August 15, 2011, 5:00 am

August Net Worth Statement +3.7%!

by: The Financial Blogger    Category: Assets and Net Worth
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Wow… this is nice! The stock market is down and I’m still able to show a 7K growth for my monthly net worth statement! Nope, I didn’t increase my house value or my company shares (this is being done annually). In fact, I received my pension plan update, yeah!

However, what I am the most proud is to see my debt level increase by only $500 while I hosted 2 birthday parties and booked my vacation (Virginia Beach, here we come!) since my last update. The parties along with the hotel in VB have probably cost more than $1,250. Therefore, the increase is less than the money I have spent over my monthly regular budget. I know that other expenses will make my task of lowering my debt difficult in the upcoming months as I have municipal and school taxes along with… my B-Day in September ;-).

Why looking at your net worth on a monthly basis is a good thing?

I used to think that looking at my net worth month after month was kind of a waste of time. Some people do it on a yearly basis and they are just fine with it. However, I have noticed that since I follow it on a monthly basis, I’m being a little bit more cautious about my spending.

 

I’m not going to cut down on my Starbucks, but I will be more patient for bigger spending. For example, I have been going crazy to buy a pool this year. However, buying a pool also implies buying all the equipment and building a deck around it. Since this year I have spent enough money on my house (I added a central A/C and did my landscaping), buying the pool would be totally irrational. Therefore, I’ll wait until next year when I can pay cash for it. I have recently mentioned that I am expecting a big bonus in January. This bonus will be used to pay off my debts, maximize my RRSP and pay for my pool ;-D. If my bonus is not big enough, the pool will simply have to wait another year.

 

If I wasn’t looking at my net worth on a monthly basis, I might have thought that I could borrow some more as all pool dealers offer generous financing options. However, I would have jumped at the time of my yearly net worth statement. Since the beginning of the year, I have seen my debt level grow from $328K to $333K this month. While my assets are evolving faster than my debts, it is still not a good sign to see them growing! This is exactly how the US Government got into debt troubles; they didn’t care about their debt enough…until it hit them in the face harder than a shovel swung by Alex Rodriguez!

 

Then again, my plan is to eventually use my employer stock to pay off my debts. While it is growing on a steady basis (besides this month obviously!), it is also paying a 4+% dividend (which is double the interest I pay on my debts). This is why I let my employer stocks grow at the same pace as my debts do ;-).

 

So here’s the statement for the month:

 

Assets: $520,742

 

ASSETSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CHECKING ACCOUNT$1 000$1 0000.0%
EMPLOYER STOCK
ACCOUNT
$6 930$6 867-0.9%
RRSP ACCOUNT$21 453$21 4530.0%
PENSION PLAN$12 000$20 21868.5%
HOME$345 640$345 6400.0%
COMPANY SHARES$98 000$98 0000.0%
MAZDA TRIBUTE$20 398$19 964-2.1%
MAZDA RX-8$8 000$7 600-5.0%
TOTAL$513 421$520 7421.4%

Liabilities: -$333,035

 

DEBTSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CREDIT CARD$16 625$18 68412.4%
LINE OF CREDIT$19 717$19 677-0.2%
HELOC$263 710$262 836-0.3%
CAR LOAN$20 398$19 964-2.1%
Personal Loan$12 083$11 874-1.7%
TOTAL$332 533$333 0350.2%

Total net worth: $187,707 (+3.7%!)

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Comments

Great job with your networth. Personally I would be a bit scared of all that debt but you have everything under control. 🙂 Keep up the good work!

-Ravi Gupta

by: The Financial Blogger | August 16th, 2011 (7:15 am)

As long as debt is at a low interest rate, I’ll keep riding the wave ;-).

Your CCs and Personal Loan are under 4%? That is amazing – can you use the dividend to pay the loans down or no because it is qualified money?

Congrats on a 3.7% increase! Good stuff.

CONGRATS. Looks like the pension was huge this month

it was because I didn’t update it for almost 2 years! I receive an employee benefit booklet each year telling me how much it worth since it’s a defined pension plan.

good stuff. Your pension had a big jump! OK, i see, it’s just book keeping.

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