I had no idea that I never posted this so here you go about 9 months late, my bad! I am going to start getting posts up again, maybe as soon as tomorrow so run, don’t walk to my blog next time!
It is that time once again, my semi annual net worth update (yes, it is 2 months late, thank you)
Jan 2016 net worth: $115,000
Change from July 2015 + 0%. (Actually a small increase, but not large enough to worry about)
Change from Jan 2015 + 12% Sweet..I’ll take a yearly return of 12% everyday of the week!
So we are up about 12K year over year. I’m happy with that especially with the downturn in the Canadian market over the last few months, where we have a good chunk of our investments. Yes, we are diversified internationally, but still the majority of our investments are based in Canada.
Does the number make sense for us? Let see, nice tax refund of $4,000 last year, house went up about $3,ooo in value as per our tax assessment. We invested about $6,000 in RRSP and TFSAs, and also paid off about $5,000 in debt. We also actually withdrew about $4,000 from our line of credit* for home renos. Quickly adding up the assets I just named 3+6+5 = 14 and subtracting the 4 = 10K, that is reasonably close to the 12K increase I found, so yes those numbers seem to jive. Remember when I’m doing my net worth calcs, I don’t sweat the small stuff, and I recommend you don’t either. This isn’t an income tax audit, just some numbers to show you are (or are not) on the right track.
*The balance of this was immediately transferred to a low interest rate offer on a credit card. And by low rate I mean less than 2%.
Questions you may have from the paragraphs above:
You are off by 2K from your quick calculation from your actual amount, what could cause this?
I would say much of this would be accounted for by 2 main factors: cash we happened to have on hand at the time I calculated my net worth and the remainder would be due to increases in investments. Even though the Canadian markets are down, other areas are not, also dividends are still being paid by my investments, and mutual fund disbursement also normally occur at calendar year end. I bought more investments/mutual funds this year, that generally means more disbursement at year end.
Why are you paying off debt and withdrawing from your line of credit at the same time, that don’t make no sense?!
Good question, but work on your grammar. I could have just as easily made minimum only payments to my low interest rate credit card, and invested the rest for likely a better return. However, I went the route I did because I will still have this debt at the end of the low rate offer (over a year from now) and yes, there could be more of these offers before this one expires, but there is no guarantee of this. So yes, I would agree I could likely be doing even better with my money, but I’m The Fake Cheap, remember?