Latest posts by Ralston Medouze (see all)
- [Finance Update] Net Worth Q2 2016 - August 9, 2016
- [Interview] Personal Growth and Imagining Bigger (with Phillip Jo) - August 2, 2016
- [Podcast] One Small Step Episode 6: Appreciate The Little Things - July 20, 2016
Each quarter of the year, I’ll be publishing updates on my own finances including my net worth, income, and expenses. I do this for two reasons. First, it’s essential to track this information. It’s valuable to me to have some accountability in my financial decisions and to keep track of it. Without knowing this information and actively looking at it, it becomes easy to slip and make less-than-ideal choices. Tracking my net worth and expenses will help me avoid mistakes and help make the most use out of my money.
Second, I believe it will be valuable to you for the same reasons. I hope that these posts will encourage you to keep track of your net worth, income, and expenses so that you reap the same benefits. Additionally, you will learn from my decisions – good or bad. Whether the choices I make now are appropriate to your situation now, it may prove useful in the future. Because of this, I explain a little bit about why I made certain decisions and the lessons I learned in each quarter.
If you’re interested in seeing more detailed information or more frequent updates on my cash flow, sign up for the newsletter. Every month, I update you on what I’m doing to achieve greater success. You’ll also gain access to exclusives in the future and get announcements before anyone else!
- As you can see, my net worth dropped from Q1 (by $4593.67 to be exact). This happened because I decided to make a job change, and I needed to scale back my business in order to prepare for the change in schedule.
- I got a new job. I didn’t really focus on my search until May, so you won’t see the impact of this until Q3. I’m already well underway to making up the lost ground.
- Big transitions really mess with your finances. Unfortunately, I’m making a lot of changes all at once, which only makes it tougher. Now that I’ve changed jobs, I’m moving, restructuring my schedule, and many other things that keep adding expenses.
- Pay off credit cards in full. Due to the volatility in my finances, I decided to use some of my credit cards to help me bridge the transition from February – May. So, I’m having to pay a bit in finance charges for the time being. I hope to have it all paid off by October, but it may take until November depending on how things go.
- Rebuild my savings and get it to at least $3000.
- Resume paying down student loan debt – currently, my loans are deferred. Once I get things in order, I plan to tackle these hard.
Cash on Hand – This is the amount of cash in my wallet at the end of the month. It is very rare that I ever carry cash.
Personal Checking – The money in my personal checking account(s) at the end of the month.
Personal Savings – I divide my savings into 3 categories: personal, emergency, and other. Personal savings is basically “fun money” that can be used for whatever reason I choose.
Emergency Savings – I divide my savings into 3 categories: personal, emergency, and other. I have strict, self-imposed rules on any withdrawals from money in this account. Money withdrawn must fit into one of three categories: unexpected events/repairs, education, and/or health. If I withdraw money for a reason not fitting those definitions, I charge myself 7% interest on the balance, compounded monthly.
Other Savings – This is money saved for taxes, etc.
Roth IRA – My primary investment account at this moment.
Student Loan(s) – Money borrowed for my education. All of these are federal loans.
Business Debt – Debt owed from a failed venture a few years ago.
Personal Credit Cards – My primary method of payment. I do this in order to reap the cash back rewards and save more. Usually, I do not carry a balance on my credit card and pay it off in full each month. Current interest rates on these range from 15%-18% APR.
Business Credit Card – I use this card for any expenses pertaining to tutoring, freelancing, or the blog. It allows me to grow things a little faster than I would normally be able. The interest rate on this card is 0% till February 2017. I plan to pay off all balances by November 2016.