I know it’s not June 1st, but these are my numbers as of June 1st! I was on vacation in New York on June 1st, so I’m a little behind the times this month.
Remember how last month my net worth improved by a whole 5% and I spectulated that the trend would not be continuing? This month proved me right. May was an expensive month for a few reasons. First, my husband and I tackled an overhaul of our jungle-of-a-backyard in May. We completely changed the landscaping and as you can imagine, that cost money.
Second, I spent the last few days of May in New York, and while I haven’t paid off those credit card charges yet, I did withdraw US dollars for cash spending money and bought Yankees tickets and tickets to a variety of attractions. Those expenditures ate into my net worth increases significantly.
Finally, we were hit with a few unexpected costs including a huge water bill (damn you, leaky toilet!) and a dental bill.
Here’s how it all shook out:
If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $90,463 (+2%)
Finally over the $90,000 threhold! I was able to add $2,100 to my net worth this month. May was a typical freelancing month for me, I earned about half of my gross income on top of my full-time income. Unfortunately the extra expenses I mentioned above offset these gains.
Consumer Debt: $0
Besides some work expenses that haven’t been reimbursed yet, I’ve been doing very well at keeping my consumer debt to a big fat zero. I’ve been staying away from old habits that caused me to overspend and I’ve been actually banking cash for future spending.
Car Loan: $12,421 (-9.13%)
While I didn’t make huge progress on boosting my net worth this month, I was able to pay off almost 10% of my car loan balance. The loan was originally for $18,335 and with the primary lender offered by the dealership, with a laughably high interest rate of 6%. I’ve since moved the loan to my personal line of credit with a lower 4.7% interest rate and have been throwing money at it ever since. At the rate I’m going I should have this loan paid in full in 10 months.
Mortgage: $242,616.81 (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’ve been a homeowner for about ten months, and at the one year anniversary I’ll reassess my home’s worth. I’ll probably use a combination of market growth and my real estate agent’s opinion to determine the updated value.
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: $25,951 (+4%)
This account increased by $929 this month. $550 of that was from actual contributions, the rest was from market increases. I love seeing this account over the $25,000 mark!
TFSA Investments: $1,513 (+16%)
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: $9,980
I had to access this account in May because a leaky toilet tripled my water bill up to $485. It was more than I was prepared to pay so I had to dip into my emergency fund to cover the difference.
Reno Fund: $2,474 (-22%)
This fund took a big dip in May because I withdrew over $1,000 to fund my backyard renovation. I can’t wait to do the big reveal!
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 respectible net worth of of $56,000. My retirement account was sitting at $16,000 and my house down payment fund was blooming to $28,000. Little did I know in less than a month I’d be putting an offer in on my home.
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 May? I want to know!