I had a shocking email from Mint this past month. It alerted me to a credit card late penalty! I was pissed I had missed this credit card when I created my debt tab which indirectly caused me to just ignore the card for the past two months. Couple that with the fact that it was an old card so the emails went to an old old personal email address led to the fee. Luckily, I have no problem with just asking for fee abatement or reversal. With one phone call I had the fee reversed (and it was never put on the credit report which is way more important to me than the nominal fee). Since the debt was never accounted for the past 2 months net worth growth rates were overstated (not by much, but an overstatement is an overstatement). Since I am not a Fortune 500, 1,000 or 10,000,000 company it doesn’t really matter so I left the posts as they stood and just corrected my spreadsheet.
Consumer Debt Repayment
As I stated over the past few months I accumulated consumer debt for the first time in years. I have the liquidity to pay it all off but choose not to because truth be told I value liquidity way too much. First step was create the following step by step outline for myself.
- Step One – End of this week get the AMEX down to where it has to be (leaving a little bit over a grand).
- Step Two – Pay off the Disney Card ASAP. It is a small card, with an interest rate. There is no reason to keep a balance on it.
- Step Three – Get AMEX down to $0 and try to keep it there (I say try because it is my main card and so it has auto payments).
- Step Four – Pay off the cell phone and mattress purchase. While they are at 0% for those small amounts there is just no reason I should even have to think about them.
- Step Five – Keep Chase Sapphire Card under $1,000 balance
- Step Six – Attack Bank of America aggressively.
Second step was to ignore it! I paid off Steps 4 and 2 because balancing the small amounts just weren’t worth it.
In September I paid off $1,689.
In October I was actually -$422 even with adjustments made for the “found” account. Unacceptable. I said from the beginning of this project that I was going to hit $1,000 a month in the right direction or else I will force myself to sell something that is going to hurt….A piece of my dividend investment portfolio. As such, look for a post trying to find an overvalued equity later this week.
Calculating my Net Worth
- My Cash Savings Accounts – I only really count my emergency savings since everything else is ear marked to be spent elsewhere. This amount is lower than what I would like to be. I am hoping to move it up to a comfortable level with my bonus at the end of the year.
- My 401(k) – Just keep throwing part of my paycheck at my 401(k) even though I sort of hate my 401k. For the past few months I have been buying and selling within this account…I just posted my actual returns from this pure market timing technique.
- Random Non-Qualified Investment Accounts – This thing has TUMBLED but I am proud to announce I am DONE with gambling on penny stocks. My gambling will be kept to casinos (and some of my holdings in my investment club).
- The Wife’s Roth IRA – This account only holds to 2 funds. An index fund of the market and a dividend paying fund.
- My Dividend Investment Portfolio – Easily my favorite part of my financial
- Home Value – A lot of bloggers seem to stress over home value. In my old place I just rounded to a number that I thought I’d sell for (I was off by less than 1%). I am just going to keep using my purchase price for at least the next year.
- My Traditional IRA – I started to actively trade this account lol. Not proud. I just made the financial confession that I was speculating in some really shitty stocks. I am done with it – and will roll out when I can.
- My Mortgage – Every so often I think about putting money towards the mortgage but I always back off.
- Law School debt – A while back I paid off the much smaller of the loans I have a while before this category makes any significant moves.
- Credit Card debt – As mentioned above the goal is to reduce it by a net $1,000 per month.
My Net Worth Growth
- From October 2014 to November 2014 my net worth increased .82%
- Year to date I am up 4.83%
My YTD number reduced despite growth due to the adjustments highlighted in the beginning of this post.