: Defeat the Delta
Post by: tomorrowsomewherenew on July 29, 2018, 06:54:12 AM
This one sounds interesting to me.

Taxable: $158,129.18
Mortgage & car debt: $233,840.26

Net: $-75,711.08

I'm interested to see how long this takes.
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 02, 2018, 03:15:40 AM
Total Debt: $242,395.85

Total Taxable: $145,732.19

Net: ($96,663.66)
Title: Re: Defeat the Net Debt
Post by: Morning Glory on August 02, 2018, 03:28:14 AM
Yikes, this one could take a while:
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
Title: Re: Defeat the Net Debt
Post by: boarder42 on August 02, 2018, 04:36:31 AM
I assume you're attacking this the most efficient way by funding the taxable account and not paying down the debt
Title: Re: Defeat the Net Debt
Post by: talltexan on August 02, 2018, 07:48:59 AM
Good luck lapping your debt, guys!

Title: Re: Defeat the Net Debt
Post by: RWD on August 02, 2018, 08:31:06 AM
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.
Title: Re: Defeat the Net Debt
Post by: boarder42 on August 02, 2018, 08:46:39 AM
i'll join i plan to get there by investing not paying down my debt though its defeat the net debt right.

taxable is 55k

Mortgage is (339k)

net (284k)
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 02, 2018, 09:06:39 AM
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!
Title: Re: Defeat the Net Debt
Post by: boarder42 on August 02, 2018, 09:07:35 AM
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!

i dont think anyone here has advocated for defaulting on debt.
Title: Re: Defeat the Net Debt
Post by: RWD on August 02, 2018, 09:10:53 AM
Definitely a fun goal, I'll officially join too. Shouldn't take more than a year to be positive. In theory with normal market returns we could be positive in half a year.

Mortgage: $163k
Porsche: $42k

Total debt: $205k

Vanguard brokerage: $168k

Net: ($37k)
Title: Re: Defeat the Net Debt
Post by: RWD on August 02, 2018, 09:14:10 AM
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!

Thanks for the clarification and sorry for jumping to conclusions. Our car loan is at 1.69%, which is already practically free money!
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on August 02, 2018, 09:51:05 AM
Almost all our savings is in tax-advantaged accounts, so our case isn't terribly interesting.

Mortgage: ~$64k
After-tax: ~$62k

Net: -$2k
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 02, 2018, 10:14:30 AM
Almost all our savings is in tax-advantaged accounts, so our case isn't terribly interesting.

Mortgage: ~$64k
After-tax: ~$62k

Net: -$2k

Yes, the bulk of my assets are also in tax advantaged, but I posted this to track difference between debts and liquid assets that are readily available to service them. I sort of view the taxable portfolio as a "sinking fund" that could be used to retire debt, but until it exceeds the value of the debt, actually doing so would lead to a loss of liquidity and potentially greater investment returns. And once it does exceed...well, actually paying off the debt would lead to a loss of liquidity and potentially greater investment returns. In truth, I might just be a weirdo who likes to track things.
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on August 02, 2018, 10:34:46 AM
In truth, I might just be a weirdo who likes to track things.

Yes, I think so.  :)

But even to those for whom (certain) debt is viewed as a tool to grow wealth, the presence of enough liquidity to...liquidate debt is probably a comfort -- a hedge against a change in circumstances that would make holding debt less desirable.
Title: Re: Defeat the Net Debt
Post by: sisto on August 02, 2018, 10:47:16 AM
This looks like a fun one to get in on. Most of my accounts are tax advantaged.

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.
Title: Re: Defeat the Net Debt
Post by: talltexan on August 03, 2018, 08:55:12 AM
Maybe I don't want to move the goal-post here, but I'm thinking you don't want balances to offset, you actually want cash flow. So you win this game when 4% of your net assets would be enough to keep your debts current for the year?
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 03, 2018, 03:35:26 PM
Total Debt: $242,395.85

Total Taxable: $145,732.19

Net: ($96,663.66)

Whoops, meant to quote, not edit.
Title: Re: Defeat the Net Debt
Post by: tomorrowsomewherenew on September 04, 2018, 12:59:30 PM
7/29:

Taxable: $158,129.18
Mortgage & car debt: $233,840.26
Net: $-75,711.08

9/4:

Taxable: 165,312.77
Mortgage: 232,287.12 (Car is now paid off).
Net: $-66,974.35

Title: Re: Defeat the Net Debt
Post by: RWD on September 05, 2018, 07:23:47 AM
Mortgage: $162k
Porsche: $41k
Total debt: $203k

Vanguard brokerage: $167k

[9/4/2018] Net: ($36k)

[8/2/2018] Net: ($37k)
Title: Re: Defeat the Net Debt
Post by: RWD on September 05, 2018, 08:14:51 AM
(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.
Title: Re: Defeat the Net Debt
Post by: RWD on September 05, 2018, 08:39:35 AM
(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.

Hmm, true. I guess I just view credit card balance as a temporary offset against checking/savings while the mortgage and car loan are ongoing (and actually costing interest). To be completely accurate you would want to include both credit cards and checking/savings in the calculation.
Title: Re: Defeat the Net Debt
Post by: RWD on October 01, 2018, 07:58:47 PM
Mortgage: $162k
Porsche: $40k
Total debt: $202k

Vanguard brokerage: $181k

[10/1/2018] Net: ($21k)
[9/4/2018] Net: ($36k)
[8/2/2018] Net: ($37k)
Title: Re: Defeat the Net Debt
Post by: SwordGuy on October 02, 2018, 02:41:45 PM
This is a MUCH SAFER approach to killing mortgage debt than paying down the mortgage quickly.     Bravo to you all!
Title: Re: Defeat the Net Debt
Post by: terrifictim on October 02, 2018, 04:16:56 PM
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
Title: Re: Defeat the Net Debt
Post by: YevKassem on October 03, 2018, 10:15:54 AM
Putting it in writing for motivation:

Taxable:  $35K
Mortgage:  $171K
Car:  $12K
Net:  $148K

11/6/18
Taxable:  $38K
Mortgage:  $170K
Car:  $11K
Net:  $143K

12/4/18
Taxable:  $41K
Mortgage:  $169K
Car:  $11K
Net:  $139K

1/10/19
Taxable:  $43K
Mortgage:  $168K
Car:  $10K
Net:  $135K

2/7/19
Taxable:  $48K
Mortgage:  $166K
Car:  $9K
Net:  $127K

3/7/19
Taxable:  $57K
Mortgage:  $164K
Car:  $9K
Net:  $116K

4/11/19
Taxable:  $59K
Mortgage:  $162K
Car:  $8K
Net:  $111K

5/4/19
Taxable:  $61K
Mortgage:  $161K
Car:  $8K
Net:  $108K

9/9/19
Taxable:  $80K
Mortgage:  $154K
Car:  $6K
Net:  $80K

10/22/19
Taxable:  $87K
Mortgage:  $152K
Car:  $5K
Net:  $70K

12/5/19
Taxable:  $91K
Mortgage:  $150K
Car:  $4K
Net:  $63K

1/9/20
Taxable:  $96K
Mortgage:  $148K
Car:  $3K
Net:  $55K

4/7/20
Taxable:  $105K
Mortgage:  $143K
Car:  $2K
Net:  $40K

5/7/20
Taxable:  $96K
Mortgage:  $128K
Net:  $32K                      Car is paid off!

6/3/20
Taxable:  $93K
Mortgage:  $123K
Net:  $30K         

7/6/20
Taxable:  $69K
Mortgage:  $86K
Net:  $17K

8/4/20
Taxable:  $47K
Mortgage:  $54K
Net:  $7K

9/3/20
Taxable:  $50K
Mortgage:  $51K
Net:  $1K

10/6/20
Taxable:  $46K
Mortgage:  $38K
Net:  $8K

DONE!!!
Title: Re: Defeat the Net Debt
Post by: tomorrowsomewherenew on October 04, 2018, 06:19:34 AM
10/4:

Taxable: $172,841.58
Mortgage: 231,841.91
Net: $-59,000.33

9/4:

Taxable: 165,312.77
Mortgage: 232,287.12 (Car is now paid off).
Net: $-66,974.35

7/29:

Taxable: $158,129.18
Mortgage & car debt: $233,840.26
Net: $-75,711.08

Title: Re: Defeat the Net Debt
Post by: Bird In Hand on October 04, 2018, 07:39:39 AM
Mortgage: ~$64k
After-tax: ~$62k
Net: -$2k

Mortgage: ~$58k
After-tax: ~$61k
Net: $3k

Net Debt defeated, I guess?
Title: Re: Defeat the Net Debt
Post by: DS on October 04, 2018, 07:58:50 AM
Mortgage: ~$64k
After-tax: ~$62k
Net: -$2k

Mortgage: ~$58k
After-tax: ~$61k
Net: $3k

Net Debt defeated, I guess?

Time to get more debt! :P
Title: Re: Defeat the Net Debt
Post by: Kierun on October 16, 2018, 02:35:53 PM
This might be awhile...

As of today
Mortgage: ~400k
Mortgage: ~359k

Taxable: ~121k

Net: ~(638k)
Title: Re: Defeat the Net Debt
Post by: SwordGuy on October 17, 2018, 10:02:42 PM
This might be awhile...

As of today
Mortgage: ~400k
Mortgage: ~359k

Taxable: ~121k

Net: ~(638k)


One of these is an income producing property?  If so (and assuming it's making a profit including costs for future repairs and vacancies), I would ignore that mortgage for this calculation.

Focus on getting non-income producing debt gone.   The profit-making property will take care of itself.
Title: Re: Defeat the Net Debt
Post by: Kierun on October 18, 2018, 10:34:13 AM
You make a good point there SG, but I think I'd prefer to keep the investment property on the target list for the challenge of it. 
Title: Re: Defeat the Net Debt
Post by: diapasoun on October 18, 2018, 11:06:48 AM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on October 19, 2018, 05:27:37 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.

As the OP on this thread, I will just say that it sounds like you are doing a lot of things right, my friend.
Title: Re: Defeat the Net Debt
Post by: diapasoun on October 20, 2018, 11:41:54 AM
Thank you for the kind words. I figure that putting myself in a stretch goal like this thread is how I get to bigger peanut stage! ;)
Title: Re: Defeat the Net Debt
Post by: simplyjay on October 21, 2018, 06:49:00 PM
10-21-2018

Mortgage on triplex =$268,038.46

Goal= Debt Free and 1.5-2k Net cashflow from this property. i have 5 years to do this! let the race begin! cheers to everyone here!
Title: Re: Defeat the Net Debt
Post by: frugalecon on November 01, 2018, 04:22:47 PM
Total Debt: $235,974
Taxable Assets: $145,437

Net Debt:

[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)

Note: Edited to adopt superior format of @RWD

Title: Re: Defeat the Net Debt
Post by: RWD on November 01, 2018, 04:31:13 PM
Mortgage: $161k
Porsche: $39k
Total debt: $200k

Vanguard brokerage: $169k

[11/1/2018] Net: ($31k)
[10/1/2018] Net: ($21k)
[9/4/2018] Net: ($36k)
[8/2/2018] Net: ($37k)
Title: Re: Defeat the Net Debt
Post by: frugalecon on November 30, 2018, 06:10:18 PM

Total Debt: $235,474
Taxable Assets: $151,890

Net Debt:

[11.30.2018] ($83,584)
[11.01.2018] ($90,537)
[09.03.2018] ($96,664)
[07.28.2018] ($103,664)
Title: Re: Defeat the Net Debt
Post by: talltexan on December 03, 2018, 12:15:16 PM
I happened to notice that my mortgage balance is now more than 90% of my total debt, another milestone for the people here to push toward.
Title: Re: Defeat the Net Debt
Post by: frugalecon on December 03, 2018, 03:54:26 PM

Total Debt: $232751
Taxable Assets: $152,160

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on December 04, 2018, 08:45:07 AM
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
Title: Re: Defeat the Net Debt
Post by: frugalecon on December 04, 2018, 09:10:27 AM
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

Welcome to the tracking club! I like your login name; I am in the Slow & Steady camp of wealth building as well.
Title: Re: Defeat the Net Debt
Post by: RWD on December 04, 2018, 07:48:36 PM
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.
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on December 04, 2018, 09:59:20 PM
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
Title: Re: Defeat the Net Debt
Post by: RWD on December 05, 2018, 07:35:34 AM
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

Haha, right? I've been making contributions to my taxable brokerage account on a quarterly basis, that's why September was so good. In January those funds will go to our Roth IRAs instead. I figured 6 months of average growth ($8k) plus 6 payments per loan ($11k) plus one quarterly brokerage addition in March/April ($11k) should put us over.
Title: Re: Defeat the Net Debt
Post by: Kierun on December 11, 2018, 02:17:46 PM
Mortgage: ~396k
Mortgage: ~358k

Taxable: ~117k

Net: ~(637k)
Title: Re: Defeat the Net Debt
Post by: talltexan on December 18, 2018, 07:04:43 AM
That's. a lot of mortgage. GL!
Title: Re: Defeat the Net Debt
Post by: frugalecon on January 03, 2019, 05:51:41 AM
Total Debt: $229,522
Taxable Assets: $152,523

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on January 03, 2019, 07:52:45 AM
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

Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812 This went the wrong direction, mostly due to the market (investments are down $8K).
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on January 04, 2019, 07:00:17 AM
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k

Net Debt defeated, I guess?

