Net Worth gains, first time in 2 years

I was reading an article from the Motley Fool about net worth and consumer confidence (see link below for complete article). I was pleasantly surprised to see that we are once again making gains in this sector. The article cited that with Net Worth comes consumer confidence, with consumer confidence our economy keeps chugging, hence pulling us out of this recession. Two factors contributing to this Net Worth gain is that the market has bounced back 58% (not sure what numbers were used for this) and people are paying down liabilities at rates we have not seen in recent history, I would put more weight into the latter than the former since the market gains can so easily disappear as we had witnessed last year. I know I no longer look at my Net Worth as a barometer of our financial status, I am all about paying down liabilities. The net worth numbers actually dropped 11 Trillion from 2007 to 2008 but have made a modest gain to show that things are stabilizing. This in conjunction with consumer confidence up to 54% in July, yes not impressive but better than the 25% we had in February. If the little engine that could can continue climbing and all the factors looking more positive or at least not looking any worse, ie unemployment(which we know will be the last to see improvements), we should eventually pull out of the ditch on this thing. Is it around the corner? Not quite, but things are looking up.

My dad always has a saying, it is a recession if your neighbor has gotten laid off, it is a depression if you have been laid off. So don’t take any indicators that anyone may be citing and abandon your security plan, make sure you are working on that 8-10 month emergency fund, I know easier said than done, but as we work on it, we are bettering our financial situations and better to be safe than sorry.


~ by debt2dreams on September 21, 2009.

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