Since we began tracking our net worth in February 2007, it has consistently increased each month by an average of $2,428. December 2007 was the only month thus far that our net worth has decreased (it was down $3,301.44 from November 2007) because we reduced the value of our two cars by a total of $4,845 in December to account for depreciation.

Well, at this point, it looks like our net worth will be down ~$1,500 at the end of June. I reviewed the numbers and determined that it is due to a combination of planned annual expenses (such as our vacation), some overspending (such as the increase in eating out), and depressed market conditions (such as the reduction in our retirement accounts).

Below are some of the details:

1) We paid for the $1,071.09 vacation we took at the end of May (bill was due in June)
2) We have spent ~$410 thus far on gifts
3) We have spent $233.90 thus far on household items (our budget is $150)
4) We have spent $173.62 thus far eating out (our budget is $130)
5) We spent $104 on my eye exam and contacts
6) Our retirement accounts are down ~$1,100 thus far
7) We were not able to contribute any money to our Roth IRAs

We should be able to turn this around in July. My wife will receive her first paycheck from her better paying new job, I receive an “extra” third check next month, and my wife may receive a ~$3,800 commission from her old company. However, we may need to pull ~$3,500 from savings to pay off my wife’s car that we are selling, the bill for our new LCD TV will come due, and the bill for my wife’s new brakes will come due.

God willing, we can change direction and get back on track towards our goal.