Sunday, July 15, 2007

There's no "I" in "Personal Finance"

Well, technically there is an "I", but I've been reminded this week that the "we" is much more important. It may not be "personal fwenance", but it probably should be.

My better half has decided to consolidate her student loans with my bank, in part to take advantage of the great staff rate she can get by having me as a joint applicant. We're waiting to hear on the decision, but our ratios and credit history are good enough that we shouldn't have any problems.

One direct result of this consolidation is that her student loan amount will suddenly appear in my net worth calculation. I've previously been omitting her student loans from my calculations, and this additional debt will certainly put a dent in the overall number. This is fine, as it is not really new debt, it's just suddenly drawing attention to itself.

Starting this month, I'll be looking at our household net worth when I report on financial progress, rather than just focusing on my own. This means I'm being completely honest with myself, and that the progress I show will not come with any hidden caveats.

I'm not looking forward to seeing our net worth when I factor in the consolidated loans, but I am looking forward to having everything on the table.

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