Naked With Cash is an ongoing series at Consumerism Commentary in which readers share their households’ finances with other readers. These participants benefit from the accountability that comes from tracking their finances publicly and the feedback of the four expert Certified Financial Planners (CFPs).
This year, we have four participants who will share their financial reports, exposing the results of their financial choices. Each participant is paired with one of our Certified Financial Planners. The experts will provide insight and guidance that will help our participants take their finances to the next level by the end of 2014. Learn about this year’s participants and experts.
Betsey is a 27-year-old government analyst. She recently started a new job, and has been revamping her finances to fit with the new situation. She is single, and lives with two roommates in order to help share costs. Betsey plans to save up for a down payment on a home. Her long-term goal is to feed her passion for craft beer by opening a brewery. (Read her update from last month.)
Betsey’s Net Worth Statement
Betsey’s Income Statement
Comments and analysis from Betsey S
Last year, I had only one health insurance option through work that cost $433 per month. I shopped for other options, but (before the Affordable Care Act) all of the providers in my state would only offer coverage if I was not eligible through work. When I switched jobs, I looked over medical bills for the past year and determined that even if I had paid all costs out of pocket, it would have been cheaper than paying those high premiums.
I switched to a high deductible plan during open enrollment season, which I think is a lot better aligned with the amount of coverage I need. I now pay about $100 a month for this plan (75% of the premiums are now contributed by work). This plan passes through roughly $60 per month to a Health Savings Account, which is a new item in my assets/liabilities spreadsheet this month. I don’t plan on contributing anything extra to this account at the moment, but would consider it if I have upcoming medical expenses.
I don’t have life insurance (no dependents) or auto insurance (no car). I used to have renter’s insurance because it was easy to bundle with auto insurance when I had a car. I actually had a break-in last year, but the deductible for the stolen items was high enough that we didn’t get anything back from the insurance claim.
Feedback from Sara Stanich, CFP
Sara talks about Betsey’s interest in her finances, and talks about insurance. While Betsey has some insurance to protect her assets, she is missing one key policy. Watch to find out what insurance policy will help Betsey better protect her finances.
Feedback from Luke Landes
Your finances are in great shape! There’s little to comment on. You seem to be making good choices related to your expenses, and as a result, your net worth is growing nicely.
How do things stand now with your longer term goals? I know a house purchase is down the road and you would like to open brewery. Do you want to wait until retirement to do that? If you feel really passionate about it, why not aim for opening one before you reach the age of retirement? Keep us posted on a monthly basis on how your savings set aside for your goals are going.
Updated June 22, 2016 and originally published March 24, 2014.