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New Year’s Net Worth: Paid down debt in 2007 and bolstered savings

Since September 2007, we paid off 1.26% of our debt, or $1500+.

In the greater scheme of things, 1.26% debt repayment doesn’t seem so big. But I’m very happy with it. Micah’s a student, I have a low income, and we’ve been focusing on saving to cushion the whole process of my patchwork full-time job. If I do well with it, then we’ll apply some of that money to debt.

Our biggest achievement was paying off our credit card in one fell swoop in September. The interest was crazy at 29.9%. The balance was under $1000. We had savings. Poof! Worst debt out of the way.

Our net worth has made a nice shift from -$114,000 to -$110,000 (ok, almost $111k, but we’re being positive here). We even have a little Roth IRA of $1000 (more on that later). And we have a cushion of approximately $4500 or over 2 months’ living expenses.

So far, we haven’t had to tackle the biggest debt at all—Micah’s student loans. He’s still technically a student, so they’re deferred. We figure that it’s best we concentrate on making little car payment snowballs/flakes. Once he’s graduated, he’s going to be working on finding a job which should drastically increase our income (I mean, shoot, anything would drastically increase our income) and we can start putting even more towards car payments while we start paying off student loans as well.

That’s the plan so far, anyway.

We spent 4 months last year really focusing on debt repayment and such. If we focus for 12 months this year, I earn more, and Micah get a teaching job…then maybe we can get really studly and pay down 10%!

So yippee, we’re making progress. 98.74% more to go!

From the M-Network and beyond, some other bloggers have put together their year-end net worths too!


{ 12 trackbacks }

How we increased our net worth by more than 170% in less than a year | Gather Little By Little
January 2, 2008 at 6:01 am
2007 Net Worth Update: +19.7% | My Dollar Plan
January 2, 2008 at 6:39 am
I’m in the Black! | beingfrugal.net
January 2, 2008 at 7:01 am
December 2007 Site and Net Worth Review (+0.72%) | Moolanomy
January 2, 2008 at 8:02 am
net worth 2008? : plonkee money
January 2, 2008 at 8:20 am
The M-Network+annex NetWorthapoolaza | Credit Withdrawal
January 2, 2008 at 8:52 am
It’s Hard to Get Back to Zero | I've Paid For This Twice Already...
January 2, 2008 at 9:15 am
rocket finance » Blog Archive » Net Worth for the New Year
January 2, 2008 at 9:41 am
DebtFREE-Revolution » Blog Archive » Trying to Figure Our Net Worth
January 2, 2008 at 10:13 am
Net Worth: 43% Growth in 2007 and Goals for 2008 | Cash Money Life
January 2, 2008 at 10:28 am
The M-Network Shares Their Net Worth - You Know You Want To Peek! | My Two Dollars
January 2, 2008 at 12:13 pm
brip blap » net worth or net worthless?
January 2, 2008 at 9:02 pm

{ 14 comments… read them below or add one }

CatherineL January 2, 2008 at 5:25 am

You’re doing great Mrs M – especially with your husband still being a student. And you’re doing all this at an age where you’re still going to be young enough to reap the benefits in the future. Well done.

Patrick January 2, 2008 at 7:15 am

Great progress! It takes baby steps to get things done, especially at first. As your income (and Micah’s) rises, you will be able to make progress much more quickly! Good luck to the both of you in 2008!

Dan January 2, 2008 at 8:31 am

The vast majority of people in your situation would still be increasing their debt, so it is outstanding that you have paid off what you did! Good luck with your 10% goal this year.

Becky January 2, 2008 at 12:24 pm

Congrats on your progress, and on your savings cushion! You’ve probably mentioned this somewhere along the way, but how much longer will Mr. Micah be in school?

mrsmicah January 2, 2008 at 12:46 pm

If we’re really lucky, Micah will finish his dissertation this spring. If not, probably another year. Or he may start working full-time and dissertating part-time. We’ll see.

RacerX January 2, 2008 at 12:50 pm

That’s great movement. You are really doing well and setting a great path for future growth once Mr. M is out of school.

Basically, if you can make it now, you will be in great shape in the future.

Christine January 2, 2008 at 2:02 pm

Good on you, Mrs. M!

My net worth stands at about -$3,000 at the moment, but that’s all student loans which I won’t have to start repaying until Nov 2009 or thereabouts. (Yup, more bonus points for Canada: my tuition & fees come in at just under $5,500/annum).

SavingDiva January 2, 2008 at 4:31 pm

It’s great that you wiped out your credit card debt, especially since it was at almost 30%!

Good luck with paying down more debt in 2008!

Pinyo January 2, 2008 at 4:57 pm

Good job with you debt. I would hold off on student loan as long as possible (and focus on high interest debt). Interest you paid on student loan is tax-deductible.

fathersez January 2, 2008 at 6:08 pm

If the PR guys get their hands on a story like this, they would have called it a “stunning turnaround”.

Your story is an inspiration.

Well done, Mrs. M, once M starts bringing in the moollah, you will just coast on to astounding success.

My Dollar Plan January 2, 2008 at 9:58 pm

Increases are good! Keep it up. Two thumbs up on starting the Roth:)

Wooly Woman January 3, 2008 at 4:53 pm

Good for you! Nice to see that debt decreasing isn’t it? I think it is great you are both starting too even though your income is low at this time, I wish I had done that and been further ahead once I started making more money.

Dave January 3, 2008 at 8:28 pm

Congrats on the debt reduction and starting the IRA. My wife is in grad school too, though she’s not as close to being done as MrMicah is. If you can pay off anything now though, just imagine what you’ll be able to do with the same discipline and a multiple of your current income!

wealthy_1 January 5, 2008 at 6:38 pm

Congratulations on your progress!

Continued success in the New Year!

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