Debt Snowball & Net Worth Update 2 YEAR Update!!

I can’t believe that I’ve been on a debt
free journey now for two years 24 months and today I’m gonna go through exactly
where I’m at with my debt snowball and show you my net worth. Before we dive
into it if you are new to the channel my name is Brad I make videos with tips and
motivation on how to get out of debt stay positive
invest for retirement all in the hopes of reaching financial independence the
debt snowball update has been the backbone of my channel now for two years
coming onto YouTube was a way to hold myself accountable and also give me the
opportunity to look back when I was in times of struggle I can’t believe how my
mindset has changed over the last two years and how actually getting out of
debt has changed my life in all the ways that people told me it would and that’s
a real message that I have for people that are starting their debt free
journey or just starting to tackle their debt it is as good as everybody says it
is when you start to knock off debts and it doesn’t matter if you use the debt
snowball or the debt avalanche it really it matters what you are going to do to
get out of debt that’s the only thing that matters for me personally I only
chose the debt snowball because I like the psychological aspect I like to check
off boxes I like to eliminate that that was what worked best for me some people
want to use the debt avalanche and you know use their highest interest first
that’s totally fine both of them are win-win situations in both scenarios
you’re paying off debt and it’s kind of crazy to think that I have maybe one or
two debt snowball videos left and then I am going to be debt free let’s take a
look first at my debt snowball and where it has come so here it is the debt
snowball it is pretty much the same exact spreadsheet that I have been using
now for two whole years if you ever want to help making this spreadsheet I would
love to I can send you the template just let me know in the comments below
give me an email a DM like I said I would love to share this template for
you because it really has been a monumental tool to helping me get out of
debt it is my monthly accountability tracker as well as motivator because
when I get to write paid off next to one of those debts I remember each one of
these debts like they only happen yesterday and I remember how amazing if
to cross them off my list I started with a hundred and eighty-nine thousand
dollars worth of consumer debt not including my mortgage and at the time of
starting my debt snowball the first payment that I would have got to pay off
was five years away and my last was thirteen years so by becoming debt-free
in a little over two years I’ve not eleven years of interest payments out of
my life and I’ve eliminated a hundred and eighty nine thousand dollars worth
of debt we started Tara and I both had a credit card that we were paying off
every month but just to change the mindset we cut those credit cards up and
we got rid of the balances and we did not use them while we were getting out
of debt a month later because we had cash in the bank we got rid of Tara’s
undergraduate loan and then work towards my undergraduate loans the big one was a
little under a year ago when we paid off my Toyota Tacoma what an amazing day he
was one of those things where I almost considered selling my truck but then I
listen to podcasts and financial advisors and people like Dave Ramsey and
told me if you could pay your truck off in a year then you could keep it and
that was really the goal if I could pay it off in a year then I would keep it
and I pretty much did so right now I have my Toyota Tacoma it adds value to
my net worth as you’ll see in one second but man that was like that was better
than paying off the student loan because when I paid that off I get to enjoy it
every single day even almost a year later every single time I get my car I
realized that I own that thing outright it is the most amazing incredible
feeling when people tell me what a nice car I have and then they asked me what
the payment is and I get to say it’s it’s $0 there’s there’s there’s no
payment and the look of shock thinking to themselves did this guy win the
lottery like how is he driving around this nice truck zero dollar payment it’s
it’s incredible to say if you’re paying off your car look forward to that
telling people that your car payment oh this car right here yeah now it’s simple
zero dollar payment next at the end of March we paid off my last student loan
which made me personally debt-free but the fin mindset we are a team Tara and I
so her debt is my debt so we have one more tires graduate loans
just under $25,000 and if you’ve been around the channel long enough you know
and you’ve heard me speak about I am having a son this week and we are
holding money heavy in cash right now to make sure everything goes smoothly in
cases emergency and then after everything goes wonderful we get my son
home October 1st that we might be able to get rid of it I’m going to show you
exactly how much liquid cash I have right now when we get to my net worth so
24 months one hundred and sixty-five thousand dollars paid off I could not be
prouder and it did not come easy there were ups there were downs and if you’re
starting your journey or even if you’re just a year in my mindset even a year
ago was completely different and time is going to go on you are going to get
older so you might as won’t get older and have no debt don’t think about how
long it’s gonna take you I know that can be discouraging but just know you’re
gonna get there so get there debt-free my minimums are thirty five fifty every
single month but as you can see if you did some simple back in the envelope
math we always were able to put more money on we have what Dave Ramsey call
is a pretty big shovel I am very fortunate for that and but we took that
big shovel and we always put it towards our debt let’s look at the second
motivator that I use throughout my debt free journey and that is my net worth
finding net worth was just another simple motivating tool for me on top of
my debt snowball and the reason why it painted a little bit bigger of a picture
my debt snowball in the beginning and just paying off debt sometimes I felt
like I was living a life of deprivation and I’ve learned since then that
budgeting and getting out of debt is not a life of deprivation you are creating a
path to financial independence and financial freedom and your net worth
really helps to showcase all of that while your debt snowball is going down
your net worth is growing up and it was amazing to put extra money on my debt
snowball but even more incredible to see my net worth go up those two together
really kept me on track over the last 24 months when calculating my net worth and
this is different for everybody but what I do is I simply just take all
my assets I subtract my liabilities and that is it I’ll get to the bottom of
this chart right here with the FI number and the liquid number in just a second
but that’s really all I do and when calculating my assets I look for things
that have value over $5,000 I don’t go around my house and take the value of
every little thing but my major items over $5,000 I consider those assets my
major asset is my house which has an equity at just under two hundred
thousand dollars even though I do have a mortgage and I get asked this question
all the time how can it be an asset if you have a mortgage out well the simple
