I don’t know about where you live, but here as soon as the calendar flipped over to October 1st, the temperatures plunged a good fifteen degrees. Fortunately my oil furnace is gurgling away in the basement, pumping out heat. Unfortunately, that also means the oil bills I’ve enjoyed a break from this summer will resume.
As much as I’ve thoroughly enjoyed the heat of the summer, fall is really my jam. I prefer the cooler weather, the candles, the sweaters, and the fact that both my birthday and my anniversary are in October.
August was a decent month, net worth wise, even though my freelance revenue tanked big time. I’m working the same amount, but some clients have been slow to pay. It’s times like these I’m grateful for the 42 hours a week I put into my day job.
Here’s how my net worth faired in September:
As you can see, despite much lower than usual freelance income, my net worth still increased by about $4,000. Let’s look at the individual accounts to see how it shook out.
(If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)
Net Worth: $104,414 (+4%)
A $4,000 increase is not bad considering I made less than usual on the freelance side of things. A good amount of this increase came from the markets which is always nice, and paying down my car loan.
Consumer Debt: $0
We are consumer debt free at the moment and it feels good.
Car Loan: $7,185 (-16.20%)
I was able to pay down $1,390 of my car loan balance, bringing the balance remaining to just over $7,000. Every month I pay $673 from my regular budget, and then 50% of my freelance income.
I love that I’m in the debt repayment phase right now where I’m bringing the balance down by double digit percentages. It feels like I’m making more progress, even though I’m essentially making the same payments I was months ago. What I’m especially excited about is being able to finally use that money to go towards something I actually care about. Like investing and home renovation projects.
Mortgage: $240,097 (-0.26%)
My regular monthly mortgage payment is $1,089, which uncovers about $630 in equity. I’m not in a hurry to pay down my mortgage right now because my mortgage interest rate is just 2.29%, and instead I’m focusing on paying down my car loan and investing.
I bought my home a year ago for $270,000. I was able to get this lower price because the home hadn’t been maintained properly for several years, and there were a ton of relatively expensive upgrades that needed to be done. The homeowner opted to sell the home for less than it was worth rather than negotiate and coordinate all of the work to be completed pre-sale.
We’ve completed most of the work within the last year (for about $5,000), and according to my real estate agent, we could sell the home for $285,000, or $15,000 more than we paid.
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: $27,577 (+4%)
Every month I contribute $550 to my RRSP which holds Tangerine Investment Funds(the Balanced Growth Fund, to be specific). The Tangerine funds are considered an excellent, low-fee option for beginner investors and I’ve been investing in them since I was 24. If you’re interested in investing for your future but you’re confused about how to get going, this is a great place to start! If you sign up and use my Orange Key: 38939199S1 you’ll receive a $25 bonus!
TFSA Investments: $2,167 (+6%)
Every month I contribute 10% of my freelance income to my TFSA which also holds (surprise!) Tangerine Investment Funds with the same asset allocation as my RRSP. This account is my emergency fund on top of my emergency fund but might also some day be early retirement or early mortgage payoff fund.
Emergency Fund: $8,682
I’m letting my emergency fund sit a little under $10,000 right now while I pay down my car loan, but as soon as that is gone at the end of this year I plan to top this back up to $10,000.
Reno Fund: $2,014 (-11%)
I’m continuing to access this fund for home renovations. While I contribute about $200 per month to it, this month I spent a little more than that, so it decreased.
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
In September 2016 I was slowly making my new house a home. My net worth was sitting at $66,291 and my retirement accounts were temporarily depressed since I had borrowed money from them to cover my closing costs. My TFSA sat at just $500 and I owed $248,000 on my mortgage.
Two years ago my net worth was $38,163. I had $11,400 saved for retirement, and was depressed because the markets were swallowing up all of my retirement contributions and I had nothing to show for it. I was saving for yet another trip to New Orleans, and my house down payment fund was blossoming to $12,743.
In the Fall of 2014 I was still living in New Brunswick and preparing to move to Halifax in a few short months. I had paid off my debt the year before and had a solid emergency fund built up and a blooming retirement account. I was closing in on a net worth of $25,000. I remember being obsessed with the idea of hitting a net worth of $25,000 before age 25, and I did it!
Another net worth update down! You can read all of my net worth updates here, those early ones are pretty hilarious.
How was your September? Did you hit your financial goals? Did your net worth increase? Decrease? I want to know!