Happy Augsut folks! I’m so happy to see this new month unfold. Not that July wasn’t great, because it was. It was full of camping, campfires, barbecues and merriment. I even eased off my freelancing schedule to give me more time with family and that was nice. But I’m looking forward to a slower August with fewer family commitments and less travel.
Despite my activity filled month, my net worth faired quite well. Even though I freelanced less I was still able to bring in a very good chunk of cash thanks to a crazy productive June, most of which went to paying down my car loan or taxes. I also didn’t have any unexpected expenses for a change, and all of that travel was happily within budget.
Needless to say my net worth is back on its upward tragectory which I am very thankful for.
Here’s the TL;DR version of how my net worth faired in July.
As you can see, my net worth increased by about 4%, or about $3,448 in July. Here’s where that money went:
(If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $91,119.69 (+4%)
Much closer to the $100,000 threshold now! A few more months like this and I’ll be popping over the big six figure month in no time. To be honest though, I’ve barely even been paying attention to my net worth, I’m mostly interested in eliminating my car loan.
Consumer Debt: $120
I have about $120 in credit card charges that I have yet to pay off from the New York trip, but those should be eliminated within the next two weeks or so. Other than that, I’ve been able to keep my credit card balances very low (except for regular spending) for months now.
Car Loan: $10,373 (-11.5%)
I paid $1,341 off my car loan this month, or 11.5% of the overall balance. I achieved this by sending $712 of my budgeted monthly income towards the loan plus 25% of my freelance income.
Things are about to get exciting for this car loan payoff. Once the loan ticks down under the five digit mark and those percentages start getting out of control huge, I know my enthusiasm for paying this debt off is going to shoot through the roof and I’m going to make this loan disappear even faster than I’m projecting. Not long now!
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 waiting to hear back from my real estate agent regarding an updated home value but I should have it by the next net worth update!
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: $26,004 (+1%)
I contributed my usual $550 towards retirement but most of it got eaten by the market. It’s just temporary though and I know I’ll be knocking on the $30,000 mark by the end of the year.
TFSA Investments: $1,776 (+12%)
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
I had to dip into this fund in June to pay for some unexpected expenses, and I plan to top it up once I get the remaining credit card charges from the travel fund taken care of in the next couple of weeks.
Reno Fund: $2,485
I’m no longer actively contributing to my renovation fund until I get my car loan paid off, so this account is going to sit here with some minor fluctuations for the next few months. After the car is paid down I’ll start contributing 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
One year ago I had a very comfortable net worth of $60,000. I was debt free and had just finished moving my belongings into my new home. I owed $248,000 on my mortgage and had recently said goodbye to my consumer debt for good.
Two years ago today I’d been living in Halifax for six months and had a net worth of $37,074. My house fund was at just $7,400 and my retirement accounts had crossed the $10,000 mark for the first time.
Three years ago I was debt free and had a net worth of $23,000. My RRSP was still a baby with only $4,400 in it, and most of my extra cash was going to my travel fund to pay for my trip to France in December.
How did your July go? Did you reach any big financial goals for the year? I want to know!