Mortgage: ~$51k
After-tax: ~$48k
Net: -$3k

Back in the red.  Shifted some after-tax to Roth near the end of the year, had some holiday spending, and of course the markets weren't very helpful.  We might try to fund Roth early this year, so we could be in the red for a while longer.
Title: Re: Defeat the Net Debt
Post by: Rimu05 on January 04, 2019, 08:20:29 AM
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.
Title: Re: Defeat the Net Debt
Post by: Mississippi Mudstache on January 04, 2019, 08:42:52 AM
This seems like as good a New Year's Resolution as any, so sure, I'm in. I'll try to get to zero net debt (including only investments, excluding cash and home equity) by year's end.

Loans
Mortgage: $236K
Auto: $6.5K

Investments
$200K

Difference
$43K

By the end of this year, my mortgage will be down to $226K and my auto loan down to $3.8K, which means I need to increase my investment accounts by $29.3K to cover the difference. I'm already set up to invest $26.4 in my 401K automatically, which calls for only $3K in my IRAs assuming 0% investment returns. Eminently achievable. Of course, if the market keeps heading south, I'll have to invest more aggressively to make up the difference.
Title: Re: Defeat the Net Debt
Post by: RWD on January 04, 2019, 10:13:23 AM
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.

I think you misunderstood the purpose of this thread. It's about having more in investments than total debt, not about eliminating debt (at least not directly), and you didn't list any investment balances at all. Depending on the interest rates of your car and student loans it may make more sense to invest instead (see investment order post (https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153)).
Title: Re: Defeat the Net Debt
Post by: RWD on January 04, 2019, 07:12:29 PM
Mortgage: $159k
Porsche: $37k
Total debt: $196k

Vanguard brokerage: $165k

[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)

Hmm, not quite the right direction last month...
Title: Re: Defeat the Net Debt
Post by: talltexan on January 10, 2019, 09:25:19 AM
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.
Title: Re: Defeat the Net Debt
Post by: RWD on January 10, 2019, 10:28:42 AM
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!
Title: Re: Defeat the Net Debt
Post by: talltexan on January 11, 2019, 09:06:31 AM
The Top Is In thread has correctly predicted 9 out of the last 4 market pullbacks.
Title: Re: Defeat the Net Debt
Post by: frugalecon on January 11, 2019, 10:53:04 AM
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!

Yoda once said, ďThe Road of Net Debt a straight line is not, Padawan.Ē
Title: Re: Defeat the Net Debt
Post by: Kierun on January 15, 2019, 04:58:57 PM
Mortgage: ~396k
Mortgage: ~358k

Taxable: ~117k

Net: ~(637k)
Mortgage: ~395k
Mortgage: ~357k

Taxable: ~110k

Net: ~(642k)  :(
Title: Re: Defeat the Net Debt
Post by: sisto on January 17, 2019, 09:50:17 AM
This looks like a fun one to get in on. Most of my accounts are tax advantaged.

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.
Seems like a good time for an update

Mortgage $165K
Auto 0%  $26.35K
Total        $191.35K

Taxable    $174K

Net         -$17.35K

Not too bad, closing the gap nicely considering the market was terrible for a bit there and I'm still down YOY.
Title: Re: Defeat the Net Debt
Post by: diapasoun on January 17, 2019, 10:34:08 AM
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.

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

Title: Re: Defeat the Net Debt
Post by: sisto on January 17, 2019, 10:40:22 AM
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.
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.
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
Title: Re: Defeat the Net Debt
Post by: diapasoun on January 17, 2019, 12:26:02 PM
@sisto My debt is student loan debt and overall is low-interest; there are a few individual loans that are 6.8%. I pay a little bit extra monthly on those loans already, and if I have extra leftover after filling out tax-advantaged accounts, there's a strong likelihood I'll split that money between taxable investments and the particular loans that are close in interest to a 7% expected return.
Title: Re: Defeat the Net Debt
Post by: therethere on January 17, 2019, 12:34:45 PM
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.

Title: Re: Defeat the Net Debt
Post by: diapasoun on January 17, 2019, 01:22:57 PM
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.

I haven't refinanced so far because for many years, my overall loan rate was low enough that consolidation+refinancing (especially when I didn't have stable employment) wasn't worth it; I've never been on an IBR but when I was working the unstable contracting life, I wanted it available. Overall low rate that would be hard to lower + wanting IBR availability made it not the best option.

That being said, I'm currently in a pretty stable job and recent economic shenanigans mean that one of my loans was bought and sold (and had the interest jacked up), so I'm looking into Earnest now. :) Looks like they like my credit enough to give me under 4%, which isn't so shabby at all.
Title: Re: Defeat the Net Debt
Post by: therethere on January 17, 2019, 01:32:48 PM
Also, no need to refinance all of it. Just the higher interest ones. And you can continue to refinance later with different (or the same) companies if you get better rates or referral bonuses are worth it. I refinanced one loan to Earnest, then did it again a year later (still with Earnest) to get a lower rate.
Title: Re: Defeat the Net Debt
Post by: sisto on January 18, 2019, 12:41:52 PM
@diapasoun Sounds like you have it under control. If it were me, I'd probably kill all of the debt over 5% ASAP, but that's just me. Way to go having a solid strategy.
Title: Re: Defeat the Net Debt
Post by: diapasoun on January 18, 2019, 12:45:55 PM
@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.)
Title: Re: Defeat the Net Debt
Post by: Dicey on January 19, 2019, 10:08:52 AM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on January 20, 2019, 06:36:28 AM
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.

Thanks, @Dicey! I am really just a weirdo who likes to track things!
Title: Re: Defeat the Net Debt
Post by: sisto on January 22, 2019, 09:57:09 AM
@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!!!
Title: Re: Defeat the Net Debt
Post by: Arbitrage on January 22, 2019, 02:29:04 PM
Don't think I'll be finishing this race until we sell the house/move; most of our investments are in tax-advantaged accounts.  Could be wrong, though I'm actually scaling back our taxable investing further this year due to an opportunity to fund a Mega Backdoor Roth IRA and HSA for the first time.

Mortgage: $(397.4k)
Student Loan: $(33k)
Taxable: $140.2k

Net: $(290.2k)
Title: Re: Defeat the Net Debt
Post by: RWD on February 01, 2019, 05:42:54 PM
Mortgage: $158k
Porsche: $36k
Total debt: $194k

Vanguard brokerage: $177k

[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)

Yay stock market! I also had some money leftover after fully funding our Roth IRAs so I tossed $4k into the taxable account last month. So the breakdown is $2k in principal decrease, $4k in taxable contributions, and a whopping $11k in stock market growth.
Title: Re: Defeat the Net Debt
Post by: frugalecon on February 02, 2019, 03:59:59 AM
Total Debt: $226,285
Taxable Assets: $158,220

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: RWD on February 03, 2019, 09:23:49 PM
Just found this thread, but I realized today that Iíve hit this number. Or very close to it. By Friday Iíll 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.

This thread is for comparing to taxable accounts. In other words, reaching the point where you could pay off your debts at any time without touching tax sheltered accounts or selling the underlying asset(s). You're free to measure whatever you want, just be aware you're playing a different game than the others in this thread.
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on February 03, 2019, 10:18:43 PM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Title: Re: Defeat the Net Debt
Post by: Morning Glory on February 04, 2019, 02:43:03 AM
Yikes, this one could take a while:
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
Mortgage: -211,575
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.
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on February 04, 2019, 06:54:45 AM
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

Current Debt: 188,004
Current Rental Debt: 125,881 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 114,151

Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812 This went the wrong direction, mostly due to the market.
02/04/2019: 199,734

This update is much more fun to make than the Jan update was.  I am also starting to realize that by the time we get to the point that all of our tax advantaged accounts are fully utilized and we start putting money into taxable investments the debt total will be very small and easy to over come!
Title: Re: Defeat the Net Debt
Post by: Kierun on February 12, 2019, 10:32:49 AM
Mortgage: ~395k
Mortgage: ~357k

Taxable: ~110k

Net: ~(642k)  :(
Mortgage: ~394k
Mortgage: ~356k

Taxable: ~114k

Net: ~(636k)
Title: Re: Defeat the Net Debt
Post by: ardrum on February 12, 2019, 05:38:31 PM
I will be playing a low-scoring game:

Debt: ($9,667)
Taxable: 0
Title: Re: Defeat the Net Debt
Post by: achvfi on February 12, 2019, 09:32:17 PM
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 Feb = 97000

Title: Re: Defeat the Net Debt
Post by: ItsALongStory on February 12, 2019, 10:25:54 PM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

Title: Re: Defeat the Net Debt
Post by: HBFIRE on February 13, 2019, 12:30:43 AM
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

Total (-560 K)

I have work to do.

edit:  Another way to think about it might be how much in taxable investments I need to cover my rent assuming a 4% WR (essentially enough investments to "buy out" my rent with approx inflation already calculated).  In this case, rent is 2600 * 12 = $31,200 * 25 = 780 K.  So I am @ approximately (-340 K) on this front.
Title: Re: Defeat the Net Debt
Post by: talltexan on February 14, 2019, 08:48:08 AM
dustin, I do think that's a good way to think about it. Now go ramp up some assets to help land that big house!
Title: Re: Defeat the Net Debt
Post by: Mississippi Mudstache on February 15, 2019, 10:01:13 AM
Investments: $210K
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 :(
Title: Re: Defeat the Net Debt
Post by: Dicey on February 15, 2019, 05:15:47 PM
Investments: $210K
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 :(
Ouch! Hopefully it's short term pain for long term gain.
Title: Re: Defeat the Net Debt
Post by: Mississippi Mudstache on March 01, 2019, 09:22:10 AM
$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.

Yeah, I was never going back to work for that employer, so there was no point in keeping the $8,000 that I didn't actually own reflected in my net worth. The new 401k has lower fees, so I'm coming out ahead by moving the money over.

Might as well go ahead and update now that my March mortgage payment has posted:

Investments: $216K
Mortgage: -$234K
Auto: -$6.3K

Net Debt

04 JAN 2019: -$43K
15 FEB 2019: -$31K
01 MAR 2019: -$24K

Onward and upward!
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on March 01, 2019, 01:38:32 PM
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

Current Debt: 184,669
Current Rental Debt: 123,999 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 120,300

Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812
02/04/2019: 199,734
03/04/2019: 188,368
Title: Re: Defeat the Net Debt
Post by: RWD on March 01, 2019, 04:56:09 PM
Mortgage: $157k
Porsche: $35k
Total debt: $192k

Vanguard brokerage: $182k

[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)

Assuming the stock market doesn't drop again our net debt should be defeated next month!
Title: Re: Defeat the Net Debt
Post by: achvfi on March 01, 2019, 06:59:50 PM
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)

Month     ->  Mortgage - Taxable - EF  = NET
2019 Feb -> 111616 - 3500 - 13134 = (94982)
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 02, 2019, 05:09:34 AM
Total Debt: $223,183
Taxable Assets: $160,413

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on March 02, 2019, 08:14:12 AM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

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)


Sent from my Pixel 2 XL using Tapatalk
Title: Re: Defeat the Net Debt
Post by: Kierun on March 08, 2019, 09:45:04 AM
Mortgage: ~394k
Mortgage: ~356k

Taxable: ~114k

Net: ~(636k)
Mortgage: ~392k
Mortgage: ~356k

Taxable: ~116k

Net: ~(632k)
Title: Re: Defeat the Net Debt
Post by: RWD on March 23, 2019, 10:45:25 AM
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!
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 23, 2019, 05:41:47 PM
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!
Title: Re: Defeat the Net Debt
Post by: diapasoun on March 23, 2019, 08:01:21 PM
CONGRATS!!!!
Title: Re: Defeat the Net Debt
Post by: RWD on March 23, 2019, 09:59:48 PM
Awesome RWD! Congratulations!
CONGRATS!!!!

