Declining Net Worth: A Personal Mini-Recession

I think the economy is fine, even though many Wall Street followers will try to lead you to believe otherwise.  But, unfortunately, we’re in a bit of a rut with our personal finances.

I just completed our net worth analysis, and for the fourth month in a row, our net worth has fallen.

Yikes!

Luckily, the amounts every month a pretty small, and even with four months of losses, the overall loss isn’t much.  It could be made back up with one good month, so here’s to hoping.

Still, I thought it would be worth looking at why..

Our Personal Mini-Recession

  • We paid our Disney trip. Trips to Disney World aren’t cheap.  We decided to splurge given that it was a trip we’ve been saving for awhile and won’t repeat immediately.  The payment for that came due.  We had money set aside, but it took cash off the books.
  • That darn stock market.  Even though I think we’re fine, the market has been a bit spastic.  Hopefully that changes for the positive. mb-201102piggybank
  • Summer spending. When temps rise, so does spending, it seems.  We haven’t made any major purchases, but it’s been more the little things adding up.  My wife and I have talked and will be consciously reigning in our spending to get back to where we’re more comfortable.
  • Side income was down. When we camp, my wife’s side hustle gets shut down.  Mine have been in a bit of a lull.  Again, hoping that these both normalize.

That’s really about it.

Am I concerned?  Not really.  While it would be nice to have our net worth go up month after month, the fact is that it doesn’t.  I actually track how often it does, and it’s around 70% of the time for us where it goes up, meaning that 30% of the time it doesn’t.  Over time, it will average out and that’s what I’m targeting.

Readers, have the warm months been kind to your finances or do you have some ground you’d like to make up?

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7 thoughts on “Declining Net Worth: A Personal Mini-Recession

  1. We struck an unlikely balance this summer. While we did take a vacation to Aruba, our side hustle of buying and selling on Craigslist was in full swing. Summer is a great time to buy and sell because people have more time on their hands and are looking for new gadgets to fill it.

    This might change when we have kids someday, but until then, yay summer!
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  2. I was definitely more “spendy” this summer, and was uber frugal in September to make up the difference. I’ve pretty much ignored my retirement accounts since the market has been on a downswing due the the devaluation of the yuan. Of course, the holiday season is upon us, so we’ll see how the things go in the upcoming months.

  3. We had quite a lot more expense in summer than I had expected, which I shared in my monthly update, but it was offset by our usual savings. We slid a couple percentage points between the spending and the market hits but I usually assume that the market will recover over time. After a few years of tracking our combined expenses, rather than spending the same every month like I would normally have done, we just have to balance our spending throughout the year as some seasons are high, and some are low. It was rather nice to see no spending at all during the first months after we brought home our baby, though! 🙂

    • Yes, we’ve noted that there are high and low spending months as well, and that illustrates the importance of looking at the big picture. However, while spending in the summer is usually higher, it was even higher than normal for us.

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