Are you better off now, financially speaking, than you were this time last year?
I pondered that question while I was answering a survey from the investment management firm that oversees a good chunk of my investable assets. It caused me to stop and think a while, because the answer was not clear-cut.
Investments
Speaking strictly in terms of investments, the rising stock market has buoyed my portfolio by 27% in just a year's time. (But what the stock market giveth, the stock market can easily take away.)
Earning Power
It's hard to overlook, however, the obvious elephant in the room; my present state of joblessness means I am most certainly worse off than I was this time last year.
Debt
Here's one more angle to look at: the balance on my only debt (my mortgage) has shrunk by about $9,000 in a year's time, helped along by sizable prepayments of principal until my layoff in September.
How do you measure your financial progress and where do you think you stand?
Are You Better Off Now Than You Were This Time Last Year?
December 5th, 2009 at 02:20 pm
December 5th, 2009 at 03:06 pm 1260025560
Debt on 01/31/08: $13,456.35
Debt on 12/31/08: $11,347.44 (15.67% repaid)
Debt on 11/30/09: $7,951.09 (40.91% repaid)
I still have a long way to go, but I have to look at the big picture ... I've paid off 40% of my debt!! YAY!!!!
December 5th, 2009 at 03:49 pm 1260028196
December 5th, 2009 at 03:56 pm 1260028577
Looks like you're doing amazingly well considering the current economy.
December 5th, 2009 at 04:42 pm 1260031355
We've been stagnant for about 2 years. Last year the market sucked. This year, we have made a killing in the market, and took the opportunity to buy very low. BUT, this year our real estate value has gone down (lost $35k), leaving us where we were in 2007 or 2006.
Cash interest sucks, real estate sucks, etc., etc. I suppose it's nice the market is up this year.
For the first time in a decade, I don't count on a raise - I suppose that is important too.
December 5th, 2009 at 04:56 pm 1260032163
You should be proud of what you've accomplished, fern, despite the "lemons" you were handed in the fall. I fervently hope 2010 brings you the perfect job. You deserve it!
December 5th, 2009 at 07:33 pm 1260041597
This time next year I will more than likely be much less financially well. But ... by Christmas 2011 if my Master's means anything in getting a good paying job .. I may be on the path to being much better off than 2008.
December 5th, 2009 at 11:30 pm 1260055804
December 6th, 2009 at 12:07 am 1260058051
I think you are doing well considering the job loss.
December 6th, 2009 at 02:25 pm 1260109506
Net worth come up from minus 200 to 10,000 roughly in the last year.
I am cash poor but I'll paying high monthly debt repayments to be debt-free in March 2010. My shares in my Company stock scheme are doing well and my retirement investment, small as it is, is doing well at the moment too.
December 7th, 2009 at 03:09 pm 1260198545
This is the reason why I keep track of net worth. It does get discouraging when it slips or I know why it's not advancing as it should. But gauging net worth is a basic way to make sure that I am indeed making progress.