October Net Worth Update

Hello, blogosphere! Another peek into all the money we owe 🙂

You’ll see that we made huge strides in the CC debt from last month – that is because a large chunk of it was due to work travel, and my company reimbursed me just after the first of the month. However, I feel good about the personal progress too! About $1600 of it was work related…the rest of the jump is the Boomerang Kids hustlin’.

I’ve never explained my chart below, so let’s take a quick minute to look at it. We started monthly tracking in November, 2012 with $35k of student loans, $10k on our car, and some small CC debt from travels. I keep that column in these updates so that you can compare against our last month’s numbers, but also see the progress from Day 1! Or at least Day 1 of when we started tracking…before that is a rough estimate, but I’d guess we started at $60k when we got married in August 2011. I keep that $60k amount consistent across the bottom, so we can see the percentage of debt we’ve paid off, as well as where our net worth sits. At the very bottom is our mortgage info, but that’s not included in the net worth figure. It’s just fun to see the remaining mortgage number tick down, along with the rest of those dang loans.

In other good news is I’ll be receiving my quarterly bonus check this month – so hopefully November’s update is even better! The goal is to abolish those credit cards once and for all, and maybeeee get the Great Lakes loan completely paid off as well. That’s our highest interest student loan, so knocking it off would feel AWESOME! Let’s see how close we can come 🙂

ASSETS 11/1/2012 9/1/2014 10/1/2014
Checking $2,832.88  $      500.00  $      500.00
Savings $804.57  $   1,000.00  $   1,000.00
401k $4,634.25  $ 14,970.13  $ 14,556.00
Total assets $8,271.70 $16,470.13 $16,056.00
DEBTS 11/1/2012 9/1/2014 10/1/2014
Britt’s car ($9,377.87) $0.00 $0.00
Delta card ($721.02) ($1,920.00) ($1,900.00)
Costco card ($179.04) $0.00 $0.00
Banana Republic card ($727.00) $0.00
Chase ($519.03) ($2,604.00) ($400.00)
Great Lakes 1 ($3,889.00) ($1,342.00) ($1,229.00)
Firstmark 1 ($3,373.86) ($2,338.00) ($2,296.00)
Firstmark 2 ($4,538.64) ($3,247.00) ($3,189.00)
Firstmark 3 ($5,650.64) ($4,079.00) ($4,006.00)
Great Lakes/ACS ($6,728.30) ($5,232.00) ($5,150.00)
Add rows as needed
Total debts ($34,977.40) ($21,489.00) ($18,170.00)
NET WORTH ($26,705.70) ($5,018.87) ($2,114.00)
Starting debt ($60,000.00) ($60,000.00) ($60,000.00)
Total debt paid off $25,022.60 $38,511.00 $41,830.00
Percentage of debt paid off 41.70% 64.19% 69.72%
Home value (estimated) $210,000.00  $ 210,000.00
Remaining mortgage $194,785.00  $ 193,917.00
Potential equity $15,215.00  $   16,083.00
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I’m back (and pretending I haven’t been MIA for 10 weeks)

Hey peeps! So, I’ll definitely have a post up soon about my, erm, little hiatus, but in the meantime, let’s pretend it never happened, mmkay?

 

Net worth update for 9/1/14 below. I’ve only done a couple of these, so I’m tweaking the format as I go. I’ve decided to add my 401k because it’s inspiring, and to add a little note at the bottom with our mortgage. And for those astute readers who notice that one of our CCs has gone up in the last month…well…let’s just keep that quiet until I can present my case, okay? Thanks.

ASSETS 1-Nov 1-Aug 1-Sep
Checking $2,832.88 $500  $      500.00
Savings $804.57 $1,000  $   1,000.00
401k $4,634.25 $14,531.93 14970.13
Total assets $8,271.70 $16,031.93 $16,470.13
       
DEBTS 11/1/2012 8/1/2014 9/1/2014
       
Britt’s car ($9,377.87) $0.00 $0.00
Delta card ($721.02) ($1,800.00) ($1,920.00)
Costco card ($179.04) $0.00 $0.00
Banana Republic card   ($1,400.00) ($727.00)
Chase ($519.03) ($3,000.00) ($2,604.00)
Great Lakes 1 ($3,889.00) ($1,398.00) ($1,342.00)
Firstmark 1 ($3,373.86) ($2,383.00) ($2,338.00)
Firstmark 2 ($4,538.64) ($3,310.00) ($3,247.00)
Firstmark 3 ($5,650.64) ($4,158.00) ($4,079.00)
Great Lakes/ACS ($6,728.30) ($5,370.00) ($5,232.00)
       
       
Total debts ($34,977.40) ($22,819.00) ($21,489.00)
       
NET WORTH ($26,705.70) ($6,787.07) ($5,018.87)
       
Starting debt ($60,000.00) ($60,000.00) ($60,000.00)
     
       
Total debt paid off $25,022.60 $37,181.00 $38,511.00
Percentage of debt paid off 41.70% 61.97% 64.19%
       
Home value (estimated)     $210,000.00
Remaining mortgage     $194,785.00
Potential equity     $15,215.00

Boomerang Kids…sober and skinny!

