Yes, I ended the title with a preposition. Sue me.
As I said in an earlier post the first step to getting control is figuring out what you have. Here’s my answer.
Note: Although I’m posting anonymously I might decide to reveal my true identity. Also, I’ve given the link to a few friends so some of the readers know who I really am. Therefore I’ve decided to be vague about certain details as I figure out where my comfort zone for disclosure is.
I’m not earning six figures but I do make a decent living, especially since I don’t have kids.
In savings I have $10,000 emergency fund in case of layoff, injury, furnace explosion or other emergency. I also have a few savings buckets for upcoming purchases, house projects and vacation. Finally, I have a few thousand set aside for a purchasing a new house. The down payment will come from the equity of my current home, this cash is for paint, flooring and other repairs that need to be done. Or things that I just want to do to the house.
For retirement, I have a Roth IRA and a brand spanking new 401k. I also have a TSP from a previous job. As I mentioned before I don’t have full access to this account because I lost the PIN. There isn’t much in there, less than $1000, but I still need to make a firm decision on what to do with the money.
My debt includes about $80,000 of mortgage debt at 5.5%. I haven’t bothered to refinance because I plan to sell before I’d recover the cost.
My student loan balance is around $21,000 at interest rates between 2-6.5%. I have automatic payments that include an extra $60 above the minimum and sometimes drop in to make non-scheduled payments as well. I’m on the standard 10-year repayment plan and all my loans are federal. I’m on a stashing cash phase right now, once I’m done and the house thing is settled I’ll be ramping up my efforts on paying these down.
I still owe $10,000 on the car at 2.7%. I round up the payment to the nearest hundred because I like round numbers but otherwise haven’t made any early payoff efforts on this.
I’ll discuss my debt more in another post.
When I look at my balances I think I’m doing okay, but could be doing better. I’m the kind of person who likes having a large savings account, it’s like a security blanket to me. I’d also like to start investing outside of retirement accounts but want to build up my on hand cash first. Add in the whole “I’m selling my house and buying another” thing and I really want to have cash reserves “just in case”.
I’m okay with my debt. School was a great investment, I’ve enjoyed my house and have really lucked out with the rising property values, and although I could have been smarter with the car I have no regrets. Again, more on my debt and attitude towards it in a later post.
According to Mint.com, my net worth is $70,000. Most of that is home equity.
When I look at my balances I mostly see wasted years. I wish I’d done more in my 20s, even a little more savings in an IRA could’ve been a nice boost… but for a variety of reasons I didn’t, and considering the short time I’ve actively been dealing with my money I think I’m doing okay. Rome wasn’t built in a day, and neither is wealth.
Do you know where you’re at? What do you think about it?