Net Worth Review: October 2008

Well, it was a brutal month if you look at the bottom line for net worth. We witnessed the largest percentage drop since I’ve ever seen since I started tracking.
Let’s start off with the bad:

  • Where to I start? Well, anything with investments was brutalized. Our retirement funds went down in double digits, as did all of our other non-retirement investment holdings
  • Our bottom line net worth was reduced down to levels not seen since 2004. I guess that sort of goes in line with the stock market since I think we’re around lows not seen since around that same time.

The positives:

  • We continued to make good progress on our debt. We paid of 0.39% of our total debt, which is good. It wasn’t as good as last month (which was over half a percent) but it still beat what was normal for us in the first half the year, which was around 0.39% 0.25% (corrected). Our debt consists solely of our mortgage and my wife’s student loans.
  • We began the move of some of our cash savings from a non-FDIC insured account to an FDIC insured account. Even though the return is lower, I think the peace of mind we get makes it worth it. As I outlined in an earlier post, we will most likely create a CD ladder in our ING Direct account to improve our return.
  • Our home value decreased only slightly. Normally this would be a negative, but according to Zillow and CyberHomes, the value only decreased by a few hundred dollars. With the way the value has been shedding off lately, this is actually the ‘best’ month we’ve had in quite a while. I guess you have to look for the silver lining in all clouds.
  • We continue to have no credit card debt, as we pay everything off every month.
  • I have $187 to allocate after winning my Fantasy Baseball league this year. I unseated the previous champion who had won for five straight years, so that was an accomplishment. I will probably dedicate a future post to what I might do with this, but for now it’s sitting in the bank.

All in all, a bad month if you look at the bottom line. But, since I made a conscious decision a few months ago to gauge our progress more on how we pay off debt, I feel we did as good as we could.

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