Welcome to the Pure Family Gold’s (PFG) 1st Financial Friday. Each Friday, we will talk all about finances. From our own financial standing (yes, we will share the real facts), to financial tips, to teaching finances to our children, and to new products we have tried. Financial Friday is our way to track our finances while also sharing our journey to pay off our debts, save for the future, and share our personal experiences.
As we are just getting started, we would like to share with you our starting financial point for 2014. In this post we will share with you our current debts and current assets and some other valuable information about what our finances are and why.
From Two Full Time Incomes to One
As was described in My One Word 2014, Mrs. PFG and I “arrived” at the decision that it made more sense for her to stay at home with our son before the birth of our daughter. With it costing us between $800-$1,200 a month for infant childcare and another $500-$850 for a toddler, Mrs. PFG’s income would have been going directly to the childcare provider. This didn’t make financial or logistical sense and with Mrs. PFG being a hairstylist, we knew she could pick up some clients and save on childcare costs.
Being a nonprofit professional and jumping from the program side to the fundraising side has allowed me to earn a little more money (which will increase overtime), I am still pretty new to the field and the pay is not that great. We knew we were taking a risk but it was one that has proven successful so far.
Below is a list of our assets as of January 2, 2014. Over the next Financial Fridays (FF), we will share with you a bigger breakdown of these assets but for today’s purposes, we are just sharing the values.
- Cash – $13,066*
- Home – $267,728 (we update our home value based off of Zillow every quarter; last update was Jan. 2, 2014)
- Car – $10,300 (we update the value of our car once a year using Kelley Blue Book; last update was Jan. 2, 2014)
- Lending Club Account – $325
- Total Assets – $291,419
*Our current cash includes a payout from our insurance and FEMA that we received when our basement flooded last year. These funds will be used to fix the grading in our backyard and replace some drywall.
Below is a list of our debts as of January 2, 2014.
- Home Mortgage – $186,570 (at 4.125%)
- Student Loans – $32,056 (at 2.25%)
- Credit Cards – $2,200
- Condo Personal Loan – $4,500 (no interest)
- Other – $2,270
- Total Debts – $227,596
Notes: We purchased our home in 2009 and refinanced last year. Mrs. PFG attended cosmetology school and I received my masters in nonprofit management. We rolled our student loans together and have a loan from a family member with an interest rate of 2.25%. We also have another family loan to pay off the sale of our condo from 2009. We don’t owe any interest on this loan.
Our Net Worth
To date our net worth is $63,823. The majority of our net worth is tied up in our house.
Note: this doesn’t include any of our retirement funds or investment funds outside of Lending Club. We will share this information at a later date.