Our net worth dropped in May
4th June 2006
For the first time since starting this blog our net worth dropped month to month in May. The drop was about 1% and was primarily due to losses in our retirement accounts. Our expenses have exceeded income by a significant amount for two months straight now due to no income from my wife and only slightly decreased spending. I think in June we’ll make a concerted effort to cut costs and get back to positive cash flow.
This situation was to be expected and we can support the current depletion of our savings for well over a year at this rate but I’d like to control spending more now and enjoy the benefits when my wife finds a new job. Due to her severance our net worth has increased by 15% since the end of 2005 so all is not doom and gloom.
When she does find a job we’ll be making some large purchases (a newer car and a new laptop) but if our overall spending stays curtailed we’ll be able to save most of her take home pay (and max out her retirement account if available.) This is a critical step towards meeting our goal of ‘retiring’ in 7-8 years.
June 5th, 2006 at 10:00 am
Good luck!
If she doesn’t have a retirement account available with her new employer maybe she can be a contrctor and set up an individual 401k? Or if you can establish some side income — or her — as an independent contractor while she’s looking — you could pour all of that money into an individual 401k (less self-employment tax).
Check out www.dice.com - they usually have lots of contract work.
Regards,
makingourway
PS Hold in there - we’ve been through the spouse out of work situation too.
June 5th, 2006 at 4:51 pm
Thanks for the kind words. I’m not particularly worried, she’s been getting flown all over the place for interviews. No offers yet, but she hasn’t been turned down either. Of course the prospect of selling the house in this market and moving doesn’t appeal to me but we’ll cross that bridge when we come to it.