Thanks!
Title: Re: Defeat the Net Debt
Post by: achvfi on March 25, 2019, 10:15:29 PM
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)


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 4134 - 13854 = (93628)
Title: Re: Defeat the Net Debt
Post by: Kierun on March 26, 2019, 11:46:52 AM
Congratulations RWD, so what's the next challenge for you?  The race to 1M?
Title: Re: Defeat the Net Debt
Post by: RWD on March 26, 2019, 11:51:38 AM
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.
Title: Re: Defeat the Net Debt
Post by: paulkots on April 01, 2019, 07:52:55 AM
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
Title: Re: Defeat the Net Debt
Post by: Arbitrage on April 01, 2019, 08:21:08 AM
Don't think I'll be finishing this race until we sell the house/move; most of our investments are in tax-advantaged accounts.  Could be wrong, though I'm actually scaling back our taxable investing further this year due to an opportunity to fund a Mega Backdoor Roth IRA and HSA for the first time.

Mortgage: $(393.8k)
Student Loan: $(32.6k)
Taxable: $148k

Net: $(278.4k)

Started late January 2019 at ($290.2k)
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on April 01, 2019, 01:46:01 PM
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

Current Debt: 183,575
Current Rental Debt: 119,425 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 124,179

Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812
02/04/2019: 199,734
03/04/2019: 188,368
04/01/2019: 178,821

I love seeing these ~$10k jumps in the right direction.  I doubt it will continue being such a big jump but it is a good mood boost during this slower early phase.
Title: Re: Defeat the Net Debt
Post by: terrifictim on April 01, 2019, 03:41:32 PM
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
Title: Re: Defeat the Net Debt
Post by: frugalecon on April 03, 2019, 03:30:49 AM

Total Debt: $220,083
Taxable Assets: $161,803

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: achvfi on April 03, 2019, 09:47:34 AM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
Title: Re: Defeat the Net Debt
Post by: Morning Glory on April 07, 2019, 08:13:32 AM
Yikes, this one could take a while:
Mortgage: -216,524 (30 yr at 3.75%)
Taxable: 113,056
Net debt equals -103,468
Mortgage: -211,575
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.

Mortgage: 210,176
Taxable: 123,907
Net Debt: 86,269
Finally under 100k!!!!!
Title: Re: Defeat the Net Debt
Post by: Mississippi Mudstache on April 08, 2019, 07:26:30 AM
April update:

Investments: $231.2K
Mortgage: -$234.0K
Auto: -$5.8K

Net Debt

04 JAN 2019: -$43K
15 FEB 2019: -$31K
01 MAR 2019: -$24K
08 APR 2019: -$8.6K

Clearly the investments are doing the heavy lifting in this equation.
Title: Re: Defeat the Net Debt
Post by: talltexan on April 08, 2019, 12:03:08 PM
I'm actually keeping some debt on the books right now, using savings to pay medical bills (which I can reimburse from a health savings account in the future) rather than pay down that debt. Perhaps I ought to include my HSA balance in my "net debt" numbers...
Title: Re: Defeat the Net Debt
Post by: Kierun on April 09, 2019, 04:11:26 PM
10/18 - ~(638k)
11/18 - ~(637k)
12/18 - ~(637k)
1/19 - ~(642k)
2/19 - ~(636k)
3/19 -
Mortgage: ~392k
Mortgage: ~356k

Taxable: ~116k

Net: ~(632k)
Mortgage: ~391k
Mortgage: ~356k

Taxable: ~121k

Net: ~(626k)
Title: Re: Defeat the Net Debt
Post by: sisto on April 09, 2019, 04:15:03 PM
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.
Title: Re: Defeat the Net Debt
Post by: Kierun on April 09, 2019, 04:40:43 PM
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.
Title: Re: Defeat the Net Debt
Post by: Gail2000 on April 09, 2019, 07:23:47 PM
-33500 As of today 4-9-2019.

Looks like everyone is doing amazing! Aiming for 20 months for net zero. Here goes!
Title: Re: Defeat the Net Debt
Post by: RWD on April 09, 2019, 08:10:48 PM
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!
Title: Re: Defeat the Net Debt
Post by: sisto on April 10, 2019, 01:40:37 PM
Thanks @Kierun and @RWD it's funny how these little milestones help keep us motivated and on the right track. It's nice to achieve goals along the way. Also super close to hitting $1M liquid assets soon too, been chasing that one for some time now. Came so very close at the end of last year before the market turned. This year has had many challenges, but almost there again. It will happen any day now.
Title: Re: Defeat the Net Debt
Post by: Kierun on April 10, 2019, 02:01:59 PM
That's awesome Sisto, I'm still only halfway to the $1M liquid assets, but will likely hit that goal before I defeat this net debt.
Title: Re: Defeat the Net Debt
Post by: sisto on April 11, 2019, 09:50:28 AM
@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.
Title: Re: Defeat the Net Debt
Post by: Kierun on April 11, 2019, 11:30:20 AM
@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.
Title: Re: Defeat the Net Debt
Post by: achvfi on April 30, 2019, 03:05:07 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on April 30, 2019, 03:19:44 PM
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

Current Debt: 182,428
Current Rental Debt: 114,160 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 130,479


Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812
02/04/2019: 199,734
03/04/2019: 188,368
04/01/2019: 178,821
05/01/2019: 166,109

Another $10k+ difference and I will take it.
Title: Re: Defeat the Net Debt
Post by: frugalecon on May 03, 2019, 06:21:51 PM
Total Debt: $216,983
Taxable Assets: $159,983

Net Debt:

[5.03.2019] ($57,000) (Steeling myself for having to tap taxable for some expenses on top of the humongous taxes we had to pay in April)
[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)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on May 03, 2019, 10:07:52 PM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

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)


Sent from my Pixel 2 XL using Tapatalk

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.
Title: Re: Defeat the Net Debt
Post by: paulkots on May 06, 2019, 12:08:42 PM
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
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on May 06, 2019, 10:26:21 PM
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
Big jump there, market gains helped a lot?

Sent from my Pixel 2 XL using Tapatalk

Title: Re: Defeat the Net Debt
Post by: Kierun on May 15, 2019, 01:10:40 PM
10/18 - ~(638k)
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)
5/19 -
Mortgage: ~389k
Mortgage: ~355k

Taxable: ~120k

Net: ~(624k)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on May 25, 2019, 07:19:09 AM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

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)


Sent from my Pixel 2 XL using Tapatalk

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.
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.

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.

Sent from my Pixel 2 XL using Tapatalk
Title: Re: Defeat the Net Debt
Post by: achvfi on May 31, 2019, 09:28:15 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
Title: Re: Defeat the Net Debt
Post by: frugalecon on June 01, 2019, 07:12:14 AM
Total Debt: $213,883
Taxable Assets: $160,792

Net Debt:

[6.01.2019] ($53,091)
[5.03.2019] ($57,000) (Steeling myself for having to tap taxable for some expenses on top of the humongous taxes we had to pay in April)
[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)
Title: Re: Defeat the Net Debt
Post by: paulkots on June 04, 2019, 11:41:44 AM
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

06/04/2019: $18,693.47
Title: Re: Defeat the Net Debt
Post by: terrifictim on June 07, 2019, 10:42:55 AM
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.
Title: Re: Defeat the Net Debt
Post by: Kierun on June 10, 2019, 12:01:16 PM
11/18 - ~(637k)
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)
Mortgage: ~388k
Mortgage: ~355k

Taxable: ~144k (adding in DW's account)

Net: ~(599k)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on June 10, 2019, 07:16:04 PM
11/19 - ~(637k)
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: ~388k
Mortgage: ~355k

Taxable: ~144k (adding in DW's account)

Net: ~(599k)
Next milestone will be a big one, congrats on this one!

Sent from my Pixel 2 XL using Tapatalk

Title: Re: Defeat the Net Debt
Post by: Kierun on June 11, 2019, 11:28:14 AM
11/19 - ~(637k)
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: ~388k
Mortgage: ~355k

Taxable: ~144k (adding in DW's account)

Net: ~(599k)
Next milestone will be a big one, congrats on this one!

Sent from my Pixel 2 XL using Tapatalk
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.
Title: Re: Defeat the Net Debt
Post by: achvfi on June 28, 2019, 06:15:41 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
Title: Re: Defeat the Net Debt
Post by: Gail2000 on June 29, 2019, 12:06:03 PM
-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....
Title: Re: Defeat the Net Debt
Post by: frugalecon on June 29, 2019, 04:38:04 PM
-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....

Great progress!
Title: Re: Defeat the Net Debt
Post by: frugalecon on July 02, 2019, 03:07:05 AM
Total Debt: $210,782
Taxable Assets: $160,792

Net Debt:

[7.02.2019] ($49,990)
[6.01.2019] ($53,091)
[5.03.2019] ($57,000) (Steeling myself for having to tap taxable for some expenses on top of the humongous taxes we had to pay in April)
[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)
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on July 02, 2019, 07:26:07 AM
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

Current Debt: 206,970
Current Rental Debt: 113,340 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 129,146


Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812
02/04/2019: 199,734
03/04/2019: 188,368
04/01/2019: 178,821
05/01/2019: 166,109
07/02/2019: 191,164

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.
Title: Re: Defeat the Net Debt
Post by: ico on July 02, 2019, 07:38:38 AM
Gotta start somewhere.

Total Debt: $135,732.48
Taxable Assets: $2,665.99

Net Debt:

[7.02.2019] ($133,066.49)
Title: Re: Defeat the Net Debt
Post by: Kierun on July 09, 2019, 02:52:17 PM
1/19 - ~(642k)
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)
Mortgage: ~386k
Mortgage: ~354k

Taxable: ~147k

Net: ~(593k)
Title: Re: Defeat the Net Debt
Post by: paulkots on July 30, 2019, 06:42:40 AM
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.
Title: Re: Defeat the Net Debt
Post by: Slow&Steady on July 30, 2019, 07:39:29 AM
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.

Current Debt: 206,970
Current Rental Debt: 113,340 (it is a debt, income producing but still a debt)
Current Taxable: 0
Current 401K/IRA: 129,146


Net Investments:
11/30/2018: 202,112
01/03/2019: 207,812
02/04/2019: 199,734
03/04/2019: 188,368
04/01/2019: 178,821
05/01/2019: 166,109
07/02/2019: 191,164
07/30/2019: 195,896

More backwards movement from changes mentioned above, August and maybe September should also move in the wrong direction.  Once all of these hit the bottom line though, things should start moving much faster in the correct direction.
Title: Re: Defeat the Net Debt
Post by: achvfi on July 30, 2019, 08:03:21 AM
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.

Wow, 30 day road trip! I am so jealous. Feels like I need a break, a long one.
Title: Re: Defeat the Net Debt
Post by: achvfi on August 01, 2019, 07:13:42 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
Title: Re: Defeat the Net Debt
Post by: terrifictim on August 02, 2019, 10:34:15 AM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 03, 2019, 04:44:24 AM
Total Debt: $208,009
Taxable Assets: $160,495

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on August 08, 2019, 06:50:40 PM
2/19 - ~(636k)
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)
Mortgage: ~385k
Mortgage: ~354k

Taxable: ~145k

Net: ~(594k)
Title: Re: Defeat the Net Debt
Post by: paulkots on September 03, 2019, 01:46:09 PM
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.

09/03/2019: $7,110.79

Wasteful month, didn't tell myself no enough. Now that roommates moved out things will slow down.
Title: Re: Defeat the Net Debt
Post by: achvfi on September 03, 2019, 03:49:22 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 06, 2019, 05:26:12 PM
Total Debt: $204,830
Total Taxable Assets: $158,351

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 06, 2019, 05:28:56 PM
As the OP of this thread, it has been great seeing other peopleís journeys. I know that some think this thread is boring, but I have always thought both that ďslow and steady wins the race,Ē and that ďthere is more than one way to skin a cat.Ē
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on September 07, 2019, 06:24:25 AM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

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)


Sent from my Pixel 2 XL using Tapatalk

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.
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.

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.

Sent from my Pixel 2 XL using Tapatalk
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.

As far as this thread is concerned I gave not made a ton of progress unfortunately.

