Tuesday, July 31, 2007

Networth Update

I have dreaded this day for the past week, realizing that today would be the day all my crazy spending will really strike home.

Although certainly the month had circumstances that are abnormal, ie. moving into a new apartment and having to buy a new computer, it nevertheless is just an excuse for the spending, rather than a financially responsible situation.

Compared to last month's networth update, I have made a 0.12% decline, decreasing my networth by $1,200. $500 still continues to be tied up in my student loans, as my new lender has not received the refund from my old lender for paying too much yet (and I may have lost this $500 if it weren't for the fact that blogging made me remember).

My networth is -$21,251.37 or -2.13% of the way to my million dollar goal.


SavingDiva said...

I'm new to reading your blog, and I couldn't help but notice the BMW. It kinda sticks out like a sore thumb. Have you ever thought of selling it, and using the cash to pay off the loan and purchasing a reliable used car for about 1/3 of your current loan?

Finance Guy said...

I've answered questions like this before, and you have to consider to things:

1) I'm living well within my means. I've always advocated that debt is not necessarily an evil.

2) My car is a status symbol that is important in the finance industry. It is almost a requirement, like a suit in the morning.

Your question is equivalent to:

(a) Why did you buy a $600 suit for work when you could have a $100 suit?

(b) Why are you paying for a golf membership you rarely use?

(c) Why do you eat out every lunch instead of bringing your own food?

All these "sore thumb" expenses are a part of business, and especially of finance.