April 2016 Net Worth Update

May 03

April 2016 Net Worth Update

Each month I review my financial position and determine how my decisions in the past month impacted the numbers. My journey from red to riches is going to be a long one, but it’s a journey that can be done. These net worth updates are meant to be a catalyst to readers that may be in a similar position to realize it’s possible to climb out of the hole.

My net worth increased $5,640.12 from March to April.

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My Net Worth is Finally Positive!

Apr 26

Milestone Achieved!   It’s important to have milestones for every major goal. Obtaining a positive net worth is one of those milestones for me on my journey to financial independence. I went from $75,000 in student loan debt to a positive net worth in less than four years. At the same time, I’ve increased my base salary by 37% and cut my housing and transportation costs dramatically which will help compound my savings and net worth growth.   What’s Changed Now that My Net Worth is Positive? Although I’m still budgeting, I’m not obsessing over it like I did the first couple years out of college. It’s always good to have a road map, but it’s unhealthy to obsess over money each day for long periods of time. I’m at the point now where I don’t count pennies and I am able to grab wings with a buddy at the local pub without feeling guilty. Yes, many decisions like this on a daily basis would throw me way off track, but having a healthy social life is part of a fun and balanced life. Additionally, I’m giving in a bit to my inner desire to travel both internationally and locally. However, these trips are saved for in advance.   Does it Feel Different? To be honest, it doesn’t feel much different. When I formed my 2016 budget, I knew I’d have a positive net worth in April as long as I followed my plan. Although I’ve been over budget, the first few months of the year, it wasn’t enough to materially impact where I thought I’d be in April. This is why planning and budgeting is so important. Once the plan is set up, you become comfortable with your situation and the mental relieve occurs at the time you understand the plan, not on the day to day execution of it.   Conclusion It’s a great feeling knowing my plan is working and I am worth as much as I would have been if I would have just done nothing after high school. However, my future earnings power is dramatically greater than if I had done nothing. Although I have achieved this milestone, I still have a long way...

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How to Save for a Vacation while Having Student Loans

Apr 20

Balancing new experiences such as traveling and finances is important to get the most out of life.

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March 2016 Expense Report

Apr 12

In March, I visited a friend that lives several hundred miles away, attended a networking event, and bought some podcasting equipment.

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March 2016 Net Worth Update

Apr 05

March 2016 Net Worth Update

Each month I review my financial position and determine how my decisions in the past month impacted the numbers. My journey from red to riches is going to be a long one, but it’s a journey that can be done. These net worth updates are meant to be a catalyst to readers that may be in a similar position to realize it’s possible to climb out of the hole. Follow me on Twitter! My net worth increased $3,486.42 from February to March. YTD, my net worth increased $7,302.19. As a result, I’m ahead of my goal of $25,000 goal with some help from Mr. Market. However, as I mentioned in my 2016 goals, I am removing the market impact from my net worth updates to better understand what my direct contribution was during the month. Well, Mr. Market accounted for $1,593.54 of the increase in my net worth this month (for those of you that are curious, simply take Beginning Balance – Ending Balance – Contributions + Withdrawals = Market Impact for any investment accounts). This means my net worth would have increased $1,892.88 if I remove Mr. Market (ie: this is what I can directly attribute to my actions). YTD With Mr. Market:        +$7,302.19 YTD Without Mr. Market: +$5,976.76 Below is a summary of my financial position followed by some footnotes describing this past month.   Assets Cash Not a whole lot of action here. The Opportunity Fund I did not make any contributions so it was all market related. I own shares of six different companies in this account. 401(k) My 401(k) is mostly invested in two different Vanguard accounts. I contribute 6% to get the full employee match. This year is focused on reducing debt so maxing this out is not my primary goal. Health Savings Account Simply putting away $50 per paycheck. Home For simplicity, I am using the original purchase price. This may be slightly overvalued based on similar homes being sold in my neighborhood, but I don’t see a lot of value in trying to pinpoint it. Other You’ll notice I do not list my car as an asset, but I do list the liability for my auto loan. Some may say this is technically incorrect, but it’s...

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Why It’s Good to Graduate with Debt – 7 Lessons I’ve Learned from Graduating with Student Loans

Mar 29

Why It’s Good to Graduate with Debt – 7 Lessons I’ve Learned from Graduating with Student Loans

Most of the articles on the subject of student debt in the main stream media are negative. It’s the next major financial bubble, it’s delaying home buying, it’s making people miserable, etc.

In my opinion, a student graduating with $50,000+ in student loans doesn’t need to read another article about how F’d they are and how terrible their choices were. Either they already understand their situation or soon will be forced to understand their situation as soon as their first student loan bill reaches their (parents’) mailbox.

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Are Tax Refunds Good or Bad?

Mar 22

Have you ever heard someone tell you they were mad because their tax refund was so small or maybe the even had to owe in?

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