Sent from my Pixel 2 XL using Tapatalk

Title: Re: Defeat the Net Debt
Post by: ItsALongStory on September 07, 2019, 06:34:39 AM
Mortgage: $162583 @ 3.625% (no PMI)
2nd mortgage: $46994 @ 4.89%
Car loan: $13169 @ 0%

Taxable: $23189

Total: $(199557)

Under $200k!

Sent from my Pixel 2 XL using Tapatalk

Title: Re: Defeat the Net Debt
Post by: Arbitrage on September 10, 2019, 10:24:04 AM

Mortgage: $(385.8k)
Student Loan: $(31.3k)
Taxable: $168.4k

Net: $(248.7k)


Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Title: Re: Defeat the Net Debt
Post by: Kierun on September 10, 2019, 12:05:22 PM
3/19 - ~(632k)
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: ~383k
Mortgage: ~353k

Taxable: ~163k

Net: ~(573k)
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on September 11, 2019, 06:42:36 AM
Mortgage: ~$58k
After-tax: ~$61k
Net: $3k

Net Debt defeated, I guess?

Mortgage: ~$51k
After-tax: ~$48k
Net: -$3k

Mortgage: ~$29k
Car:: ~$20k
After-tax: ~$36k
Net: -$13k

We finally had to replace our old rust-bucket car when it developed some expensive problems.  Bought a new one </ducks facepunch> and financed at 2.9% for 7 years, which we're not in a hurry to pay off.  We also used some of our dry powder to fortify tax-advantaged accounts and take care of some home maintenance items.

Our after-tax accounts should grow quickly once the mortgage is gone sometime next year.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on September 11, 2019, 02:59:51 PM
Oh boy, my particular situation was made for a challenge like this one! All of my debt was fortunately incurred to purchase income producing assets, but there's a whole lot of it. My FI date and my debt payoff date are basically one and the same. My current assets will allow me to technically reach FI far before paying off the last of my debt, but I am imposing upon myself a condition of being completely debt-free before I declare myself truly free. So here it goes:

As of Sept 11, 2019:
Debts:
Interest-Only Loans:
   - $2500 @ Prime
   - $13500 @ Prime
   - $108500 @ Prime+0.3
   - $152200 @ Prime
All these are with the same creditor except for the prime + 0.3 one, and were incurred either to purchase dividend stocks, or are the result of transferring other debts to a lower interest option. And yes, I have a very generous creditor who has a lot of faith in me! I could combine these amounts into one, technically, but it's more fun to see the smaller numbers dwindle, and I use them as short term goals. I do put all my payments towards a single loan, then move on to the next though, so interest does build up on the other ones.

Additional Interest-Only Loans:
   - $25200 @ Prime
   - $51600 @ Prime
These two were incurred to invest in a startup. Risky? Yes, very. Am I willing to lose it all? Absolutely. This particular project is priceless to me, the results could change an entire industry and help society immensely. They could also not pan out. I'm willing to gamble on it.

Interest-Only Mortgages:
   - $255600 @ Prime
This is also set up as an interest-only loan rather than a traditional mortgage. The house was a shipwreck when I got it (HCOL, but I got a good deal on it), and I am in the process of fixing it up. Should be ready to rent out parts of it by the end of this year.
   - $60500 @ Prime
This is currently sitting in a high interest savings account as a future down-payment, as I have my eye on another house. If I bought it, I could double my income from the first house by renting out the unit I live in, and I could rent out part of this second house to live for free. Plus it's a beautiful house in one of the best neighborhoods in the city. I would want to live in a house like this post-FI. Just need the current owner (who's a friend of mine) to sell, which I think may happen before the end of the year, with any luck. He inherited it and it's currently vacant, just has a lot of memories, which I understand.

Taxable Accounts:
   - $207000 in Blue chip dividend stock
The income from dividends pay the interest of the loan that bought the shares, plus a bit, which is why I signed up in the first place. Worked better a few years back when interest rates were lower, but I'm still making money off of them, so no incentive to change.
   - $109500 in index ETFs
Combined with my tax sheltered accounts, these ETFs will form the backbone of my retirement. By the time I grind through the debts, I'll be able to live off only them, assuming a reasonable growth rate.

So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
Title: Re: Defeat the Net Debt
Post by: robartsd on September 13, 2019, 08:22:47 AM
So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
That's a crazy amount of debt (but at good rates) how much of it is callable?
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on September 13, 2019, 05:10:09 PM
So totals:
$316500 in taxable assets - $669600 in debts = $353100
Let the games begin!
That's a crazy amount of debt (but at good rates) how much of it is callable?

The $108,000 is in a margin account, which theoretically could be called if the markets dip enough, but I was conservative in using my margin, so they'd have to go down 50% or so before I lose any sleep over it.
The rest is with a private investor who considers it the fixed income portion of their portfolio. I'm basically a bond issue for them. They're in no rush to get it back, but if that were to change I could always sell the assets and reimburse the loan.
This is probably my second highest risk, after interest rates rising. I have enough income to weather about 2.5% increase, or will once my house is being rented, without sweating any. Beyond that I'll have to get creative, but presumably that high a hike will take a bit of time and I'll see it coming. Plus I expect regular raises at my job, I've been getting them so far, and my company is doing well. Not counting on them in my calculations, but they will increase my breathing room.
Title: Re: Defeat the Net Debt
Post by: achvfi on October 01, 2019, 11:25:53 AM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes
Title: Re: Defeat the Net Debt
Post by: frugalecon on October 07, 2019, 03:46:16 AM
Total Debt: $201,644
Total Taxable Assets: $158,352

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on October 08, 2019, 02:58:53 PM
4/19 - ~(626k)
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: ~381k
Mortgage: ~353k

Taxable: ~162k

Net: ~(572k)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on October 11, 2019, 05:51:25 PM
Quote
Mortgage: $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)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on October 17, 2019, 10:43:04 AM
October update:
$2500 > Zero
$13500 > $12000
$25200 > $25300
$51600 > $51800
$60500 > $60700
$108500 > $108500
$152200 > $152800
$255600 > $256600

$207000 > $215800
$143800 > $145300

I noticed this month that last month I had stated my ETF in USD when everything else is stated in CAD. I converted properly this month, so all numbers match up now.

Totals $361100 - $667700 = $306600

Sept 2019: $318800
Oct 2019: $306600

I'm very exposed to market fluctuations, hence the large-ish swings in numbers month-to-month. The general trend is what matter here.
Title: Re: Defeat the Net Debt
Post by: talltexan on October 24, 2019, 08:27:52 AM
You acknowledge how exposed to the market you are.

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.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on October 29, 2019, 10:58:23 AM
You acknowledge how exposed to the market you are.

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.
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.
Title: Re: Defeat the Net Debt
Post by: RWD on October 29, 2019, 11:17:03 AM
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.

He also thinks you need an income of $300k in a HCOL area for maximum happiness. With that kind of income you'll win no matter how efficiently you balance paying down debt vs investing. Sorry, but I am not going to direct ~30% (using weighted average) of our cash flow towards our 1.69% car loan and 3.125% mortgage. I can see following roughly a 50/50 strategy near the expected break even point but as soon as you get a percentage point away from that it should generally be all or nothing.
Title: Re: Defeat the Net Debt
Post by: frugalecon on November 02, 2019, 07:08:21 AM
Total Debt: $198,452
Total Taxable Assets: $160,712

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on November 02, 2019, 10:19:58 AM
Quote
Mortgage: $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)

Mortgage: $161817 @ 3.625% (no PMI)
2nd mortgage: $46668 @ 4.89%
Car loan: $12388 @ 0%

Taxable #1: $32203
Taxable #2: $6792
HSA: $13715

Total: $(168163)

Slow'n steady so I think I may just settle for quarterly updates here.
Title: Re: Defeat the Net Debt
Post by: achvfi on November 02, 2019, 03:41:08 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes
2019 Oct  -> 106300 - 9100  -  18200 = (79000) ---> Backward journey continues.
Title: Re: Defeat the Net Debt
Post by: talltexan on November 08, 2019, 06:31:48 AM
why did your taxable drop so much?
Title: Re: Defeat the Net Debt
Post by: Dicey on November 08, 2019, 07:40:28 AM
@achvfi, why did your taxable drop so much?
FTFY, 'cuz I want to know, too.
Title: Re: Defeat the Net Debt
Post by: Kierun on November 08, 2019, 08:06:55 PM
5/19 - ~(624k)
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)
Mortgage: ~380k
Mortgage: ~352k

Taxable: ~169k

Net: ~(563k)
Title: Re: Defeat the Net Debt
Post by: achvfi on November 08, 2019, 08:52:39 PM
@achvfi, why did your taxable drop so much?
FTFY, 'cuz I want to know, too.

Hello @Dicey and @talltexan. I had some stock vest and I didn't count taxes on it until now and then spent all stock proceeds to pay lots of expenses came due in prep for upcoming baby 2 and other big ticket items like Daycare-mortgage bill till year end, travel for next year so on.

and it gets worse. dan dan da daaaa.....

We indulged in a new used car and took a loan to finance that. So next month our backward slide continues. Thats my compromise with SO, she is in nesting mode. :)
Title: Re: Defeat the Net Debt
Post by: talltexan on November 12, 2019, 08:22:27 AM
Yeah, the second kid needing day care period is rough.

I remember it basically feel like we were barely treading water.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on November 20, 2019, 03:02:32 PM
November update:
Big changes this month! Due to a bunch of changes in my plan, it seems this year will be my lowest income year for a little bit. I also have a bunch of my salary banked this year because of overtime, so I'm cashing that out in January and getting taxed on the 2020 bill, rather than the 2019, further reducing my taxable income this year. I had a bunch of dividend stock that I knew I'd eventually have to convert to Index ETF's, and after much calculating, plotting and scheming, I decided to take the tax hit now and use it to knock down debt. Net result: no change in my net worth, an increase of about $16k on my 2019 taxable income (but capital gains, which are taxed at 50% of the amount, so $8k, really), a small reduction in income from selling assets that were producing more in returns than the interest on their loans, and a whole lot more cash flow from not using my salary to pay interest. I have plans for that additional cash flow, but more on that later.

In other news, launching a $100k cheque at a chunk of debt is extremely satisfying, even if it doesn't change the final number that much.

$12000 > Zero
$25300 > Zero
$51800 > Zero
$60700 > $38400
$108500 > Zero
$152800 > $153300
$256600 > $257500

$215800 > Zero
$145300 > $152900

Totals $152900 - $449200 = $296300

Simpler. Better. Faster. Stronger.

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Title: Re: Defeat the Net Debt
Post by: achvfi on November 29, 2019, 07:15:49 PM
Starting Mortgage  = 112900
Starting Brokerage = 3100
Starting EF            = 12800


Month     ->  Mortgage - Taxable - EF  = NET
2019 Jan -> 112900 - 3100 - 12800 = (97000)
2019 Feb -> 111616 - 3500 - 13134 = (94982)
2019 Mar -> 111616 - 16700 - 13754 = (81162) ---> I just realized I have more in taxable.
2019 Apr -> 110900 - 18100 - 14400 = (78400)
2019 May -> 110300 - 18500 - 15000 = (76800)
2019 Jun ->  109600 - 19700 - 15670 = (74230)
2019 Jul  ->  109000 -  20972 - 16300 = (71728) ---> Target goal in 3 years or less.
2019 Aug ->  108350 -  21758 - 16958 = (69634)
2019 Sep ->  107692 -  17100 - 17600 =  (72992) ---> Going backwards this month. Had to pay $5000 in taxes
2019 Oct  -> 106300 - 9100  -  18200 = (79000) ---> Backward journey continues.

Month     ->  Mortgage + AutoLoan - Taxable - EF  = NET

2019 Nov -> 105700 + 27500 - 9000 - 18900 = (105300) ---> Took on auto loan.
Title: Re: Defeat the Net Debt
Post by: HBFIRE on December 01, 2019, 06:43:26 PM
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



Just hit 600 K in taxable (non-retirement investments + Cash).  Started new business so I'm thinking we should be able to hit the 1M taxable goal in 2020!
Title: Re: Defeat the Net Debt
Post by: frugalecon on December 02, 2019, 04:22:19 AM
Total Debt: $195,251
Total Taxable Assets: $162,336

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on December 10, 2019, 10:29:22 AM
6/19 - ~(599k) (added in DW's account)
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19
Mortgage: ~380k
Mortgage: ~352k

Taxable: ~169k

Net: ~(563k)
12/19
Mortgage: ~378k
Mortgage: ~352k

Taxable: ~172k

Net: ~(558k)
Title: Re: Defeat the Net Debt
Post by: frugalecon on December 22, 2019, 09:53:02 AM
Total Debt: $195,251
Total Taxable Assets: $154426

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on December 23, 2019, 07:38:10 AM
Quote
June 2019:

Mortgage: $164037 @ 3.625% (no PMI)
2nd mortgage: $48659 @ 4.89%
Car loan: $14725 @ 0%

Taxable: $17634

Total: $($209787)

December 2019:

Mortgage: $161481 @ 3.625% (no PMI)
2nd mortgage: $45993 @ 4.89%
Car loan: $11614 @ 0%

Taxable Fid: $36111
Taxable Van: $7145

Total: $($175832)
Title: Re: Defeat the Net Debt
Post by: Maverick1 on December 23, 2019, 10:33:04 AM
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.
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on December 24, 2019, 11:00:24 AM
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.

