miercuri, 2 februarie 2011

A quick peek at my finances

For a starting point, here are my finances as they stand today.


Checking: Our checking account is for bill paying only. After everything is paid, I'm lucky if I have $20 left. So as of today (I guess you can say I'm lucky), I have approximately $153 in my checking account. Of course, the auto payments for my car insurance and student loans haven't posted yet. When it's all said and done, I might have $11 left.

Savings: The savings account is for our emergency fund. As of now, I'm working on rebuilding the emergency fund because it was partially depleted to pay the earnest deposit on the townhouse we're having built. The current balance is slightly more than $8,000.

Retirement: The only retirement account I have right now is through my employer pretax plan. I contribute just enough to get the employer matching and the balance is ~$16,600.


Car Loan: I bought a new Honda about 2 years ago. While I know buying a brand new depreciating lump of metal (I have a little trouble calling it an asset) is frowned upon in the financial world, I went against the grain just this one time. I won't try to justify why I did it (although you'd be amazed at what excuses I can come up with), but I know better now. So it was my first and last time buying a brand new car. On the bright side, my loan balance is $5,000 less than the private selling value according to Kelley Blue Book. I still owe $12,600 financed at 5.5%

Student Loans: What can I say about student loans? Most of us have them and we all hate them. In hindsight, getting them was worth it but feels a grey cloud that will follow me around for the next 20 years. With a Business degree from a private college and an MBA from a public university, I managed to finish with only $14,500 of student loan debt (and NO credit card debt - yay me!!). A recent consolidation helped me to lock in a 4.25% rate.

In summary: Not including the value of my car or personal possessions, my total assets are ~$24,600 while my liabilities are ~$27,100, resulting in a net worth of ($2,500). Yep, that's a big ole' negative sign!

*sigh* I have a lot of work to do.