Another solid month to wrap up the year. December 2018 was sort of a bloodbath for the markets, if you all recall. I was expecting at least a slow bleed for this time in 2019. But no, the markets just keep going forward!
Major expenses for last month was …surprisingly nothing, if you exclude the gifts purchased for the holiday season. As those are seasonal, and recurring every year, we already have them baked into our saving/spending buckets.
Net worth reaches another high of $915k. Buzz of an impending recession is everywhere but we still plow into our tax advantaged and taxable accounts. We are also hoarding some cash. The recession will come but we don’t, and neither does anyone else, know when. And it will pass too.
There were a major expense of $2,706 this month, where we booked a vacation with a credit card and then promptly paid it off.
Things to keep in mind when looking at these numbers:
These numbers are snapshots in time, most likely the last day of the month
Since I copy/paste the numbers from the online accounts, the decimals remain but they are insignificant (obviously, duh!). Neither are the ones and tens digits of each account balance. What is important is the trend.
If you’re reading this for the first time, welcome! If you’re thinking if now is the “right time” to invest in the market ….well, everyday is the right time to invest, if you’re in it for the long haul. Remember the adage, “time in the market is more important than timing the market“
Our net worth is close to $900K! After an initial hiccup at the beginning of October, the markets have continued moving up. As you’ll notice our cash holding is at an all-time high. Major part of it is due to known expenses coming up, part of it is dry powder when the markets takes a dive. Does this sound like market timing? Well, yes, it is! But the amounts are so small to what we have out in the market invested, it does not really matter in the large scheme of things. It’s more to do with mental jujitsu, that we have some cash around when the correction comes.
August was the second month this year that our net worth dipped by over $12K. And that’s ok. How ok? Even with the monthly dip, our net worth is over $144K for the year! Frankly, the market run we’ve been having is almost unprecedented and it is bound to end at some point. But from that end it will rise again. All is good.
Valuation of retirement assets, which is almost 70% of all our non-property assets, decreased by ~$17K. Liquid cash in bank accounts increased over $3K but most of that increase will go towards paying off the fence we had installed couple of months ago (they billed the invoice late).
We also stopped paying the extra monthly $3K towards mortgage principal that we’d been doing since the start of the year, in anticipation of the reduction in income that will happen when M stops full-time work.
Other than that, a mostly quiet month. We’re enjoying the long Labor Day weekend. Kiddo will be going back to school this week. Some travel planned for end of September.
A quietly steady month for us. Markets have been doing their upward trajectory. There is a big group of people who think a correction is due, including me. It could come in a couple of months, in a couple of weeks, or we could be in the middle of one right now. Who knows? That’s why we keep investing every week, every month.
Major expense for last month was our semi-yearly auto insurance premium for $839. Obviously an expected expense, and we plan and save for this throughout the year.
Other than that, summer has been treating us well. We have a few short travels – extended weekend – planned for this and next month. Life is good.
We hit two milestones last month. First, our assets crossed over the $1M mark for the first time ever. Second, our Net Worth went over $800K, for the first time too.
Mostly this is a result of the markets swinging up by over 7% in June. Always remember, the markets will show volatility in the short term, but over the long run – think 15, 20 years – the markets will trend upwards.
Major expenses for June was $1,379 as down payment for a fence we are getting installed. The work will be done in July. Remainder payment of ~$2.5K will be made later this month after the installation.
We also bought an ecobee – smart thermostat – last month for $214, which is supposed to “pay for itself” in a few months due to reduced electricity and natural gas consumption. I have my reservation about how much we will actually save, but hey, the little device is cool. It is integrated with Alexa – Amazon’s voice assistant – and now our thermostat can play music. Wow.
Debt went down by almost exactly $4k, which is about par for us.
I’ve alluded to some changes coming about. Need to find the time and the mental clarity to put that in a post!