Well, we did it! As of today, our official household debt total is $299,968. That's one more goal for the year crossed off! Love watching the odometer turn over.
But as I celebrated, I realized that it's not a "true" number in today's exchange rates. When I started my blog, a British pound was worth about US$2.00. Now it's more like $1.60, but I've kept my calculations of debt and assets at GBP1 = US$2 for continuity.
But in reality, our assets are worth about $532K, almost $70K less than I calculate. And our debt is at $280.5K, or about $20K less than my "official" number.
So I'm torn. On the one hand, to calculate the progress we're making, I like the idea of keeping it at the old rate. But for serious planning (like trying to save up for an international move, or seeing if we have enough money for retirement) we should know the real numbers.
I wouldn't mind losing the continuity too much at this point. The hardest part of my debt journey is behind me, I feel. But the volatility of the exchange rate makes me afraid that it will become an exhausting venture to try and change it (daily? monthly?):
Still thinking about it. We shall see.
I also added 280 pounds to the EF, which I calculate as $560. That takes our EF to $17,474.76, about $2500 short of our 2012 goal.
Progress on debt goal; debt under $300K! Plus, musings on exchange rate
December 3rd, 2012 at 07:51 pm
December 4th, 2012 at 12:23 am 1354580621
December 4th, 2012 at 02:01 am 1354586519
December 4th, 2012 at 04:11 am 1354594281