financial progress journal

Hey everyone,

This is my first post- I'm starting off with a journal thread. I've found this idea helpful on other forums when charting my progress on a topic.

I'd like to refine my goals in this area, but basically I aim to get out of debt, and move out on my own - I am 31 and currently living with a parent.

I'm going to list all my debts and assets here as a way for me to see them more clearly- historically I've had very muddled thinking about money, savings, etc.- part of why I think I have accrued some debt. I also welcome any feedback, comments, suggestions, and efforts to hold me accountable to my goals, that anyone out there may feel moved to post.

Here goes:

debts owed to others:
Visa: $2417
Parent 1: $7289

debts others owe to me:
Parent 2: $6050

Savings:
Roth IRA 1: $3920
Roth IRA 2: $2774
Employer's Retirement Acct: $4457
Life Insurance Policy: $329

Market value of main assets:
Car: $1500
Computer and Accessories: $1500
Bike: $150
Guitar: $125
Books: $200
CDs: $100

I recently ordered my credit score for the first time. It is 717, which isn't great. In paying down my credit card balance, my credit score should improve.

Also working on ways to increase my income.

I'll post updates on these amounts every so often- haven't yet decided how often.

thanks for any comments and feedback, 'wings'

Not a single reply after 55 views... I'm just wondering what people might be thinking out there... is this sort of a journal a bad idea for this forum? Do you think it can be constructive? Does anyone have any thoughts or advice about my situation described above?

Thanks

wings,

It sounds like you are on the right road. Get rid of the debt. Collect on that debt owed to you to help reduce what you owe. Take advantage of living with your parent and save, save, save.

Remember that some of those assets you listed (bike, books, CDs) only hold the liquid value that you could get if you sold them (friends, Ebay, pawn shop).

With a credit score of 717, you should try to get a low or zero percent APR card if you have not already.

With a credit score of 717, you should try to get a low or zero percent APR card if you have not already.

Thanks DB, No, I haven't considered that. Any suggestions for getting that process rolling? (ie any cards you would recommend?) As of now I have one credit card- the visa, through my credit union.

best, wings

I usually get my offers through the mail, but I assume you could do some internet research with some of the major players (Chase, Capital one, Citibank, Amex), and see what, if anything, they are offering.

Even some investment firms (Fidelity, for example) are giving credit card offers. I have a Fiudelity offer at home for 0% until April 2007.

You can even call local banks and compare what they are offering.

Hopefully, this information can get you started on your search.

Remember, everyone wants your money. Use that fact to get it to work in your favor. :)

Dingo

Thanks Dingo,

I appreciate your help on this. I'll put that on my 'to-do' list and post back here about the results/progress...

Wings

What are your current credit card rates? A first step may simply be to call the card companies and ask for a better interest rate since this often works. You might want to consider starting a a financial journal ("http://blogs.savingadvice.com/) to track your progress and thoughts. Blogger or any other free blog system can also work well to help you track your progress. Good luck.

Wings
You can try with your current company to lower credit card rates (http://budgetdial.blogspot.com/2006/01/lowering-credit-card-interest-rates.html)

Do you have an emergency/rainy day fund? I'd start with at least $1000. I also wouldn't count books, bike, etc. as assets. Some might disagree, but assets are houses, cash, stocks, bonds, CDs, and easily drainable assets.

A car is "somewhat" of an asset, but you don't want your "savings" to be something that you have to TRY to sell if a personal emergency occurs. Books, movies, bikes, etc. generally go down in value.. I wouldn't count that stuff as having value as part of your overall financial picture.

I also think you should 1) pay off the credit card 2) collect on money owed to you, then repay the other parent 3) up IRA and 401k contributions

Have you looked into personal finance blogs? Most are free, and I think many people prefer keeping up with posts on there as opposted to a thread on a message board.

I think I disagree with moneybags. I count assets as anything that can be sold quick for ca$h. If it's a 10 year old computer, then it's not an asset, but some Apple Macintosh's still maintain value even after a couple of years.

Wings,

If you haven't already, check out daveramsey.com. His views on debt are fantastic. If you listen to his show long enough, you will get motivated to get out of debt. Look at his website, it has tons of information.

Knowing your income would help. The first step to everything is to know where your money is going...and why?

It's easy to say "pay down your debt, look for lower interest rates and save more". The question is, "can you?"

Also, true financial assets are almost never sold on eBay or in pawn shops. Try telling your mortgage broker that you have a room full of valuable stuff (Hendrix replica guitar, personal auto, Franklin Mint sculptures, etc.) that you can unload quickly for cash if things get tight. I'm not trying to be a hardliner here, I'm just trying to show that there is difference between Personal Finance and Personal spending/wants. To make real progress, they need to be separated without predjudice.

"Also, true financial assets are almost never sold on eBay or in pawn shops. "

I definitely agree with the pawn shop part, but businesses, real estate, precious metals, and even $200,000+ baseballs are sold on Ebay with great frequency.

I am not trying to be a pest, pricespector, but I would chalk any of those up as assets while figuring out my net worth.

True, "almost" never.