Hello, April. Let’s talk about net worth, shall we?
I’m buying a condo, so these charts will dramatically change in the coming months. Wait, if I don’t close until May 23, then I won’t have anything to report until June. But still, this is the calm before the storm.
I have just under $1500 left to pay on my car loan. And the credit union is doing the same thing that my student loan provider did: every time I made a higher-than-necessary payment, they pushed my next due date back. So, now, I don’t owe anything until August.
You’ll see in this next chart that I do have enough savings to pay off my car, but just like in business, cash is king when it comes to buying a condo.
I’ll be glad I didn’t use all my cash to pay off my car when I have to buy a washing machine.
It will be interesting to see if my net worth goes down before it goes up. My guess is that it will.
I’m feeling very zen about the whole thing, though.
In fact, thinking about this condo purchase in terms of net worth is what calms me down. No longer am I putting rent money toward something that builds someone else’s net worth.
As an aside, I never bought in to the idea that renting is “throwing your money away” — where does that idea come from? I suppose I could live in a tent or something and not have to pay anyone anything, but that’s not realistic. You have to live somewhere. And last I checked, unless you live with your parents (if so, grow up, they do not want you in their house long term!) you cannot possibly live for free.
That’s like saying eating in a restaurant is throwing money away. You still get to eat food that the restaurant gives you, and you have to eat. That’s not throwing money away. It’s paying more than you should, to be sure, but that’s definitely not a throwaway.
What is throwing money away? So glad you asked! Throwing money away is buying something and losing it. Or buying produce and taking it from the grocery bag to the refrigerator to the garbage can. Or putting money in a pocket that has a hole in it.
My net worth is up a whopping 10% since March, and 55% since January. I’ll take that!
Like I said, this will get worse before it gets better. But it’s always fun to see the growth!
I’m 100% sure that I won’t be showing a 240% net worth increase this year like I did last year. Hey look at that, two percentage signs in one sentence! Some English teacher (or Econ!) is getting upset right now, and for that, I apologize.