reason is is because I have more equity in the house than I have liabilities so
therefore it makes it an asset and to stay consistent and you can use this
tool to stay consistent as well I use the value of my house as what it’s seen
on Zillow now whether that’s a hundred percent accurate or not I don’t know but
it’s all about consistency and that’s what I’ve used to value my house since
the beginning of finding my net worth the same thing goes for my truck I go on
Kelly Blue Book I type in all the details of my car I look at the average
of the private sale in my area for that car and my 2016 Toyota Tacoma right now
is looking at a value at just over $27,000 next comes all of my retirement
accounts and you see there are a couple here Tara has two 403 B’s that’s because
we’ve switched companies and didn’t want to pay the fee to move everything in but
currently right now we’re with Vanguard VTS ax my 403 B is with voya but that is
going to cease now that I’m going back to school because now I have access to
Vanguard as well so I’m gonna be adding a 403 B to the list something else that
will be added next month will be Tara’s 457 if you just saw my retirement video
so we just add in one of those for her we have my 457 there as well and then we
have two IRAs that we started last year both once
again Vanguard VTS ax if you’re not sure what that is but you’ve heard of it
before I just did a whole review of what that exactly is if you’re curious about
VTX I’ll leave that at the end either in the comments the description of both you
could check that video out my Robin Hood account which is my brokerage
now this might get me a little bit of question because I just did a video
about how I don’t believe brokerage accounts are for me and Here I am with a
Robin Hood account that Robin Hood account is gonna be part of my debt
payoff it’s part of like my emergency fund right now it will be sold off and
then I will not have Robin Hood probably in like a month and a half or so my
Vanguard brokerage account has vnq if you saw the video where I talked with Q
makes it happens on every penny counts I took all the change in my house and I
put a couple shares of V NQ and it’s actually up like 21% in the last two
months so that’s really going awesome and my Capital One 360 money market
account once again if you’ve been here you know how strongly I feel about
online savings accounts and whether you’re using you know a lie or Capital
One or wealthfront it doesn’t matter I personally go with Capital One because
of their reputation because they have storefronts which makes me feel all warm
and fuzzy inside and because their interest is pretty consistent whereas a
lie and wealthfront they’re kind of like jockeying for position and customer
acquisition so their interest rates are all over the place where I’m okay with a
steady 2% I’ll say it again if you have money an emergency fund or you’re saving
for an investment or something like that and you have it sitting in a big bank
savings account you’ve got to get out you’ve got to get into a online high
interest account I personally like I said use 360 you don’t have to but look
into one of those please and get yourself a higher interest rate and then
next is just my big bank I’m with Chase I have a checking account
with them and that’s pretty much it it pretty much holds about one month’s
living expenses for me my emergency fund is my Roth IRA contributions so I don’t
really keep a lot of money in that checking account just enough to get me
through a month and then petty cash that’s sitting around from change or
from going out or if I tutor or whatever that’s really always pretty small which
puts my total assets at three hundred and twenty eight thousand dollars I just
showed you a minute ago Tara is my only liability left with the exception of my
mortgage and that is twenty four thousand dollars so right now Mike
were net worth if I took my assets and my liabilities I have a net worth of
three hundred and four thousand dollars I that’s awesome
especially when I show you in one second where I’ve come from I could not be
happier with that we see that liquid net worth number which is literally just
under forty four thousand what I mean my liquid is money that I could touch in a
couple of days or so so what that’s going to include is my Roth IRA
contributions my brokerage accounts Robin Hood and Vanguard my Capital One
and my Chase cash and my checking account so that’s money that I can go
grab and as you can see I have forty four thousand dollars liquid I have a
net worth of twenty four thousand so I said after my son is born I can get rid
of all of that debt if I want to so I can consider myself debt-free after my
son comes and what is the FI what is the financial independence net worth video
and if you don’t know what the FI number is I also just did a video check down in
the comments below I’ll leave that there so you could find your own fi number
this is all the things that are working for me these are all of the accounts and
all my investments that are working for me on my path to financial independence
and I heard the first hundred K is the hardest so I’m kind of stoked on that so
that’s my four three be my 457 my brokerage accounts my even my Capital
One at 2% I consider that an asset it’s pretty much everything with the
exception on my checking account which really isn’t earning me any money and
like I said that 304 I am so happy with it it’s gone down from the months
previous but I was out of work I hadn’t been paid as a teacher and that’s okay
because I look at the big picture and look away at the top two years ago when
I started August 2017 net worth of minus $29,000 for me that was my aha moment
that was when I was like I got I gotta take care of this I gotta get rid of it
so from going from minus 29,000 up to 304 even if it’s fluctuated a little bit
with the markets going down that’s gonna happen the markets kind of on sale right
now I am so excited about the future especially when I got a debt how fast
I’m going to be able to grow that net worth to my Fi number and then be in a
position where I will be financially if you look at that third column I said
that’s the month change I lost a net worth of five thousand
dollars this past month that’s okay I’ve learned how to roll
with those punches I can’t come on here and only tell you about the good times
sometimes there’s gonna be some downturns that is part of life
and we will see that the longer I continue to track this the last column
all the way to the right is my change over one year so from last August two
hundred and fifty four thousand dollars worth of change to my net worth I mean
that’s a great one year I might switch to doing the net worth updates every
quarter as opposed to every month if you want to see them every month and you
want me to continue to do them every month please leave down in the comments
Brad please keep doing them every month they’re motivating me if I’m motivating
you and by doing them every month I’ll continue to do so but if I don’t hear
from you I’ll probably switch over to doing them quarterly so I’ll do one in
September and then one at the end of the new year for the YouTube algorithm
please give this video a thumbs up if you are trying to get a debt and raise
your net worth and until I see on the next one guys stay positive work really
really hard always be kind to others I hope you have yourself an amazing day
and a better tomorrow

