In this post we’ll be providing you guys with a net worth update for 2019. Back from a six-month writing drought. We had to take a tactical pause to focus on current life events. There’s a good explanation as to why we’ve been in hibernation:
Drum Roll Please….
Mrs. Dollarman & I recently welcomed a new bundle of joy to our family a few months ago.
The last half of our year was spent mostly doing things such as:
- Child-prep: prenatal care visits, attending childbirth classes (x3), doula meetups
- Home: nursery build-out, minimalism purging (only keeping stuff that sparks joy)
- Events: gender reveal, baby shower, friend meetups
- Travel: work (x3), visit family (x2), baby moon (local)
- Birth: recovery, follow-up doctor visits, updating records, family coming to visit us, and adjusting to being parents
- and much more….
Pre-2019 Net Worth Recap
Things actually took a turn for the worst financially following our engagement. If it wasn’t hard already being in a long-distance relationship (2 years), shortly after Mrs. Dollarman & I finally moved in together I got tagged for another six month deployment (this time state-side). To ease the burden from being apart Mrs. Dollarman made frequent trips out to see me at my state side location. We also absolutely overextended ourselves paying for a massive wedding/honeymoon (I’ll leave the details out for a future post). To end 2017 off right (sarcasm), Sallie Mae came knocking at our door as Mrs. Dollarman’s student loans finally went into repayment after graduating from her master degree program six months prior.
Moving into 2018, we came due for a PCS (military move). We managed to rent out our home from our previous assignment, and settled in nicely at our new base. Mrs. Dollarman was fortunate to find a new job that came with a higher salary, bonus incentives, and other perks. Straddled with student loan debt (starting off at $46,455.52), and riddled from the mistakes from our wedding/travel in the years prior we continued aimlessly without a plan. This meant not really saving, taking lavish trips outside the country, and closing out the year buying a new home as “we needed” the extra space to start a family in 2019.
Getting Back To Zero
Our combined net worth fluctuated significantly following our engagement, and the events above. We started off with a positive net worth of $40,688 in June 2016, hitting our lowest point in December 2018 with a net worth of -$27,601.75 in Dec 2017. To end 2018 we managed to barely climb ourselves back above ground zero ending at $2,957.20.
2019 Net Worth Review
We started off the early parts of the year determined to start a family. Plagued by debt, overspending, and not having a solid overall plan for our future we knew we needed to change. With this in mind, it was key that we got our stuff together. Knowing that this would probably be our one last chance before we went into full gazelle intense debt repay off mode, we took a trip out of the country. When we got back, we found out Mrs. Dollarman was pregnant! We then hunkered down, and begun throwing every excess dollar we had at our debt. What helped jump start this train was Mrs. Dollarman getting a huge unexpected bonus late February. Here’s a table of our progress throughout the year:
|Item||Interest Rates||Starting Balance|
|Current Balance||Running Total Paid|
|6.550%||$744.70||$0.00||$744.70||Paid in full on 3/1/19|
|6.550%||$2,057.21||$0.00||$2,057.21||Paid in full on 3/14/19|
|6.550%||$2,651.85||$0.00||$2,651.85||Paid in full on 3/14/19|
|Student Loan |
|5.750%||$3,430.71||$0.00||$3,430.71||Paid in full on 3/14/19|
|5.590%||$2,604.48||$0.00||$2,604.48||Paid in full on 3/14/19|
|Student Loan |
|6.550%||$3,569.09||$0.00||$3,569.09||Paid in full on 4/18/19|
|TSP 401k Loan||1.875%||$4,702.22||$0.00||$4,702.22||Paid in full on 5/21/19|
|Student Loan (Token #223)||3.150%||$5,563.25||$0.00||$5,563.25||Paid in full on 6/24/19|
|5.960%||$7,704.23||$0.00||$7,704.23||Paid in full on 8/16/19|
|Student Loan |
|Student Loan (Token #234)||5.060%||$8,847.56||$4,587.13||$4,260.43|
|Credit Card #1||6.000%||$10,765.57||$8,694.63||$2,070.94|
|Credit Card #1||4.000%||$13,757.31||$16,202.02||-$2,444.71|
During the last quarter of the year we panicked as baby was coming due soon. We stopped our debt pay off, used our funds to get the nursery room put together among many other things that we “needed” to do. Above all, we ended the year paying off a whopping $40,126.70 in debt. This moved our total remaining debt balance from $72,124.16 down to $31,997.46. Our net worth increased a total of +$73,859.12, ending 2019 with a net worth of $76,816.32.
2020 Financial Goals
Despite the many financial setbacks we had this past decade, we finally feel that we have a solid footing towards reaching our goal of financial independence one day. Moving into this next decade we’re laying down the foundations in hopes that it will pay ample dividends in the future. To kick-off this new year here are our financial goals that we wish to accomplish:
- Increase our net worth by $100,000
- Believe this is feasible as we were able to increase our net worth by ~$73,000 in 2019.
- I’ll also be getting a raise & promotion this year so this should make it easier.
- Max out both Mr & Mrs. Dollarman TSP/401k (total $39,000)
- Withdrawals are programmed to come out both paychecks automatically.
- Max out both Mr & Mrs. Dollarman Roth IRA’s $12,000
- Worked it into our budget for contributions to happen automatically monthly.
- If we don’t do anything, we should be able reach this goal by the end of the year.
- Fully fund our lifestyle expenses solely using Mr. Dollarman’s paycheck
- We understand that a job is not always a given; so we’ll like to eventually get to a point where we are solely dependent on one income
- We plan to simulate this by depositing Mrs. Dollarman entire paycheck into our Vanguard Brokerage account, and invest it into VTSAX
- Pay off remaining debt (non-mortgage) of $31,977.46
- This should be feasible; however it’ll be tricky as there is hardly any cash-flow left after implementing the bullet above.
- What we’re most likely going to end up doing before years end is succumbing to the temptation, and selling off some of our brokerage funds to pay off our debt in full.