Remember who excited I was by my massive net worth increases earlier in the year, and how I declared that I wanted to pay off my car loan by the end of the year? Well, I was seriously tempting fate there, because this month has been the month of both unexpected costs and the month of one-time yearly costs. Here are some of the things I spent money on this month:
- New brakes for the car
- Renewing car registration
- My dog’s annual exam and shots, and three months of flea and tick preventative
- A $1,000 dental bill (reported last month, paid this month)
Because of these unexpected expenses and a few additional expected ones, my net worth did not budge this month. That’s right, a whole month went by and my net worth did not increase, in fact, it dropped by the slightest margin. While this is super depressing and doesn’t bode well for my attempt to pay my car off in a year, I have to accept that these things happen, and move forward into this new month.
New month, new possibilities, right?
Before I push forward, here’s how my money faired last month:
As you can see above, I was able to make decent progress on my debts, but since my assets went down (in almost all categories, unfortunately) my net worth still decreased.
(If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $89,671 (-1%)
Back under the $90,000 mark! The $100,000 threshold was coming into view, but it retreated just a little bit this month. Some of my clients are a little late on their freelance payments, which meant I couldn’t throw as much towards my debts and savings as usual, even though I billed out slightly more than half of my full-time income.
Consumer Debt: $0
Besides a few credit card charges from New York that I haven’t paid off yet (that haven’t passed the 21 day grace period yet) I’ve been successfully avoiding credit card debt for the past year, despite the many temptations to spend now that the weather has officially heated up!
Car Loan: $11,714 (-5%)
I sent $500 of my regularly budgeted income towards my car loan, plus 25% of my somewhat reduced freelance income. This resulted in a 5% decrease of the overall balance this month, and I officially owe less on this car than my original loan for my Volkswagen Golf was 5 years ago. I don’t know why that’s significant for me, but it is!
I made another $1,089 payment on my mortgage this month, which uncovered around $618 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’m closing in on a year of homeownership! In less than a month I’ll have been in my house for a full year. At the one year mark I’ll reassess my home’s value and do a one year house tour. Can’t wait!
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 include it in my net worth because while it is essential to our lifestyle, a car of this caliber is not necessary, and we could easily sell this car and downgrade to a beater again if we needed to.
Retirement Savings: $25,814 (-1%)
Well this is depressing. I contributed my usual $550 per month to this account and it actually lost value. I know that means stocks are on sale and I should be pumped to be getting a good deal, but I do not enjoy watching my money go poof. I’m not going to stop contributing though, I don’t need this money for decades so I’ll just keep plugging away at it.
TFSA Investments: $1,583 (+5%)
I put 10% of my freelance income into this account, which is an emergency fund on top of my emergency fund/early retirement/early mortgage payoff account. I can’t wait until my car is paid off so I can start contributing more to this account!
Emergency Fund: $8,670 (-13%)
My emergency fund took a hit this month because of a) replacing the brakes on my car and b) paying a $1,000 dental bill. As annoying as that is, I’m grateful that I had the forethought to squirrel away enough cash that I can take a pretty substantial financial hit without missing a beat.
Reno Fund: $2,416 (-2%)
This fund is just going to chill at $2,416 for a few months while I focus on paying off my car loan. I might withdraw some cash here and there to cover various upkeep (I need to get my HVAC system serviced this month) but mostly it’ll just sit until I’m ready to start chucking cash at it again.
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 about $58,000. My retirement savings were at $16,000 and my house fund was oh so close to the $30,000 mark. While I hadn’t mentioned it to the blog yet, I also made an offer (and had it accepted) on my first home, and was on my way to becoming a homeowner!
In 2015 I was just getting into the swing of living in my new city. My net worth was a solid $34,000 and my retirement savings had just popped over the $10,000 mark (which made me feel like a big girl), my emergency fund was full and I had $6,500 saved for a home.
In June 2014 I was debt free and had a net worth of $17,700. I’d just accomplished my goal of a $10,000 emergency fund and was working to fill up my travel fund for FinCon in New Orleans.
In June 2013, I was preparing for my wedding! I still had $8,000 in debt, and my net worth was barely positive at $3,894. My biggest goal in June 2013 was to get married without incurring any debt – which I achieved!
How did your net worth fair in June? I want to know!