Net Worth Q3 2016

Net Worth Q3 2016

Another quarter and another net worth update! Needless to say, 2016 has been the best year of our lives, financially and …well, everything else! I’ll break everything down below in my Net Worth Q3 2016 update.

Q3 saw some BIG purchases, including an engagement ring, engagement party, engagement trip, etc., etc. Long story short, engagements are EXPENSIVE! (We won’t even want to think about how expensive a wedding is yet — that’s a topic for another post, but our goal is to pay cash.)

My one tip: save up and plan for big purchases. You’ll be happy you’re not in debt when the party’s over.




Easier said than done, of course. If you’re a keen observer, in the cover photo, you’ll notice our liabilities increased this quarter. Luckily for us, the final payments from the engagement are due later this year with no interest accruing.

As we near the end of the year, we’re still aiming to reach our 2016 goal to double our savings rate. 2015’s SR was ~23% and it looks like we can break into the 40’s.

 

Of course, to help us get there, we’ve embarked on a 90 Day Frugality Challenge.

So, what does 90 days of frugality look like?

I’ll be sure to fill you in as the quarter goes by. For starters, Sunday has become a day for us to cook most of our meals. Make that ~8 hours to buy, prepare, cook & clean for ~20 meals. By utilizing down time on the weekends, we can optimize our weekdays to be as cash flow efficient as possible. Plus, that leaves us extra time to lay on the couch and be lazy.

 

Feeling Lazy and Festive on the Couch

We’ll be feeling lazy and festive this quarter!!



Anyway, here’s what you’re all waiting to see….

Q3 2016 Net Worth:


Assets: $115,458.27
Liabilities: ($131,054.79)
Net Worth: ($15,595.52)

Despite the heavy expenses this quarter, our net worth still INCREASED by $8,432.21. Our post tax (and post interest) savings rate was 17.7%, which is obviously the lowest for the year. The prior two quarters were both above 45%.

I’m optimistic we’ll hit our, “Worthless Day,” or, “Net Worth = Zero $$ Day,” before the end of 2016. Even writing that gives me goosebumps because we’ve had a negative net worth our entire relationship.

I’m also happy we’ve accelerated the rate at which we’re paying down our student loans. It took us some time to come to the decision and you can read more about by clicking here.

Our overall student loan payments will now be $1,891.32 per month! Part of us is a bit scared to see such a massive outflow, but we know it will be put to great use. Accelerating our loan payments means we save on interest while increasing our net worth.

Refinancing is not as easy as it should be. Lucky for me, I had some help with using LendEDU and SoFi to piece everything together. I’ll be sure to go into more detail with a post next week since we will be saving thousands in interest now.

If you’re curious now about how you can save thousands in interest by refinancing your student loans, check out LendEDU’s easy questionnaire that doesn’t pull a hard check on your credit. It took me less than three minutes to answer all 10 questions and I saw three different refinancing options pop up. It’s fast and it’s free. I can’t think of a downside.

Now the time is for you to open up. Let me know what you think below in the comments.

As a reader of Distilled Dollar, do you see value in these types of Net Worth posts? Would you rather see a different type of article at the beginning of each quarter? How was your Q3?

-Matt
Master Distiller

P.S. YES!! A NEW THEME! I’m excited haha! Let me know what you think about it in the comments below.

31 comments… add one
  • Brad, helping Maximize Your Money Oct 3, 2016, 5:06 am

    I see that your total liabilities went up this quarter. Is that because of negative amortization or did you decide to take on more debt?

    • Distilled Dollar Oct 3, 2016, 5:51 am

      I mentioned it in the article but it is a bit buried, “Luckily for us, the final payments from the engagement are due later this year with no interest accruing.”

      In other words, once the ring is paid off, the liabilities will be at an all time low. More specifically, I’m expecting our total liabilities to dip below 120,000 next quarter as we, A) pay off the ring and B) accelerate student loan payments.

      • Brad, helping Maximize Your Money Oct 3, 2016, 6:05 am

        Okay, so you got the ring on credit in the past three months… I didn’t catch that. You mentioned a big checking draw-down so I thought you were operating 100% on cash. I understand now though. BTW late congrats on the engagement! 🙂

        • Distilled Dollar Oct 3, 2016, 6:15 am

          Thank you!! Yep – we learned our lesson on this one. With Holiday bonuses and our 90 day frugality challenge, we’ll be able to pay everything with no interest. For the wedding, things will be a bit different, and we’re planning on paying 100% cash.

  • Apathy Ends Oct 3, 2016, 6:58 am

    Looks like a great quarter at the DD household – I did the same thing with our engagement ring, Find an interest free deal everyone!

    Q3 was great for us, everything is moving in the right direction. Big fan of SoFi as well

  • Jon @ Be Net Worthy Oct 3, 2016, 8:05 am

    Great update, it’s nice to see that you are still making progress, even with engagement expenses baked in. I like that you are hoping to pay for your wedding cash, that’s a great idea! We did the same for ours some 20 years ago. It forces you to prioritize and focus on just the things that matter. It also avoids the credit hangover after the party!

    So, no pressure, but I am expecting a fantastic post to celebrate the occasion when you become absolutely, completely and utterly WORTHLESS! You’ve raised the bar high already, so I’m sure you won’t disappoint!

