Net Worth — Taking Stock
In preparation for my continuing foray into long-term investing, I have decided to take stock (pardon the pun) of my net worth, including all of my account balances. Below is an up-to-date list of my assets and debts:
Assets:
University 401(k): $2,227.21
University Savings Plan: $924.80
Cengage Learning 401(k): $9,212.29
Debts:
Bank of America Credit Card: $1,569.38
Capital One Credit Card: $3,122.55
Student Loan: $65,208.01
Auto Loan: approx. $9,400
Total Net Worth: −$66,935.64
As you can see, I have quite a ways to go just to break even. The good news is that, my credit card debt will soon be paid off with the help of my company performance bonus. This will free up more of my monthly income to invest in my 401(k) plan, to build up an emergency cash fund, and to work on paying off my student loans.
The student loan amount can seem daunting, but the interest rate is quite low compared to the credit card debt and the automobile loan. This means that it will be more worthwhile to ramp up the retirement investing once the credit card debt and auto loans are paid off. In the meantime, I have just set my 401(k) retirement plan contributions to 7% of my income while I await confirmation and receipt of my annual bonus.
I will be making status updates on a regular basis, so keep checking up on my progress. And keep the encouragement and advice coming my way. It is always greatly appreciated!
