July saw our three month streak of positive gains come to a close, as the stock market has done a slow downward spin erasing many of the gains from the last several months.
Property –I use a combination of Zillow and CyberHomes. I make a small adjustment based on what I’m seeing things sell for, and I remove 7.75% for expected selling costs. For the month, the value went down, continuting a trend showcasing the mostly downward spiral of real estate values in the Michigan market.
Autos – The value of our two cars has held pretty steady the last couple of months as the used car market has heated up. We saw a modest decline, but nothing unexpected.
Investment Accounts – Our investment accounts declined 7%, pretty close to tracking the market decline for the month as there was a pretty decent giveback of gains made over the past few months.
Cash Accounts – We raised our cash accounts slightly. I expect this to fall next month with some planned purchases that we’ve been saving up for.
Retirement Accounts – Our retirement account went down 4% for the month. As with the investment accounts, we’ve tracked the markets decline, with a slight offset due to my contributions. My employer stopped matching, but we’re still contributing 10% of my salary at this time. Unfortunately, we’re not maxing out our retirement, but I still feel like we’re moving in the right direction.
Mortgage – Nothing special, just the monthly payment. Our mortgage is a 30-year loan at 5.875%
Car Loans – We paid off our second car a year ago and we have no outstanding car loans!
Credit Cards – This is the balance that’s accrued since the last statement. We pay our credit cards off every month. We have a little lower balance than last month but still quite a bit higher than usual (as evidenced by the increase from 12 months ago) simply because of the added costs of our newborn.
Student Loan 1 – This is the loan that had a higher balance and a higher interest rate. After paying the car loan off, we concentrated our debt payment on this loan. We’ve paid 57% of the balance from a year ago, which is great, although as you can see, we’re not putting as much towards it nowadays since my wife is no longer working, but I’m still happy with our progress.
Student Loan 2 – This is the second loan but it is at a very low interest rate. We make the minimum payments on this loan. After Student Loan 1 is paid off, we’ll have to decide whether to snowball the payments toward this loan, or switch to something else (such as the mortgage, investing, or adding even more to our retirement)
Overall, our net worth went down 7.6% for the month, and is down 25% from a year ago.
I was disappointed in the decline, but not surprised as I didn’t expect the market rally to sustain itself, given how much we went up so quickly over the prior months.