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Oct. 12th, 2001 | 02:11 pm
mood: accomplishedaccomplished

Not sure how many people care, but after years of paying off debt and trying to bring my consumer habits under control my simple net worth finally went positive. The total amount of cash I have on hand is a few hundred dollars greater than my total amount of debt.

Is it better to be broke and debt free or have a small amount of debt and some savings? Currently my plan for my last bit of debt was to spend a month saving money, followed by a month of making larger payments to my student loan.

Also I got a few percent raise due to the joy of automatic cost of living increases

And once I'm debt free in 6 months or so. what to do... a trip to Europe, buy a flat screen monitor, switch to solar power, start an intentional community, or just save money obsessively and quit working sooner? So many good choices...

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Comments {7}

[you'll find a light, find a friend, find a way]

(no subject)

from: artemii
date: Oct. 12th, 2001 02:25 pm (UTC)
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congratulations! :)

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Stephanie Wukovitz

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from: sebab
date: Oct. 12th, 2001 03:32 pm (UTC)
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answer: how much interest are you earning, compared to the interest rate on your debt? I'd probably use that to help me decide, in your place.

congrats!

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Diane Trout

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from: alienghic
date: Oct. 12th, 2001 05:42 pm (UTC)
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I'm earning 3.5% APR and spending 6.5% APR, which assuming my math is close to correct means I'm spending a whopping $9/month to service my debt and keep some financial cushion around.

Not particularly a big deal.

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Stephanie Wukovitz

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from: sebab
date: Oct. 12th, 2001 06:46 pm (UTC)
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heh ok, then it's a little more murky :)

I know someone who's tens of thousands of dollars in debt and still pays off the minimum every month, yuck. but, come to think of it, she spends money like water; you seem more responsible than that!

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Diane Trout

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from: alienghic
date: Oct. 14th, 2001 12:54 am (UTC)
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I try to be more responsible than that... but it's taken me a while to train myself to not waste money rampantly on say new computer equipment.

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Freya

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from: moonglade
date: Oct. 12th, 2001 03:49 pm (UTC)
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Hurrah! Freedom!
that's great news! Congratualations! :)

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Diane Trout

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from: alienghic
date: Oct. 14th, 2001 12:57 am (UTC)
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Considering the large numbers of my friends who are unemployed these days, having a good supply of money seems like a really good idea.

One of my friends who'd been working at releasenow.com told me that of the people she knows (and I'm guessing had talked to recently) only two were still employed.

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