What a crazy way to end the year. The S&P ended the month of December and posted the worst month in a decade (down 6.2%). It looks as though the beginning of January is going to be just as bad with Apple’s news yesterday (here).
Half of our net worth decline is from switching our house from a static $360k value to using Zillow’s estimator. That estimator decided to drop $10k in the last month. I am guessing we will make that up in time. Either way, we aren’t selling our house any time soon, so it’s a moot point.
It wasn’t all bad news though. If you’ve read a few of our previous updates, you may remember that we had been in a rough place with our cash. However, this month we ended the month with more cash than we have had since August! So on that positive note, here’s how it all came out:
As I mentioned in previous updates, I was going to switch to the Zillow estimator in 2019. At my last update, the price was sitting at $360k, so I figured it would be a seamless transition to the Zillow estimator…
The estimate fell like a meteor over the lat 30 days. As if the stock market being creamed over the last month and a half wasn’t bad enough, Zillow just decided to pile on:
Our cars are depreciating, no surprise here. They do seem to have fallen a bit more than I would think. But, it doesn’t matter. The hope is that these cars last us for 6 more years before we buy anything else (minivan no doubt).
I was beat down a little bit more than the S&P for the month. Overall, for the year, I still ended up better than the S&P (-4.38% vs. -2.8%). But this is still not the way I was hoping the year would end, that’s for sure.
But, the important thing to remember is that money isn’t lost until you sell… and I’m not selling. Long term planning at conservative annual returns takes negative years and months into consideration (certainly much more negative than last year/month). So the best thing to do is keep chugging along and stick to the strategy.
Roth IRA (-$3,917.15)
Individual stocks here were pummeled last month. I’m sticking to buying VTI for now (I bought 5 shares at the end of December when the market was way down). Unfortunately I didn’t take a screen shot of my stocks at the end of the year so I won’t be able to show you exactly how everything performed. However, I did find a picture on the internet that sums it up nicely:
This account is only positive because I got some birthday money and deposited it directly into this account (and bought VTI). When you take out the money that went into that account this month, it was tracking for a negative return, just like the other accounts. But, I’m still confident in the total long term outlook for this account (and the others).
We’re pretty happy to see our cash pop this past month. With my wife going back to work next week, we have a lot of tail winds to really accelerate some of our saving and investing. As far as next month, we will probably see this value decline again because I started my MBA and will be paying some of those costs out of pocket.
Slow and steady payments on our house. Sill making the minimum payment on a low interest 30 year mortgage.
Equity Loan (-$654.86)
Still making our extra payments to speed up the pay down of this loan. There is an extra $468.59 payment sitting that hasn’t been applied to the principle. By the end of 2019 we should be below $44,000 left. If we use some of the car payment money that we have now and put it towards this loan, we can really supercharge paying this down.
Previous 12 Months Graph
The last month of the year set us back to where we were in August 2018. I wouldn’t be surprised if we saw much lower lows before getting back to where we were a few months ago.
Unfortunately, we ended the year under the $150,000 2018 goal – $143,693.25. We dropped a whopping $12,432.48 last month. I’m just grateful that we have such a long horizon, in 20 years, last month will just be a blip.
So that closes out an amazing 2018. We started January 2018 with a net worth of $214,009 and ended with $264,347. A tidy growth of 23.5%.
We paid off $27,749.05 of debt, including our car.
We had our 2nd baby (and survived losing an income for 6 months).
Overall, 2018 was a great year – if 2019 is half as good, it will be a great year too.
- Read 2 books
- Post 8 times
- Do my scheduled work outs
I hope you had a great holiday and new year!
Are you interested in tracking your Net Worth?
Tracking my net worth was one of the first and best decisions I made to start getting serious about saving for my future. Back in April 2017 I created a Personal Capital account to make it easier to keep track of my accounts. Instead of hopping from website to website to add up my different accounts, I just needed to visit Personal Capital to see them all in one place.
It is a great tool that connects your different bank and investment accounts all in one place. Once you add your accounts, they will update automatically. It is easy to see how your spending (and saving!) affects your total financial picture. The program is incredibly easy to use and very straightforward.
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