Net Worth – October 2008

Posted by KC | Posted in net worth | Posted on 21-10-2008

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So, like I said, ouch. This may be the largest single month loss in net worth that I’ve experienced since beginning this blog. But oddly enough I’m not phased really or discouraged. I’m still paying down the credit card balances, however I haven’t been able to throw as much money at my debt as I would have liked.

The reason for the trip back to -$30K land is due to stocks. But like I said before – both on here and on twitter – I can’t realistically abstain from buying stock in this market. It’s a fire sale and it’s only going to get better from here…right?

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Comments (2)

KC said on 25-10-2008

Hi Scott –

Thanks for the comment. Just to be clear, I am not buying stocks instead of paying down debt. I purchase stocks in small, steady amounts using dollar cost averaging while still aggressively paying down my debt. Stocks are part of my savings/asset allocation plan.

You’re correct though in pointing out that the focus should be on debt reduction first. When you consider the percentages – it’s hard to imagine that I’ll get a return on my investments that will outweigh the percentage I’m charged in debt interest. However, I feel that I should take advantage of this market and some of the undervalued stocks so that I can hold them for the long run.

Hope that answers your question – and again, thanks for the comment and best of luck with your business.
Anonymous said on 24-10-2008

KC

Sorry to hear about the big drop in NW, but glad you’re soldiering through it. I wish I could say that I have been able to stay as even-keeled as you, but I have to confess to having some pretty low days over the past couple of months. I’m especially glad to hear that through it all you’ve been able to stay focused on paying down debt.

Quick question for you. I run a company that is looking to create a product to help people get out of debt. We’re telling people to hunker down, reduce high-interest liabilities, and repair their balance sheets, and I’m wondering why you’re buying stocks right now instead of paying down debt? I’d love to get your feedback as they could give good insights on how to help others.

Thanks.

Scott Crawford
GoalSpring

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