Frequent readers will note I'm still using the term 'our', rather than 'mine' or 'his' *g*
Anywho, I've been giving some thought to the pitiful negative net worth of my household. Bluh!!! I think this is something I want to rectify during 2007: I wanna get in the black!
OK, so there it is. Yes, it's a copy of the same image from a previous post. Sue me (hehehe, why would you, you can see you wouldn't get anything!)
So, here are my thoughts on the fastest way to get into the black on my net-worth. Interestingly enough, they're not necessarily the ones that will save the most when it comes to paying out interest, so I guess I need to decide which is going to motivate me (and of course DH) the most....
1. Pay off DH's old Honda Card. This is our highest interest rate and would almost put us in the black on it's own. Woohoo, two birds with one stone baby! For those that are curious, the Honda Card was for a 4-wheeler DH bought about 5 yrs ago, before I met him. He sold it right after we met and the cash from the sale was spent long before I even knew it was financed, leaving us with this zombie-like bill. GAAAAAAAAAAAAHHHHHHHHHH!!!
2. If we can pay off the hospital: POOF, we're in the black!!! Only downside to this is that the hospital is at a lower interest rate than every other debt we have. Tricky, eh?
I dunno, I think I'll chat w/ DH and see which way he would like to go. Then again, he still hasn't reviewed the 'financial report' he asked for, so he may have no clue what I'm talking about 
Thoughts on Our Net Worth
November 8th, 2006 at 10:32 pm
November 8th, 2006 at 10:40 pm 1163025624
November 8th, 2006 at 11:39 pm 1163029185
You go! You can do it!!!
I should follow your lead and do a net worth!
November 8th, 2006 at 11:41 pm 1163029298
However, I think there is a bit of a pitfall in being too impatient as well. Ironic that this should come from a guy as impatient as I am.
Another noteworthy thought is that net worth isn't the only barometer for financial wellness, nor do I think it's the most important one. I think it's just as important to have and maintain a positive net cash flow each month. The bigger the better!
For example, even if your net worth is -100k, if you have a positive net cash flow that amounts to 100k per year, then that negative net worth will mean nothing. It'll be wiped out in a year or so!
Conversely, even if one can has a positive net worth, if they're constantly bleeding red by, say racking up their credit cards, and thereby causing a negative net cash flow each month, they'll be sinking in no time. See what I mean?
Frankly, 3.6k is nothing. You'll do it in no time, and you can achieve that in pretty much any way you please (though ideally, I do recommend knocking down whichever has the highest interest first). The only thing I sort want to point out, for the sake of the conversation, is to do what I think would be best to your finances overall.
Of course, if the net worth goal fits nicely with your overall financial goal, then all the better!
I'll stop rambling now.
November 8th, 2006 at 11:57 pm 1163030246
November 9th, 2006 at 04:35 am 1163046956
well, i have heard rumors about a long-lost twin brother...
as for net worth, i'm stuck between doing what is finacially gratifying i.e. paying the highest interest rates first, honda card and my car, or what is emotionally gratifying i.e. getting rid of the zombie debt (honda card), paying the hospital to get it over with, and paying off the inlaws as that's a monkey on DH's back.
obviously the honda card has GOT to go, as it will satisfy both needs. CC1 and CC2 are active cards so i'm not as worried about them.
it's like shopping: there are just SO many to choose from *sigh*
as for positive cash flow: no current issues there. i will be stashing away for my retirement in a roth as the company i work for doesn't offer direct deposit of a 401k. i actually have to go to my bank... *sniff*
November 9th, 2006 at 06:43 am 1163054592
November 9th, 2006 at 08:29 pm 1163104190
November 9th, 2006 at 09:01 pm 1163106080
November 9th, 2006 at 09:06 pm 1163106361
i'm likely going to speak w/ scotrade re: an IRA. low fees, low mins, they offer the 2 funds i'm most specifically interested in right now, and they have an office 1 mile from my house.