Tag Archive: net worth


March Net Worth: Stocking up

In terms of overall financial health, your net worth is a great indicator of overall success. To calculate your net worth, add up all of your assets (things that are worth money) and subtract your debts (loans, etc). Each month I share my net worth to help illustrate our financial health.

This month I changed my net worth calculation date slightly. I now calculate my net worth on the last day of the month rather than the first. This means rent hasn’t been cashed yet so my net worth will be slightly inflated this month, but going forward I think this is a better way to do it. This will allow me to post my net worth on the last day of the month, on schedule.

Keep reducing your debts

Over the past few months my net worth has grown faster than I would have expected. However this is not a complete surprise because I’ve been in savings mode. Later this summer when I take some holidays, it’ll be time to spend that hard earned cash and my net worth will correct itself. The one number I will keep an eye on is my net liabilities. This number should keep decreasing, as I am saving for my holidays rather than taking out credit to pay for them. As long as my net liabilities keep decreasing, I’m heading in the right direction!

Here’s a breakdown of my net worth for the month:

Assets:

Assets Previous Month Current Month Change (%)
Cash $6,101.60 $8,743.32 43.3%
RRSP $6,092.45 $6,231.37 2.3%
TFSA $1,553.03 $1,642.98 5.8%
Condo $258,0000.00 $258,000.00 0.0%
Personal Assets $500.00
$500.00
0.0%
Total Assets $272,116.83 $275,117.67 1.1%

Liabilities

Liabilities Previous Month Current Month Change (%)
Credit Cards $849.52 $566.83 -33.3%
Family Loan $14,853.57 $14,853.57 0.0%
Student Loan $4901.65 $4,222.55 -13.9%
Mortgage $238,356.97 $237,905.46 -0.19%
Total Liabilities $260,078.57 $257,548.41 -1.0%

Total Net Worth: $17,569.26 (+32%)

In terms of overall financial health, your net worth is a great indicator of overall success. To calculate your net worth, add up all of your assets (things that are worth money) and subtract your debts (loans, etc). Each month I share my net worth to help illustrate our financial health.

February is a good example of a normal month. I paid down debt. My investments grew moderately. I spent to my budget. As a result my net worth increased by approximately $1200. It would have been more, but unfortunately our Condo fees increased by 20%  retroactive to January 1st, so we owed a bit of money.

Benchmark Your Net Worth

It’s great to say that my net worth increased by $1200, but what does that mean exactly? Would this be a success if I took home $5000 in income last month? No! Looking at your net worth as a percentage of your income is a great way to benchmark your progress. In my case, an increase in my net worth of $1200 represents approximately 40% of my net income in a month. 40% is now my benchmark; I think I can do better and will set a goal of 50% over the long term.

Here’s a breakdown of my net worth for the month:

Assets:

Assets Previous Month Current Month Change (%)
Cash $6,311.61 $6,101.60 -3.3%
RRSP $5,865.96 $6,092.45 3.9%
TFSA $1,439.26 $1,553.03 7.9%
Condo $258,0000.00 $258,000.00 0.0%
Personal Assets $500.00
$500.00
0.0%
Total Assets $272,116.83

$272,247.08 0.1%

Liabilities

Liabilities Previous Month Current Month Change (%)
Credit Cards $1,075.45 $849.52 -21.0%
Family Loan $14,853.57 $14,853.57 0.0%
Student Loan $5,400.91 $4901.65 -9.3%
Mortgage $238,748.64 $238,356.97 -0.16%
Total Liabilities $260,078.57 $258,961.71 -0.43%

Total Net Worth: $13,285 (+10.4%)

It’s not much, but considering where I was last year, I can’t complain. Check out The Financial Blogger for a look at a net worth with some serious money!

January Net Worth Update – Baseline Edition

In terms of overall financial health, your net worth is a great indicator of overall success. To calculate your net worth, add up all of your assets (things that are worth money) and subtract your debts (loans, etc). Each month I will share my net worth to help illustrate our financial health.

It’s been just over a year since I started keeping track of my net worth. At first, tallying up all of my assets and tracking down all the money I owed seemed like a big task! Today, I love calculating my net worth each month. More than anything, it is my barometer of financial health. This is where I see all of my hard work actually pay off. Each month, I will share my successes and failures with you to help you along on your journey.

Historical Data

At the beginning of 2010, my net worth was -$14, 978. Ouch. Throughout the year, I made a concerted effort to reach par, and I succeeded, finishing off the year at $3, 079.  Having finally reached a positive number, there was much celebrating!

Here’s how the month broke down for me:

Assets:

Cash $6,311.61
RRSP $5,865.96
TFSA $1,439.26
Condo $258,0000.00
Personal Assets $500.00
Total Assets $272,116.83

Liabilities:

Credit Cards $1,075.45
Family Loan $14,853.57
Student Loan $5,400.91
Mortgage $238,748.64
Total Liabilities $260,078.57

Total Net Worth: $12,036 (+338%)

I should note that while CF and I combine our money for many things (she provided half the down-payment on the condo), we keep our net worth separate. Since the property is in my name, I put the mortgage and value of the property on my net worth. When we buy our second property, she’ll have it on her books.  This is how we do it, but many couples combine their net worth. Check out Couple Money for their version and a look at their combined net worth.