You have some big cojones.
Title: Re: Defeat the Net Debt
Post by: Arbitrage on December 30, 2019, 08:04:24 AM
Mortgage: $(381.7k)
Student Loan: $(30.3k)
Taxable: $194.7k

Net: $(217.3k)


Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)
Title: Re: Defeat the Net Debt
Post by: frugalecon on January 06, 2020, 04:42:46 AM
Total Debt: $192,045
Total Taxable Assets: $147,665

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on January 08, 2020, 01:58:08 PM
7/19 - ~(593k)
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19
Mortgage: ~378k
Mortgage: ~352k

Taxable: ~172k

Net: ~(558k)
1/20
Mortgage: ~377k
Mortgage: ~351k

Taxable: ~165k

Net: ~(563k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on January 15, 2020, 01:23:29 PM
January update:

$38400 > $31900
$153300 > $154300
$257500 > $259000

$152900 > $156000

Totals $156000 - $445200 = $289200



Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Title: Re: Defeat the Net Debt
Post by: Morning Glory on January 26, 2020, 07:37:00 AM
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
Title: Re: Defeat the Net Debt
Post by: frugalecon on February 01, 2020, 06:05:40 AM
Total Debt: $188,831
Total Taxable Assets: $149,876

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on February 01, 2020, 08:29:33 AM
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.
Title: Re: Defeat the Net Debt
Post by: Simpli-Fi on February 01, 2020, 09:02:16 AM
Mortgage (rental) 385k
Vanguard brokerage 773k

388k

Looking to Buy a primary home in 2020...good challenge to stay net positive.
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on February 01, 2020, 10:05:24 PM
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.
Title: Re: Defeat the Net Debt
Post by: Monerexia on February 01, 2020, 10:55:53 PM
PTF!
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on February 02, 2020, 06:40:55 AM
Looks like you need to figure out how to redirect that mortgage firehose and there are only very few more exciting problems to have.

You got that right! :)
Title: Re: Defeat the Net Debt
Post by: Kierun on February 10, 2020, 03:34:36 PM
8/19 - ~(594k)
9/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
1/20
Mortgage: ~377k
Mortgage: ~351k

Taxable: ~165k

Net: ~(563k)
2/20
Mortgage: ~375k
Mortgage: ~351k

Taxable: ~170k

Net: ~(556k)
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on February 11, 2020, 09:21:15 AM
Mortgage: $0
Car: ~$18k
After-tax: ~$30k
Net: $12k

With only a few months (and $14k) left on the mortgage, we decided to just kill it.  The immediate effect on net worth is nil, but without the mortgage our after-tax accounts should grow pretty quickly.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on February 15, 2020, 10:01:42 AM
January update:

$31900 > $32000
$154300 > $154800
$259000 > $259900

$156000 > $160100

Totals $160100 - $446700 = $286600

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600

No debt payments this month, as all funds are being redirected to tax sheltered accounts. The market is being ridiculous though, so still some progress showing.
Also, I'm on the road and my phone doesn't post color. I'll fix it when I'm at a computer. EDIT: done.
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 02, 2020, 10:58:01 AM
Total Debt: $185,712
Total Taxable Assets: $149,040

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: talltexan on March 04, 2020, 08:06:07 AM
You won't regret feeding the Roth, nice progress!
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 04, 2020, 04:39:17 PM
You won't regret feeding the Roth, nice progress!

Slow and steady wins the race...
Title: Re: Defeat the Net Debt
Post by: Kierun on March 10, 2020, 12:04:11 PM
09/19 - ~(573k)
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
01/20 - ~(563k)
02/20
Mortgage: ~375k
Mortgage: ~351k

Taxable: ~170k

Net: ~(556k)
03/20
Mortgage: ~374k
Mortgage: ~350k

Taxable: ~152k

Net: ~(572k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on March 17, 2020, 06:48:41 AM
March update:

$32000 > $31900
$154800 > $154800
$259900 > $259900

$160100 > $117900

Totals $117900 - $446600 = $328700

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700

New Game +.
Looking forward to the challenge. It was getting too easy.
Title: Re: Defeat the Net Debt
Post by: Bettersafe on March 17, 2020, 07:56:21 AM
Nice progress here!
Title: Re: Defeat the Net Debt
Post by: frugalecon on April 02, 2020, 05:58:19 PM
Total Debt: $182,587
Total Taxable Assets: $142,866

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on April 08, 2020, 11:33:50 AM
10/19 - ~(572k)
11/19 - ~(563k)
12/19 - ~(558k)
01/20 - ~(563k)
02/20 - ~(556k)
03/20
Mortgage: ~374k
Mortgage: ~350k

Taxable: ~152k

Net: ~(572k)
04/20
Mortgage: ~372k
Mortgage: ~350k

Taxable: ~143k

Net: ~(579k)
Title: Re: Defeat the Net Debt
Post by: paulkots on April 10, 2020, 06:35:19 AM
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.

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.
Title: Re: Defeat the Net Debt
Post by: Taran Wanderer on April 13, 2020, 09:21:48 PM
Stumbled upon this thread.  I really like this idea.  Once the tax-deferred amounts are fully funded and the account balances, get big, the market has a bigger impact than the contributions, so tracking gets dull.  Paying down debt feels good, but with low interest rates (3.79% for us), it doesn't make a lot of sense to pay down a mortgage.

I gathered my numbers to see where we stand for this thread, and... we already beat the net debt (depending on how I look at the assets).  If I take out our cash (checking/savings) and the kids' 529 accounts, then we're short about $70k.  That's a good target to aim for.

Thanks for the inspiration!
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on April 15, 2020, 05:50:00 AM
April update:

$0 > $5900
$31900 > $31900
$154800 > $154800
$259900 > $259800

$117900 > $137900

Totals $137900 - $452400 = $314500

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700
April 2020: $314500

A small loan from my LoC last month to top up my tax-sheltered accounts while everything was on sale. First priority is to kill it back off. Expenses have plummeted, income holding steady. Luck is on my side this time.

The market is lifting back up, and making it look like I progressed this month, but I know what the real story is. I slipped back. Making it up next month. Double-time, go.
Title: Re: Defeat the Net Debt
Post by: frugalecon on May 01, 2020, 08:03:36 PM
Total Debt: $179,451
Total Taxable Assets: $147,010

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on May 02, 2020, 10:28:14 AM
Could this move very quick now, @frugalecon . Assuming the markets continue to recover that is ...
Title: Re: Defeat the Net Debt
Post by: frugalecon on May 03, 2020, 11:20:35 AM
Could this move very quick now, @frugalecon . Assuming the markets continue to recover that is ...

@ItsALongStory in truth, Iím not terribly optimistic that the markets will help out that much for the rest of the year, though I would be delighted to be proven wrong.
Title: Re: Defeat the Net Debt
Post by: Dicey on May 03, 2020, 11:35:58 AM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on May 03, 2020, 07:16:08 PM
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.

@Dicey Iím all about slow and steady, just chugging along. Incidentally, I could necropost in my old thread about my unemployed older acquaintance who couldnít keep it together to keep a job. He has definitely not defeated his net debt, but it has been surprising how he has managed to string together what he needed to avoid out and out homelessness. Now that I am out of the free $$ business with him I just take it all in. It is a bit of a window into how someone very different from me makes decisions.
Title: Re: Defeat the Net Debt
Post by: paulkots on May 08, 2020, 04:37:10 PM
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.

05/08/2020: $9,994.30

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.
Title: Re: Defeat the Net Debt
Post by: RWD on May 08, 2020, 05:13:59 PM
Mortgage: $145k
Cars: $31k
Total debt: $176k

Vanguard brokerage: $231k

[5/8/2020] Net: $55k
[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)

Coming back after over a year (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/defeat-the-delta/msg2330878/#msg2330878) to see if the market brought our net debt back into the red. Looks like a resounding "nope!"
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on May 15, 2020, 08:14:39 AM
May update:

$5900 > $3100
$0 > $10700
$31900 > $59700
$154800 > $136600
$0 > $140300
$259800 > $259700

$0 > $137600
$137900 > $138300

Totals $275900 - $610100 = $334200

Sept 2019: $318800
Oct 2019: $306600
Nov 2019: $296300
Jan 2020: $289200
Feb 2020: $286600
Mar 2020: $328700
April 2020: $314500
May 2020: $334200

Hi, my name is Moose and I'm a leveraging addict. When I get an opportunity like the one the market is providing, I just can't help myself... Shuffled some stuff around for ease of accounting and interest rate arbitraging. Also put a little bit into a private investment, which is high risk so I'm not including it here. It accounts for most of the drop this month.
Title: Re: Defeat the Net Debt
Post by: frugalecon on May 15, 2020, 04:05:37 PM
Total Debt: $179,454
Total Taxable Assets: $149,459

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: frugalecon on June 01, 2020, 03:49:58 AM
Total Debt: $173,950
Total Taxable Assets: $149,967

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on June 15, 2020, 12:52:59 PM
11/19 - ~(563k)
12/19 - ~(558k)
01/20 - ~(563k)
02/20 - ~(556k)
03/20 - ~(572k)
04/20 - ~(579k)
05/20 -
Mortgage: ~371k
Mortgage: ~349k

Taxable: ~175k

Net: ~(545k)

06/20
Mortgage: ~369k
Mortgage: ~349k

Taxable: ~174k

Net: ~(544k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on June 15, 2020, 07:43:18 PM
June update:

$3100 > $1000
$10700 > $10700
$59700 > $59700
$136600 > $136600
$140300 > $140000
$249800 > $249700

$137600 > $158500
$138300 > $146800

Totals $305300 - $597700 = $292400

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

Picked up some steam this month, and a summer contract that will hopefully be lucrative.
Title: Re: Defeat the Net Debt
Post by: terrifictim on June 16, 2020, 10:43:58 AM
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. 
Title: Re: Defeat the Net Debt
Post by: frugalecon on July 01, 2020, 04:08:02 AM
Total Debt: $169,656
Total Taxable Assets: $154,846

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: paulkots on July 01, 2020, 05:15:20 AM
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.

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.
Title: Re: Defeat the Net Debt
Post by: Kierun on July 09, 2020, 01:39:23 PM
01/20 - ~(563k)
02/20 - ~(556k)
03/20 - ~(572k)
04/20 - ~(579k)
05/20 - ~(545k)
06/20
Mortgage: ~369k
Mortgage: ~349k

Taxable: ~174k

Net: ~(544k)
07/20
Mortgage: ~368k
Mortgage: ~348k

Taxable: ~180k

Net: ~(536k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on July 16, 2020, 11:19:38 AM
$1000 > $0
$10700 > $10700
$59700 > $59700
$136600 > $133500
$140000 > $140400
$249700 > $249700

$158500 > $160500
$146800 > $153200

Totals $313700 - $594000 = $280300

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

I was thinking about what this metric really means. I use leveraging quite heavily, and don't intend to stop as long as the interest rates allow me to continue profitably. But leveraging cancels out, because for each liability there is an asset to counterbalance. So I can continue to reduce the net debt, but remain leveraged. This is great news!

Examined another way, the net debt is debt incurred to either fill taxable accounts, or for non-stock purchases.

Anyway, good month, according to this metric.
Title: Re: Defeat the Net Debt
Post by: Arbitrage on July 16, 2020, 01:02:13 PM
Mortgage: $(375.8k)
Student Loan: $(28.7k)
Taxable: $212.7k

Net: $(191.8k)


Jan 2019: ($290.2k)
Apr 2019: ($278.4k)
Sep 2019: ($248.7k)
Dec 2019: ($217.3k)
Jul 2020: ($191.8k)
Title: Re: Defeat the Net Debt
Post by: ItsALongStory on July 18, 2020, 09:59:10 PM
Thanks for the clarification, in that case we are way way behind defeating the net debt.

