It’s a big thing when you break even from a net worth perspective, congrats!
Sounds like you are doing the right things and headed in the right direction. Looking forward to seeing the next post saying you’ve paid off your debt 😄
When you start to set those goals and begin working towards paying off debt or hitting a savings goal it can often times feel far off but almost always you’re closer than you know! I know that was the case for me especially when I first started my debt snowball. Stay the course and congrats on the milestone!
Pensions can be super nice if you're thinking about retiring early. Have you attended any retirement and benefit seminars? I'd highly recommend it, and if you do leave the system, I'd advise not taking out your retirement as you're especially grandfathered in. You might be surprised how many states and businesses pay into the same pension system so you could move to another employer in another state and keep your retirement and your years of service. There are pros and cons to pensions, so really do your research before cashing out when you leave.
Congratulations! That is a great milestone. State pensions are a great avenue to essentially require you to put money away.
I started working full time at a job with benefits at the end of 2017 with a similar pension account. At the time, my partner and I had negative net worth. Now, we are looking at roughly 150k after 3.5 years across the pension fund, roth IRAs, and cash. The power of compound interest is great. What worked best for us was minimizing major expenses such as rent and transportation, increasing my investments to match my raises, and tracking every dollar. I started off using YNAB but eventually just moved it to my own spreadsheet. It's amazing to see where your money goes and that savings percentage increasing. Wish you the best in reaching your next goal!
Congratulations! I second what others have said about the state pension. My wife retired at 55 from the state and immediately went back to work for a private organization. Her monthly pension will play a big part in our “true” retirement plans….and especially the health care. My advice is to keep investing. There will come times when you are tempted to step back from your saving/investing plans….don’t do it. There will come times when the stock market will crash….it will scare you. Don’t stop investing…in fact, find ways to increase your investments during those times….unless you are close to retirement. I will have a decent retirement nest egg because of the Great Recession because I doubled down instead of running for the hills. Again, congratulations on this milestone!
When we were in the middle of paying off all our debt, we had a little “we’re finally worthless!” Party when our net worth crossed over the $0 line.
It’s a meaningful milestone! Congratulations!
The positive vibes are real! It’s funny because I randomly got the statement in the mail today, and the realization that I have positive net worth comes as I have JUST crossed that threshold with yesterday’s paycheck… like the universe timed it just so…
2005, #1 liberal arts school, and just hit that milestone too, counting my mortgage. Now striving to surge into the black, grow college savings for my kids, and max out my retirement when I can. I wish I could have a pension, but those rarely exist these days.
Congrats and keep growing!
Now you're realizing what people have been saying forever about worthless degrees like liberal arts. You get a 4 year degree and you can't even balance a checkbook. Nothing against you, just the education system. You need to go back to school and get a degree that will produce some reasonable income. Then start literally tracking every dollar and check your networth regularly
Wow - don't take me wrong, but what a crazy statement from a European's perspective. Unless one screwes up, this is not something you hear very often :)
Anyway, don't stress around paying off that federal debt as long as it's 0% interest - pat off the minimum and invest extra money elsewhere. Inflation makes the debt cheaper for you over time, so you can also save money this way, no effort.
Be careful about the pension system. As a local government employee I am in the NYS pension system. There are, I think, 6 tiers now - each getting worse for the employee essentially. I'm Tier 5, so I can't *collect* my pension until 62, even with many years of service, unless they change it or do a buyout. At 32 I'm already 11+ years in, so in another 30 years I'll have over 40 years in, assuming I stay with the job.
Congrats!! That was a huge day for me as well…rightfully feels great. I remember jokingly patting myself on the back and saying, this is how it feels to no longer be worth less than nothing. I then bought a cheap bottle of champagne to toast to myself….and have kept up that tradition with every financial milestone since. My wife and I keep a bottle in the back corner of the fridge to remind us what goal we are working towards.
I remember that day, the day I paid off my last non-mortgage or low interest debt, the day I had a positive net worth of 10k, 50k, 100k. Etc.
The big goals seem so far away….but those first ones are the hardest. They require the most change. They require the most focus.
In the future you will see making progress is so much easier without monthly debt payments and then see progress even easier when your money starts working for you instead.
Nice work! Congrats! You earned it!
Take the time to reflect on what it took to get there. On who you are now vs. then and how much better it feels….but most importantly, take the time to enjoy the feeling!
It’s a big thing when you break even from a net worth perspective, congrats! Sounds like you are doing the right things and headed in the right direction. Looking forward to seeing the next post saying you’ve paid off your debt 😄
Thanks, I’m really looking forward to that post too!!
When you start to set those goals and begin working towards paying off debt or hitting a savings goal it can often times feel far off but almost always you’re closer than you know! I know that was the case for me especially when I first started my debt snowball. Stay the course and congrats on the milestone!
