So it has almost been 4 months since my last update, meaning that is is high time for a new update, suggesting that I have news for you. Well, I do have news for you! Here is my Summer Financial Update.
Before I spoil the update, though, I wanted to show you where I was back in March. I had just begun this whole process of frugal living, obsessed with money-things, light in my eyes, naive and hopeful. Being not completely ill-founded, that hope has led to some great things, even if this style of living isn’t as quick as I’d hoped.
Check out where I was:
Summer Financial Update
I did end up paying off that credit card debt. I also ended up paying off my car loan! So, this time around, it is much easier to list my assets, my debts, and my net worth. Let’s start with the debts.
Credit Card = 0.00
Car Loan = 0.00
Student Loans = -20,700 (including interest…)
Total Debts = -20,700
Still a lot of debt for a summer financial update, but there is no credit card or car loan debt! That student loan sucks, and I’m in the process of refinancing to a lower rate–it is currently at 5.5% for 15k and 6.5% for 5k– a process which is made all that more annoying because SOFI doesn’t allow for any loans in Nevada! However, having only one loan to focus on, having no credit cards, having no car loans, means that I’m able to seriously focus on this single debt and begin to make considerate headway against it.
How about assets now. I still have to pay rent this month (which deserves its own post, rent being such a ridiculous money hog in Reno nowadays), my car insurance, and the grocery bills for the month. Taking into account those expected bills, I have the following assets:
Checking’s = $125
Saving’s = $2,800
Total = $2,925
That checking’s account is really low as I’m considering it having paid for rent, insurance, and food already. That $125 reflects where it will hopefully be by the end of the month, with the majority of it now in the saving’s account. I’m pretty happy with that saving’s account: I’ve never had that much saved up before!
That is a hard statement to write down and admit to, but it is true and it is nice to come to terms with. I’m also not stoked that I don’t have any investments, a problem I’m soon to remedy with the book I just bought*, “A Random Walk down Wall Street.” This book and what I plan to do with that saving’s as soon as it is large enough to invest short term (i.e. 2 years, until we’re ready to buy a house in the recently fallen economy) will surely be the subject of an upcoming post.
Net Worth, Finally
This leaves me with a net worth of -$17,775! I use an exclamation point for that because, even though it is still negative, an aspect I’m not stoked about, I am proud of how much that has increased from just under 4 months ago: +$5,913!!! I’ve been working like crazy, I’ve been saving like crazy, I’ve been improving like crazy!
I’m definitely improving. For a Summer Financial Update, I’m proud of myself. I had some issues back in March and April with staying up-to-date with posting blog articles mainly because I was also having issues with keeping up motivation for savings and frugality. It was a hard wall I ran into when I began to fully understand that frugal living is such a long, and ever-lasting process. You won’t get anywhere fast, and, in fact, it is maybe best to slow down all your living if you are going to keep up this lifestyle.**
I need to figure out what to do with that money in the saving’s account. I’m not sure I want to pay off that student loan immediately. I could, rather, save/invest for a house. Or, do a mix of both strategies. Either way, many things to figure out going ahead for sure.
I’m excited to write another financial update this coming Fall, wherein I’ll be able to update you all on my wife’s new incomes, my advancements with savings, and, hopefully, my successful movements into investing!
Thanks for reading.
*I’m not especially proud of BUYING this book. I’ve been trying to cut back on my bad habit of buying books lately. I even have 3 books checked out from the old university library right now. I’ll have to write a review of these later too, letting you all know what I’m reading during summer to improve my teachings for this coming school year. This book, however, will hopefully be a mainstay of my investing education for the indefinite future, so I’m sort of glad to have it as a permanent resource onto which I can look back occasionally to reassess my investing.
**I’ve been reflecting lately on how fast I’m living my life. I think that I want to move to a more thoughtful, conscious, and SLOW style of living overall. Obviously, saving and investing is a long-term affair; perhaps we should be thinking of every other aspect of our lives in this same way. Spending more time with a single beer instead of zipping through a sixer; hitting only a few balls at a time at the driving range; moving slowly through our meals and our cities, through our thoughts and our words. Definitely something here worth another post, something I know I’ve said too many times in this article.