Net Worth: Q1 2014

Edit 6/4/14: I severely overvalued our cars. I realized this quite a while back, but finally decided to edit this update rather than tweak it for the update at Q2’s end.

I’ve been looking forward to checking on our net worth for a couple weeks now. We’re progressing well. It could always be faster, but I know things will speed up very quickly as we stop having to waste money servicing debt.

Assets

  • Home (Estimated Market Value): 78,000 (Zestimate)
  • 401(k) combined: 60,692
  • Cars combined: 3,000 (will depreciate out by $500 each quarter)
  • Cash Savings: 6,633
  • Total: 148,325

Liabilities

  • Home Mortgage: 106,324 @6.5%
  • Student Loan (Chief A): 3,875 @0.1%
  • Student Loan (Chief B): 12,675 @6.5%
  • Student Loan (Alchemist A): $2,983 @0.1%
  • Student Loan (Alchemist B): $26,873.62 @6.5%
  • Roof Loan: 10,900 (no interest before March 2015)
  • Total: 163,630

Net Worth: -$15,305 (QOQ +$13,643; YOY N/A)

We doubled our net worth in three months! Of course, we’re still negative 😛

It’s cathartic seeing the asset lines go up and the debt lines go down as I edited the information copy-pasted from the last update. Going forward, we’re still going to be adding cash to our debt repayment war chest, but I’m also starting a few savings buckets for education (homeschooling), travel, and vehicle replacement expenses.

I wish we had enough liquid assets to fund our ROTHs for tax year 2013, but we’ll definitely try to get some funded for the 2014 year. 6.5% rates are eye-watering but tax-free growth forever is good to have, especially since you can only fund $11,000 each year.

I also just pinged our mortgage company about the PMI on our mortgage. If I can get that off when we hit 80% LTV based on the original purchase price, not the substantially lower current value, that’s going to be our first target after killing the same-as-cash loan for our roof.

 

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6 Comments on “Net Worth: Q1 2014”

  1. envisionhappy.com says:

    Just curious, how is your house so much upside down with such a high interest rate? Have you tried HARP refinance?

    • David says:

      Bought house right near the peak and there are a lot of foreclosures keeping prices down in my area. At the time we bought in ’06, 6.5% was a great rate (partially subsidized even).

      Unfortunately, we are not eligible for HARP, as our loans aren’t held by Fannie or Freddie. Our note is held by US Bank. I suppose if we dishonestly started being late on payments, we might be able to negotiate, but they’ve refused to do anything on the rate as long as our payments stay current. We can afford the house but can’t refi. Frustrating, but it is what it is.

  2. […] just a really quick post to say that I revised the net worth I reported back in Q1 2014. I overvalued our cars by $3,000. Apparently even cheapo used cars still depreciate quite a bit. I […]

  3. […] The Goblin Chief @ (-) $12,305 […]


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