Net Worth Update: May 2008

by Kevin on June 9, 2008

Our net worth increased 1.20% in May. This brings us total a net worth increase of 14.10% since we started tracking it in December 2007.

We have dropped off in terms of dramatic changes in net worth. For a few months this year we ran 4-5% increases. However, I am happy with 1-2% each month… consistent, positive growth. Of course more growth would be great, but at least we are moving up. A snapshot of our net worth growth since I started tracking it is below. You’ll need to click the image to see the full chart.

If you add a linear trendline to the cumulative growth line (orange), we end up with a 30-35% in net worth for the year. I’d definitely be pleased with that. I changed the scale so it would show 100% because, well, I’d like to to be that much!

Every month is going to have its ups and downs. We save consistently for ‘big’ purchases. So money that is in our account in April may be spent in May. We receive an asset, but unless it is something really big like a car, it doesn’t count toward our net worth. For example, we had some money saved up to buy a weed trimmer. I bought one in May, so our net worth dropped $70 or so simply because it isn’t worth tracking the value of that asset.

The same thing will happen whenever we finally book and pay for our trip to New York City next year. We’re planning on spending a few thousand dollars, so that is a direct hit to our net worth.

Technically, we should not have experienced a drop, but I don’t want to depreciate small assets over the next year or so — simply too complicated.

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