I have been tracking my Net worth since January 2011 and while it took a long time the inevitable has finally happened my net worth dropped month over month! I am pretty pissed since I did everything right this month. I put my standard amount into cash savings , paid off the standard amount of debt and put more into my non-qualified investments than I ever had in the past yet my net worth went down. I am not too angry since I know in the end, I couldn’t save enough to overcome a terrible month in market history (Down lost over 800 points / 6% this month!). I just have to keep reminding myself I am doing the right thing and over time this is actually a good thing since I am buying equities at a low amount.
Calculating my Net Worth
The assets I include are:
- My Cash Savings Accounts – This has been my main focus for well over a year, as we will need all the cash we can get when we finally move (update below)
- My 401(k) – Want to know how shitty this month was? I put in my normal contributions and my 401(k) STILL WENT DOWN A LOT
- Random Non-Qualified Investment Accounts
- The Wife’s Roth IRA
- My favorite personal finance item, my small but Awesome Dividend Investment Portfolio
- Home Value
- My Traditional IRA – Which I started actively trading last month using a Covered Call Strategy and even created a page to track all my gains (and loses)
The liabilities I include are:
While I am lucky to only have 2 main liabilities, they are very significant.
- Law School Loans
What is missing?
- Car loan – My car is paid off and I don’t consider it an asset and The Wife leases her car.
- Credit Card debt – Don’t have any except a revolving AMEX account so no reason to put it up
- Checking Accounts – Always changing and moving besides I keep my checking accounts artificially low.
My Net Worth Growth Decline
- From May 2012 to June 2012 my net worth decreased .57%
- Year to Date my net worth has increased 21.77%
- From January 2011 to April 2012 my net worth has increased 110.39%
A Housing Update
Just as a reminder about 90 days ago at this point we decided to finally pull the trigger and sell our current home and upgrade to a bigger place. 30 or so days ago I provided an update on the situation at that time we were deciding between buyers and towns. We decided on Buyer Number 2, an early 40s couple and since the previously linked update a lot has happened. Mostly bad.
To little or no fault of the chosen couple they are still not certified eligible under the guidelines of this special residence. To make matters worse just yesterday their mortgage application was rejected. Do I think this will work itself out? Yes, because the couple has additional funds to put as a down payment thus lowering the husband’s debt to income ratio. Why only the husband? because he is the first time home buyer since the wife already owns a home.
So, we have to just wait since I am not willing to put my family’s finances at risk by going into contract on another home. Which leads us to our newest problem…
We were supposed to have an inspection done on a place we found (in town 1 as I described in the previous update) and that was supposed to happen today – I had to cancel it! I think we should have still had the inspection, but The Wife had a good point that it wasn’t like the sellers were slowing down their open houses so what was the point for us to rush.
So a shitty net worth update and a shitty housing update – I hope at least your month was good!