Another month is coming to an end, and summer is starting to wind down. I can’t believe how many schools are already back in session! Summer break seems to get shorter every year! Although, I guess a lot of the schools in our area are switching to the “balanced year”, which means shorter summer breaks, but more/longer breaks throughout the year.
So, how did I fair in July?
I only grew my net worth by $434. Growth is growth, so I’ll take it!
Of course, if I’m going to make my overall goal of growing my net worth by $10,000 this year, $434 a month isn’t exactly going to cut it. If you look closely at the numbers though, there was a lot going on this month. I paid off $451 in debt. My liquid assets grew by $656, despite some spending on the house, and some clothing purchases. My 401k went up by $327.
So why did I only have $434 in total growth?
Well, the car. I bought a shiny new car in October. And, as we all know, shiny new cars lose value. Fast. At first, it was kinda hard to get a good gage on how much my car was worth; Kelley Blue Book doesn’t always list values of the brand new model years when they come out. Why would they? People don’t typically sell a brand new car a few months after buying it. So for the first few months I owned the car, I was just guesstimating. My guesstimate ended up being right on with Kelley Blue Book, once they finally added my model year to their listing. But, it’s been a couple of months since I looked, so I figured I should check again.
Kelley doesn’t give an exact price, but rather a range of prices, depending on condition, and whether you would be selling to a dealership, or a private party. So, this number is still an estimate. In reality, the car is only worth what someone is willing to pay for it. I have no intention of selling the car anything soon. So this number is more for the purpose of balancing my books than anything else. Same for the house; The value I put on my house is probably too low. But, until someone actually buys the house from me, it’s all just a guess!
So, I gained some and I lost some this month. Luckily I gained more than I lost. And, given the numbers, it speaks well of what I should see going forward. But it also reinforces my point in yesterday’s post, about how I may end up making my goals of growing my 401k by $5,000 and paying off $5,000 in debt, and yet not make the overall goal of growing my net worth by $10,000. My net worth involves more than just the balance of my 401k and debt, and there are many factors that will come into play between now and December.
Here’s hoping for an awesome August! How did you fair this July?
– Cindy W.