I honestly don't mind sharing the ins and outs and ups and downs of my personal finance here on this blog. Its part of what keeps me on track with my goals. The people I know IRL that read my blog I don't mind if they know what I am posting. Granted there are a small few people that I have actually given my blog address to.
So, without further adeu - here are the down and dirty numbers of the hubs and I collective net worth. Make sure you sit down - its a bit scarey.
Credit Card Debt - $11,349.49
Consumer Loan Debt - $14,049.69
Car Loan Debt - $5,815.09
Student Loan Debt - $4,484.70
Total Debt - $35,698.97
Hubs Retirement - $14,522.77
My Retirement - $986.63 (epic failure)
BMW - $1935.00
Total Assets - $17,444.40
Net Worth - ($18,254.57)
This is not including our home. If you add that to the equation our net worth is ($161,254.57). Not a good place to be. Can you see how pathetic my retirement portfolio is? I was the one that pushed the hubs to start one and I stopped mine to have extra money every month to pay down our debt. This needs to be rectified soon.
Plans are in place - we are actually getting a personal loan from my parents - low interest. They would have charged no interest but they are paying 5% on what they are loaning us so we are paying that 5%. This is extremely generous of them. We would have made it somehow without this loan but the interest rate is well, way better than our credit cards and the personal loan we have.
A lot of people would not consider borrowing money from parents. I have actually done it twice at a lot smaller sum and paid back every dime with interest on time every month. That is why when I freaked out last month and said the hubs and I didn't want any Christmas or Birthday gifts until further notice they stepped in.
It's a bit humbling taking money from the parents. It makes you feel slightly like you are not managing your life very well. The cool thing about my parents is they didn't do what they normally do - they didn't hassle me about the amount and didn't tell me how to manage my life. They did ask a few questions but they trust us.
We have a five year agreement with them and I plan to pay it back in three.
4 comments:
Thanks for sharing! It's so interesting to see what someone's Networth reveals about their life. But there's no shame in borrowing from your parents -- especially given the economy and your plan to pay them back with interest. Many people I've met just accept handouts ("gifts") from their folks as if it's owed to them.
Thanks Moneyapolis! Although its scarey to see the numbers I think its something that every person should do.
It actually helps me figure out a plan. More posting to come about this soon!
Moneyapolis is right! It's absolutely fine to borrow from your family, as long as all parties involved are clear on the details and there is trust on all sides. I know there are people in my family I would be comfortable lending to/borrowing from, and people that based on their track records, I would not.
This does sound morbid, but I've been thinking about this subject a little bit since my parents are cosigners on one of my loans. It has been on my much overdue to do list to purchase life insurance with them as the beneficiary so if the unforeseen should happen to me, they would be able to pay that loan back without any problem. That would be the only thing I'd recommend you consider with this type of long-term loan. Good luck!
Thanks Negative Net Worth! We actually have that covered but its a great suggestion none the less. :)
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