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Monthly New Worth Update and 2009 Wrapup
The holidays have come and gone (the decorations have been taken down already and that Christmas Yule Log fireplace show we watched so much has disappeared from our cable), 2009 is history and we are already a few weeks into 2010! Thus it’s time to take a look at our net worth here in early 2010 and investigate what happened during December and what happened throughout 2009.
Monthly Wrapup
Our assets increased almost 1.7%
Just like last month, all of our assets increased a bit except for our house value which dropped again! Most asset categories posted mid-single digit growth so at least this month their increases were enough to offset another drop in house value. I am a bit disappointed in our house value continuing to drop. We were so close to being in a positive position a few months ago but now it’s back down near its nadir Doh!
Our liabilities decreased 0.5%
Another month, another drop of about 0.5% on our liabilities. I haven’t done anything with the mortgage, I have no immediate plans for the mortgage, and I haven’t figured out how to get to where Dave Ramsey recommends we should be with our mortgage. Apparently I’m just waiting for divine intervention (c’mon, it was a very busy month!).
Our net worth increased more than 4%
After last month’s drop which followed so many months of growth, our net worth has returned to growth again. Actually, I could have massaged the numbers last month and kept the streak alive. After the fact, I noticed that if I would have waited another day or two before logging all the data, my wife’s paycheck would have come in and that would have tipped us back to the positive. Oh well, streaks and such don’t really make a difference – what matters most when calculating your net worth is…..well, your net worth.
2009 Wrapup
2009 was quite a year for our family in a number of ways. I’m sure you don’t want to hear all those details however, so I’ll stick to the net worth! Overall, our assets increased 15%. This was lead by strong returns in investments (170%) and retirement savings (55%). Our most impressive percentage gains were found in stock options (458%) and college savings (272%) but the overall values were fairly small for those categories so they did not sway our actual net worth significantly. Our home value did decrease 5.6% throughout the year and that was on top of a 7.2% decrease in value throughout 2008! Now, it had gone up in value previous to 2008 so that is maybe not as bad as it sounds but we are definitely underwater on our mortgage right now.
Our liabilities decreased 6% during 2009. This was fueled mostly by the decrease in my wife’s contractual liability that we track as a debt (since it restricts our freedom of action somewhat). In fact, our mortgage decreased a whopping 1.2% – that’s only a few thousand dollars! Looking at these numbers is best argument I’ve seen yet for a 15 year mortgage. It is startling to think of how much money I sent to the mortgage company throughout 2009 and to see the actual principle only decrease that little! Argh!
Overall, our net worth increased 61% during 2009. That was very encouraging to me. Granted, this was on the heels of a stock market drop in 2008 but I’ll take a 61% increase every year with no complaints! As long as this trend continues, we should be millionaires in just a few more years (as long at the 2009 trend of +61% and not the 2008 trend of -1%, that is!).
So, 2009 turned out to be a very positive year in so many ways for me and my family. And our plan remains basically the same as we embark on 2010. One significant difference that will be need to be addressed, however, is a new addition will be arriving in a few weeks – BorrowFromNone Junior #4. As a result, our expenses will obviously increase but on top of that, my wife will not be working for at least 2.5 months. Currently, nothing major is planned finance-wise other than a little belt tightening to get our budget cut down to be able to live on one salary for a while. That tentative plan may need to change as we get into it, though; we will revisit it after a bit and see if any more significant changes are necessary.
Well, I hope 2009 was prosperous for you as well (money-wise and especially other-wise). May God bless you as you seek to honor Him throughout 2010!
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