Wednesday, November 28, 2007

Ugliness.

I'm not sure I can face doing my next net worth recap. As of today, my net worth is about $20,000 lower than it was at the end of last month.

Ouch. (This is the polite translation.)

At this rate, I may not hit my original year-end goal, let alone my higher revised one. This is the downside to vigilantly tracking one's finances. It's also what goes with trying to invest aggressively: most of the time, you can feel like your money is growing, but it hurts like hell when the market goes down and you see your gains evaporate. In some ways it's almost worse than the feeling I get about over-spending. If I had SPENT that $20,000, I'd have something to show for it, even if it was only in my own memory of having had a really good time.
But of course, I do still have something to show for it: I still have the same number of shares in all those investments, plus a few more from the last of my 401k contributions and reinvested dividends. Those shares have lost some value, but they can regain value too. I just need to grit my teeth and wait it out. And I need to keep saving as much money as I can in the meantime.

12 comments:

Esme said...

I'm in the same boat. I only started investing a little over a year ago it hurts to see my hard saved money get less and less. I keep telling myself i'm investing long term and this will pass. But it hurts.

trip said...

This is exactly why I recommended setting savings goals rather than net worth goals. You are still saving well but feel like a (ever so slight) failure for not hitting your goal. Setting a net worth goal (with a bunch of stocks) is like trying to guess/time the market...

Jonathan said...

Imagine what would have happened if all those rate cuts didn't happen...

I agree with Trip, setting short-term goals that are dependent on the market's whims is very tricky. I'm sure you'll be just fine =)

SandyVoice said...

On the average, the stock market goes up. Every drop is balanced by a rise, to a higher point than before. If you hold your stocks for a while, chances are you will end up with more money. Be patient. Buy good companies, or mutual funds with good track records, and hold them for a long time. The people who really lose money seem to be the ones who give up to early.

See? I read pop personal finance and Money magazine!

But I think they're right, actually.

Anonymous said...

I feel you! I knew emerging markets were risky, but I didn't think they would tank 10% in one month!

Sunday School said...

i'm in the same boat.. i figured at my age (32) i have plenty of years until i pull out these investments.. it hurts but we know it can only go up from here..

Escape Brooklyn said...

Just think about what a deal you're getting on any investments you buy now. It's like everything's on sale!

JB said...

I feel you... we're all in the same boat. There's no reward without risk... and with risk there's a chance that you may lose some money. No fear, time will heal all... just take the opportunity to invest as much asy ou can now!

Anonymous said...

Don't despair. The S&P500 is up 2.8% today. It's all give and take.

Tom said...

Ugh, I think so many of us are in that same boat. Keep your head up high and the lows will eventually end ;)

Anonymous said...

escape brooklyn is right. Equities are on sale. It's like a Wal-Mart blue light special. Stock up while the sales is cheap. You'll be rewarded nicely when the market rebounds. Now I just some cash to buy all these cheap discounts:)

PiggyBankBlues said...

i just did mine, ouch it hurt! i do like buying during a fire sale, tho...