It's a little past the middle of the month, but this is the earliest I could get this update in. This is the first month where I didn't have a typical day job, so I expected a drop. What I didn't anticipate is a big drop in the stock market combined with a drop in my local housing prices. I did have a few fortunate breaks that helped mitigate the damage, but in all I lost over $15,000 in net worth. Things aren't looking to be much better in the short term as bills from our honeymoon vacation will start to creep in.
Here is a quick rough breakdown:
- My retirement accounts dropped $8,000 as a result of the aforementioned stock market decline.
- The value of equity in my rental property dropped $7,000. This isn't because I took a line of credit on it, but just that Zillow (which is extremely accurate for the area of that home) says that the market went down. I realize it's controversial to include this in my net worth, but it has value to me, so I'm including it.
- My Prosper.com account rose above $9,800 as I continue to reinvest payments from other loans.
It all adds up to my net worth
growing shrinking from $229,685 to $214,826. The good news is that I think there's a lot room for upward movement in the months ahead. I'm not going to be bearish and real estate over the long term. It seems as though I'm staying pretty even as far as living off my alternative income goes.
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