June Networth Update

Well, here I am: head hanging in shame. I've blogged about this previously, but here I am with the real results of this spend-freely-forget-the-budget month.

My networth dropped to -$10,610.25 from -$10,570.00. My networth is going backwards, and this is unacceptable.

My investment account is a little negative, but pretty close to about even, as the past two weeks of volatility has taken a toll.

I also spent today re-doing my budget. I started by adjusting my base salary, as I am expecting a 6-10% increase starting in July. I was very conservative, and only assumed a 5% increase. With the increase, I then adjusted up my gas, food, utility, and discretionary budgets while also ensuring I am saving $150 a month more than before, if I stick to my budget.

This is going to be gradual climb back to fiduciary responsibility. Stay tuned.

Bear Market and Bear Bank Account

Two items to think about this post:

(1) Bear Market - I believe this week will continue to see the market decline, but not as badly, as investors began to see some discounted values out there. However, with the European Central Bank poised to raise interest rates, which will shore up the Euro and cause the Dollar to fall, we will also see oil prices continue to shoot upward.

Additionally, financial stocks are still being targeted by both investors and rating agencies as the fear of more write downs to come applies continuous downward pressure on those stocks.

(2) Bank account - For regular readers, you are all aware that this month has been financially very bad for me. After tallying up everything up to today (with 1 day left in the month to go), I am about $1,100 above budget on spending. I need to be very careful next month to ensure I have enough funds in my bank account to cover all my bills.

Just as important is my continued plans to recover from this month. Tomorrow, I will reset my budget to be in line with rising costs of food and gas, while also setting aside money to pay down debt.

Bearing down

So far so good. The market is definitely reacting to all the negative economic news. All major indexes are down. My Dow and Financial Sector shorts are working out well. If we see another 300+ point drop tomorrow, I may cash in, instead of being greedy.

Feeling bearish

Today was the first time since I've started investing and trading that I truly felt bearish about the next 6-months in the economy. With oil fluctuating wildly, the Fed spinning inflation out of control, and basic material prices shooting up, its tough to believe that the general market is anywhere near its bottom.

Sure, I still believe there are some sectors out there that could do well. For instance, technology companies, specializing in infrastructure and communications, will benefit greatly from widespread travel budget cuts.

However, financials will continue to suffer along with the construction and medical industries.

Maybe the Fed will say something intersting for the economy at the conclusion of its meeting tomorrow, but its doubtful.

It's a wait and see game. And so far, we've been waiting and seeing the market go down.

Back on the blogging (and budget) wagon...

It's taken a while to get my life settled down enough to start blogging again. The past two weeks have been incredibly hectic, both at work and away.

Looking at my expenses, I am about $900 (including $220 in car taxes) over budget across all my accounts, my options trades have been in the red due to the volatility of the market, and I have at least one plane ticket I need to purchase for a wedding that I have yet to do.

So what is my plan?

1) I need to get my option trading back on track
2) I'm going to clamp down again. My upcoming salary increase should help, but I'm not banking on it. At current rate, I'll need a 10% increase to match what's going on. That high of a rate is doubtful.

3) Going to re-do my expense and budgets to account for all the little things that have changed, such as gas and cable bills.

It's tough to get back on the wagon when you've fallen off. But I'm going to try.