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.
Maxed out my IRA for 2019 today so that dropped my taxable account to just below 10k but it's for a solid reason.

Sent from my Pixel 2 XL using Tapatalk

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)


Sent from my Pixel 2 XL using Tapatalk

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.
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.

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.

Sent from my Pixel 2 XL using Tapatalk
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.

As far as this thread is concerned I gave not made a ton of progress unfortunately.

Sent from my Pixel 2 XL using Tapatalk

Sold our house and my car earlier this month, we are officially debt free! Feels great to not have nearly as many recurring bills.
Title: Re: Defeat the Net Debt
Post by: Kierun on July 20, 2020, 01:33:56 PM
Congrats on being debt free!
Title: Re: Defeat the Net Debt
Post by: MickeyFinn on July 21, 2020, 02:14:13 PM
I'll join in this one...

Total Debt: $597,000
Total Taxable Assets: $439,620

Net Debt:
[07.2020] ($157,380)
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on July 22, 2020, 05:44:46 AM
Nice one, I'll join!

Mortgage (EUR 333K)
Assets EUR 19K

Net debt
July 2020 (EUR 314K)

Long way to go!!!!
Title: Re: Defeat the Net Debt
Post by: paulkots on July 22, 2020, 05:59:04 AM
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.
Title: Re: Defeat the Net Debt
Post by: RWD on July 22, 2020, 07:20:09 AM
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!
Title: Re: Defeat the Net Debt
Post by: Kierun on July 22, 2020, 05:29:58 PM
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!
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 01, 2020, 04:18:35 AM
Total Debt: $167,266
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)
Title: Re: Defeat the Net Debt
Post by: Dicey on August 02, 2020, 11:11:13 AM
Total Debt: $167,266
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)
So close!  Great progress, frugalecon!
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 02, 2020, 07:35:57 PM
Total Debt: $167,266
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)
So close!  Great progress, frugalecon!

Thanks, @Dicey , slow and steady wins the race, right?
Title: Re: Defeat the Net Debt
Post by: Kierun on August 10, 2020, 10:51:38 AM
02/20 - ~(556k)
03/20 - ~(572k)
04/20 - ~(579k)
05/20 - ~(545k)
06/20 - ~(544k)
07/20
Mortgage: ~368k
Mortgage: ~348k

Taxable: ~180k

Net: ~(536k)
08/20
Mortgage: ~366k
Mortgage: ~347k

Taxable: ~189k

Net: ~(524k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on August 15, 2020, 10:02:00 AM
$10700 > $10700
$59700 > $59700
$133500 > $130800
$140400 > $139900
$249700 > $249900

$160500 > $165300
$153200 > $155900

Totals $321200 - $591000 = $269800

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
Title: Re: Defeat the Net Debt
Post by: Bird In Hand on August 15, 2020, 04:30:11 PM
Mortgage: $0
Car: ~$18k
After-tax: ~$30k
Net: $12k

Mortgage: $0
Car: ~$16.5k
After-tax: ~$53k
Net: $36.5k

It's getting to the point where we have a bit too much cash hanging around in low-interest accounts.  So our after-tax number might go down by $12k in the next couple months.
Title: Re: Defeat the Net Debt
Post by: Morning Glory on August 23, 2020, 08:34:50 AM
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


Popping back in to post an update. We did a limited cash out refi for a 15 year at 3.25. Should have waited until rates dropped more but we got lender credit to cover the closing costs, so not a huge mistake. The limited cash out was to cover our escrow deposit and we also got some cash back from our previous lender because of payments we made while the loan was in progress. That plus our escrow refund went into my sofi account to buy VOO (was going to put it in Vanguard but sofi was doing a promotion where they match 1%, so I got an extra 79 bucks to invest.). 

So now my situation is:
Mortgage: 202,541
Taxable: 146,264
Net Debt: -56,277
Title: Re: Defeat the Net Debt
Post by: Dicey on August 23, 2020, 12:19:02 PM
Good job, @Aunt Petunia!
Title: Re: Defeat the Net Debt
Post by: catlady on August 23, 2020, 01:08:29 PM
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?
Title: Re: Defeat the Net Debt
Post by: frugalecon on August 23, 2020, 05:13:51 PM
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 donít 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
Title: Re: Defeat the Net Debt
Post by: catlady on August 24, 2020, 06:34:14 PM
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 donít 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 :/
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 01, 2020, 03:07:47 AM
Total Debt: $164,871
Total Taxable Assets: $161,067

Net Debt:

[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)
Title: Re: Defeat the Net Debt
Post by: Kierun on September 09, 2020, 12:24:43 PM
03/20 - ~(572k)
04/20 - ~(579k)
05/20 - ~(545k)
06/20 - ~(544k)
07/20 - ~(536k)
08/20
Mortgage: ~366k
Mortgage: ~347k

Taxable: ~189k

Net: ~(524k)
09/20
Mortgage: ~364k
Mortgage: ~347k

Taxable: ~189k

Net: ~(522k)
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on September 11, 2020, 02:38:58 AM
Mortgage (EUR 332K)
Assets EUR 19K

Net debt
July 2020 (EUR 314K)
September 2020 (EUR 313K)

Long way to go!!!! Need to increase speed......
Title: Re: Defeat the Net Debt
Post by: Dicey on September 11, 2020, 10:46:57 AM
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 donít 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 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 ;-)
Title: Re: Defeat the Net Debt
Post by: catlady on September 11, 2020, 01:32:49 PM
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 donít 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 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 car should have freed 390$ a month but I bumped the mortgage payment with 250$ a month.
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 11, 2020, 04:41:24 PM
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 donít 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 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 catís pajamas. She is always rooting for people to succeed, and she bucked me up when I was dealing with a crazy situation.
Title: Re: Defeat the Net Debt
Post by: catlady on September 14, 2020, 07:58:03 PM
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 donít 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 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 catís pajamas. She is always rooting for people to succeed, and she bucked me up when I was dealing with a crazy situation.

Honestly everyone has been great! Super helpful and I am getting the hang of it. Slow but steady lol. Thanks guys 🥰
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on September 15, 2020, 08:31:04 AM
September Update:

Debts:
$10700 > $10700
$59700 > $59700
$130800 > $130700
$139900> $138900
$249900 > $249900

Assets:
$165300 > $169800
$155900 > $166100

Totals $335900 - $589900 = $254000

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
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 30, 2020, 03:33:14 PM
Total Debt: $162,217
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)
Title: Re: Defeat the Net Debt
Post by: Dicey on September 30, 2020, 05:44:35 PM
Total Debt: $162,217
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)
That might be the best reason to be a cheerful motherfucker* I've ever seen. Congratulations!

*If you don't get this reference, you're not reading Sailor Sam's journal and you're really missing out.
Title: Re: Defeat the Net Debt
Post by: Kierun on September 30, 2020, 07:11:12 PM
Congratulations!
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 30, 2020, 07:14:57 PM
Total Debt: $162,217
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)
That might be the best reason to be a cheerful motherfucker* I've ever seen. Congratulations!

*If you don't get this reference, you're not reading Sailor Sam's journal and you're really missing out.

Thanks, @Dicey , I really love the way you are always cheering people on!
Title: Re: Defeat the Net Debt
Post by: frugalecon on September 30, 2020, 07:17:00 PM
Congratulations!

Thanks! I have had some setbacks along the way with unexpected expenses that have slowed me down, but it is a nice milestone to reach.
Title: Re: Defeat the Net Debt
Post by: RWD on September 30, 2020, 08:24:06 PM
NET DEBT DEFEATED
Congrats!
Title: Re: Defeat the Net Debt
Post by: diapasoun on October 04, 2020, 01:00:22 PM
HECK YES CONGRATULATIONS!!!
Title: Re: Defeat the Net Debt
Post by: terrifictim on October 05, 2020, 04:00:14 PM
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.

10/1/20
Mortgage 1: 187,938
Mortgage 2 (Income Producing Rental but Still Debt): 206,675
Taxable: 58,908
Cash/EF: 40,293
Net Taxable: 295,412
Retirement: 304,633
Net Retirement: 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.
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on October 06, 2020, 01:18:01 AM
Mortgage (EUR 331K)
Assets EUR 35K

Net debt
July 2020 (EUR 314K)
September 2020 (EUR 313K)
October 2020 (EUR 296K) (included other savings accounts)

I thought it was better to include the other savings accounts, although these accounts are to be used for travel, school costs for the kids and house maintenance, but as long as we can pay these from our current accounts, these will not be touched!
Congrats to @frugalecon and @terrifictim who have succesfully defeated the debt! May we soon join you!
Title: Re: Defeat the Net Debt
Post by: talltexan on October 06, 2020, 09:20:54 AM
Congratulations! My only remaining debt is my mortgage, so I don't have to go through a series of statements. Will be joining you soon, hopefully.
Title: Re: Defeat the Net Debt
Post by: Ag Eitilt on October 08, 2020, 06:02:26 AM
Been lurking in a couple threads for a while, and this seems a good place to break silence, even if mine seems to have turned into more of a case study.  I've had a bit over a year enacting my plans for asset allocation, but have been hampered a bit by a combination of decidedly not being frugal through college and wanting to fit a mental health break between compressing nearly an entire four years of classes into two and a half (once glimmers of financial sense started sparking) and going into the infamously overtime-prone field of computer programming; that break unfortunately comes with a much reduced salary.

Student loans: $100 481.70 (yay, nearly five digits!)
Taxable assets: $6 940.28
Total static accounts: $93 541.42

Recurring expenses: $381.16/month
Main incidental expenses: $137.81/month (for an artificially-constructed but representative "month")
Taxable income: ~$1 650/month

Net cash flow: $1 131.03/month

Well, at least it's flowing in the right direction.  The raw rate will definitely drop once the student loan suspension ends, but I'm also hoping to leverage my degree into something a bit higher-paying than my current customer service job (which is, while not lucrative, one I love) around the same time.  Planning on trying to move for that, especially depending on how the election goes, so cash flow will probably change drastically across the board.

Housing, utilities, and the majority of food are currently paid by living with my parents in exchange for non-cash services (and we all enjoy each other's company anyway).  My focus is and has been on padding the emergency fund a bit more, though this year has provided its share of financial distractions: first actually getting a driver's license and car (bad financially, but comes in handy), then a very attractive sale on stocks (good, but I lacked the cash on hand to do much with it), and most recently the aforementioned opportunity to get five times and counting the value on loan payments (very good).  I'm probably not going to be able to resist taking further advantage of the last, either, while I still can.  Finally, I'm sure some of you cringed at the last three lines of recurring spending, but giving/giving back in those ways is very meaningful to me, and there are actually a couple more causes I want to add to them, once I have a better idea of where things will end up.
Title: Re: Defeat the Net Debt
Post by: Kierun on October 08, 2020, 06:25:42 PM
04/20 - ~(579k)
05/20 - ~(545k)
06/20 - ~(544k)
07/20 - ~(536k)
08/20 - ~(524k)
09/20
Mortgage: ~364k
Mortgage: ~347k

Taxable: ~189k

Net: ~(522k)
10/20
Mortgage: ~363k
Mortgage: ~346k

Taxable: ~201k The market go up a lot or something?

Net: ~(508k)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on October 15, 2020, 09:16:59 AM
September Update:

Debts:
$10700 > $0
$0 > $15000
$59700 > $59700
$130700 > $130600
$138900> $158200
$249900 > $249900

Assets:
$169800 > $183631
$166100 > $164600

Totals $348200 - $613400 = $265200

Getting home from a multi-month work contract within the next few weeks. Then it's time to finish renovations on the house in order to turn it into a rental. After that, debt will the next thing in my crosshairs. This number should begin a rapid drop circa end of January 2021.

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
Title: Re: Defeat the Net Debt
Post by: Kierun on November 10, 2020, 05:29:45 AM
05/20 - ~(545k)
06/20 - ~(544k)
07/20 - ~(536k)
08/20 - ~(524k)
09/20 - ~(522k)
10/20
Mortgage: ~363k
Mortgage: ~346k

Taxable: ~201k

Net: ~(508k)
11/20
Mortgage: ~361k
Mortgage: ~346k

Taxable: ~212k

Net: ~(495k)
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on November 13, 2020, 01:38:26 AM
Mortgage (EUR 330K)
Assets EUR 36K

Net debt
July 2020 (EUR 314K)
September 2020 (EUR 313K)
October 2020 (EUR 296K) (included other savings accounts)
November 2020 (EUR 294K)
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on November 15, 2020, 01:50:57 AM
November Update:

Debts:

$15000 > $15000
$59700 > $59700
$130600 > $130500
$158200> $157700
$249900 > $249900

Assets:
$183600 > $192500
$164600 > $175700

Totals $368200 - $612800 = -$244600

Lowest it's been since I started tracking. I've got lots of dry powder too, just finishing up some projects before I put it to work.