    • Distilled Dollar Oct 3, 2016, 12:15 pm

      Thanks Jon! That means a lot, especially since we’ve been looking forward to that day for quite some time.

      Yes! We need to avoid that credit hangover. I like that term.

  • Stefan @Mllnnlbudget Oct 3, 2016, 8:54 am

    Solid quarter Matt! I think getting an interest free engagement ring is something I need to keep in the back of my mind moving forward! Hope to see you break even soon and look forward to your post about paying for the wedding in cash.

    • Distilled Dollar Oct 3, 2016, 12:16 pm

      I think the wedding is still a bit further in the future. Sounds like it won’t be for another 2 years.

      I’m looking forward to discussing more on the topic of cash buffers and emergency funds. Before long, ours will turn into a war chest.

  • Financial Panther Oct 3, 2016, 9:23 am

    Getting closer to that “worthless” day! I remember when I hit that point. It was awesome! With your focus, you’ll get there sooner than you think.

  • John Oct 3, 2016, 11:14 am

    Congratulations! It’s really great to see the progress you guys have made.

    • Distilled Dollar Oct 3, 2016, 12:19 pm

      Thank you John – we appreciate it!

      We’re inspired by all the positive feedback to do an even better job for Q4! 🙂

  • The Green Swan Oct 3, 2016, 11:24 am

    Engagements can be expensive! Weddings are even more expensive! But totally worth it and there are ways to manage those costs. Just like you are planning to do, we too paid cash and keep the budget tight. Good work growing your net worth in the face of those increased costs!

    • Distilled Dollar Oct 3, 2016, 12:20 pm

      Thanks! Paying cash seems like the obvious choice, but I’m sure most people fail in properly executing on the plan.

      Great to hear you were able to pull it off! We’ll be looking for all the positive examples that we can in the run up.

  • TJ Oct 3, 2016, 1:18 pm

    The new theme looks great!

    And congrats on the numbers going in the right direction. 🙂

    • Distilled Dollar Oct 4, 2016, 2:46 pm

      Thanks TJ!

      And thank you for putting together a funny/insightful recap of FinCon. We purchased our tickets shortly after reading that review and a few others.

  • Tawcan Oct 3, 2016, 1:32 pm

    Digging the new theme! Looks like great process in Q3. Looking forward to seeing positive net worth soon. 🙂

    • Distilled Dollar Oct 4, 2016, 2:47 pm

      Thanks Tawcan! Same goes for us, crossing our fingers AND doing a 90 day challenge 🙂

  • Ms. Montana Oct 3, 2016, 2:46 pm

    Congrats on closing the gap to a zero net worth! It will be a great achievement, that will only snowball with time!

    • Distilled Dollar Oct 4, 2016, 2:49 pm

      Soon enough! I’m happy that my portfolio is already beginning a slight snowball effect. It is nice to see my dividends are equal to 1/3 of my student loan payments each quarter for example.

  • FinanciaLibre Oct 3, 2016, 3:24 pm

    A nice quarter!

    Q3 here was good as well, and, since you ask, I kinda like these net worth updates. They seem like good launching points for talking about the levers that led to the changes. So, just my humble two cents that these seem useful!

    Keep on distilling, and cheers!

  • Jay Oct 3, 2016, 5:01 pm

    Great update Matt. Well-done sticking to the plan despite the engagement expenses. And way to stay focused on the worthless day goal – I’m pulling for you!

    • Distilled Dollar Oct 4, 2016, 2:52 pm

      Thanks Jay! Barring any crazy movements in the markets, and assuming a successful 90 day challenge, we’ll be jumping up and down before 2017!

  • Loving the net worth update articles, keep them coming. Great job on increasing your assets as well, and getting so close to your “Worthless Day” – I’m excited for you!

    I also like that you plan and cook all your meals in bulk, it’s definitely the way forward. It takes some effort, but then you don’t even have to think about cooking for a week. Win!

    • Distilled Dollar Oct 7, 2016, 8:50 pm

      Cooking will be the biggest benefit in our budget since we tend to do date nights or eat out occasionally for lunch. I’m curious to see what difference it will make on a $ level, but it feels good to have gone an entire week averaging about $2/meal. I definetly am looking forward to spending a good six hours of cooking/cleaning/etc this Sunday.

  • Steven Goodwin Oct 7, 2016, 1:43 pm

    Great roundup for your quarter! Love seeing the progress! Yeah, getting to $0 net worth is a great feeling! I remember when we did that too, it felt like a weight lifted off our shoulders! Keep plugging along and you will be getting more of the same, growth!

    So, after you put the engagement stuff on credit, are you going to plan to pay for things in cash in the future? I know when my wife and I first got started, we had to draw a line in the sand and just say no unless we had the cash, no matter what.

    Thanks for posting and being transparent! I know I always like to read others’ stories and try to share mine monthly as well! I love seeing the lessons that can be taught from them!

    • Distilled Dollar Oct 7, 2016, 9:20 pm

      That’s our plan – to pay for future big expenses, chiefly the wedding, in cash. Luckily we don’t have any interest accruing and the remaining balances will be paid before any interest does accrue.

      Drawing the line in the sand sounds like what we’re hoping to accomplish through our next 90 Day Frugality Challenge. It will be a test to see how low we can get our monthly spend. So far, so good!

      Thanks for the comment Steve!

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