Look at me writing a net worth update that is only ten days late. Have I turned a corner?
Honestly, the reason things have been so quiet on the blog lately is that I’ve been utterly consumed by side projects. When there is no time left in the day, it’s the blog that gets neglected. I’m not happy about it, but that’s the way it is.
That said, I’m happy to report that I’m wrapping one of those projects this week, which means more blogging time. Woot!
March was a busy month for me. Ooph was it ever. I spent a week in New Brunswick for work, I hosted family one weekend and then my husband’s entire family another weekend for his 30th birthday. I also hosted a bachelorette party for a friend of mine, launched a minor bathroom reno/refresh, celebrated St. Patrick’s day in style and did my taxes (for which I got a refund, woo!).
On top of my social activities, I managed to earn 71% of my gross income on top of my regular income thanks in large part to my newfound habit of waking up at 5:30 in the morning to write for two and a half hours before I start work at eight.
Needless to say all of that hosting wasn’t good for my budget, but earning all of that extra income definitely helped offset the spending. Here’s how my net worth faired in March:
If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $83,858 (+8%)
Another great month on the net worth front! I managed to increase my net worth by 8%, or about $5,930 in March. $1,500 of that was from my income tax return, which I used to pay down my car loan. The rest from my 30% savings rate of my family budget, and the fact that 90% of my freelancing income goes towards either savings or debt repayment.
Consumer Debt: $0
After many years of having a bad relationship with my credit card, I’m happy to say I’ve been credit card debt free for over a year now and I’m still going strong.
Car Loan: $14,904 (-14%)
I paid off almost 15% of my car loan in the month of March. $1,500 of that was from my income tax return. I also paid my minimum monthly payment of $305, an extra weekly payment of $50, along with about 25% of the income I earned from freelancing.
This month I also paid off my official car loan that I got through the dealership. The $14,904 that remains is on my line of credit (that I’ve had for about six years but never used) because it has a more favourable interest rate (4.7% versus 5.99% from the dealership).
Mortgage: $243,869.30 (-0.26%)
I made another $1,089 payment on my mortgage this month, which uncovered around $615 in equity. I’m not in a hurry to pay down my mortgage right now, so you can expect this section of my net worth update to be pretty boring for the time being.
I paid less for my home than what it was worth because my realtor is awesome and convinced the seller we were the best owners for this home. We turned out to be doing the seller a favour because we’ve dealt with several problems that would’ve been deal breakers for other buyers. I plan to have my realtor come through on the one-year anniversary of purchasing our home and assess the property again.
According to Canadian Black Book, my car is worth $20,634. I’ll update its value once per year to reflect wear and tear on the vehicle. I’ve never included my car in my asset mix before, because it was a beater car that wasn’t worth much anyway, and we needed it, so it’s not a very liquid asset. With the new-to-me car, I’m including it in my net worth because while it is essential to our lifestyle, a car of this caliber is not essential, and we could easily sell this car and downgrade to a beater again if we needed to.
Retirement Savings: $24,053 (+4%)
I contributed my usual $550 per month to this account, and up markets took care of the rest. So close to $25,000!
TFSA Investments: $1,073 (+38%)
This account increased $294 in March. I usually contribute around 10% of my freelance earnings to this account, which is not designated for anything in particular except to grow my net worth and maybe act as an emergency fund on top of my emergency fund.
Emergency Fund: $10,012
I borrowed several thousand dollars from this account in January to purchase my car but was able to fully replenish it last month after selling my old vehicle.
Reno Fund: $2,429
My renovation fund is used to fund both big and small renovations around the house. I contribute around $400 per month to this account, but the balance fluctuates because I also spend money out of this account pretty regularly.
If you’re doing the math, you know that there is some unexplained money in my net worth. I’ll tell you where that money is: in my planned spending account for taxes, mortgage payments, gas, the internet, taxes, etc.
Previous Net Worth Updates
This time last year I had a net worth of $50,471 and was doing a little happy dance for finally crossing that $50k threshold. A big portion of that net worth was tied up in my house fund, which was sitting at $22,894. Most of the rest of my net worth was tied up in my emergency fund and my retirement savings.
In 2015, my husband and I were adjusting to being a two-income household as he celebrated one month at his new job. Our net worth had only decreased slightly during his period of unemployment and sat at $27,000. Our retirement savings was nearing the $9,000 mark, and we had just booked our trip to Mardi Gras for February 2016.
In 2014 my finances were in pretty good shape. I had a pretty solid net worth of $14,301. That was made up of a baby-sized RRSP ($2,310), a solid emergency fund ($6,177) and my travel fund ($1,632). I had no debt, and my blog had just turned two years old.
April 2013 was a big month for me. I had just made a $5,600 payment on my debt thanks to a significant income tax return. This payment brought my debt to $12,508 owing. I still distinctly remember making that payment because it got me so pumped about debt repayment. Paying big chunks like that is an excellent technique to keep up your enthusiasm for paying off debt. This enormous payment meant April two years ago was the first time I’d achieve a positive net worth, squeaking by the mark with $690.
You can read all of my net worth updates here; those early ones are pretty hilarious.