Monthly Update-December 2006
Here is the starting balance from which I will measure the rest of my improvements. I wanted to wait until January but I will have made a lot of changes by then and I wanted to have a true record of where I am starting from. As you can guess from the title of this blog, my starting Net Worth is quite negative. In fact it is almost $130,000 net negative!!!
My limited assets are composed of:
- Cash savings: $0
- Traditional IRA:$443.46
- Roth IRA: $446.01
- Car: $18,000
Total Assets= $18,889.47
My liabilities at this time are:
- Consolidated School Loans: $110,490.11
- Residency and Relocation Loans: $10,000.00
- Federal Perkins Loan: $6,816.08
- Auto Loan: $11,253.63
- Credit Card Debt: $8,725.02
Total Liabilities= $147,284.84
Total net Worth= $-128,395.37
Basically, I live paycheck to paycheck. My credit card debt was accumulated during my last year of Medical School and first two years of Residency but is now sitting at 0%. At this time I have managed to stop the bleeding(of money) and I have begun to pay down this mountain of debt that I have accumulated.
Basic Goals to Get on Track:
- Pay off credit card debt before the 0% offer runs out.
- Start saving some cash for an emergency fund in an online savings account
- Attempt to maximize my Roth IRA for this year
- Cut my expenses so I can increase the amount of cash I have available to fund the first three goals.
These goals are not awe inspiring and I don’t have any monthly/yearly net worth increased figured out yet. However, I feel that once I fix my basic problems with credit card debt and negative cash flows I will have an idea of what I can expect to invest/save each month and what a reasonable goal for 2007 will be.
