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Kathleen, June 2013 Net Worth

This article was written by in Naked With Cash. 4 comments.


Naked With Cash is the year-long series on Consumerism Commentary where seven readers’ households share their financial progress on a monthly basis. I’ve partnered with financial planners who will offer some guidance along the way. Read this introduction to learn more about the series.

Kathleen is thirty-one years old, single, and living in Portland, Oregon. She loves her job, even if it isn’t very lucrative. With her $33,000 income last year, she’s looking to make more money from “side hustles” this year, such as her blog, Frugal Portland. To learn more about Kathleen, read her bio here. Kathleen is on Team Sara, with Certified Financial Planner Sara Stanich.

Kathleen’s report this month, below, includes Kathleen’s progress over the three months leading up to the end of June 2013. Following Kathleen’s own self-analysis, Sara Stanich will offer thoughts from her perspective.

Sara Stanich, CFP appears courtesy of Stanich Group and Cultivating Wealth.

Comments and analysis from Kathleen

I bought a condo and somehow, that didn’t break my bank. I think it had something to do with the fact that the gifted down payment was $3,000 more than the title company needed, so I had a bit of breathing room to buy a washer/dryer and blinds. This was a great idea, even though it was completely accidental. Thanks, parents!

Other than that, it took me a long time to be comfortable with the fact that the “woo hoo no more debt yay!” feeling was so fleeting. I beat myself up quite a bit, had to flesh out my thoughts, and I’m finally comfortable with a mortgage.

Sure, it’ll take me a long time to pay it off, but now, I’m paying my own mortgage instead of someone else’s. Also, I got to paint a wall.

Feedback from Sara Stanich, CFP

I’ve been saying it a lot, but congrats!

Your finances are in good shape. You bought a home without overextending yourself. You have a habit of saving. You have no debt (outside your mortgage). Sure, we can always do more or better, but you can also relax a little and let your automated payments and savings do the work for you.

That clears a lot of mental space you can use for other (dare I say more important?) parts of your life. I am excited to see what comes next for you!

Feedback from Jacob Wade

Nice work, Kathleen! Bought a place and your net worth still went up! That’s rare. And I’m glad you’re comfortable with your newly acquired home, as you have just purchased an appreciating asset, and that’s a good thing! No advice on this front except the keep up the savings and rock the retirement savings.

This communication is intended only for the person or entity to which it is addressed. Any taking of any action in reliance upon, this information by persons or entities other than the intended recipient is not recommended. Any information provided is for informational purposes only and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. Raymond James and Sara Stanich, CFP, are not affiliated with and do not endorse, authorize or sponsor any third party websites, their respective sponsors, or user comments found on this or other sites.

Published or updated July 30, 2013. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 4 comments… read them below or add one }

avatar No Waste

Calling the condo an ‘appreciating asset’ – well – I suppose sometimes it is. But it’s a monthly cash flow drain as well. Not to mention, it’s ability to depreciate cannot be understated.

Renting versus owning is complicated, and is almost always more of a qualitative decision than a quantitative one, in my opinon.

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avatar Kathleen, FrugalPortland

Thanks Sara and Jake! I agree, No Waste, it’s definitely a qualitative decision, and it really came down to this, for me: I have to pay rent somewhere, and if I pay rent to someone else, then I’m getting nothing out of it, ever. If I pay rent to myself, essentially, I’m at least coming out of it with something more than zero. It’s not going to be true always, but the likelihood that the condo depreciates all the way to zero (as rent would) is very low.

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avatar Anne @ Unique Gifter

Way to come out in the black for another month :-)
Here’s to the condo being a great purchase. I like seeing that you’ve increased your cash savings, that’s definitely a good call when you’re a homeowner.
It may have been fleeting, but you did get to experience being debt free momentarily. The next step is to do it again one day :-)

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avatar qixx ♦1,890 (Half-Dollar)

It might be a little early to reflect on it yet. If not would you share some insight into the process as you saw it. Things like:
What would you say has been the biggest challenge in buying?
What was different than your expectations in the process?
What did you learn that you wish you would have know beforehand?
Other thoughts on the process?

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