Positive net worth at least

My net worth finally moved into the black this week. I still have a pile of back income taxes to pay the IRS on an installment plan, but I have accumulated enough assets that my debt to asset ratio is now less that 100%. Barely. It's 99.7%. My net worth right now is a whopping $74. But that's still a lot better than a year ago before my credit card debt was discharged in my bankruptcy filing.

Actually, I'm a little better off than my spreadsheet bottom line indicates. My net worth spreadsheet includes my current credit card balance which I intend to pay in full every month, as well as a reserve amount which is a hypothetical expense that I assume may be needed at any time (e.g., travel, a new computer, furniture, etc.)

I finally paid off my New York back income taxes this week, out of my rainy day fund. This will free up a modest level of cash flow that I can apply to either accelerating the paydown of my back federal taxes, or to beef up my rainy day fund which was moderately depleted by the payoff of the New York taxes.

I'd like to up my contributions to my Roth IRA, but it's a tradeoff with the interest I pay on back taxes and the comfort "value" of having a larger rainy day fund.

At least I have options now and a little more flexibility. Before, I only had my nose above water and only some of the time. Now, I feel like my entire head is above water.

-- Jack Krupansky