It’s time for another net worth update. Everything is going great on the Debt Snowball progress here at the Deliverawaydebt household. The only bad thing from May 2010 was the decline in the stock market. I lost almost $3,000 in paper money, but that was offset by paying down another $3,600 in debt. I’ll take that anyday. The debt repayment is REAL and the 401K is just “funny money” right now, at least until I need to draw from it (in 30 more years).
Emergency Fund:
Holding at $1,000.
401K:
The 401K had a bad month. As I explained in the intro, it’s only funny money right now. It will continue to rise and fall along with everyone else’s 401K. I’m still happy I continue to contribute up to my company’s match. If the market remains low, we are all getting better bargains with our money (i.e. the shares we are buying are cheaper).
Car:
For some reason the SUV has remained at the same price for 3 straight months. I’m expecting a large reduction next month.
House:
This month I will be checking the price of my home. I’m not looking forward to it. I’m guessing the $165,000 is about $10,000 to $15,000 too high.
Snowball:
The snowball is rolling and rolling. I am continually amazed at how much focusing on a single debt can reduce it quickly. I will have my 2nd mortgage paid off in August, one month earlier than expected. That means that at this pace I will have the 2nd mortgage, the student loan, and both of the 401K loans destroyed in 2010. Now that’s a GREAT feeling!!
{ 15 comments… read them below or add one }
Those are quite high interest rates… good luck on the debt snowball, and let’s hope your head comes above water sooner rather than later!
.-= Kevin@InvestItWisely´s last blog ..Living to 100 and Beyond: Building Your Portfolio =-.
@Kevin, yes they are somewhat high, but they could be a lot worse. I could consolidate them and reduce the rate, but most of these will be paid off by the end of the year (getting new debt is not an option). Hope and Luck are two words I don’t believe in. This debt will be gone by August of 2011, if not sooner. If something were to happen, I would just pick up more jobs on the side to keep everything on track. “Crappy” jobs are easy to get around here, not many people want to put forth much effort. Maybe that’s why there are sooo many foreclosures here in the Detroit area. I get sick of seeing all the help wanted signs during the day only to watch the nightly news say there are no jobs. I guess I should thank the media for brainwashing everyone here, because it leaves the door open for real workers.
Well, that’s the right attitude to have. Instead of feeling sorry about your debt, you’re going out there and doing something about it, and I commend you for that. By the way, I had no idea pizza delivery paid so well! That’s not bad at all for a side job.
.-= Kevin@InvestItWisely´s last blog ..Living to 100 and Beyond: Building Your Portfolio =-.
Great Job! Love your attitude.
Keep up that intensity, and the world will be yours-at least a small part of it….
.-= Dr Dean´s last blog ..Post-Transaction Marketing: Helpful Links, or Ripoff? =-.
Thank Dr. Dean, I will keep the intensity and focus going and going (like the energizer bunny)…
Jeff, awesome month! I love destroying debt as well!!! I have been implementing the debt snowball for some time now, and recently paid off my first student loan (such a good feeling). 2010 is indeed going to be an AWESOME year for you! Congrats on the success! Keep on rollin!
.-= MFO´s last blog ..My Cashless Society =-.
@MFO you’re right, paying off debt is fun. Although probably not as fun as getting into debt. Great job on your student loan!!
Way to go Jeff, keep up the solid work and don’t let up. Also, don’t stop blogging or I’ll drive down there and slap you upside the head.
.-= Matt Jabs´s last blog ..DFA Link Rally: Gardening Saves Money =-.
@Matt Thanks Home-Slice. I’m not quiting da blog. My “real” job is just kicking my butt right now with 2am starts everyday. As a matter of fact I writing a post as we type
Good… and I just finished one.
.-= Matt Jabs´s last blog ..Get Out Of Debt: Start Acting Wealthy =-.
You are killing this Jeff…. Great inspiration.
.-= Forest´s last blog ..Insanity Week 7 (Day 50) Fit Test Results…. Oh No!!! =-.
i see two locations for 401 (k) #1 & #2, what are those? Did you take a loan out on your 401 (k), can you do that? i am interested…
Don’t do it James, unless you’re in dire need, like you cannot feed your family or something… otherwise leave the 401(k) and any IRA’s alone.
.-= Matt Jabs´s last blog ..Get Out Of Debt: Start Acting Wealthy =-.
I agree with Matt
Yep anyone with a 401K can loan themselves money. I would NEVER do it again and it was one of the dumber things I’ve done, but it can be done. I did it twice by the way.