I know I’ve been updating month to month as I’ve gone through this process, but I think it’s also critical to keep a longer-term view. Mainly because the short term can sometimes be a kick in the balls, and we all need to remind ourselves of our successes. So I will here provide a yearly update of my changes from January of 2018 through January of 2019. However, hat I continually update my spreadsheet, so I may not have pinpoint accuracy year over year. But here’s what I have.
So here are some data points:
- Gross monthly W2 pay: 2018: $4,410; 2019: $4,833; Change: +$423
- Net monthly W2 pay: 2018: $3,146; 2019: $2,834; Change: -$312
- Total credit card debt: 2018: $24,971; 2019: $22,139; Change: -$2,832
- Total other non-mortgage debt: 2018: $21,165; 2019: $6,233; Change: -$14,932
- Total mortgage debt: 2018: $123,280; 2019: $114,714; Change: -$8,566
- Cash/cash equivalents: 2018: $15,005; 2019: $19,929; Change: +$4,924
- Total retirement savings: 2018: $130,225; 2019: $132,085; Change: +$1,860
- Net worth: 2018: -$24,186; 2019: $8,927; Change: +$33,113
Overall, seems like a good but not stellar year. The shining star is the debt elimination. I was able to knock out $17,764 in non-mortgage debt. On a $52-$58K salary that’s not too shabby. Accounts for half of my improvement in net worth over the year. Mortgage paydown is also very nice, given that was almost entirely paid by someone else through rental income. Retirement numbers are a disappointment, and I wonder if that’s all attributable to the market, or if I have some poor recordkeeping in there. Like I said, my spreadsheet has changed over this year (a lot) and I may not have captured everything. Still, roughly $2K is not a lot to show for a year of regular contributions, and 6 months of 20% contributions to my 403(b). Really demonstrates the danger of that sequence of returns risk!
So what have I learned this year? Data, data, data, and debt, debt, debt! Before 2018 I didn’t do a great job paying down debt, and I think that’s because I didn’t have the stark data staring me in the face on a monthly basis. Seeing those balances every month (or more) really helps keep the need to pay them down urgent. My goal this year is to pay off the rest, and if I can improve on the spending front, that should be fairly easy. A 2019 payoff of non-mortgage debt, continued mortgage paydown through rental income, consistent or (hopefully) increased retirement savings, and a decent or at least flat market should send me into 2020 in fairly good shape.
That’s the hope at least! Feel free to ask any questions in the comments below.
