Net Worth – August 2011 (ZERO CC BALANCE EDITION)

KC — Tue, 02 Aug 2011 23:35:17 +0000

I have absolutely no idea what my reaction should be right now – I mean, I’m thrilled that I’ve DESTROYED my credit card debt – which was in the $40,000 range just a few short years ago. But I’m not out of debt debt just yet (rhyme not intended), as I have just graduated from my MBA program and have a ton of student loan debt coming my way.

Let’s be honest though, if you’re going to have any type of debt – student loan debt isn’t a bad one to have. First, I have the degree. Second, it’s a very low interest rate – which will allow me to throw as much extra money as possible towards the principal.

As soon as I have all details for the new student debt – yes, I’m still paying off my undergrad debt as well – I’ll add it to the tally and we’ll start chopping that down as well.

For now though, I’ve got a lot going on which will definitely change my situation (updates to come) and I need to start determining what my priorities/goals are regarding wealth creation (e.g. house, stocks, retirement accounts, etc.).

I’ve been a prisoner of my credit card debt for WAY to long to just sit back and not make up for lost time.

Savings (mini) goal accomplished

KC — Mon, 02 Mar 2009 17:03:00 +0000

At the end of 2008 I posted about a few predictions/goals that I had for 2009. Well I just wanted to give a quick update that I have reached my goal of saving $1000 in an emergency fund before June of this year.

As mentioned in the title of this post, I’m seeing this as a mini goal because a $1000 emergency fund in this economy/job market is still pretty pathetic. So I’m going to continue my savings pace and by June I should reach the $1600 mark.

Nice to have a tiny bit of breathing room though…even if it’s just a tiny bit.

2009 Predictions

KC — Wed, 31 Dec 2008 16:46:00 +0000

Happy New Year’s Eve everyone!

I wanted to spend a little time looking ahead to 2009 and outline a goal, resolution, and two predictions for the upcoming year. Some of these are not pleasant, but I want to be realistic so that I can prepare.

Prediction: I will be fired

Call it what you would like – laid off, let go, downsized – whatever you call it I believe I will be asked to leave my current job early in the new year. This belief is based on the fact that lately things at work have not been going well. I’ve been pretty overwhelmed and have let my supervisors know as much. And while the economy hasn’t hurt our company that much in terms of billing, it has prevented us from hiring employees to help out with the workload. Things have been falling through the cracks, clients have been noticing and speaking up about it and I can’t help but think that my head will be the first to roll in order to keep them calm.

I work at a very small place and I guess this just comes with the territory. I’m pretty prone to stress lately and maybe I’m over-reacting about this whole thing. Either they will be getting rid of me or I will be moving on. Time will tell which happens first.

Prediction: I will move to a different part of the country

My girlfriend hates Boston. She’s been wanting to move for as long as I’ve known her. But she has stayed because I am here. Well I’m now reaching the point where I am feeling burnt out and may be in need of a change. I’m from New England and from what I hear from those I’ve met along the way – other parts of the country are a little bit slower and a lot more friendly. The only thing really standing in the way is the fact that I would have to re-apply to grad school. Which kind of goes against my ‘just put your head down and get through it’ attitude after being accepted to my current school not that long ago.

Goal: I will payoff more credit card debt this year than last year

Last year I paid off $7,733.70 in credit cards debt alone. I put a lot more money towards my credit cards throughout the year, however interest took my efforts down more than a few notches.

I’m moving forward with my debt snowball method and expect to be paying off a few cards early in the year. The more cards I pay off the less interest I have to worry about and the more money I can throw at what remains.

I know some people – maybe even some of those that read this blog – have paid off huge amounts in one year or less. But I’m trying to be realistic about it – and realistically – I won’t be able to do that. But I will be able to make progress.

Resolution: I will save $1000 in my emergency fund by June of this year.

Now since my number 1 prediction is that I will be losing my job – it would have been ideal if I had my emergency fund already established. It would have been even more ideal if I had 3 – 6 months of living expenses saved up in order to be fully prepared for the job market and maybe even a little selective when searching for the next job. But that didn’t happen and now all I can do it learn from it.

So, to start the new year, I’m going to focus on putting some money away to cover expenses should any “situation” occur. More importantly, I am going to define exactly what a “situation” is. I don’t believe that I’m alone when I say that I have struggled with this in the past two years or so. I put money aside each month – and then after a few months I find some reason to dip into that fund. Sometimes the reason is something legitimate like

a car repair or hospital bill. But often times it ends up being a gift or trip that I didn’t fully prepare for or worse still a whoops transfer to my checking account to cover an overdraft and the associated fee.

To be honest, in hindsight, I have made a lot of progress in my debt reduction. I shredded and haven’t used credit cards since 10/14/2007. I have been making steady payments to my debt snowball and have had the pleasure of reaching a zero balance on more than one of my many credit cards. But my journey out of debt is far from over and I don’t see this year being any easier than the last. In fact, it could be my toughest year yet.

Climbing From Debt » goals

Net Worth – August 2011 (ZERO CC BALANCE EDITION)

Savings (mini) goal accomplished

2009 Predictions