Howdy folks! It’s time for another net worth update on the ol’ blog. I’m still deep in winter here in Atlantic Canada, having just weathered yet another storm last night. February was an expensive month heavy with DIY projects (the one above is nearly complete, post coming soon!), but I still managed to put away a decent chunk of cash, pay down my car loan, and improve my net worth.
Here is a snapshot of how my net worth looked on March 1st:
It wasn’t just a good month – it was a great month with my net worth going up 7% since February 1st. This was due to a few factors, which I’ll go into in greater detail below.
(If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $77,928 (+7%)
My net worth increased a hefty $4,793 this month. This was partly due to the fact that I sold my car! After buying my used Subaru Crosstrek, my husband and I set about selling our car. I’ll write about it in detail next week but I was able to net $4,000 from the sale, which went a long way to replenishing my emergency fund that I had borrowed money from to put a down payment on the new-to-me car.
Here’s how my individual accounts faired to make up this net worth:
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 almost a year now and I’m still going strong.
Car Loan: $17,309 (-6%)
I put $5,000 down on the purchase of my new-to-me car, which left me with a car loan of $18,335. In February I paid off $1,026 of that loan or about 6% of the balance. The minimum payment on this car loan is $305 per month, and I’ve also allotted $200 in extra payments from my primary budget, and 25% of my freelance income to go towards paying this off.
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. I also received my 2017 assessment in the mail this month, which assessed the home at $289,000. As much as I want to include that extra $9,000 in my net worth, I know it’s not necessarily a good indicator of the home’s value, so I’ll leave it at $280,000 until I get my realtor to come and do a walk-through about a year into homeownership.
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: $23,026 (+5%)
I contributed my usual $550 to my retirement fund this month, and watching the balance tick over $23,000 made me excited for the day I have $25,000 invested.
TFSA Investments: $779 (+23%)
I contributed around $150 to this account in February. I usually contribute around 10% of my freelance earnings to this account, which is not designated to anything in particular except to grow my net worth and maybe act as a properly invested contingency plan.
Emergency Fund: $10,000 (+37%)
Fully replenished! I used the proceeds from selling my Volkswagen Golf to replenish this account, meaning I went less than three weeks with it depleted.
I now have some smaller accounts that I’m using to save towards various goals like travel and home renovations. Instead of listing them all out separately, here is a summary of where they stand:
- Reno Fund: $1,616
- Travel Fund: $0
The reno fund is slowly climbing, although I spent quite a bit in February for a renovation project, I’ve still managed to increase this account overall. The travel fund, on the other hand is looking pretty empty because I booked my trip to New York in May. Flights and hotels are paid for, partly thanks to my credit cards rewards.
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 $46,921, or $31,000 less than it is today. My retirement account sat at $14,000 and I had saved $20,000 to purchase a house. I was planning to spend another year saving for a house, little did I know that I’d be making the leap to home ownership in just a few months!
Two years ago my husband was just starting his new job and we were slowly adjusting to being a two-income household again. We didn’t have any debt and our net worth was a solid $23,000. My $10,000 emergency fund was intact, my retirement account was nearing the $10,000 mark and we had $4,500 in general savings.
Three years ago I’d been debt free for a few months and my net worth was around $12,000. I’d just started contributing to my baby RRSP ($1,800) and my mini-emergency ($3,969) was being built.
Four years ago I was a busy lady! I was planning my wedding, preparing for half marathon (I eventually got injured), and hustling to pay off my debt. I had $18,000 left on my student loans and car loan, and a negative net worth of -$3,900. Oh, how things have changed!
You can read all of my net worth updates here; those early ones are pretty hilarious.