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Monthly Net Worth Update – February 2010
Yikes – I wasn’t really paying attention last month (probably because of the impending birth of my 4th child!) and I encountered a rude surprise when I updated our net worth this month. Let’s get right into the carnage…
Our assets decreased almost 4%
Every single asset category dropped last month. Some dropped a little (like our cash assets) while our assets exposed to the stock market dropped substantially. My stock options dropped the most (more than 20%) while the rest of the categories dropped in the mid-single digits. Our house value also continued to decrease – this is the fourth month in a row with a small (1-2%) decrease. The net result of all of that is that we are even more underwater on our mortgage and have 4% less assets compared to last month.
Of course, all of this is now exacerbated by the birth of our daughter two weeks ago. There, of course, will be many new expenses associated with that (hospital bills, we decided to do blood cord banking, truckloads of diapers, etc) while at the same time my wife won’t be receiving a paycheck for another couple months at least (or indefinitely if we decide that she should retire). All that adds us to a few interesting months to come finance-wise!
Our liabilities decreased 0.12%
Our mortgage drops approximately 0.12% each month. It is frustrating to me how small of a drop that is each month (I now wish I had followed Dave Ramsey’s advice to take out a 15 year mortgage but I hadn’t heard that advice when we bought our house!) Unfortunately, it is difficult to do anything with our mortgage because we are under water with it. With the next few months bringing increased expenses and decreased income, I am especially wary of making any big moves that would deplete our savings and investments significantly. So we stand pat for now until we see how this all plays out.
Our net worth decreased almost 8%!
Overall, our net worth dropping a whopping 7.7% which is the largest single-month drop since March 2009. Also, saying it in percentages doesn’t sound as bad as the actual dollar value that was lost!
So, we enter a period of uncertainty with the changes in our finances and I’m not sure right now how it will all play out. I will be trying hard to focus on God and rely on Him and not get too worried about all of it. Now, I don’t want to overplay it – it’s not like we are in dire circumstances or anything like that. We have been saving and investing for a while and also have a healthy emergency fund. For me, however, I just really don’t like the idea of spending more money than we bring in each month.
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