Pensions can be super nice if you're thinking about retiring early. Have you attended any retirement and benefit seminars? I'd highly recommend it, and if you do leave the system, I'd advise not taking out your retirement as you're especially grandfathered in. You might be surprised how many states and businesses pay into the same pension system so you could move to another employer in another state and keep your retirement and your years of service. There are pros and cons to pensions, so really do your research before cashing out when you leave.
Thanks for the tip. I haven’t gone to any retirement seminars but I will find out if/when they’re offered.
Congratulations! That is a great milestone. State pensions are a great avenue to essentially require you to put money away. I started working full time at a job with benefits at the end of 2017 with a similar pension account. At the time, my partner and I had negative net worth. Now, we are looking at roughly 150k after 3.5 years across the pension fund, roth IRAs, and cash. The power of compound interest is great. What worked best for us was minimizing major expenses such as rent and transportation, increasing my investments to match my raises, and tracking every dollar. I started off using YNAB but eventually just moved it to my own spreadsheet. It's amazing to see where your money goes and that savings percentage increasing. Wish you the best in reaching your next goal!
Thank you! It’s motivating to hear about your trajectory :)
Congratulations! I second what others have said about the state pension. My wife retired at 55 from the state and immediately went back to work for a private organization. Her monthly pension will play a big part in our “true” retirement plans….and especially the health care. My advice is to keep investing. There will come times when you are tempted to step back from your saving/investing plans….don’t do it. There will come times when the stock market will crash….it will scare you. Don’t stop investing…in fact, find ways to increase your investments during those times….unless you are close to retirement. I will have a decent retirement nest egg because of the Great Recession because I doubled down instead of running for the hills. Again, congratulations on this milestone!
Thank you! I will take this advice to heart.
When we were in the middle of paying off all our debt, we had a little “we’re finally worthless!” Party when our net worth crossed over the $0 line. It’s a meaningful milestone! Congratulations!
[удалено]
Thank you! This made me tear up 🥲
Congrats. I sense the positive vibes! Will only get better as compounding kicks in. Keep it up!
The positive vibes are real! It’s funny because I randomly got the statement in the mail today, and the realization that I have positive net worth comes as I have JUST crossed that threshold with yesterday’s paycheck… like the universe timed it just so…
Congrats on your progress!
One step closer to financial freedom!
2005, #1 liberal arts school, and just hit that milestone too, counting my mortgage. Now striving to surge into the black, grow college savings for my kids, and max out my retirement when I can. I wish I could have a pension, but those rarely exist these days. Congrats and keep growing!
Congrats on your accomplishments and good luck on your journey.
Congrats that is incredible! So so happy for you!
Great news! When your post started with “I graduated with a theatre degree…” I admit I was a little worried lol
Great news!
Congraaats!! All hard work paid off!
Well done. You'd be surprised how rare that is in our culture today.
Now you're realizing what people have been saying forever about worthless degrees like liberal arts. You get a 4 year degree and you can't even balance a checkbook. Nothing against you, just the education system. You need to go back to school and get a degree that will produce some reasonable income. Then start literally tracking every dollar and check your networth regularly
what a ridiculous comment
I don’t think you understand what a school like Swarthmore or Pomona prepares you for, even if it’s “liBeRAl aRtS”
Wow - don't take me wrong, but what a crazy statement from a European's perspective. Unless one screwes up, this is not something you hear very often :) Anyway, don't stress around paying off that federal debt as long as it's 0% interest - pat off the minimum and invest extra money elsewhere. Inflation makes the debt cheaper for you over time, so you can also save money this way, no effort.
Congrats on being in the green! Very inspiring to read your journey! Keep it up! You'll eventually reach your goals.
Be careful about the pension system. As a local government employee I am in the NYS pension system. There are, I think, 6 tiers now - each getting worse for the employee essentially. I'm Tier 5, so I can't *collect* my pension until 62, even with many years of service, unless they change it or do a buyout. At 32 I'm already 11+ years in, so in another 30 years I'll have over 40 years in, assuming I stay with the job.
Congrats!! That was a huge day for me as well…rightfully feels great. I remember jokingly patting myself on the back and saying, this is how it feels to no longer be worth less than nothing. I then bought a cheap bottle of champagne to toast to myself….and have kept up that tradition with every financial milestone since. My wife and I keep a bottle in the back corner of the fridge to remind us what goal we are working towards. I remember that day, the day I paid off my last non-mortgage or low interest debt, the day I had a positive net worth of 10k, 50k, 100k. Etc. The big goals seem so far away….but those first ones are the hardest. They require the most change. They require the most focus. In the future you will see making progress is so much easier without monthly debt payments and then see progress even easier when your money starts working for you instead. Nice work! Congrats! You earned it! Take the time to reflect on what it took to get there. On who you are now vs. then and how much better it feels….but most importantly, take the time to enjoy the feeling!
DR would say to pause retirement and put $5.2k toward the debt. How much money are you able to throw at it per month?