<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Category: Debt
 

Viewing the 'Debt' Category

February Net Worth

March 1st, 2013 at 04:44 am

The past week has been crazy in the Luva household... mainly work kicking me in the butt! I haven't been able to post in about a week - but tonight I did find time to sit down and add up all the numbers for my end of month net worth calculations....

Total Net Worth: $32,668.90 (up by $5,927.95!)

BreakDown:

Investments: $13,701.55
Checking: $2,237.35
Assets: $65,940 (Only including vehicle and house)
Debt: $49,270 (including the mortgage)

I am pleased with my progress for the month - but there is still room to do better. Back to the spreadsheet to figure out exactly how my money will work for me during the month of March!

Child Support

February 20th, 2013 at 06:49 am

Before I met the man of my dreams (hubby) I was married to the nightmare of my life.

Ok, that is probably not overly fair to say - so instead I will say that I was very young (19) and thought I had found the man of my dreams (ex-husband). We had two children together, and they are the most amazing things that ever came out of that relationship.

My ex-husband is an alcoholic. One of the reasons for the divorce. We have been divorced for 10 years, and in those 10 years, he has basically ignored the fact that he had any financial or emotional responsibility to his children.

During this time, he had no bank account and got paid under the table. The only support we received was the 2 years he filed taxes and I received his tax return.

Around last August, he finally went to an in-patient treatment program and has gotten sober. He also filed for VA disability benefits and was awarded 20% disability. In order to receive his disability, however, he had to open a bank account.

So, after 2 years of not even speaking to this man, I get a message that he needs to speak to me. The conversation basically informed me that he had opened a savings account, went to rent a red box movie and the machine wouldn't take his debit card, so he called to see why. His savings account has been frozen and reads that he has an available negative balance of $76,000.

He would like for me to call the state and have him absolved of his debt.

Is he crazy? Or am I crazy for even contemplating it for a second?

I realize that it will take until the end of time for me to receive that money from him. However, he has a responsibility to his children and his past poor behavior shouldn't be absolved. At the same time, this is a huge mountain for him to stare into and I fear that it could cause a setback to the progress he has made to better himself and get a grip onto his own life.

I have decided that I am not absolving anything. Instead, I wrote my ex mother in law and laid it out for her - what the situation was, so that she could possibly help him either financially or by getting him some financial education. I felt very uncomfortable writing her - although we have maintained a relationship all these years. But we never talked about her son or that he wasn't paying child support - so to bring it up now was very uncomfortable.

Perhaps I made the wrong decision - but it has been made and done, so not much I can do about it now.

Just another example of how poor financial choices from years past can come back to possibly destroy your future. Its best to stare those debts in the face and do what needs to be now rather than wait a decade to face the music.

Breakdown

February 15th, 2013 at 09:04 pm

Here is an overview breakdown on my financial picture (since I haven't posted it yet):

Investments: $13,595.10
Checking/Savings: $1,149.38
Assets: $61,720 (House/Vehicle estimates - no personal goods)
Debt: $49,876.38 (including mortgage and vehicle)

Total Net Worth: $26,588.10

Further breakdown of Debts:

Mortgage: $26,594
Discover: $2,122
Providian: $5,391
NMAC: $8,591
Old Republic: $2,636.38
Target: $2,075
Walmart: $389
AAFES: $595
Masters Degree Loan: $1,483

Charitable Giving

February 13th, 2013 at 04:52 am

I was in an interesting conversation with another person - (contrary to when I have conversations with myself) about charitable giving.

Now, I have not yet posted my total debts and whatnot on this blog (will be getting to that shortly - I do have it all in a spreadsheet!), but I do have some debts.

And even with the debts, I budget charitable donations each and every month.

This other person basically started lecturing me about how I could use that money to get out of debt faster.

I responded (as politely as I could), that personal finances were exactly that - [bPERSONAL[/b]. And while yes, the money I budget for charity could assist me in getting out of debt faster, I personally feel a sense of obligation in charitable giving.

For the record, I am not giving a record breaking amount. My charitable donations this year are projected to be $650. Broken into 26 pay periods, we are looking at about $25 a pay period.

I personally feel that even with my debts that my family and I are extremely blessed. My children have never felt the pangs of starvation, the uncertainty of where they will sleep, or any of the other discomforting and sometimes horrifying things that occur in this world. We have more than we need and that $25 a pay check is not going to take food out of their mouths or get us kicked out of our home.

And while the amount of money I give every two weeks may not change the world, it assists in comforting 13 people every two weeks with a warm meal, a safe place to sleep, and medical attention here in the United States.

I have a financial plan, and I want out of debt. But I don't think I should stop helping my fellow man completely simply for the reason of reducing my debt 1 to 2 months earlier than projected. At some point, your own values have to come into play and isn't the point of budgeting to prioritize what is important to YOU and YOUR family?

What do you guys think about charitable giving while paying off debt? Is it something that you continue(d) to do - or something that you put off for the short term?