Net Worth November 2015

Stairway to Heaven - Kyle Gendary

pc: kylegendary

Here is my first real net worth update. It feels a little intimidating putting this out to the world.

I’ve read many articles and stories saying that people would rather speak in front of crowds instead of talk about their finances openly. Maybe it’s because they have  little bit of shame hiding within themselves to let out the truth.

Being able to talk about my net worth with real numbers is tough. I feel that it will keep me accountable for where I am at, and where I want to go in the future.

Net Worth 113015

Total Cash and Bank Accounts (+$857.06): This consists of two life insurance polices that I use as banks. I am able to freely loan from it. Annually there is a dividend that is given, and it grows at 5%.

IRA(-$3.90): My investments didn’t do too well this month. I’ve invested 70% it into a Vanguard total stock index and 30% into a total bond index. I’m glad that I get a dividend every month from the bonds, and a quarterly dividend from the stocks.

Credit Cards(-$2,586.16): I ended up borrowing money from my life insurance policy to pay off a balance transfer a while back. The terms of the loan made it more costly than I had hoped.

Tax (-$267.37): I ended up having to pay some tax to the federal government a while ago, and I am deciding to pay myself back for that. It also goes into my emergency fund.

With my current payment plan, this debt will be paid of by February.

Car (-$233.59): I’m paying myself back with interest on this loan. I’m excited because this allows me to put it back into my cash account.

Do I see my car as an asset? Not really. It doesn’t appreciate in value over time, and I don’t plan on selling this car or trading it in for another car anytime soon.

Student Loan (-$172.20): This is by far the hardest thing for me to get rid of. It’s also going to be the last thing I’ll end up paying off. The interest rate on this isn’t too bad at 4.47%.

You may say that it’s kind of dumb to have my money in a life insurance policy vs paying off my student loan. After running numbers, I’m actually getting more money back by having the money compound in my life insurance policy. (I’ll explain this more in a later post)

Misc Loan (-$3.24): This consists of money that was used in a bad way. This actually has some debt I paid off because I tried to do a balance transfer to see if it would work in my favor. In a short answer, it caused more headaches than I would like to admit.

I also used some money in my cash account to pay for the balance transfer on my credit card. I’ll be paying myself back on this as well.

Overall, the progress is going in my favor. Slow and steady, and having a specific plan will help me pay down these debts.

Author: Michael Subido @ Personal Finance in Paradise

my name is Mike and I live in Honolulu Hawaii. Living in paradise has his trials money happens to be one of them. I've had my financial problems, I've probably gone through all the major ones including student debt, credit card debt, dealing with creditors, and cosigning loans. I found myself in about $66,500 in debt in 2010 and over 28 months I had paid off close to $40,000 of debt making about $25,000 a year gross income. That's pretty hard to do considering the cost of living in paradise. After that I was able to purchase a car in cash, put away some savings, and also get married. What I want for you is to learn from my experiences so that you do not make the same mistakes. I heard it said that smart people learn from experiences and wise people learn from others experiences, and my goal for you is to become wise and teach others to be wise.

2 thoughts on “Net Worth November 2015”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s