Thursday, January 1, 2009

2008, a net worth disaster

2008 was a very bad year for the personal net worth of the majority of people and households. Declining real estate values coupled with a stock market crash sent net worths reeling, especially in the latter half of 2008. Our net worth actually peaked out in September during 2008.

Even though I typically measure my net worth on the 15th of the month bimonthly, I wanted to see how we made out in calendar 2008. Considering how ugly the year was in every asset class we did not fare half bad.

Net Worth 2008 Calendar Year
January 15, 2008 = $135,456
December 31, 2008 = $145,555
2008 Calender Net Worth Gain/Loss = +7.5%

In a year where my wife was on maternity leave, the S&P 500 index was down a whopping 39%, and my home value was flat, any gain in net worth should be considered a small victory.

Other 2008 results from the blogosphere:
Canadian Dream Free at 45 (+2%)
Million Dollar Journey (+11%)
The Financial Blogger (+17%)
Frugal Bachelor (+23%)


Chuck said...

Surprised to see that most people are actually up for the year. I personally was down about 14% in 2008. I guess you guys are having better luck in the market than I am.

Anyways, wish you luck in 2009.

MG (moneygardener) said...

Hi Chuck, I think you'll find that 99% of people were down for the year. This small sample I've linked are:

- personal finance bloggers
- perhaps allocated heavily in cash (see their blogs)

I had no luck in the market in 2008. You are defineately not alone.

POL said...

I was down 19% if I does not include all the money I added during the whole year...

MG (moneygardener) said...

Interesting way to look at it POL, I should look at that, but I think in reality you must count new money for true net worth change.

Thicken My Wallet said...

A 7.5% gain is great gain in any economic cycle. Congrats.