Here is my monthly post on our net worth progress. I'm sharing this to show how important it is to track your net worth and seeing the progress.
You can also learn of what works and what you should change in your finances.
So, here is my analysis for the month. First of all, I discovered that I made a mistake. In the last two months, I forgot to add in one of our cryptocurrency accounts balances. It didn't change a lot the numbers, but for the sake of accuracy I reported on +1.47% in January and +0.03% in February.
The corrected figures are +2.1% and +0.01% respectively. On March we had a month long trip to the US. It was a relatively expensive trip but all in all, for a month it wasn't so bad. We stayed most of the time with family and friends.
So, to sum up, last month #NetWorth report. This was a challenging month, to say the least. NetWorth dropped in 1.7%.
It almost brings us to the same net worth we were 3 months ago. not fun!
Let's dive into the details:
1. Bank balance went steadily up as I mentioned in February 2018 #NetWorth report. Though our foreign currency account dropped because of the expenses we had on our trip.
2. Basically, all stock portfolio dropped. Local Israeli and US portfolio. This is partly due to the fight between China & US over import taxes. Does it matter to my portfolio? Probably not. That won't change the financial results of those companies probably and there might be opportunities to buy more stocks at a better price. But since all these are long-term investments, panicking and withdrew the money is a mistake.
3. Bitcoin kept dropping. That's a speculation holding we have and a tiny amount of our total assets. So this is ok.
4. Real estate portfolios worth went up because of the currency exchange rate which only matters once you cash out. The bank loan I mentioned in the last 1-2 months is due in April. Bank keeps raising the interest rate on it. So, I'm negotiating the terms with them now. But seems like the best way to go is accepting that new loan and then pay it (or parts of it as soon as possible).
We'll see what offer they come up within the next few days. And yes, I need to finally search to move to a new bank.
Here is what you should take from here?
Track your loans. If these are the relatively short term the bank will likely to increase the interest rate over time. Why? Because they can. They can always say it's the market terms that changed. For us, although we have more and more assets to back those loans and they still do it. I have the same conversation with them every month for the past few months. Do you track your net worth? What insights did you get recently?