Medicated Money

Saturday, March 11, 2006

Net Worth - Part II

The real measure of your wealth is how much you'd be worth if you lost all your money. -Unknown

In our previous post we talked a little about wealth and the views of personal net worth. Now that the some of those views have been discussed, I would like to talk about our net worth. I spent the last few days thinking about this post and whether or not I wanted to go into details about our status. Yet, to be true to this blog and some of our readers, I felt that it was important to discuss. At the very least, it will be viewed as a starting point; a point to come back to and see our progression of our worth in the future. Our situation looks like this:

Assets:
-Emergency Fund: $6,875
-Husband's Work Retirement Fund: $14,756
-Wife's Work Retirement Fund: $11,437
-Husband's 403(b): $3,775
-Wife's 403(b): $3,768

Liabilities:
-Student Loan #1 @ 3.625%: $88,572
-Student Loan #2 @ 7.01: $6,241
-Car Loan #1 @4.99%: $9600
-Car Loan #2 @3.99%: $7,907
-Personal Credit Cards @ 0%: $12,750

Net Worth: $-84,460

Yep, that's right.

Eighty-Four Thousand, Four Hundred Sixty Dollars!!!!!

That is a boat load of money. I know that I could lower that number by adding in the worth of the cars (combined $28,500), personal property that I pay insurance on ($30,000), and other items that we own that make it look like we are living the high life; but that is not, in my opinion, getting honest with yourself. So, instead, I have $-84,460.00 posted on our computer to remind us daily that 'We are in a deep hole of debt!'

The good news, if any can come from this, is that the negative part of that number has peaked! Game over, debt. You had a great run, but your days are numbered! We set up a debt repayment plan, and we have just begun. It will definitely be difficult, but we are tired of looking at that red number, and it has just been about 2 weeks of seeing it. The goal is to lower it as fast as we can, and we look forward in talking about the challenges in some upcoming post of doing it.

3 Comments:

  • $88k at less than 4% is practically free money (I said practically :P )

    checking out yer blog, I'm assuming you've become a medical professional (a love doctor, perhaps? :P )so I'm sure the investment will pay off considerably.

    Keep us posted! ;)

    By Blogger bored, at 9:37 PM, March 11, 2006  

  • You're not alone. There's a blog named "make love not debt" out there with a similar situation. Great blog, I suggest it...
    http://www.makelovenotdebt.com/

    By Anonymous John, at 11:47 PM, March 11, 2006  

  • We have heard many times to just consider that loan as 'free' money. We just have a difficulty of seeing it as just that! When looking at it from a different view, if you had a investment of $90k losing 4% a year, would you try to improve it? We are working on a post that discusses this issue, and hope for feedback!

    We have also checked out www.makelovenotdebt.com & www.the-bored-investor.blogspot.com. Both great sites!

    -MM

    By Blogger Medicated Money, at 12:39 PM, March 12, 2006  

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