memoryloot » debt free http://www.memoryloot.com GET YOUR OWN MEMORY Mon, 05 Sep 2011 20:28:21 +0000 en hourly 1 http://wordpress.org/?v=3.1.3 Finance 2006 http://www.memoryloot.com/2007/01/04/finance-2006/ http://www.memoryloot.com/2007/01/04/finance-2006/#comments Thu, 04 Jan 2007 08:05:34 +0000 Johnny http://www.memoryloot.com/?p=121 2006 was certainly a year for me to remember. It was the year I finally became debt free. It was also the year where I learned how to manage my retirement money and began to seriously analyze and save for my future. My goal is to make my first million in 10 years. So far so good.

I am happy to report that my investments from 2006 went up 7.76%. This amount did not include contributions. With contributions, my portfolio rose 11.01%. The first quarter of 2006 I was up 5.74% from previous year’s amount. Second quarter performance sunk my portfolio down to -0.30% when the market sold off. By third quarter, I recovered my losses and was up 2.46%. I began making contributions to my 401K again in the 3rd and 4th quarter.

Based off of Robert Kiyosaki’s “You Can Choose To Be Rich” workbook, I was able to come up with the following analysis of my financial state.

HOW MUCH DO YOU KEEP? I kept 10.6% of my income.
Goal: Increase the percentage of income you keep.

DOES YOUR MONEY WORK FOR YOU? 2.5% of my income is working for me.
Goal: Increase your percentage of passive or portfolio income.

WHAT IS YOUR INCOME AFTER TAX? I pay 35% in taxes.
Goal: Decrease the amount of tax you pay.

HOW MUCH OF YOUR NET INCOME GOES TO HOUSING? 24.7% of my income goes to housing (thanks to coming back home to live with the folks).
Goal: Keep housing costs under 33% of net incoming.

WHAT IS YOUR RETURN ON ASSETS? My cash-on-asset return is 3.67%
Goal: Increase your cash-on-asset return.

HOW WEALTHY ARE YOU? I can live for 9.26 months without worrying about my expenses.
Note: Once your monthly passive income exceeds your monthly expenses, you’re infinitely wealthy because your assets are working for you.
Goal: To purchase assets that generate passive and/or portfolio income in excess of your monthly expenses.

If I was to give myself a grade, it would probably be a B or B-. I think I can do better as far as saving more and improving on these numbers. Let’s see what 2007 will bring.

On a side note, one of my guilty pleasure is being cancelled. Last episode February 22nd. :-(

]]> http://www.memoryloot.com/2007/01/04/finance-2006/feed/ 0 I’M DEBT FREE!!!!!! http://www.memoryloot.com/2006/05/26/im-debt-free/ http://www.memoryloot.com/2006/05/26/im-debt-free/#comments Sat, 27 May 2006 04:12:34 +0000 Johnny http://www.memoryloot.com/?p=82 Yes I finally did it! Finally reached one of my financial milestones. I’ve finally become debt free. This afternoon, I just dropped off the last check to pay-off my student loan. No more student loan payments, no more car payments, no more credit card interest payments. Well, maybe for a mortgage, but that’s it!

Here is a picture of me and my final check and letter to my loan company.

Here is me depositing my letter in the post office.

Here is the last look of the letter going down the post office box.

And finally, my Dave Ramsey declaration in MP3 format.

No I did not call into his show. I just made my own audio file. :-) Yes I’m lame, but I’m also debt free!

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