Image

Well, the hubs and I had “the talk” last night. That one that lot of twenty-something’s have, especially ones who are buckling down about their finances.

The kids talk?

The sell-the-house talk?

The consolidate-our-loans talk?

The what-are-we-doing-with-our-lives talk?

Nope, it was the time to address our spending on food and alcohol talk. Womp Wompppp. We, like most people our age, knew we spent quite a bit out to eat and on IPAs. Happy hour – it’s how we spend time with our friends. A six pack and steaks on the grill – it’s how we reward ourselves after a long Saturday working on projects. Take out and a bottle of cabernet – it’s how we decompress after a stressful day at work. Luckily, BG is an amazing cook, so we likely average a lot less at restaurants than a lot of our friends, but still, looking at our averages the last couple months was eye-opening.

The conversation stemmed from frustration as we looked at our debt repayment numbers for the month, which is another post in itself. I have always been the one to track our money and handle the bills, but the hubs asked about our debt progress and wanted to understand why I was so bummed about this past month. As I broke down our income versus fixed expenses for him, his immediate response was, “what happens to the rest of our money?!”

Great question.

I knew the answer, but hated to say it out loud. We were eating and drinking it! Sure, we had some one-time expenses this month that hadn’t been accounted for, and certainly made a dent in the would-be loan payment. But if we were being honest with ourselves, we had to look at the glaring numbers associated with food and drink. Our bar tabs and Subway stops were nickel and diming our discretionary income to nothing.

It was a tough conversation to have. We are both incredibly extroverted people who get their energy from spending time with friends and family. Yummy food and good wine is a part of how we connect as a couple and how we love on those close to us. The thought of cutting our Thursday dinners with siblings and Sunday brunches after church was discouraging, especially as we choose to live in the basement and don’t have a house to host at.

More discouraging, however, would be another month with such dismal payments made to freakin’ Firstmark and American Express. We are committed to being Boomerang Kids until we’re debt free (excluding the mortgage), and if May-size payments continue, we should plan on living here until we’re expecting our first grandchild. Even with the awesome setup we have living here….YIKES!

So, bloggies, June is our first month we’re laying down the law on our F&A spending. Yes, it’s 1/3 over and we’ve already made some stupid decisions (last Saturday’s bachelor/bachelorette party, in particular), but that still leaves us 20 days to stop the hemorrhaging and redirect our funds away from our mouths! I’m excited to report back in July with improvements. Tonight is the first night in recent memory I don’t have a wine glass to wash out (judge away, this blog is anonymous!). I’ll admit I miss it, but it’s a couple bucks in the right direction. And as any PF enthusiast knows, a couple bucks in the right direction each day can snowball into something far bigger, and more beneficial, than skipping my evening glass (or 3) of cab.

Proud (temporary) Hoopty Driver

 

In my net worth updates, you might notice the line for car loan that is now at $0 (hooray!). I purchased my current car in January of 2012 after my prized 1992 Acura bite the dust. She was an oldie, I loved that car! Though dated, the body & leather interior were in awesome shape, and the infrequent maintenance needs made it a steal of a car when I bought it in college for $3,000. Ironically, the 20+ year old car is not the hoopty I’m referring to!

 

In December 2013 I proudly told my parents that we’d have the $10k car loan for my 2005 Matrix  paid off within 24 months of the loan’s start date. Not two weeks later, I slid off the road on a very icy, blustery night, and the guard rail chewed up my bumper. I pulled over, hopped out to see the damage, and realized my bumper was hanging off, attached only by one side. I tried to pull the whole thing off and throw it in my backseat, but after a couple minutes my hands were freezing and I was nervous about being on the side of an icy road at night. So I pulled the belt off my coat, used it to tied the other side of the bumper back onto the frame, and headed home.

 

After I spoke to my insurance company and the husband did some online research, we realized it would cost us at least $1500 to have the bumper replaced. If we claimed it with insurance, we’d have a $500 deductible and my annual cost would go up $300-400 for the next three years with the blip on my record! To pay an autobody shop out of pocket was going to be about the same. So we found a replacement bumper online for $200, and decided to paint and install it ourselves. By “ourselves”, I mean Boomerang Guy and his dad 🙂 We determined we would still use my December commission check to make the final big payment on the car, and wait a bit to buy and replace the bumper.

