Net Worth Review: November 2008

Well, as expected the month of October was brutal because of the stock market. Not that it’s a consolation, but I saw many other personal finance bloggers report similar results. At least I’m in good company!
Overall net worth was down 12.2% from October. After a 17.9% drop in September, that brings us down to a net worth level that I haven’t seen in six years. Wow!
Retirement assets have dropped about 1/3 during that these last two months. Luckily we aren’t retiring for a long time, so we have time for recovery. In fact, I increased my 401(k) contribution recently. I had been contributing 6% because that’s the company match, but I increased it because I still feel that this a buying opportunity.
Our property value stayed roughly the same, so not much changed in how property values affect our net worth. For some reason, both of our cars dropped in value a lot this month (I use Kelly Blue Book). It usually goes down a couple percent per month, but this was closer to 10%. Weird.
We continued to make excellent progress in our debt, which is what keeps me positive these days. Because of the extra $2,700 we were able to apply to debt, we paid off a full 1.56% of our debt, which I define as our auto loans (currently $0), student loans, and mortgage.
In fact, we hit a noteworthy milestone this month. In terms of non-mortgage debt, our peak amount of debt was in June of 2006, which is when my wife (we were engaged at the time) purchased her new car and had a brand new loan. Since then, we’ve paid off the auto loan and have made significant progress in the student loan debt. The milestone: we have paid off 50% of the non-mortgage debt from it’s peak amount. In 29 months, we’re halfway to having only a mortgage. Pretty cool stuff!
So, it was another down month if you look just at the totals, but I still feel confident in our financial progress!

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