Beginning Net Worth Statement

As I mentioned yesterday, one of my financial goals is to have a positive Net Worth by the end of the year. To calculate your net worth, you add up all of your assets everything you own (cash value) and then subtract your liabilities (any debts you have).

How are we going to raise our net worth?

We will continue paying off debt  (approximately $1,000 per month), continue contributing to savings (about $200 per month), and continue contributing to retirement account (only about $45 per month until our debt is gone). With all of these transactions, we should have a positive net worth by the end of the year.

To start off the year, we have a net worth of -$12,037.02. We have $33,476.04 in assets and $45,513.06 in liabilities. A majority of our assets are not liquid, meaning the cash is tied up in items and not cash. A majority of our debt is school loans, and our next largest loan is a car loan. We don't carry a balance on our credit card. (We pay our credit card off every month, but the payment just hasn't posted for this month yet.) 

If you have any comments or questions, feel free to leave a comment.

2016- A New Year and New Goals

2016 is finally here! With that, my first goal is to rejuvenate this blog. I'm going to try to do at least three posts a week. Here are some other goals (financial and personal that I have for the year)

Financial:

1. Have a positive net value by the end of the year.

2. Pay off 2 school loans completely by the end of the year. Approx. $8,000 between our two smallest school loans)

3. Maintain our emergency fund at the level it is currently at.

4. Increase our savings by at least $1000 by the end of the year.

5. Don't worry about finances as much as I had in the past, everything is going to be AOK.

Personal:

1. Show my wife how much she means to me every day.

1a. Spend more time with my wife, because she is there for me and deserves more than the time I gave her last year.

1b. Be more active in church.

2. Go on a multi day backpacking trip

3. Volunteer more

4. Be more simplistic in my lifestyle.

5. Start and maintain a garden.

6. Be a better person.

7. Live a healthier lifestyle: workout more and eat better

What are some of your New Years resolutions?

Is money the root of all evil?

     Having a lot of money isn’t a bad thing.  In most cases, money represents hard work that you put in to earn it.  You shouldn’t feel bad about having a lot of money.  A common misconception of money is that “Money is the root of evil”.  There is no spot in the Bible that specifically states that money is evil.  It is simply a green sheet of paper with fancy designs and a picture on it.  1 Timothy 6:10 is the bible verse where people get the idea that money is the root of evil.

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” (1Timothy 6:10)

      As you can see in the verse, you can see where people can miss the true meaning of the passage.  “For the love of money is a root of all kinds of evil.” It’s not the money itself, but the idea of a idolizing money.  The love of money can change a person and doesn't allow them to focus on the important things in life such as God, family, and service to the community.

    Some people will do crazy things to get fast money.  They'll steal from people, they'll kill people, they'll gamble to try to get some quick cash.  These are all dishonest ways to get cash.  If someone is willing to sin to get money, they have a love for money.  This is where the idea of "the love of money is the root of all kinds of evil."

     Proverbs 13:11 states that “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.”  The dishonest ways people get money isn't sustainable.  The money will be gone within a matter of a short time.  People need to get jobs and earn their stead with an honest day's work.

 

Marital Finances: A summary of "I Now Pronounce You, In Debt"

I saw this article on Yahoo! that I wanted to share with you. It's called "I Now Pronounce You, In Debt".  I though it was pretty informational, talking about things you should know about finances when you get married and some advice to help reduce the shock of the financial burden you might not be expecting.

Here's the main topics the article discusses about marital finances.

1. Talk about money early.  Nobody truly wants their marriage to be based around money, but it is something that has to be discussed.  Make sure you and your spouse know each others expectations, hopes, and plans with finances.  Make sure you discuss current debts as it will greatly play in to how you work finances in the future.

2. Don't Go into Debt For a Wedding.  A wedding is a happy, blissful, enjoyable, and scary day.  It is the day where two become one.  It could also be a day where a couple drops $15,000 to celebrate for just a few hours.  Its great if you can afford that all in cash, but be careful.  Don't go into debt for your wedding.  There are plenty of inexpensive replacements for expensive wedding services.  The Budget Savy Bride is a great place to look for planning your wedding. I know my wife used it to get some ideas for our wedding.

3. Make a plan.  A plan can be as simple as saying your going to pay an extra $50 per month towards a loan to pay off debt. It can also get complicated and include percentages and widgets.  Just as long as you have a plan, you should be good.  Along with a plan, write down a realistic budget so you know where all of your money will be going.  Every dollar should have a name to it.  Make sure your budget is within your means.

4.  The unexected will happen.  Plan for a rainy day. Have an emergency fund.  This article suggests $1,500 for renters and $3,000 for homeowners in an urban area.  I agree with Dave Ramsey on this topic.  I'd go for $1,000 until you pay off your debt, then 3 to 6 months worth of expenses.  $1,000 might sound small for an emergency fund for some people.  It did for me and my wife. We increased ours to $2,000 and now we are paying off debt.

This article also includes a section for advice from married couples. I would also suggest reading that section.



Source: http://news.yahoo.com/now-pronounce-debt-120500539.html, I Now Pronounce You, In Debt, U.S. News, Erin Lowry