 

Before we knew it, it was March and we were spending all our extra time and money getting the house ready to rent. April 1 we moved, and then we were out of town for 16 days in April on vacation and a work trip. Now it’s May, and I’m still driving my tied on bumper! I did upgrade from my coat belt to some thin ropes…mostly because I needed that belt back to keep my coat closed and keep me warm 🙂

 

I get a lot of crap from friends and coworkers for the state of my car, but honestly it doesn’t bother me at all. I’ve never been very attached to nice cars or taken pride in that as a status (obviously, by my 1992 Acura!), but I was surprised when I realized it didn’t bother me in the slightest to have a tied-on bumper. To be fair, I basically only drive to work, run errands, and to see friends, so maybe if I was visiting clients or worked at a fancy downtown office, things would be different. For me, it’s been a great reminder that while a car is a “need” for me at this point in life, the only real requirement to meet that need is reliability. Anything features or details past “I can trust it to start and get me to work each day” would simply be a want, and therefore not something I should be spending a lot of time or money to get.

 

That being said…I am also known for putting things off if there’s not a pressing need to complete them, especially if it’s something I have to ask for help with, like this. So to keep myself motivated, I am publicly setting the goal to have the bumper ordered, painted, and put on my car by June 15. That gives me five weeks to sweet talk Boomerang Guy and my father-in-law to get it done for me 🙂 🙂

 

Net Worth 5/2014

Don’t judge, bloggies. I haven’t blogged since my last net worth update, and I’m still five days late. I am still debating how I want to present this, but for now I’m sticking with our liquid cash assets and then our CC and student loan debt. This may change next month…I am undecided. But I promise I will blog multiple times between now and then, so maybe you will come to trust my promises a bit more 🙂

 

 

 

ASSETS 11/1/2014 4/1/2014 5/5/2014
Checking $2832.88 500 500
Savings $804.57 1000 1000
Total assets $3637.45 1500 1500
       
DEBTS 11/1/2012 4/1/2014 5/5/2014
       
Britt’s car -$9377.87 0 0
Delta card -$721.02 0 0
Costco card -$179.04 0 0
Banana Republic card   -1200 -750
Wells Fargo VISA -$519.03 0 0
Great Lakes 1 -$3889 -2039 -2047
Firstmark 1 -$3373.86 -2551 -2503
Firstmark 2 -$4538.64 -3544 -3490
Firstmark 3 -$5650.64 -4452 -4400
Great Lakes/ACS -$6728.3 -5626 -5550
Total debts -$34977.4 -19412 -18740
       
NET WORTH -$31339.95 -17912 -17240
       
Starting debt -$60000 -60000 -60000
       
Total debt paid off 25022.6 40588 41260
Percentage of debt paid off 41 67 69

Net Worth 4/2014

I realize I’m 10 days late on this, as the unspoken PF blog rule is to post your net worth updates on the first of each month. But hey – gotta start somewhere, right?

I’ve been debating what to include in our net worth. Do we list our home value estimate and what we owe on our mortgage? Do we list our retirement accounts? What about the savings account tied to Boomerang Guy’s business?

For now, because the goal of this blog is to document our student loan payoff journey, I’m sticking with our personal liquid assets and non-mortgage debt. So basically, I’m just telling you what’s in our checking account each month and where our loans sit. Transparent…yes. But hey! If you can’t trust the world wide web, who can you trust? I started tracking our loans in November 2012, so to give you some background of our last eighteen months, I’m including the first month I documented and the numbers as of April 1, 2014.

Any questions? Any feedback? Put it in the comments and I’ll address it in a future post!

 

ASSETS 1-Nov-12 1-Apr-14
Checking $2,832.88 500
Savings $804.57 1000
     
Total assets $3,637.45 $1,500.00
     
DEBTS 11/1/2012 4/1/2014
     
Car loan -$9,377.87 0
CC#1 -$721.02 0
CC#2 -$179.04 0
CC#3  0 -$1,200
CC#4 -$519.03 0
Great Lakes 1 -$3,889.00 -$2,039
Firstmark 1 -$3,373.86 -$2,551
Firstmark 2 -$4,538.64 -$3,544
Firstmark 3 -$5,650.64 -$4,452
Great Lakes/ACS -$6,728.30 -$5,626
     
Add rows as needed    
Total debts -$34,977.40 -$19,412.00
     
NET WORTH -$31,339.95 -$17,912.00
     
Starting debt -$60,000.00 -$60,000.00
   
     
Total debt paid off $25,022.60 $40,588.00

It’s official – Boomerang Kids

Well bloggies, our wordpress name is now accurate. We are officially moved into the rents’ basement.

 

First impressions?

 

Such a great space. Ideal for a studio apartment, really. It’s an L shape, with the carpeted living room area just off the stairs, and then the second half with hardwood floors and our bed snuggled up to the egress window. There’s a full bath (almost completed, ahem, right husband?), and a kitchenette with a sink, mini fridge, and room for a microwave/coffee pot/whatever appliances we can’t live without. Plus, the door down the stairs fully shuts, and locks, and provides plenty of privacy when needed.

