Updating Thriftygal’s Charts – July 2014

By | August 17, 2014

I’m updating my charts for my goal of financial independence. Here is where I stood at the end of June 2014.

As of July 2014

The market went into a bit of a shock at the end of July and dropped a few hundred points. My net worth went up only about $3,000. This might sound like a lot, but considering I invested almost $12,000 in the past month, my losses were heavy. Here is what my chart looked like at the end of July 2014.

As of July 2014

 

Losing $9,000 in the market might sound painful, but I’m okay with the market dropping. I’m in the buying phase and I’d much rather buy stocks when the prices are low. Some people are calling it a correction and predicting possible dramatic drops. And they might be right. Stocks may be overvalued. I don’t know. And nobody else does either. Something is worth only what someone else is willing to pay for it. I’m a long-term investor and I know that timing the market is a fool’s game. I don’t know what my VTSAX fund will be worth in 2 years or 5 years, but I’m willing to bet (and indeed, I am betting) that it will be higher in 20 years.

I’m only in Australia for a limited amount of time, and for this amount of time, I am resigned to paying an exorbitant amount for rent. I can still afford it and when I move back to Chicago, my rent will be much more manageable. Here is what my chart would look like if I still paid Chicago rent.

Hypothetical of Chicago Rent

I realize that’s a little bit of a cop-out and I’m not practicing what I’m preaching, but we all have to make individual choices for what is best for us. My tune might be different if I were still in debt, but I’m willing to pay the extra thousand dollars a month for a comfortable home.

Here is the chart with the income line thrown in.

Income, Expenses, PI as of July 2014

Say something!