Friday, November 30, 2007

November 2007 Financial Recap…

My net worth didn’t decline as much as I thought. The hit on my 401k definitely didn’t help things because in order for my net worth to improve, my contributions actually need to increase my asset base. This is because my 401k contributions are my only form on savings and my student loan interest is staggering. As you can see from the chart, a total of $1,089 in interest capitalized onto my student loan balance. Next year will really be the year for improvement.

Despite the market decline this month, my net worth remained relatively stable and only took a minor $302 drop. Not bad at all. By April 2008, I will have my credit card balance paid off which was really just my 20% mortgage from my home purchase. Once the credit card is paid off, I will officially have over $60,000 in equity in my home and I am very happy about that.

November credit check was good and clean. My credit scores are as follows:
Transunion: 750
Experian: 775
Equifax: 729

I want to send a special THANKS to all my readers for hanging in there with me. I know it can be mind numbing to come here and hear me say that my net worth declined again and again. When I started this PF blog, I knew that my net worth wouldn’t improve until I started paying on my student loans. I thought about waiting until then but the blog has actually helped me keep my spending in check which has consequently kept my net worth from dipping even further. Next year, I have a goal of increasing my net worth by at least $15,000.

This Month was a fantastic month for me personally. I finally got sworn in and I am finally an attorney licensed to practice law in Illinois. Despite the chart, I know I am on the right path. Now that I am a lawyer, I have significant income potential and a bright future ahead. Soon enough, I will be saying goodbye to my $55,000 salary and hello to six figures. Hopefully, with the same organization.


TMAC said...

Way to keep up the good work! I have been reading your blog for the past few months and I love seeing that you are at least making an attempt to fix your situation even after all that debt. Most people wouldn't have bothered or have been oblivious to the fact that they had a mountain of debt.

I feel like I am in the same stagnant situation when progress seems so far away so I know how you feel. Keep up the good work.

btw, where did you get that three column blogger template? I like it!

Chitown said...

TMAC...Thank you so much for reading and for your comment.

I got the template from Blogger Tips. There is a link to it on my blog under useful links. They have 3 column tmeplets for several Blogger templates.

Velvet Jones said...

I think you're doing a great job. :) A $300 dip in your net worth is a drop in the bucket! You've got a very firm grip on your situation as well as a plan to reach your goals. The one thing people don't really say much on pf blogs is how LONG paying off debt and saving up money can take. Of course every situation is different depending on size of debt, income, etc. However for a good number of us, it's a long haul. So slow and steady wins the race. :)

Chitown said...

Thanks Velvet Jones!

You're right about PF Blogs. It is going to take me a long time to pay off over $200k in student loans so this won't be a year to two month ordeal. I am hoping to have it paid off by the time I turn 40, so in 10 years.

In the meantime, I am going to grow my income, investments and retirement accounts thereby increasing my net worth.

Thanks for reading and for your comment!

Escape Brooklyn said...

You're making great progress and your "paid off by 40" timeline is a great goal! (Same as mine, in fact!) Considering how much the stock markets are hurting this month, I think you ended the month in great shape. =)