January 2006 Financial Status / Net Worth Update

Net Worth at Age 27

My large credit card debt is all at 0% APR interest. Please see my posts on taking advantage of no fee 0% APR balance transfers for more information. In short, I’m borrowing the money for “free” and keeping it in safe investments while earning me interest. I’m actually waiting on acquiring even more debt from two recent credit card applications.

We eeked by with some positive net worth change this month, since I had to pay the the insurance bills for 2 cars, rental insurance, and umbrella insurance for the next 6 months. In the end, our net worth increased about $400.

Looking closer, our non-retirement assets are now at $47,698, so we are about halfway to our Mid-Term goal, with about 18 months to go. Of course, I’m going to put $8,000 in a Roth IRA soon, so that will set us back some more. Reaching $100,000 in 18 months will be tough. But I plan on making the next few months much more profitable that than the past six.


  1. Jonathan is correct, here is disclosure taken from the HSBC site

    Bank to Bank Transfers fee
    No transaction fees if you transfer money into your HSBC accounts from your non-HSBC accounts
    A $3.00 transaction fee will be charged for each outbound transfer from your HSBC accounts to your non-HSBC accounts
    No transaction fees will be charged for HSBC OnlineSavings, Domestic Private Banking or HSBC Premier customers
    Note: You can continue use the ‘Transfers’ function within Personal Internet Banking to move money between your HSBC accounts and to make payments on your HSBC accounts, just as you do today.

  2. Sorry, put that comment under the wrong post, I shouldn’t be doing this at work ;(

  3. Congrats on ending positive going into the new year, even if it was only $400. Since I am more of a visual person, I entered the net worth percent changes for the past four months (when available) of personal finance bloggers and created the following graph. I will include your data shortly.



  4. Have you thought of going with an accrual (think that’s what it’s called) type accounting setup to smooth out your month-to-month changes? It’ll also smooth out your month-to-month expenses if you track that stuff in any detail.

  5. Anonymous says:

    Hey Jonathan — I’ve got a question that’s kind of off topic, but…Is there any reason that I would have to buy the new version of Turbo Tax for this year? Last year was the first year that I used the software and everything went smooth and I’d like to use it again. I’m hoping that last year’s version will suffice so that I can save the 30 or so bucks.


  6. Hey Anonymous,

    You have to buy the new version of Turbo Tax or Taxcut each year.

  7. Matt – I think about it every time I pay insurance, but I forget about it soon after. It’s a good idea though, and will help with my monthly cashflow projections.

    Yep, tax software has planned obsolescence built right in.

  8. Matt and Jonathan, can you explain what is accrual type of accounting?

    Anonymous – why don’t you use TurboTax online instead of buying it every year? Many banks provide discounts for turbotax online and sometimes it might be cheaper than buying software.

  9. Here is a link to a 15% discount on TurboTax Online, CompleteTax or H&R Block Online

  10. If you haven’t heard, I am organizing a “net worth challenge”. If you are interested in participating, please drop by the following web site to get more details. For the time being, if you can post (at the below URL) your 2006 end of year goal, we might be using that information as part of the challenge.


    Stay tuned for more details!


  11. Just a question while looking at your Net worth, why isn’t your student loans under liabilities, like your credit cards. It would reflect a more correct Net Worth.

    I have always been fond of finances, and the inner dealings of companies. I must say that all the great offers on Credit cards, banking ‘secret’ bonuses (of which I just signed up for the Citi professional card for the $100 gift card and also the HSBC bank $25 bonus) makes this site is a wealth of information for sure! (Though I am thinking strongly upon the 0% transfers. I am not one to get into “debt” however the benefits of it, for a short term gain is not something to just gawk at)

    Thanks for making my first visit a real wealth of information for a young and eager college student!

  12. I’ve paid off all my student loans a few years ago =). All done with that, I’m happy to say.

    I am paying all my current tuition with cash (well, getting cash back via credit cards first, of course).

  13. methodmuse says:

    Looking at your networth made me think of something. I never list my vehicles as assets on my personal record of my networth. Everything in my asset column must appreciate in some fashion… or have the ability to. Aside from autos ultimately having no value, gas and maintenance and such sure would negate the value of having one… on a strictly financial level.

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