Personal Finance Update - Not Getting Too Comfortable Because Steem Could Correct Downwards

Note: This post was written yesterday, before the market tanked today… Which makes the message even more important than before!

Are you getting used to these steem prices?

It’s easy to do. At first when the value of Steem went up it was a shocking game changer. The world looked brighter, food tasted better.

But now entire weeks have gone by - in crypto-land, that’s equivalent to years. I know that I’m personally already feeling accustomed to thew new value in some way. I’m used to seeing my payout meter at above $1,000 per week:

SBDs Are Extremely Overpriced

With all of this value pouring in, the first thing to remember is that SBDs are still overpriced. They are designed to cost $1 and the system is actively course-correcting as we speak.

In summer 2017 there was a month or two where SBDs were worth around $2 and it was amazing. I got used to it - and then SBDs dropped back down to $1 and I felt like I was earning way less money, which I was.

The current SBD boom makes that time look like nothing - we saw $13 SBDs on multiple occasions. Now we’re back down to $7 SBDs and possibly sliding down more.

So I’m trying to stay conscious of that.

Steems Are Also Sky-High

Remember most of 2017 when steem cost around $1 or less? It’s easy to forget. $5 steem is not normal.

In fact, many Steemians right now are thinking of $5 as a low price because we saw $8 steems at the all time high recently. But $5 is a very very high price, higher than many of us expected to see by the first half of 2018.

Don’t get me wrong - it could stay here, it could even go higher. But it’s a high price now and completely within the realm of possibility to see a big drop - to $3 or even a huge drop to $1 if the whole crypto market pops.

I am trying to be careful with all of this.

What do Do

Note that I am not predicting the future.

I’m just saying that value corrections downward are at least possible, and must be prepared for. In my case even though I am currently earning $1k+ every week for a little while, in my heart I am just hoping to stay above $500 per week at the minimum if I can at all help it.

Hopefully none of this ends up happening and we all keep going to the moon though :-)

Finance Numbers Update

ASSETS:

Checking Account #1 (Bills/Rent): $471
Checking Account #2 (Day-to-day spending): $160

Checking Account #3 (BTC Debit Card Wallet): $10

Savings/Tax Account #1: $715

Steem Liquid Wallet: 35 steem = $172

Steem Power: 1,751 SP // $8,579

Total Assets: $10,107

DEBTS:

Money Owed to my Dad: $10,008
PayPal Credit: $5,798
Short Term Steem Loan: $225

Total Debts: -$16,031

NET WORTH AS OF TODAY: -$5,924

LAST WEEK: -$3,397

NET CHANGE: -$2,527

This is my first negative change of net worth since I rebooted the series and it’s all due to the steem price going down. That’s no surprise, as long as Steem Power makes up the majority of my assets it will work this way.

Overall things are pretty good, I paid off another $200 of debt in the last four days which is good progress.

Final Thoughts

Even though the price of steem and SBDs are down a little bit, I’m still loving every minute of these generally high earnings.

Today was the first time in a while that my net worth moved downwards instead of up. It’s ok though - I didn’t spend any stupid money. All I have done is paid debts and bought reasonable furniture for my new home.

So far so good, and a great start to 2018. Net worth $0 is firmly in my sights.