After a June net worth summary that was less than desirable, I was able to come back in July with some good news and a positive trend change. My net worth is now back into the positive in a huge way this month. I know there are going to be down months eventually, especially if the market decides it isn’t going to cooperate, but it’s always nice to instantly reverse a negative trend as well. The other good news is that spending was actually down in July as well, which is traditionally a higher spend month for me.
This is probably one of the posts I was least looking forward to doing, as I knew that after the poor results from my June net worth summary there wouldn’t be much to look forward to there. While I’m not constantly checking my portfolio, there is something addicting about seeing the numbers going up every month. I have to realize that things aren’t always going to look that way, especially as my portfolio gets larger and larger. My savings will have a much smaller affect on the total compared to where the market is taking me. This was probably an excellent lesson for that, and in the end the results really weren’t that bad.
June finally brought in Summer weather and sunny skies, but it didn’t do the same for my finances. This will actually be the first month that I report a decrease in net worth, or at least a substantial decrease. I did have a few months in a row from November to January that were extremely flat, but not quite like this. Although it makes the calculations and numbers not as fun, it’s only a blip on the radar. My savings rate continued at the same exact pace, so I’m not worried. That is the benefit of having everything done automatically, I can’t even touch that money before it’s put away into savings. Continue reading
Tracking my retirement number is just as exciting for me as tracking net worth, because they are so tied together. I love being able to watch my net worth go up, and seeing my target retirement date go down! Unfortunately that was not the case so much in June, as expenses caused the total amount needed for retirement to go up, cancelling out the net worth growth. When I first went to run the numbers, I actually expected things to look much better than this. It’s a perfect example of how your expenses are just important as your total savings when it comes to establishing a safe withdrawal rate and a targeted total amount.
May was another good month for me financially, keeping with the positive trends in most categories. Spending was up this month slightly, but that didn’t seem to affect my overall savings rate and I still posted a positive net worth gain. Most of the increases in spending were due to booking vacations for the Summer along with more general travel expenses. It seems like if I continue this pace, a $150,000 net worth is just right around the corner.