Tuesday, November 27, 2018

October 2018 Net Worth Update - We lost the equivalent of a new car ¯\_(ツ)_/¯

October is typically the busiest month of the year for me at work. The good news is I was too busy to even really worry or know much about what the stock market was doing. The even better news is when I did see the aftermath it didn't emotionally affect me or cause me to want to deviate from our plan. Our net worth declined by $25k to $836k.


Our cash balance crept up yet again and is almost to the point where we'll quit adding to it and use any additional extra to go towards our mortgage. I also got a raise in October and we've already got a plan for the additional income to direct the extra money towards our goals instead of lifestyle inflation. We're now earning a whopping 2% on our savings so the monthly interest payments are actually noticeable.


October was a doozy in the investment department. We didn’t change anything with our allocations or contributions and managed to see our investment balance decline by nearly $35k. My first years' salary when I graduated college was only $35k so this is probably the biggest dollar amount we've ever lost in a single month. From a percentage loss perspective though, this wasn't nearly as bad as some of the losses we saw in 2008. 

An interesting observation I've had over the years has been how my personal definition of a 'big' gain or loss has evolved. I still remember getting excited the first time I saw our accounts increase by over $100 in a single day. Now, we see swings over $1,000 pretty much every day. In October we even had one day where we 'lost' more than $10,000. 


I love seeing our mortgage balance go down each month. With my new pay raise, we increased the amount we're paying towards the mortgage by $200, so we should see our balance go down by ~$3k each month. We are still on track to have the house paid off in 2021 and are exploring ways to make that happen even faster. If it weren't for our mortgage balance going down and our estimated home value going up, our paper losses for the month would have been much worse.

Because we're so focused on paying off the house, we haven't done many huge home projects in a while but have plans to redo our master bathroom and kitchen. Until the house is paid off though, I find it hard to justify these projects since the current bathroom and kitchen are perfectly adequate.

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