March 2017 Net Worth Update: $97,728

Net worth update – The month I became debt free…We did it, Hurray!

If you are new to my blog, welcome and thanks for stopping by. Check out this link to view my previous net worth updates, and financial goals.


March was a very special month for me. I turned 35, and three days later, I made my last student loan payment, making me 100% debt free. The feeling is still surreal but I have the $0.00 balance to remind me every day that yes, it is real. Also in the month of March, I came close, but failed to meet my net worth goal of $100,000. Keep reading to learn more.

NET WORTH UPDATE

ASSETS: $97,728 (­)

  • Cash ($213) – My savings account typically contains ~$1,000, that serves as my emergency funds. I desperately wanted to be debt free at 35 years old, that I transferred ~$800 from my emergency funds, and put it towards the last loan payment. While I do not recommend this approach, I took this risk because I knew, worst case scenario, I had to wait only two weeks before my next paycheck. Over the past few months, I noticed that the more financial literate I became, the less unexpected “emergency” expenses arose. I do recognize that some emergencies are truly out of our control, and I am indeed grateful for month #7 without a significant financial emergency. I am glad to say as I write this post, this bucket will be refilled in a few days.
  • The next goal for this account is to build it into a 3-month emergency fund bucket, which for me is $6,000. Over the next year or so, I’ll advance the goal savings to a 6-month and ultimately a 12-month emergency savings bucket.
  • Car ($13,947) –  The value of my car from Kelley Blue Book decreased this month by $225. This car note was paid off in March 2016.
  • Investments ($83,568) – Recall that in February 2017, I temporarily stopped contributing to my work 403B plan, to provide extra funds to pay off my student loans. Well, that plan paid off and with my loans gone, I can now save significantly more pre-taxed dollars, and make up for lost time. The other good news is that, even though I technically lost my employer 2% match for not contributing in February and March, at the end of the year, they average out my contributions and I do get back what I lost. I remain confident that I can and contribute up to the 2017 IRS limit of $18,000 starting in April 2017.

Overall, my assets did decrease by $1,029 or 1.04%

LIABILITIES: $0 ()

  • Student Loans ($0) – How in the world did I pay off $8,694 in one month? For the record, that is way more than I receive in one month’s paycheck! I’ll summarize how in this post but I will dedicate a whole separate post with the details, including of how I paid off ~$65,000 in 15 months.
  • Firstly, I got more than I was expecting on my tax returns, likely because for three months in 2016, I was jobless. As soon as I received the deposit, every single penny (~$2600) went towards my loan payment. Secondly, like I discussed earlier, I temporarily stopped contributing to my work 403B plan, releasing ~$450 that went directly towards those loans. Thirdly, I received two small bonuses at work, ~$250 that also went into my loan payment, and finally $800 from my emergency funds made up the rest.
  • To summarize, tax returns, small work bonuses, missed contributions to my 403B, emergency funds, and $4500 set aside from my paycheck added up to the final $8,694 payment. I made the payments in installments as soon as the funds were available to save on interest. The final payment (captured below) of $3,255.49 was made on March 23rd, 2017.

The feeling of clicking the payoff button and hitting submit, cannot be compared to anything I have ever felt before. I feel a huge sense of relief, as I close this chapter of my financial journey and start the next.

 

NET WORTH: $97,728 (­)

Overall, my net worth (NW) increased by $7,664 or 8.51%. This is my 7th NW update and sixth consecutive positive growth in my NW. I did fall $2,272 short of attaining my March 2017 NW of $100,000. Nonetheless, the big win of becoming debt free 3 months ahead of schedule completely makes up for it. Besides, I am somewhat confident, that I’ll be joining the six-digit net worth club next by next month.

See you next month!

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