Monday, June 23, 2008

Net Worth

Yesterday I decided to sit down and figure out what our net worth is.

For a while now all I keep thinking about is the amount of debt we have. I have discovered that we are not in as bad a position as I thought. Not counting our mortgage we have assets that equal 2/3 of our debt. When I refer to debt I mean credit card, car and student loans. Our mortgage will be aggressively paid down after all other debt is paid off, six months living expenses are saved and our vacation account is well stocked. This time next year our car loan will be paid off so we should be at the break even point as far as assets vs liabilities.

Our financial focus right now is the following...
a) Putting an additional $300 per month on our car loan
b) Snowflaking as much as possible in to our vacation fund
c) Creating alternate streams of income outside of our JOBS and snowflaking them

A vacation account may not seem that important but hubby and I LIVE for travel. We feel that if we are taking all of these steps to become debt free as fast as possible, we could reward ourselves with vacations that are completely paid for instead of charged.

So far this month we have snowflaked $532.84 (thanks in a little bit to part of our tax incentive check). If you also count another $1000 from our tax incentive check we put in a 7 month CD we have actually snowflaked $1532.84. Yeehaw, Savannah here we come!

Hubby and I hope to take a mini retirement of sorts after his youngest has graduated from high school.
We also do plan to move to an area that has a lower cost of living once the kids are out of school. That is six short years away. We hope to actually live off a home business earlier than that. But for now we just need to focus on the above.

My challenge for us from today until both hubby and my next payday is to spend money only on food and gas with a tiny budget for a small amount of fun. We do plan to find fun in other ways that are free like geocashing, walks at the pier (a short drive from our house and has a dog park) with the dog, etc.


small town city girl said...

Love the link on snowflaking! AWESOME!

L@SpillingBuckets said...

Have you tried Vindale as an extra income stream? I like that one and survey spot, they've paid the most/fastest so far.

paisley penguin said...

Thank you small town city girl! Spilling buckets - I will have to look in to that. Thanks for the tip! :)

paisley penguin said...

Spilling Buckets - I just signed up at Vindale. I wish I had your email address cause I would have given you a referral credit. If there is a way to do it still I would love to! Email me privately if you want to.