2017 Q2 Net Worth
On we go. The mid point of 2017. The most significant financial occurrence this quarter was that we refinanced our student loans. The only thing I regret is not doing it sooner. We basically took about 130k at 6.8% interest down to 30k at 3.25% and 100k at 4.00%. Amazing. Thousands upon thousands of dollars will be saved over the next few years. The 30k loan is a 5 year term and the 100k loan is a 10 year term. We only raised our monthly payment by about $300, which we were already paying as extra before. So, this obviously puts us on a fast track to eliminating our debt compared to before.
My wife also finished her last classes and passed her licensure exam and is only months away from being officially licensed! It is a huge accomplishment for her and will result in a sizable raise at her current job. Hopefully we will be able to get that locked down by the fall.
Our cash on hand has been increasing as we are saving up for a couple cars within the next year. I would like to save more than we have before because I would like to get something in the 10k-15k range rather than the 5k-6k range we have looked at before. Hopefully the next cars we get will last us at least until we finish paying off our loans.
I consolidated all the loans under my name into one and all of hers (with the exception of one) into one. We also got a new credit card last month, the Barclaycard Arrival Plus. It essentially gives us a similar return as our other credit card but gives us the added emotional benefit that it is for travel.
All our retirement accounts are the same. My wife and I both have IRAs. My work contributes 5% and my wife will become eligible for a 3% match this fall. We both also have Roth IRAs that we infrequently contribute to. I had been taking sporadic breaks from contributing to make extra loan payments, but with the lowered interest rate, I am not as desperate to make extra payments, although I would like to get this huge monkey off my back as soon as possible. I have also been using some of the money in the IRAs to invest in individual securities which has turned out very well so far. I also made another brokerage account with the previously called TradeKing. I have put a few hundred in there and see that as my [even more] speculative trading account.
Anyways, here we go.
ASSETS (Over last Q)
| Retirement savings accounts | Brokerage account | Liquid cash | |
| Q2 2017 | $44,563.57 | $5,948.23 | $10,826.88 |
| Q1 2017 | $39,630.84 | $5,178.10 | $9,048.12 |
| % Change | +12.4% | +14.9% | +19.7% |
(YOY)
| Retirement savings accounts | Brokerage account | Liquid cash | |
| Q2 2017 | $44,563.57 | $5,948.23 | $10,826.88 |
| Q2 2016 | $26,234.39 | $5,769.50 | $5,750.76 |
| % Change | +69.9% | +3.1% | +88.3% |
Current Assets = $61,338.68
We continue to grow our retirement accounts at a good clip. Again, much of the gains are due to favorable market condition. I am fully aware there are times in the future when the accounts may tank for a time. But, it feels good for the time being. The cash will also go down soon when we decide to pull the trigger on a car.
Loans were a little strange this quarter as they were pending for a while as we consolidated them. Again, super happy about our new interest rates and I am not as eager to dump all our extra money into them now. It does not seem like we really paid anything in loans this quarter but that is partially due to overpaying when we reconsolidated out loans. We ended up getting a check in the mail to be paid the difference that but that was after the quarter ended so that will help with our assets next quarter.
Liabilities (Q over Q)
| Student loans | Credit card | |
| Q2 2017 | $133,425.22 | $182.39 |
| Q1 2017 | $134,025.57 | $521.66 |
| %Change | -0.4% |
(YOY)
| Student loans | Credit card | |
| Q2 2017 | $133,425.22 | $182.39 |
| Q2 2016 | $144,884.62 | $323.05 |
| %Change | -7.9% |
= –$133,607.61
Net worth: 61,338.68 – 133,607.61 = -$72,268.93
This last stat is both motivating and depressing. I have been keeping track ever since the beginning how much we pay towards loans (including interest). Obviously the number will be so much more than our original owed and that is what makes it that much more motivating and depressing.
| Loan Balance | Paid towards loans |
| $133,425.22 | $86,003.83 |
There it is. My wife and I are both 27 years old, came from very modest backgrounds, took out debt for college/masters degrees like dumb millennials and are now working toward financial independence. My wife is great for me because she helps me realize that it is also important to enjoy the present and do things that you enjoy. No one wants to have regrets about their 20s and 30s for not having enjoyed anything just because you wanted to be able to do anything you wanted in your 50s and 60s. Come on.
I began tracking expenses long ago but I started Wealth for Tomorrow a couple years ago because I wanted this to be public and show that that with wise choices, discipline and patience, anyone can dig themselves out of a financial hole and build wealth for tomorrow.