Coincidentally, my net worth is also "up" this month. But just like the helium balloons that gave flight to Carl Fredericksen's house, I fret that the recent market rally is just as fragile. But there's no point in worrying about what I can't control. To paraphrase Mr. Fredericksen, "It's only money".
Starting Debt (6/31/08)
|Last Month||This Month||DIFFERENCE|
I'm snowballing my debt and I'm arbitraging my 0% credit card debt. Nothing new. I've squirrelled away....SQUIRREL!!!!!
Ahem... I've put away $4,313.08 to pay down my credit card, so my balance is technically $7,261. Ugh. Still an ugly number.
Not bad. Not great, but not bad. Assuming my barebones monthly expenses are about $3,000/month, this would only cover 2.5 months. Much more work to do in this category.
MY NET WORTH
|LAST MONTH||THIS MONTH||DIFFERENCE|
Holy moley. I'm in positive territory for the first time in my post-law school life!
As much as this is a wonderful milestone, I'm not going to put much stock into it. (No pun intended.) Some talking heads believe that we're in the midst of a sucker's rally and I agree. I don't see any fundamental improvements in our economy that would justify a 30% pop in the stock market since March.
The current support for the S&P 500 is around 880, or about -5%. If you reduce my assets by about 5%, I would barely break even. If the market goes down lower than 5%, I'm back in negative territory. Since I can't control the market or even predict it, I'm better off focusing on reducing my debt. At least with debt reduction, that's a guaranteed dollar-for-dollar increase in my net worth that's within my control.
The breakdown of my net worth can be seen here.