23 thoughts on “Debt Snowball & Net Worth Update 2 YEAR Update!!

    1st Debt Snowball Video:
    Last Truck Payment:
    $61,000 Debt Payment:
    VTSAX Info:
    Cap 1 Savings:
    Every Penny Counts:
    Robinhood Update:
    Roth IRA 101:
    Brokerage Accounts:
    FI Number:
    Retirement Strategy:

  • Exciting times! Iโ€™m sure yโ€™all are stoked about baby boyโ€™s impending arrival! ๐ŸŽ‰๐Ÿค— Congratulations!! WooHoo Iโ€™m staring down my last two debts which will be gone by NYE! ๐Ÿฅ‚๐ŸŽŠ

  • You are doing great! Congrats on all of the milestones you have accomplished for the past two years ๐Ÿ‘๐ŸŽ‰ Cant wait to keep seeing more of your videos! Thank you for the encouragement to us debt newbies.. I love your getting out of debt journey Brad! You and Tara have inspired me to keep paying my loans.. Thanks does not begin to cover it!!!

  • So, excited for your family! What an incredible gift to give to your children– the gift of financial knowledge. Praying for you all to have a safe delivery of that beautiful baby.

  • Woo hoo! Awesome! I love these updates! I can't wait to see you fully pay off the last of the debt. You are so encouraging and inspiring for sure!!I love that growth on the yellow plot chart – look at your net worth shooting up! It's just gonna go through the roof!!

  • GREAT VIDEO BRAD | Great job on your debt free journey Brad! Youโ€™ve worked consistently and hard! ๐Ÿ˜Ž๐Ÿ‘๐Ÿป

  • I really like seeing your videos. I would love to follow you to millionaire status and beyond!!! Keep it up, true motivation for all of us who watch.

  • Great video and I enjoy the monthly updates. I also wanted to say that as of today my family is now consumer debt free!! Outside of my family you were the first person I wanted to tell. I found your channel when I was starting to look for more than the Dave Ramsey stuff over a year ago now and your channel was the first place to really inspire me. We've been on a somewhat similar path from DR to FIRE and budgeting apps to spreadsheets, etc. I feel like as you've been learning the world of FIRE that I've gotten to take that journey as well thanks to what you've been willing to share. Now I follow quite a few channels, read a lot of blogs, and books in regards to Financial Independence but I always come back to your channel. You helped get my family pointed in the direction we are today and we truly appreciate it. I hope it helps to know the kind of impact you're making in others lives. I look forward to seeing how your progression continues on this journey. Keep these great videos coming!

  • How exciting – your son will be here soon! I love your videos, always informative and encouraging, motivational – and I love the ending as a reminder to be kind always xxx

  • I love the monthly updates… but if you find that monthly is feeling a little repetitive once the debt is paid off, then I totally understand if you switch to quarterly.
    As much as I don't want to encourage baby boy to arrive early (especially knowing you are currently at FinCon), I can't wait to see that "we are debt free" video

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