 

I am so grateful! It’s a funny situation to be in; a couple in their late twenties, gainfully employed and averaging a higher than median annual income, moving BACK into the parents basement. However, as I spent this last weekend running errands and settling in, and not feeling burdened by the household chores to complete, I was just reminded of how blessed we are to have these people who love us in our lives. Plus, when we receive the renter’s check this week that covers our mortgage payment, I’m going to feel even MORE grateful. 

(I’m going to need you all to remind me of this ecstatic feeling shortly. I mean how long can it be until I want to do away with myself or my MIL?) 

30 years of debt

Boomerang girl here! Happy Sunday, peeps. I hope you had productive/relaxing/fulfilling weekends. The hubs and I just returned from a bomb trip to the Dominican Republic, where we soaked up some rays and consumed some cocktails. The details on how we finagled that trip while paying off loans will be another post.

 

Today, let’s chat about the lovely thing that is a mortgage! Specifically, why we have one when we’re a young couple that started out with $60k + of non-mortgage debt.

 

Boomerang Guy went to a private university 30 minutes from his parents. Two years in, his younger sister decided to go there as well. His parents did some research on university housing and the local rental market, and realized it could be more cost effective if they had a house for both kids and then rented out other rooms. So, in summer of 2006, they purchased a 3 bedroom, 2 bath house about 2 miles from the campus. While it was pretty outdated and had horrible wallpaper, it was a great college house with potential to be fixed up into something cute. BGuy, his sister, and two other friends moved in.

 

Fast forward to spring 2011, when we’re about to get married. BGuy and his dad have done some SERIOUS work on the house – redoing bathrooms, finishing the basement, adding master suite. The house has since dropped in value by 20%, thanks to the ole Bubble bursting. The inlaws are well underwater on the house, and we are not sure what our housing plans are. Long story short, we decide to refinance the house and take over the mortgage. At this point, sister and another friend are living in the house, and we agree that they’ll stay and start paying us the rent that had previously been going to the in laws.

 

So, that’s how we ended up three years into our marriage and our thirty year mortgage. I’ll save details on the roommate situation, my thoughts on owning a home while being in student debt, and homeownership in general for future posts. Did you ever have student loans and a mortgage? Credit card debt and a mortgage? Thoughts either way?

 

Why Boomerang Kids?

Hey, bloggies.

Boomerang Girl here. I suppose the phrase “boomerang kids” is fairly well known, but I thought I’d clarify why I chose to go with this title. About nine months ago Boomerang Guy and I signed up for Dave Ramsey’s Financial Peace University through a local church. We felt like we were fairly on track with our finances, but we had a heavy student debt load, mortgage, and we were in the first few months of starting a business. It seemed foolish to pass up the opportunity to formally learn about financial management.

Dave Ramsey has a following of millions, and plenty of people who love to bash him. While I wouldn’t say we agree with 100% of his message, we were really grateful that for his knowledge and ministry and the conversations that class prompted. One of his token messages is mocking “boomerang kids”…children that leave the home, but end up circling back around and moving back in. He cautions parents to teach their children about finances from a young age, or else they will end up boomeranging back home.

In our case, Boomerang Guy’s parents are more than thrilled to offer us their basement. Not only do they have more than enough room, but they are so happy that we are making some harder decisions now to set ourselves up financially in the future. My mother in law is especially excited – I’m semi concerned she is going to actually pee her pants with excitement to have her son back in the house.

A breakdown of what this will save us each month and how quickly we’ll get out of debt is another post, but trust me when I say that moving into the basement is the best financial decision we could make right now. Far from the typical adult child who moves home because they can’t support themselves, we are making plenty of money but are choosing to make some sacrifices for future gain.

So, tongue in cheek, we are proud to be Boomerang Kids.

Hello.

Well internet, we’re doing it. We are going to be Boomerang Kids. We’re a married couple, 28 and 26 years old, and intentionally moving back in with the ‘rents. Not only just moving back home, but living in the basement. At least we don’t deliver pizzas for a living and play video games nonstop…

Not that delivering pizzas is a bad career. We love the service industry.
Here’s a quick intro to us:
Who: Midwest couple, married in 2011. She’s 26 and in sales, he’s 28 and self employed. High school sweethearts.
What: Moving into his parents’ basement.
Where: suburbs of a Midwest metropolitan area
When: soon. Hope to be moved in by April 1.
Why: Quick version…boomerang guy went to a private school and split tuition with his parents. Boomerang girl took out a $10k car loan in 2012 when her beloved ’91 Acura Legend died. They had a mortgage (another story) and realized they were losing ground.
Thanks for following! We’re looking forward to being a part of the PF community.