Hello everyone, I figured I would do a yearly update and crosspost to both PF and the FIRE subreddit.
THE DEBT
Down to 362K as of today.
I ended up refinancing my loans to a private lender. I debated long and hard about continuing with PSLF, but in the end, the risks far outweighed the potential benefit. There was no guarantee that my loans would be forgiven, especially as my employer was not 501c3 certified. Even though it is considered a non-profit and provides public health services (it is an independent physician group and is not technically part of the hospital), there is nothing to prevent the government from denying the forgiveness claim. I ended up refinancing to a 3.8% fixed rate loan for 6 years. However, I have been paying biweekly instead of monthly, and that has shaved off a significant time off of my payoff period.
Deciding to refinance was one of the toughest financial decisions I made. It may be possible that I could have gotten my loans forgiven had I stuck with it, but I simply wasn’t willing to take the chance of my loans ballooning to a massive amount (my average interest rate for all my loans pre-refinancing was about 6.8%), and then finding out I didn’t qualify for PSLF. Ultimately, I feel better about paying off loans at a regular interval, and watching the total principle decrease. Although it’s easy for me to say I wish I had started paying off in residency, hindsight is 20/20 and what’s done is done. I’ve made the commitment to get rid of my loans, and to be honest, it feels like a dark cloud has started to lift knowing that they are finally being payed off.
Again, I have no credit card debt, and pay off everything at the end of the month.
PERSONAL STUFF AND EXPENSES
Still not married and have no children. I did date another physician this past year, but she ended up moving across the country (which was in the works before she met me). We separated amicably, and I although I do feel sad, it was for the best. My car now has 130k miles, but I’m starting to feel the pull of lifestyle creep. I can’t help but constantly look up newer model cars, and think about how much better my 15min commute would be with heated/cooled seats. I follow Doug Demuro on YouTube, and wish I had a car worthy of being reviewed for it’s quirks and features. I'm still leaning hard towards a CPO Tesla!
I’ve decided to update my wardrobe once a year, but only around great sales. This year, Macy’s had a great deal around Veteran’s day, where they had an extra 20% off coupon. Ended up purchasing a ton of dress shirts, pants, and shoes for less than $300. I’m subscribed to /r/frugalmalefashion which is where I can keep an eye out for these deals.
I reduced expenses:
- Again called my ISP and was able to keep my 50/10 internet for $30. My modem and router have paid for themselves, so again, no rental fees :)
- Ended up joining my brother’s family plan. Cost was an extra $18 to his plan, which I pay off. Over the last 2 years, I've reduced my cell phone bill from $75->$55->$20!
- Kept my Costco executive membership and am using their credit card. This combo essentially pays for itself through the combined 4% cash back, as well as 4% off their gas (which is already about 20c cheaper than surrounding gas stations).
THE JOB
Received a promotion, with a stipend attached to it. It’s a little more administrative than I thought, but it’s providing me with an opportunity to learn leadership skills.
THE BENEFITS/INVESTMENTS
- 403(b): 18.5k fully maxed out last year. For 2018 and going forward, I’m spreading the investments over the year.
- Non-governmental 457: 18.5k fully maxed out last year. Again, for 2018 going forward, I’m spreading the investments over the year.
- 401(a): employer contributed. Finally qualified this year!
- Roth IRA: $5500 fully funded the beginning of every year. I have basically been setting aside $211 every pay period so that I can fund at the beginning of next year.
- Emergency fund: fully funded. Ended up closing out my Ally CDs early since their savings interest rate was more attractive than the CD.
- Taxable brokerage accounts: I ended up keeping only the Vanguard account open. I haven’t really been contributing as I have been saving up to purchase a home in the area. I do have 2 individual stocks I purchased near the end of last year which have done reasonably well. I’m a fan of index funds, but these 2 were “fun” stocks to play around with.
- Cryptocurrency: I really wish I wasn’t greedy or had FOMO syndrome. I could have made a small profit had I sold at the peak. Instead, I only have about 25% of my original investment left. My only saving grace is that I did not pour too much into this, and can absorb the losses. Do I truly regret it, though? Not really…I was thankfully reserved enough not to invest too heavy, and I can treat it as a lesson learned (albeit a pricey one).
NET WORTH
- Since I started calculating this in October of last year, my net worth has gone from -$311k to -$170k. Using excel’s trendline tool, I’m expecting to hit net 0 in September 2019.
Here’s a visual of my net worth, debt load, and investment value since I started tracking in October 2017.
THE PLAN FOR THIS COMING YEAR
- Continue to max out 403b, 457, and backdoor Roth IRA. Once I save up 20% for a down payment, I’ll restart m contributions to the taxable brokerage account.
- Continue to pay off student loans regularly. Currently I have under 5 years left on my loan repayments (I have been paying a little extra every month in addition to making biweekly payments). Having an auto-debit from my banking account has done a lot to ease my mind. Any extra cash I make will be used to pay off loans.
- Continue contributing to nephew and niece college funds.
- Since I have started making massive student loan repayments, I have been able to avoid lifestyle creep simply because I don’t have the money to do so. That being said, although I still live like a resident, I don't have to live like a hermit. I was able to afford a vacation abroad this past year, I continue to have dinners and drinks with friends, and am still able to afford the occasional nice bottle of Japanese whiskey once every few months.
As usual, thank you for reading this long post! Any suggestions, comments, or criticisms you can provide will be much appreciated!
Submitted August 14, 2018 at 07:34AM by NewDoc2016 https://ift.tt/2vIqUD9
