Starting Net Worth: $173,979
October was another month where intentional decisions continued to move our financial plan forward. We made an additional lump sum payment toward Natasha’s car loan as part of our ongoing effort to aggressively pay down debt. We chose to focus extra payments on this loan because it carries our highest interest rate. Prioritizing high interest debt is one of the most effective ways to improve cash flow and reduce the total amount paid over time. By staying consistent and being deliberate with this strategy, we had paid off nearly 50 percent of the loan balance since the beginning of the year.
Alongside debt payoff, we continued to invest for the future. In October, we made a contribution to our Health Savings Account in addition to our regular 401k deposits. An HSA is a powerful planning tool when used correctly. Contributions receive a tax deduction, the money can be invested and grow without ongoing taxes, and withdrawals used for qualified medical expenses are tax free. This combination makes the HSA the only account that offers a triple tax advantage. For those who are eligible, an HSA can function as both a short term medical savings account and a long term investment vehicle. Balancing aggressive debt reduction with continued investing allows progress on multiple goals at once, and October was a good example of how small, consistent actions can add up to meaningful results over time.
Ending Net Worth: $185,213
None of the above information is a recommendation. This blog is purely intended as commentary on things that have happened along our financial journey.