Spencer Sherman and The Cure For Money Madness

Money Madness and Real Estate Worries : I know that my house fluctuates in value – but I don’t move out when it does.

Posted on November 21st, 2008 in Real Estate, Tips

I know that my house fluctuates in value.  But I don’t stand in front of my house  month-by-month or day-by-day, let alone minute to minute watching a tickertape of my home’s value going up and down.  We all know that house values fluctuate, especially during a natural disaster like a hurricane or an earthquake.  But because I have no knowledge of the actual decrease, I don’t think about selling my house as it decreases in value.   I think, instead, that I’ll be in my house for a long time and the house value will recover over time.  Thankfully, there is no one to tell me how much my house is worth on a daily basis!  Knowing that information would, at best, ruin my sleep and at worst, provoke me to react in a financially self-destructive way.

Unfortunately, the information on the daily movements of my investment portfolio IS available to me.  Most of my money invested in the stock market is there to cover my expenses in the next 15-50 years; therefore, for some reason I think it’s critical for me to know how my portfolio is doing minute to minute.  When I log on to  financial websites or listen to the news with up-to-the-minute information on the market, the news has the illusion of being useful.  And the media is being paid by advertisers to convince us that the information IS relevant.

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  1. Mark posted the following on November 24, 2008 at 1:31 am.

    This changes my whole outlook on my house, thanks Spencer.

  2. Middle Way posted the following on November 25, 2008 at 10:33 am.

    Hi Spencer;

    I couldn’t agree with your analogy between house values vs. portfolio values. Perhaps it is because so many people (and tv programs) have focused on flipping properties that the once fundamental “buy and hold” philosophy has gone by the wayside.

    I purchased my home to live in. If the time should come that I wish to downsize, then I’ll look at what it can sell for. I also didn’t buy a home that was difficult to afford.

    By the way, I’ve tagged you to reveal, if you wish, 6 things your readers don’t know about you. See my blog for details!

  3. admin posted the following on November 25, 2008 at 12:07 pm.

    Thanks!

  4. Donte Mazyck - Sell my House posted the following on November 28, 2008 at 1:23 am.

    I thinking buying property can be another source of income especially if you buy right. Purchasing a house at 65% including repairs and holding cost, you can make a nice chunk of change. the only thing infomercial geeks don’t tell you is how to find the best deals.

    the key is keeping deals flowing like mickey d’s drive-thru window.

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