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
Title: Re: Defeat the Net Debt
Post by: terrifictim on November 24, 2020, 10:27:34 AM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on November 25, 2020, 04:04:10 AM
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.

Congrats on the progress, Tim! Itís terrific! (Wink)

I can report that being at your level 2 is pretty sweet.
Title: Re: Defeat the Net Debt
Post by: TyGuy on November 29, 2020, 11:02:01 AM
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).
Title: Re: Defeat the Net Debt
Post by: frugalecon on November 29, 2020, 04:43:59 PM
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).

Welcome to the thread, TyGuy. Sounds like you have a good plan in place. As the OP, I will share that the most important thing is to keep plugging away.
Title: Re: Defeat the Net Debt
Post by: talltexan on December 02, 2020, 07:01:12 AM
@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).
Title: Re: Defeat the Net Debt
Post by: TyGuy on December 06, 2020, 03:02:08 PM
@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).

My Taxable account is split between a Vanguard index fund and some small, freelance investments in stocks. The 401 max is non-negotiable due to the the over 30% savings in tax breaks. The index fund is also providing me some piece of mind as an additional source of savings for my emergency fund at the moment (until I increase my current emergency fund).
Title: Re: Defeat the Net Debt
Post by: talltexan on December 07, 2020, 01:59:11 PM
Latest statement on taxable came in the mail, and dang there's a nice increase during year 2020. With our former house finally selling, we've steamrolled over a ton of debt.
Title: Re: Defeat the Net Debt
Post by: Kierun on December 08, 2020, 01:58:04 PM
06/20 - ~(544k)
07/20 - ~(536k)
08/20 - ~(524k)
09/20 - ~(522k)
10/20 - ~(508k)
11/20
Mortgage: ~361k
Mortgage: ~346k

Taxable: ~212k

Net: ~(495k)
12/20
Mortgage: ~360k
Mortgage: ~345k

Taxable: ~230k

Net: ~(475k)
Title: Re: Defeat the Net Debt
Post by: Dicey on December 09, 2020, 07:52:52 AM
If one gives away pieces of their mind, how long before peace of mind becomes impossible to achieve? Asking for a friend.
Title: Re: Defeat the Net Debt
Post by: TyGuy on December 10, 2020, 12:53:22 PM
If one gives away pieces of their mind, how long before peace of mind becomes impossible to achieve? Asking for a friend.

Hi @Dicey,

I'm not sure if this was directed at me, but I see you on many of these threads and would be interested to hear you thoughts!
Title: Re: Defeat the Net Debt
Post by: Kierun on December 10, 2020, 01:29:31 PM
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
Title: Re: Defeat the Net Debt
Post by: Dicey on December 10, 2020, 03:22:50 PM
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...
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on December 15, 2020, 12:49:11 AM
Mortgage (EUR 330K)
Assets EUR 37K

Net debt
July 2020 (EUR 314K)
September 2020 (EUR 313K)
October 2020 (EUR 296K) (included other savings accounts)
November 2020 (EUR 294K)
December 2020 (EUR 293K)

Goal for 2021: (EUR 270K)...... Considered doable if no major setback on markets / jobs.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on December 15, 2020, 11:45:31 AM
December Update:

Debts:
$15000 > $15000
$59700 > $59700
$130500 > $130300
$157700> $156700
$249900 > $249900

Assets:
$192500 > $196200
$175700 > $189900

Totals $386100 - $611600 = -$225500

My net debt is over $100k less than at my peak, which occurred... 9 months ago... I don't even know, man.

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
Title: Re: Defeat the Net Debt
Post by: Morning Glory on December 16, 2020, 05:34:31 AM

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
I could probably call it defeated if I looked at the husband's accounts too. The market has been kind this year.
Title: Re: Defeat the Net Debt
Post by: Kierun on January 08, 2021, 09:12:41 AM
07/20 - ~(536k)
08/20 - ~(524k)
09/20 - ~(522k)
10/20 - ~(508k)
11/20 - ~(495k)
12/20
Mortgage: ~360k
Mortgage: ~345k

Taxable: ~230k

Net: ~(475k)
01/21
Mortgage: ~358k
Mortgage: ~345k

Taxable: ~230k

Net: ~(472k)

--eta--
I like what Dutch Comfort did so...

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: talltexan on January 13, 2021, 01:13:32 PM
I've had a nice gain in a taxable account such that the stated value now exceeds our mortgage. Of course, taxes would take a bite out of that.

And it's a nice mortgage, rate below 3.0%.
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on January 14, 2021, 01:10:32 AM
Mortgage (EUR 330K)
Assets EUR 39K

Net debt
July 2020 (EUR 314K)
December 2020 (EUR 293K)

January 2021 (EUR 291K)



Goal for 2021: (EUR 270K)......
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on January 15, 2021, 07:13:35 AM
January Update:

Debts:
$15000 > $15000
$59700 > $0
$130300 > $129900
$156700> $157100
$249900 > $249900

Assets:
$196200 > $204000
$189900 > $194900

Totals $398900 - $551900 = -$153000

Changing gears in 2021. Calling in some debts and paying off others. It's going to be the most exciting year to date.

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 2020: $153000
Title: Re: Defeat the Net Debt
Post by: Morning Glory on January 15, 2021, 02:00:19 PM

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!!!
Title: Re: Defeat the Net Debt
Post by: frugalecon on January 16, 2021, 10:51:48 AM

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!!!

Great job, Morning Glory! Looks like you will make it in 2021!
Title: Re: Defeat the Net Debt
Post by: gaja on January 16, 2021, 05:57:36 PM
Getting very close to worthless here. EOY 2020 was -$16 000, hoping to reach zero by June.
Title: Re: Defeat the Net Debt
Post by: Arbitrage on January 18, 2021, 08:51:21 AM
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.
Title: Re: Defeat the Net Debt
Post by: Kierun on February 09, 2021, 10:57:03 AM
08/20 - ~(524k)
09/20 - ~(522k)
10/20 - ~(508k)
11/20 - ~(495k)
12/20 - ~(475k)
01/21
Mortgage: ~358k
Mortgage: ~345k

Taxable: ~230k

Net: ~(472k)
02/21
Mortgage: ~357k
Mortgage: ~344k

Taxable: ~235k

Net: ~(466k)

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: talltexan on February 10, 2021, 11:50:39 AM
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!
Title: Re: Defeat the Net Debt
Post by: Arbitrage on February 10, 2021, 01:50:22 PM

@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!

@talltexan Thanks for the good word.  We're in the midst of the search now, though it's slow going due to a near-absence of inventory, with everything being snatched up lightning-quick.  Got most of the financing lined up now, but the rapid price increases and low inventory may force our hand into paying more and dipping further into our taxable account than previously desired.  Nevertheless, we do have the flexibility as you say, and should be able to offer up without an appraisal contingency, since we'll be bringing plenty of cash to the table.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on February 15, 2021, 07:22:34 AM
January Update:

Debts:
$15000 > $15100
$130300 > $129700
$156700> $157100
$249900 > $249900

Assets:
$204000 > $208700
$194900 > $193600

Totals $402300 - $551800 = -$149500

Still progressing. Expecting a bit of backpedaling ahead, but a good end of year. With great luck, I might knock this out by the start of 2022. With average luck, by the end of 2022.

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
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on March 01, 2021, 01:09:34 AM
Mortgage (EUR 329K)
Assets EUR 40K

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

January 2021 (EUR 291K)
February 2021 (EUR 289K)


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

A little progress each month in the right direction.....
Title: Re: Defeat the Net Debt
Post by: Kierun on March 09, 2021, 09:16:44 AM
09/20 - ~(522k)
10/20 - ~(508k)
11/20 - ~(495k)
12/20 - ~(475k)
01/21 ~(472k)
02/21
Mortgage: ~357k
Mortgage: ~344k

Taxable: ~235k

Net: ~(466k)
03/21
Mortgage: ~355k
Mortgage: ~344k

Taxable: ~231k

Net: ~(467k)

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: TyGuy on March 10, 2021, 04:01:54 PM
Debts:
Mortgage: 249,879 (refinanced to 15 year at 1.75%, hence the small, temporary increase here)

Student Loans: 21,456.11 (Can defer interest free until at least September)


Assets:
Savings: $1,000 (I would like to get this back up to 5K)
Taxable 1: $4,253
Taxable 2: $2,279


Net Debt: Dec 2020 (261,341)
               Mar 2021 (263,803)


Title: Re: Defeat the Net Debt
Post by: joe189man on March 10, 2021, 05:12:31 PM
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 have some a lot of work to do

Title: Re: Defeat the Net Debt
Post by: Dicey on March 11, 2021, 11:56:13 AM
Wow this is a sobering, sad and interesting exercise
Beg 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 grow blow 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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 11, 2021, 01:26:11 PM
Wow this is a sobering, sad and interesting exercise
Beg 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 grow blow 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.
Title: Re: Defeat the Net Debt
Post by: joe189man on March 11, 2021, 01:58:00 PM
Wow this is a sobering, sad and interesting exercise
Beg 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 grow blow 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.

I think you're right, its not sad, sobering yes, and a great way to think about where we really are in this journey, Onward we go
Title: Re: Defeat the Net Debt
Post by: talltexan on March 15, 2021, 06:51:07 AM
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.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on March 15, 2021, 07:00:16 AM
March Update:

Debts:
$15000 > $15100
$129700 > $129400
$157100> $155700
$249900 > $249900

Assets:
$208700 > $216900
$193600 > $205700

Totals $422600 - $550100 = -$127500

Leaps and bounds. Just hired a contractor to restore the house from its current semi-squallor to something more in line with the average home. About to see a 150k hit come through, and the equivalent increase in house value will not show up in these numbers. I guess it's New Game + once again?

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
Title: Re: Defeat the Net Debt
Post by: TyGuy on March 15, 2021, 12:06:29 PM
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.

You read that correctly, market rates and credit score created an ideal environment to refinance. I will definitely keep on eye on the treasury yields, may become a good avenue to store/invest my emergency fund!
Title: Re: Defeat the Net Debt
Post by: terrifictim on March 16, 2021, 02:13:27 PM
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.

NET DEBT OBLITERATED (Temporarily)!
3/16/21
Net Debt: 454,012
Ended up selling our investment property  based on the recommendations of the forum (was nowhere near 1% but had some great appreciation). Instead of having a mortgage of $200k, now have no mortgage and additional cash of $150k! I do anticipate that we are going to have to purchase our next place in a year or 2 (current living space isn't going to work for our growing family), and will end up being back in the red. For now just enjoying the peace of mind that comes knowing we could pay off all debts and still have plenty to live on if we had to.
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on March 16, 2021, 03:59:07 PM
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.
Title: Re: Defeat the Net Debt
Post by: frugalecon on March 16, 2021, 06:53:27 PM
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.

Not all that interesting? Dude, youíre knocking down your net debt like a rock star! (Well, if rock stars knocked down net debt, which they probably donít.)
Title: Re: Defeat the Net Debt
Post by: Morning Glory on March 17, 2021, 11:39:59 AM

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

Covid bucks arrived today, bust I'm sticking them in a savings account because one of our vehicles needs to be replaced soon. We are planning to downsize the house, so I'm interested to see if the net debt gets defeated before or after that happens.
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on April 02, 2021, 03:09:53 AM
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!
Title: Re: Defeat the Net Debt
Post by: joe189man on April 02, 2021, 09:15:21 AM
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 have some a lot of work to do

April 2021 update
Net Debt: -$474,369 + $27,063 = -$447,306 (+$2,272) - Our debt is "large" but mostly mortgage and very low interest balances, adding ~$600 a month to brokerage
Net All: -$474,369 + $472,057 = -$2,312 (+$15,902) - Our focus is maxing out 401ks and HSAs
Net incl. House: ~$614k (+~$15k)
Title: Re: Defeat the Net Debt
Post by: TyGuy on April 04, 2021, 01:41:41 PM
Debts:
Mortgage: 248,656

Student Loans: 21,456 (Can defer interest free until at least September)


Assets:
Savings: $1,000
Taxable 1: $4,340
Taxable 2: $2,211


Net Debt: Dec 2020 (261,341)
               Mar 2021 (263,803)
               APR 2021 (262,561)
Title: Re: Defeat the Net Debt
Post by: Kierun on April 08, 2021, 02:37:24 PM
10/20 - ~(508k)
11/20 - ~(495k)
12/20 - ~(475k)
01/21 - ~(472k)
02/21 - ~(466k)
03/21
Mortgage: ~355k
Mortgage: ~344k

Taxable: ~231k

Net: ~(467k)
04/21
Mortgage: ~353k
Mortgage: ~343k

Taxable: ~243k

Net: ~(453k)

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: talltexan on April 12, 2021, 09:31:35 AM
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!

