Q2 2016 Net Worth
Here we are, halfway through 2016. I am just a 26 year old guy with a wonderful wife, a few big dreams, and a ton of student loans. We rent small apartments and own old cars because we are pursuing financial independence. Paying off debt is our main financial concern, but not at the cost of not saving. I contribute enough in my 401k to get my entire company match, we both have Roth IRAs, and I am working on building my brokerage account. I am learning how to trade and would love to eventually trade full time (see: big dreams).
The last quarter was tough on expenses because we took our first big vacation since getting married which set us back almost $6,000. Yes, that is a lot, but we both thought it was a worthwhile financial decision to take this once in a lifetime type trip.
I recently got an 8% raise at work, which will be in effect starting July. We are also moving this month to a newer/updated apartment, which will be $300 more per month in base rent. This has been tough, as the city we live in has been increasing in rental costs rapidly. I also decided to stop contributing the $170 per month to my Roth IRA for a limited time and funneling that towards debt, which happens to be a personal loan of over $12,000 at 7.75%. Given the conditions, I felt that it was a financially sound decision to go with the guaranteed return of 7.75% with the loans for the time being.
ASSETS
| Retirement savings accounts | Brokerage account | Liquid cash | |
| Q2 2016 | $26,234.39 | $5,769.50 | $5,750.76 |
| Q1 2016 | $23,199.80 | $6,363.87 | $7,960.31 |
| % Change | +13.1% | -9.3% | -27.8% |
= $37,754.65
Our debt is all in student loans. We are paying off the loan with the highest interest rate first and will continue to do that until we get to the lowest one. I use a credit card for my credit score and credit card rewards.
Liabilities
| Student loans | Credit card | |
| Q2 2016 | $141,136.16 | $641.88 |
| Q1 2016 | $144,561.57 | $323.05 |
| %Change | -2.4% | +98.7% |
= –$141,778.04
Net worth: 37,754.65 – 141,778.04= -$104,023.39
It will be great to see how much we end up paying for student loans. #sarcasm.
| Loan Balance | Paid towards loans |
| $141,136.16 | $67,388.70 |
We got married out of college with nothing but some degrees and a couple hundred thousand dollars in debt. My goal is to gain financial independence, which to me will be having enough invested (like 10 million) to live off of less than a reasonable rate of interest and dividends (like 3% which would be $300,000 per year). This would allow me to continue investing more capital and increase income, as well as guard against any possible downturns. This would allow us to spend time with friends and family and pursue things we care about.
I started this blog to help me keep track of our financial progress but also to possibly encourage other people in similar situations and be an example that anyone can achieve financial independence with hard work, discipline and patience. Save and invest today to have wealth for tomorrow. Thanks for reading!