May brings a huge decrease in net worth for me, due to a paper adjustment of the likely value of our home. It's gotten harder and harder to determine what our home might be worth. I know what the mortgage company accepted as the value of our home just a couple of months back, but I also know the prices of various homes that are for sale in the neighborhood. And they're all over the place. In fact, there's a $110,000 difference between the highest-price home and the lowest-price home — and they are the same models! I don't think either of those are representative. But since I don't have access to actual comps on recent sales, I decided to just drop the paper value of our home dramatically and play it safe.
Also, my liabilities have actually gone up. Our first house payment with the new mortgage company doesn't happen until today, so that liability has stayed stagnant. And I bought a few plane tickets using my American Express that will be paid for on this coming billing cycle. Even though I know the reasons behind the increase, AND that it'll only be that way for a couple of weeks, I still dislike seeing the liability portion go up.
Here are the stats for May:
Assets: Down $16,441.47
Liabilities: Up $464.34
Change in net worth over previous month: Down $16,905.81
On the plus side, my overall spending has decreased and the amount I've put toward investments and savings increased. With luck they will continue to trend in those directions. Finally, even with this recent drop, my net worth has increased by $10,038.86 over a 12-month period.
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