Saturday, August 30, 2008

My August Debt and Net Worth Progress Report

Here's my progress report for August 2008:

Starting DebtLast MonthThis MonthDifference
Private SL$49,528.99$49,136.14$48,863.52$(272.62)
Fed'l SL$55,852.68$55,712.03$55,594.28$(117.75)
Car Loan$9,779.33$9,248.78$8,500.50$(748.28)

I was feeling really great about the $1,400+ progress I made towards eliminating my debts until I realized that I paid $446 in interest last month.

Had I not had any debt and saved $446/month in my ING account (APY 3%) for 77-months (i.e., the amount of time I plan to take to pay off my debts), I would have $37,768!

Rather than feeling depressed, sorry and angry at myself, I've decided I am going to let it motivate me to pay off my debt sooner!

Last MonthCurrent SavingsDifference

My total cash position for August is $6,237.51 but $3,080.23 is earmarked for future spending (he he), leaving me with $3,157.28 in my net cash position. I seem to be on track to saving $3,400 by 12/31/08. What's depressing is that this won't even cover 1 month of my current expenses. :-(

The progress on my cash position has been slow and tedious thus far. I hope the lesson I learn from this is that since it is so difficult to save $100, I shouldn't waste my money on frivolous stuff.

But ohhhhh... how I would love to replace my Motorola Razr cell phone with an iPhone...


It's nice to see that my networth is going up despite still being in the red.
The biggest return on my money was from my debt reduction. For every dollar I paid towards my debt, I increased my net worth by 76.7 cents.

The returns on my investments were less stellar: For every dollar I contributed to my 401k in August, I increased my net worth by 16.4 cents. My investment account, on the other hand, got hammered. For every dollar I contributed to my ESOP, I lost $3.48 of my net worth!!

The only positive I can see with respect to my retirement account and ESOP account is that I am dollar-cost averaging. When the market rebounds (whenever that may be), I should see the benefits, so I shouldn't despair so much.

The breakdown of my net worth can be seen here.


Amanda said...

Slow and steady is the way to go. That lesson on passing up the "wants" is an important one. Over time those small gestures of willpower add up and start to compound. Keep at it!

Shtinkykat said...

Thanks for the words of encouragement! I agree with the steady-eddy approach in debt elimination. I admire those people who have the Dave Ramsey "gazelle intense" drive to eliminate their debts, but that aint' me.

MoneyBeagle said...

Great job! You made improvements in each area, which shows you're on the right course. Keep in mind that every month will see less paid towards interest and more paid toward principal. It'll add up slowly but will be noticeable!