August 2006 Net Worth Snapshot

I’m a bit late in posting the numbers for August, but here they are. We managed a small gain for the month although as you can see we spent more of the money in our banks than we put in. Most of this was due to tuition and associated expenses ($225 for one book !?!).

We are certainly finding it harder to make any substancial gains in our net worth since purchasing our home. In the seven months previous to purchasing our home, we had averaged a 13.8% increase in net worth per month. In the 5 months since purchasing our home we are averaging only a .2% increase per month. Now, that’s not an entirely fair calculation because it includes the includes the month we made our down payment which I don’t inlcude in home equity. So, if I ignore the month of April, we are averaging a 2.28% increase in net worth since purchasing our home. Still significantly lower than 13.8%.

We fully expected the increaed expenses and the decreased rate of growth, but it’s still a little discouraging. On the positive side, it’s a natural effect that as net worth increases it becomes continually harder to make large percentage gains, and I am even more motivated to increase the amount of money coming in.