January 15, 2010, 5:00 am

A Look at my Net Worth – January

by: The Financial Blogger    Category: Assets and Net Worth
email this postEmail This Post Print This PostPrint This Post Post a CommentPost a Comment


Last month, I decided to be part of Suburban’s Personal Finance Blogger Net Worth List. There is a list of some great PF bloggers and their progress on their own net worth. In order to be part of it, we are required to update on our net worth on a monthly basis. I thought it would be a great idea to share how it goes from month to month. So while my December net worth update was done with rounded numbers, I’ll use more precise figures from now on.

Assets

ASSETWORTH ($)
CHECKING ACCOUNT$9,060
EMPLOYER STOCK ACCOUNT$4,910
RRSP ACCOUNT$16,122
PENSION PLAN$12,000
HOME$325,000
COMPANY SHARES$30,000
CAR27,776
TOTAL$424,868

Debts:

DEBTSWORTH ($)
CREDIT CARD$1,686
LINE OF CREDIT$19,335
HELOC$238,349
PARENT LOAN$30,000
CAR LOAN$27,776
TOTAL$317,146

Total Net Worth: $107,722

For this very first month where I am using exact numbers, I will not compare it to December. This is more a starting point for me than anything. This will also show you how I manage my personal finance from a closer vantage point.

You will notice over the months that I will not pay down my line of credit or my home equity line of credit. This is not because I can’t, but because I pay a privileged rate of 1.125% (which is prime divided by 2). Since I have this awesome perk, I prefer to concentrate my efforts on making more money rather than paying off my debts (call me Mr. Leverage 😉 ).

The debt owned to my parents is less than stated in December as the full $31K is due in November 2010. It works like this: each month my debt increases by $100 (I originally borrowed 25K at 4.80% with no capital or interest payments and the interest is not compounded).

In order to be fair, I will also decrease the value of my car according to the balance of my loan. While my car obviously will be worth something in 6 years, I do not believe in boosting my net worth with a the value of a  car. It is just in my balance sheet so I don’t penalize myself for having a car loan.

One last point is that I will also use a part of my bonus to pay off debts. Therefore, next month, the 7K credit card will completely disappear 😀 (and this is why my net worth was bigger in December… I’ve had calculated my bonus in already…)

Any thoughts?

While I will be concentrating on paying off my parents’ loan in November 2010, I would like to have your thoughts on how I should do it. Thx!!

Similar Posts:

You Want More? Sign-up! ->
TFB VIP Newsletter


If you liked this articles, you might want to sign for my FULL RSS FEEDS. If you prefer to receive the posts in your email, subscribe CLICK HERE


Comments

Good job focusing on paying off your parents! It is the honorable way to go. Can you pay it off in full by this Nov?

It’s funny that you ask as I just wrote 2 posts (to be published next week!) On this issue.

More on this next week 😉

[…] and China @ Time.com Your most important financial decision? Your Spouse! @ Moolanomy S&P500 Dividend aristocrats @ bargaineering A look at my net worth – January @ TheFinancialBlogger Goldman expects Q4 GDP to be 5.8%! @ ZeroHedge Selling Puts on Intel(INTC) @ […]

I concur with Sam..paying off your parents is a good idea.

Think it quite possible that this site could make you the money you are after to pay your parents off. There are a number of far smaller sites earning above the figures you are after and probably just a case of playing around with some of the high payinf affiliates to see which work for the sire.

by: The Financial Blogger | January 20th, 2010 (12:12 pm)

@ Craig,

I would say that using my sites to pay off my parents is definitely part of my plan! It’s easier to use additional income towards debt than cutting on your lifestyle!