Net Worth: End 2013 EditionPosted: December 19, 2013
I’m starting this post not known what the final balance is going to come to. Will be eye-opening!
- Home (Estimated Market Value): 75,000 (conservative estimate but I doubt we’d get more than 80K based on sales in our area)
- 401(k) combined: 55,100
- Cars combined: 6,000
- Cash Savings: 1,400
- Total: 137,500
- Home Mortgage: 106,800 @6.5%
- Student Loan (Chief A): 4,500 @0.1%
- Student Loan (Chief B): 13,668 @6.5%
- Student Loan (Alchemist A): $3,180 @0.1%
- Student Loan (Alchemist B): $27,400 @6.5%
- Roof Loan: 10,900 (no interest before March 2015)
- Total: 166,448
Net Worth: -$28,948
Whew. Obviously negative net worth sucks and any debt, in the inimitable words of MMM, is a “hair on fire” emergency but we’re not as deep underwater as I thought we were. My 401(k) plan isn’t terribly great, but I recently made changes to the Alchemist’s to take advantage of funds with low expense ratios.
At this point our primary savings goal is getting enough cash to pay the roof loan before the interest accrues (16.5%!) and then attacking the higher-interest student loans and mortgage. Even though I’m familiar with the debt snowball, I will probably attack the mortgage first because the longer amortization means extra principal paid early pays bigger dividends than the 10 year amortized student loans. Either than or I will split 50-50 between paying my B group loans and the mortgage early – but that’s a decision which won’t come until 2015.