I don't know what your rate is on that mortgage, but I'd encourage you to ponder how you could add that tax return into your asset stack rather than paying down the mortgage.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on April 15, 2021, 07:48:25 AM
April Update:

Debts:
$15100 > $15200
$129400 > $129200
$155700> $155700
$249900 > $249900

Assets:
$216900 > $218500
$205700 > $211900

Totals $430400 - $550000 = -$119600

Zop zip.

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

Title: Re: Defeat the Net Debt
Post by: talltexan on April 19, 2021, 06:36:03 AM
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"?
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on April 19, 2021, 09:47:56 AM
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"?

Those, and in fact all four of my debts, are actually revolving credit and private interest-only loans that I'm using to invest. The largest one is actually my house, which I'm currently putting all my money into renovating. Contractor is coming in in the next few weeks to finish the job I started, then I'll be hit with a massive bill. I expect to nearly double the value of the house though, and then sell or partially rent it, as it's becoming a duplex. I know that's insane appreciation, but I bought it severely depreciated two years ago and based on its neighbours I shouldn't be too far off.
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.
Title: Re: Defeat the Net Debt
Post by: talltexan on April 26, 2021, 07:48:04 AM
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.

It sounds like you are very well in tune with the spirit of this thread. Keep us posted!
Title: Re: Defeat the Net Debt
Post by: Morning Glory on April 26, 2021, 05:09:34 PM

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
Title: Re: Defeat the Net Debt
Post by: Arbitrage on April 26, 2021, 06:31:29 PM
As promised after buying a second house...numbers from January to today.

Mortgages/HELOC: $(372.0k) -> $(1,067k)
Student Loan: $(27.1k) -> $(26.3k)
Taxable: $313.3k -> $273.2k

Net: $(85.8k) -> $(820.1k)

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)

Dayum.  Putting our current house on the market in a couple of months, so hopefully I'll have good news before too long.
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on April 26, 2021, 08:17:50 PM
Net Debt has been defeated today!!!! House goes on the market Saturday.

April 2021
Mortgage: -195,408
Taxable: 195,475

Congratulations!!🎉 That must feel great!
Title: Re: Defeat the Net Debt
Post by: joe189man on April 26, 2021, 09:31:59 PM

Net Debt has been defeated today!!!! House goes on the market Saturday.

April 2021
Mortgage: -195,408
Taxable: 195,475

congrats that's awesome
Title: Re: Defeat the Net Debt
Post by: Tester on April 27, 2021, 02:02:06 AM
Posting to keep track.

I will post some other numbers besides this thread target to make me feel better :-).

Debt: 483k, mortgage.

Net worth, including house estimated price:
503k.

Invested, including tax advantaged:
277k.

-206k

After tax:
68k.

-415k.


A looooong way to go, I kind of plan to kill this last numbee in 4 years.

It's a long way to the top if you want to rock and roll :-P.
Title: Re: Defeat the Net Debt
Post by: frugalecon on April 27, 2021, 06:25:49 PM

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

Morning Glory, you were the third person to post on this thread! It is AWESOME to see you here reporting the defeat of the net debt! I am so glad that I started this thread, so that we could cheer each other on!
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on May 03, 2021, 04:48:37 AM
Mortgage (EUR 328K)
Liquid Assets (without house value & company pension) EUR 43K

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)

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

Again: nice and steady. Waiting for the tax refunds......
@talltexan, we're putting a fixed yearly additional payment to the mortgage (cannot repay more according to the (pre-MMM)contract), everything left after this is put to our assets. So around EUR 3.5K of the refunds will be put to the mortgage. Any additional refunds will be put to savings.
Title: Re: Defeat the Net Debt
Post by: talltexan on May 03, 2021, 09:08:59 AM
Good work!

We're getting a modest tax refund this year, I should apply it to our balance sheet right away
Title: Re: Defeat the Net Debt
Post by: Morning Glory on May 03, 2021, 04:20:16 PM
Thanks @frugalecon !!!
Title: Re: Defeat the Net Debt
Post by: joe189man on May 04, 2021, 09:23:10 AM
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
Emergency Fund    $20,000.00
Cash                       $5,400.00
Total                    $26,449.24

Retirement:  $431,363.43

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 + $461598 + $21,168  = $10,613 (+12,925) - Positive overall
Net incl. House: ~$633k
Title: Re: Defeat the Net Debt
Post by: TyGuy on May 04, 2021, 10:37:36 AM

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

Congrats, this is a huge milestone!!
Title: Re: Defeat the Net Debt
Post by: TyGuy on May 04, 2021, 10:57:18 AM
Debts:
Mortgage: 247,425

Student Loans: 21,456 (Can defer interest free until at least September)


Assets:
Savings: $1,000
Taxable 1: $4,491
Taxable 2: $2,145


Net Debt: Dec 2020 (261,341)
               Mar 2021 (263,803)
               APR 2021 (262,561)
               MAY 2021 (261,245)

Net debt is now less than it was when I refinanced my home loan in January, slow progress as I continue to max out my taxable accounts for 2021.
Title: Re: Defeat the Net Debt
Post by: Kierun on May 09, 2021, 08:30:18 PM
11/20 - ~(495k)
12/20 - ~(475k)
01/21 - ~(472k)
02/21 - ~(466k)
03/21 - ~(467k)
04/21
Mortgage: ~353k
Mortgage: ~343k

Taxable: ~243k

Net: ~(453k)
05/21
Mortgage: ~352k
Mortgage: ~343k

Taxable: ~252k

Net: ~(443k)

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on May 10, 2021, 12:13:44 PM
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!!
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on May 10, 2021, 12:16:45 PM
Updating to track progress.  Getting closer!

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)
Title: Re: Defeat the Net Debt
Post by: Morning Glory on May 16, 2021, 09:15:57 PM
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!!

Aww thanks. It's a funny coincidence that we sold the house immediately after hitting this milestone! I've already made my last mortgage payment. Going to rent for a bit while we figure out a location to retire to.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on May 24, 2021, 06:54:19 AM
May Update:

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
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
Title: Re: Defeat the Net Debt
Post by: Dicey on May 24, 2021, 09:23:55 AM
May Update:

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
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

Hey, happy birthday!

By "bloodbath" are you referring to the cost of renovations or birthday bacchanalia?
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose on May 25, 2021, 08:59:38 AM
May Update:

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
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

Hey, happy birthday!

By "bloodbath" are you referring to the cost of renovations or birthday bacchanalia?

Thanks! In this case it's mostly about the construction, though once this eternal lockdown ends I do plan on catching up on a year and a half of celebrations. I wouldn't count out the raucous merrymaking just yet.
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on June 01, 2021, 01:36:59 AM
Mortgage (EUR 325K)
Liquid Assets (without house value & company pension) EUR 46K

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)

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

A very good month. Tax and insurance refunds were received, holiday pay was received, so a nice increase in savings and a nice decrease of our mortgage. Both add up!
Just 9K to go for my 2021 goal. I'm already happy with my progress in 1 year. EUR 35K of net debt defeated.......
When I include our house value / pensions we crossed a net worth of EUR 400K..... Can't imagine......
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on June 02, 2021, 09:39:55 PM
Slid backward quite a bit over the last few weeks as I paid some taxes and funded my solo401(k) for last year.  Hoping to make up for that this month!

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)
Title: Re: Defeat the Net Debt
Post by: joe189man on June 03, 2021, 08:56:24 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

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
Title: Re: Defeat the Net Debt
Post by: TyGuy on June 06, 2021, 08:15:09 PM
Debts:
Mortgage: 246,192

Student Loans: 21,456 (Currently in Forbearance)


Assets:
Savings: $1,000
Taxable 1: $4,597
Taxable 2: $1,895


Net Debt: Dec 2020 ($261,341)
               Mar 2021 ($263,803)
               APR 2021 ($262,561)
               MAY 2021 ($261,245)
               JUN 2021 ($260,156)

The tax advantage accounts are almost full for the year, excited to start adding to the taxable accounts again!
Title: Re: Defeat the Net Debt
Post by: Dicey on June 06, 2021, 09:53:06 PM
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
*Congratulations! You'll probably hit $1M before you hit Walrus status, lol. Keep up the good work!
Title: Re: Defeat the Net Debt
Post by: Simpli-Fi on June 07, 2021, 07:30:10 AM
Mortgage (rental) 385k
Vanguard brokerage 773k

388k

Looking to Buy a primary home in 2020...good challenge to stay net positive.
Mortgage (rental) 376k
Mortgage (primary) 497k
Total debt 873k

Crypto 1k
Individual stocks 1.2k
Vanguard brokerage (index) 940k

Debt defeated with market gains in 2021: 69.2k
Title: Re: Defeat the Net Debt
Post by: Kierun on June 12, 2021, 04:38:22 PM
12/20 - ~(475k)
01/21 - ~(472k)
02/21 - ~(466k)
03/21 - ~(467k)
04/21 - ~(453k)
05/21
Mortgage: ~352k
Mortgage: ~343k

Taxable: ~252k

Net: ~(443k)
06/21
Mortgage: ~350k
Mortgage: ~342k

Taxable: ~253k

Net: ~(439k)

Goal for 2021: Net ~(115k)
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort on July 01, 2021, 02:41:23 AM
Mortgage (EUR 323K)
Liquid Assets (without house value & company pension) EUR 47K

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)

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

Still on track for the 2021 goal!
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on July 02, 2021, 09:08:26 PM
Back on track in June! Phew!  Still a little ways to go, but getting there.  Assuming that I can close on a deal to sell my rental property in July, the net debt will be demolished!

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)
Title: Re: Defeat the Net Debt
Post by: TyGuy on July 07, 2021, 11:00:50 AM
Debts:
Mortgage: 244,955

Student Loans: 21,456 (Currently in Forbearance)


Assets:
Savings: $1,100
Taxable 1: $4,805
Taxable 2: $2,136


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)

Made more solid progress on the tax friendly accounts, all of them should be maxed out in August/September, then I'll see some significant gains here until the end of the year!
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on July 31, 2021, 12:57:36 PM
Well, we made it!  It feels almost like cheating since we converted a rental property into cash, but it does feel good to be in this position. I am also very happy not to be a landlord anymore! The money will be put in our taxable investment account.  The only debt we have left is a zero-interest car loan and our mortgage at 2.75%, and I am not in any rush to pay those off at the moment.
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
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort 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!
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote on August 02, 2021, 09:47:18 AM
@Wile E. Coyote CONGRATULATIONS on this big milestone!

Thanks, Dutch Comfort!  Good luck with the holidays! 
Title: Re: Defeat the Net Debt
Post by: TyGuy 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!
Title: Re: Defeat the Net Debt
Post by: TyGuy 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!
Title: Re: Defeat the Net Debt
Post by: joe189man 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
Title: Re: Defeat the Net Debt
Post by: frugalecon 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.
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote 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!
Title: Re: Defeat the Net Debt
Post by: Arbitrage 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. 
Title: Re: Defeat the Net Debt
Post by: joe189man 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!
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose 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
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort 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!
Title: Re: Defeat the Net Debt
Post by: joe189man 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

Title: Re: Defeat the Net Debt
Post by: TyGuy 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!
Title: Re: Defeat the Net Debt
Post by: Wile E. Coyote 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!
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose 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
Title: Re: Defeat the Net Debt
Post by: Dutch Comfort 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!

Title: Re: Defeat the Net Debt
Post by: joe189man 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.
Title: Re: Defeat the Net Debt
Post by: TyGuy 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.
Title: Re: Defeat the Net Debt
Post by: diapasoun 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!)
Title: Re: Defeat the Net Debt
Post by: frugalecon 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.
Title: Re: Defeat the Net Debt
Post by: An Unassuming Moose 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