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.
I feel your pain. I am still negative for the month due to the market. I did pay off the remainder of my credit card debt this month so that makes me happy.
Interesting use of the word “growing” in the first sentence of the last paragraph. I would have used a different verb.
Lazy Man says
Thanks, 2Cor521 once again I need to get an editor.
Danny Tsang says
My IRA and Brokerage accounts both have less than what I initially put in them. I know its times like these that I should be buying more and over the long run its a good thing but its so hard to apply what I know is the right thing to do once a bit of emotion gets involved.
I think its perfectly fine that you include equity in your calculations, why the heck not? It is your money so at the moment that is what your property is worth (approx) should you sell it.
I’m with you. I have faith that things will only get better from here. Well maybe after 2 quarters of 08, but in the long run we’ll be just fine. Have a good turkey day!
Living Off Dividends says
yeah I took a beating in the market too!
atleast gold is up! makes quite a difference when you have 15%+ of your networth in the shiny yellow metal.