It's an awful long hiatus since I last updated my monthly net worth tracker. Admittedly, I fell prey of the psychological denial when the market crashed in 2008. For quite some time, I avoided reading my brokerage account statement and refused to watch CNBC.
So I hunkered down. I wasn't in a very good mood to spend time refreshing this blog. And with the first-ever massive layoff announced by my employer, I also put significant more time to my job -- luckily it has been secure all the time and still yielding handsome cash flow.
Like many others, it's a great relief to me to see the gradual market recovery since this spring. While my confidence hasn’t been fully recovered, it is probably good time to recognize I made mistakes and re-embrace the responsibility to manage our money forward.
Fortunately, during the long lapse, I still keep track of all financial matters in Microsoft Money. So it's good time to take a look at what happened in the last three years:
A quick reply: after touching the 900s in October 2007, our net worth went through a choppy downward ride for almost year and a half, until climbed all the way back to the high 900s as of today.
A more revealing view with the net worth chart compared to S&P 500 trend:
Obviously, with a large portfolio, it is the random walk in the stock market that decides our month-to-month net worth moves. On the other hand, with the index returned to where it started the decade, our long-term net worth growth is more explained by our savings habits.
In retrospect, I feel blessed that this financial tidal wave happened to us when we were still in our 30s. I certainly learned a thing or two. And if the same thing happens again in our later years, I probably have some memories to refer to. After all, personal finance management is a life long sport, and we are just at the first quarter of the game.