July Net Worth & Budget Update

jennydecki-net-worth-july-14

Okay, so first I have a question.

If you’re in foreclosure how do you calculate your net worth? Do you get to cross of that line item entirely?

Did my debt just go down astronomically? Did my net worth increase? Did my paper net worth increase but my personal net worth go straight into the toilet?

Before I just keep rambling, I’m going to Google it. Let’s see what “How does foreclosure affect your net worth” turns up!

foreclosure-net-worth-venn-diagram

So that was disappointing.

Now I feel like the only person who tracks their net worth who is in foreclosure.

Oh well. Let’s update the budget. Guess what? I have another graphic. We’re picture heavy today because pictures are fun.

priority-budget-list-July-2014

I pulled this from my post on priority budgeting with irregular income (if you haven’t read it yet you might want to, it was really helpful for me) and we almost had a roadbump in the path today. When I finally got Mr. Brickie’s check this morning I threw some math together and looked at my sheet and almost decided to change how the list was prioritized.

As I put in the numbers from #3 up there into the bill pay on my bank website I had a passing thought, “I should just pay the whole thing. It’s not that much.” Less than $100 on the Electric and less than $30 on the gas bill. What kind of a difference can $130 really make?”

I have finally learned that when I have thoughts like that I need to step away from the computer (and risk everything logging me out due to inactivity) and try to figure out why I’ve changed my mind. After thinking about it quietly for a few minutes I’ve come to the conclusion that it’s a combination of trying to use the snowball mentality to catch up on bills, but also these thoughts I have like, “It’s only a little bit of money. We’ll have more in a week. If it’s not in the account, we can’t spend it.”

It’s also the reason I make my lists in advance before I have the money. When I have the money I get scared and want to get rid of it and pay something so it doesn’t slip through my fingers and not go toward our debt snowball. Then I have forgotten something.

My husband and I are are different people than we used to be. 

We used to be the couple that would actually be able to say (at least once in a while) we have 24 cents in the checking account, I hope nothing goes through before we get paid again! It was pretty much always under $100. If we had money, we spent the money. We hardly ever did anything fun and lived almost as frugally as we do now. We had a serious income problem.

We learned how to save when we owned a business and had irregular income.

Now we have BOTH of these amazing tools. We know how to live frugally and understand the difference between a want and a need. We are in the process of fixing the income problem right now and Mr. Brickie should see his first raise/promotion go into effect next week, to be realized on the paycheck the week after (the check on the 30th, what a great way to close out the month, right?)

Maybe it seems like we must be irresponsible or have priority issues since our house is in the process of a foreclosure. I understand that. I wish more than anything we had found the Bricklayer’s Union years sooner than we did. Or that I had noticed how happy doing DIY projects around the house made Mr. Brickie and translated that into the potential for a satisfying, well-paying blue collar job.

I wish we had thought outside the white collar box so much sooner.

We both feel okay about what’s happening but trip and fall into a puddle of feeling like a failure a few times a day. Last night, we spent a few minutes with our heads on our pillows before we fell asleep listing the things we are grateful for. Things we never thought we would have in life. Amazing things close to our hearts. It reduced our anxiety and helped us sleep.

Mr. Brickie originally went through the training to be a bricklayer at the beginning of 2013 and it was a rocky year last year. Now he’s working overtime and the check we got today for $740 means I get to put money away for Christmas <– yes, I actually really did this today! I think I’m going to be able to do cash for Christmas! If we are able to do cash for Christmas, we can then use the entire tax return next year for moving expenses. I know the decisions I make today – sticking with the priority budget – are going to determine what our lives will look like at this time next year…wherever we live.

So, here is what our net worth looks like today:

Liability Asset
House 0 0
Car 10172 9000
Student Loans 61275 0
Credit Cards 1890  Total Debt
73337 9000 $64,337
How much less in debt we are in since the April update: $45,176

So even though we woke up yesterday morning before the mail came and had a house, now today we don’t. Everything I’ve researched on our loan says the mortgage company doesn’t come after us for the balance so we should be able to walk away free and clear. Sure, our credit will take a hit but I’m not going near credit again. Other than the cards we have and the car we have I want to save up and buy the next car with cash.

Honestly, I’m pretty sure I never, ever, ever want to own a home again. I read about Kelly and her decision to never own a home again and it spoke to my heart in a way that made me realize that if people who have money and aren’t in a tenuous situation are choosing to rent then maybe I can trust my own logic and not doubt myself just because of my bank account balance.

I guess my net worth change is good. It’s better than it was when it was over a hundred thousand. It’s all on paper, though. We won’t know if this was the best or worst thing to ever happen until it’s ten years from now and we can look back with the beauty of hindsight.

I think we’re going to be okay, but maybe that’s just my optimism showing. I’m not usually an optimist, though, so maybe the odds are in my favor.

chicken-border-bottom

 

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