Total Net Worth: -$38,506.40
So I’ve been thinking about doing this for some time. It’s a bit of a vulnerable one to share but it is done with the hope and intention that it helps other people come on the journey. The journey, that is, to financial freedom.
What sits at the heart of my writing here is a strongly held belief that debt, and most specifically consumer debt, is a chain around your neck. Having had a 2 Steps Forward 2 Steps Back relationship with my own debt for as long as I can remember, I know that so much of what I do, how I feel and how I make my life decisions is tied to the state of my personal finances. It spins me out to think how many hours of grief I’ve given my self through rash decisions made or in struggles to bail some of the water out of a sinking boat.
Right now I’m in a good place with it all but am still driven by an intense desire to have a positive Net Worth. I’ve got things I want to build in life, people I want to help and most of all I have a legacy I want to be able to focus on. Doing as much means being rid of negative capital holding me back. So on a quasi monthly basis or as my situation shifts notably either way, I’ll jot down my thoughts in these blog posts. Things I am learning, where it hurts etc. More than anything I want to open up a conversation and build a space where we can all learn a bit from each other. Deal? Deal.
Wins this month
1.) Rebuilding my Emergency Fund
One of the things that cause people to strum me back into debt, especially when you’re on a tight budget, is that they don’t have a cushion to fall back on when there are unexpected expenses. Dave Ramsey of Total Money Makeover advocates having an Emergency Fund of circa $1000 dollars to mitigate this. If you’re just in the process of getting started on budgeting then having this fund at hand will provide you with the safety blanket you need while you get into the right habits.
2.)Balance Transfer onto an Interest Free Credit Card
One of the debts I have outstanding comes from living the Life of Riley when I first arrived in Sydney. In a city that loves to breakfast and brunch meets a man who loves to fill his face it’s a recipe for a very expensive carb loading episode. Having this card sitting over me accruing interest was a really kick in the teeth as I came to realise exactly how much that Smashed Feta and Avocado smash had come to cost me once the juicy 19.9% APR kicked in. I recently transferred the whole balance onto a balance transfer card (0% APR) meaning that every payment I now make goes towards reducing the balance. I also promptly cut the replacement card up so I wasnt tempted to go raid the shelves of About Life/Whole Foods/A N Other High End Food Store.
Spins this Month
- The fun fund
Being a man of laser focus when it comes to goals I can sometimes charge ahead in such a way that one goal is driven towards to the detriment of everything else. What this looks like when it comes to personal finance is that I had allocated $50 a month to do ‘fun’ stuff. Eating out, cinema, other activities. This is all well and good and I definitely agree with short term pain for long term gain BUT what ended up happening was that I became a bit of a social recluse that shunned social events to save dollar. When you’re a single 30 something with no kids this can be a bit of a downer! I’ll be reviewing this next month and hopefully resurrecting some friendships in the process
Ultimately: How much is my little Welsh life worth in a dollar figure? I’m not talking about how loved I am, how many fan letters I get or even the extent to which I clog up Social Media here. For the purpose of this blog I will keep it simple and define my net worth as the balance of my assets vs liabilities.
Anything that you own which holds or appreciates in value that could pricier future economic benefit. Simply put this is money in the bank (or under your mattress), real estate, super/pension, valuables and money you are owed.
An obligation that legally/morally binds us to settle a debt. Student Loans, Credit Cards and all Consumer Debt would fall under this category.
Until next time Finance Fans 🙂