The month of July was quite a strong month for the S&P 500 so many people saw a significant increase in net worth. The monthly returns for the stock market have been very volatile in 2022, with two monthly declines over 8% and one increase of over 9%. Year to date the market is still down about 14%.
Since quitting my job in June after being faced with an ultimatum to return to in-office work 1000 miles away (two weeks into the mandated return there was a massive Covid outbreak in the office too), my net worth changes are almost entirely driven by the return on my investments. I am still awaiting a large final payment from my former employer, but it hasn’t come through yet so there is still some additional employment income expected in August.
I haven’t been actively searching for a new job, but have sent my resume in response to a few highly attractive opportunities. Whether anything comes from those applications remains to be seen. While I spend the summer in a sort of sabbatical, I’ll figure out a new path later in the year that would likely be returning to grad school and finishing a masters degree and/or moving overseas to a much lower cost area and focus on internet-based income generation.
Let’s have a look at where my net worth settled on August 1st:
Net Worth = Assets minus Liabilities
| Assets | Amount | Change from Last Month |
| Checking/Savings | $22,618 | |
| Retirement Accounts | 198,584 | |
| Taxable/Nontax Investments | 68,207 | |
| Misc. (Gold/Silver/Cash/Collectibles) | 9,100 | |
| Total Assets | 298,509 | +15,852 |
| Liabilities | Amount | Change from Last Month |
| Credit Cards | $14,957 | 0% interest rate. |
| Student Loans | 195,787 | |
| Total Liabilities | 210,744 | +598 |
Net Worth = $87,764
Change in Net Worth from last month: +$15,253
Total Change in Net Worth Since July 2020: +$135,992
Net Worth Summary
An increase of $15,253 in my net worth was a welcome occurrence after a large decline immediately after I quit my job. I’ve significantly cut back my living expenses to the point that I should be able to generate more earnings from my investments than my ongoing living costs. Because I left the workforce before reaching my ultimate early retirement goal of assets of > $500,000, I am preserving those assets as much as possible while I take some time off to recover from job-related burnout and plan out my next steps.
The significant increase in prices has made living inexpensively a bit more challenging lately. Some of my favorite takeout restaurants have raised prices over 20% in the past year making them go from a semi-regular convenience to a rare indulgence now. Honestly, this is probably going to help me with my weight loss goals more than I give it credit for.
My short term goal is for an asset balance of > $300,000 by the end of the year. I’m hoping that by the beginning of 2023 I’ll have a new plan forward in place and can begin the next chapter of my financial journey!