My net worth went up!
After the loss of my husband in November last year, I knew I had to be really diligent with money... especially as I didn't know how long it would have to last. So in the last couple of days, I started using YNAB to ensure I stayed aware. In March 2019, after his life insurance came through, my financial advisor told me that my best option was to keep the money against the mortgage to keep the interest down as she expected that I would be going backwards by approximately $20K per year.
Building on her advice, I kept the money against my mortgage and gave those dollars jobs.
Clearly, she didn't realise the power of YNAB because at the end of April 2019, despite losing my husband's $100K/year (gross) salary my net worth rose by almost $250 and my sinking funds are slowly growing. I know it's not much, but I can't express what a relief it is to see my net worth go up. The fear that I might actually go backwards by $20K (or more) per year was terrifying. Thank you YNAB for the little cash win and the huge emotional one. My kids and I are so extremely grateful.
I never even had any idea of what my net worth was before starting YNAB. I knew it was positive due to my retirement accounts, but that was it. Now that I have it all in YNAB, and have much better spending/saving habits now thanks to YNAB, I love seeing the Net Worth slowly grow as I have more money slowly in the bank/investments/etc. aside from my retirement accounts!Reply
I'm sorry for your loss but I'm happy that you're feeling like you have the ability to make good choices to lead your family forward. Hopefully this will lead you to some peace of mind. Keep in mind that there will be ups and downs financially, as you'll probably have forgotten some expenses and new ones will arise (don't know the age of your kids but mine only seem to get more expensive!). But the idea is that scarcity breeds clarity. You only have so much money and you know what you need to do with it before you get paid again. Putting money in true expenses and sinking funds will help you roll with the punches. You won't know when you'll need car repairs but you'll need them eventually, or when you'll need to hire a plumber. The roof will eventually need to be redone, eventually, you'll need to replace an appliance. Eventually the kids will need braces or you'll want to be able to pay for scouts. You'll learn what are needs and what are wants. Awesome camps are a want. Day care is a need. Clothes are a need. The fancy shoes your teenager wants are a want. I'm glad for you that you are feeling up; frankly if I lost my spouse, I'm sure I would struggle for a few years while I got more schooling and got a better paying job.Reply