We’ve just completed our first loan on www.prosper.com. If you’re not familiar with this website, it is known as the e-bay of loans.Basically, you deposit money in your Prosper account (similar to PayPal), browse the Prosper website for a borrower you want to lend to, and bid on the loan. If you win, the money is pulled out of your account and loaned to the borrower (3-year loan). Each month, Prosper then pulls monthly payments (with interest) out of the borrower’s account and transfers it Read more [...]
My wife and I order our credit reports and credit scores from time to time to keep tabs on things, and, more importantly, make sure we are not the victims of identity theft.Below is a table (click on spreadsheet) that I began compiling recently of our credit score track record. BTW, I received numerous copies of my credit reports in 2005 because we were preparing to purchase our condo. As you can see, my score dropped considerably around 3/31/05 because I was disputing a collection on my record. Read more [...]
My wife and I make a combined $109,350 per annum (not including her commission pay). Not more than some, but certainly above average. The tough part though is that we have a very high monthly burn rate - spending close to 90% of our net income each month. I’ve included our monthly budget below (click on spreadsheet).*Note: This budget does not include our investments/savings.We spend over 2 times more per month than some couples we know. Granted, most of our friends rent instead of own and condo Read more [...]
I had little credit card debit during college and was actually very fugal. My parents get the credit for that, as they taught me early on to appreciate the value of a dollar. After college, however, I moved from the central valley to San Diego and the wheels fell off the cart. I started using credit cards to help make ends meet. The credit cards were addicting, and eventually, I was using them to fund a lifestyle well above what I could afford. I went out with friends nightly, traveled, and got expensive Read more [...]
I will be updating our net worth on this blog at the end of every month.Below is our net worth for February 2007 (click on spreadsheet). I realize we're half way thru March already but wanted to use this as a starting point. As you can see, we currently have a negative net worth. Nowhere to go from here but up.February Notes:Purchase price used for condo value Read more [...]
If it’s not completely obvious, I am NOT a financial professional. The information you find on this site should not be considered financial advice. Before making financial decisions, do your own homework or hire a certified financial planner (if you’re lazy).
My amazing wife and I have been married for one year. When we met over two years ago, I was in bad shape financially. I owed $27,000+ in credit card debit and $4,000 to my parents. My problem was that I always spent more than I earned, and figured that I’d just catch up later. Unfortunately, later never seemed to arrive. My wife (girlfriend at the time) woke me up to the fact that I was in over my head, and I needed to change my ways and pay off my debt.Substantial progress was made (another post, Read more [...]
We are a young couple in Southern California, I’m in my early thirties and my wife is in her early twenties (lucky me). I plan to use this blog to outline our path from a negative net worth to financial independence and early retirement. I’ll rely on all of you to act as a sounding board for us. If something we scheme up is completely out of left field, please let me know. In turn, I hope you will find in this blog strategies that you can use to improve your own financial picture.