I’ve been waiting to write this kind of post since the beginning of the year! This month, I finally reduced my debts and pushed my net worth higher! This is definitely a step in the right direction! Yippee!!
When I look at my assets, I can tell that everything went in the right direction. My RRSP and stock accounts went up and myRESPsystematic investment plan is growing. I’m currently investing $200 per month for my children’s education (which would lead to about 30K for each kid when they reach the age of 20). It was my son’s and daughter’s birthdays and they also received an additional $100 to go to their RESPs. This is why I’m jumping from $200 last month to $503. The $3 being the *huge* growth of the portfolio! Hahaha!
It’s quite a challenge this year to increase my asset base month after month since I’m “losing” $834 per month in car value. My Tribute value follows the car loan I have (in order to be fair on both sides of my balance sheet) and my RX-8 is dropping by $400 each month. Next year, I’ll have a car that will probably be worth around 5K-6K with a $0 value on my balance sheet. That’s fair since I don’t think that cars should be a great part of your net worth anyways!
My debt level dropped by more than $2,000 this month too. Thx for that extra pay check I’ll be getting at the end of the month! Getting three pay checks instead of two during the same month made a huge difference this month. I was not only able to pay more debt with my regular income but I will be able to put the extra pay check on my debt too! Most of my net worth increase is in fact related to my debt level dropping to 320K more so than my investments’ growth.
I will probably not be able to drop my debt by another 2K in September, but my objective is to drop under the 320K bar for the first time since the beginning of the year. This is very motivating! I’m looking at that big fat 20K chunk of debt I have to pay by the end of 2012 and I know that it’s now almost impossible. I’ll probably be able to pull out roughly $5,000 from my employer’s stock in January 2013. Now, I am aiming at dropping my debt by $1,000 per month until January. Both strategies combined together makes 10K. I’m still 10K short. I know I’ll get a bonus but I won’t be getting 10K after tax… unless I kill my numbers in September & October (bonus are calculated as at Oct 31st and paid in January).
On the other hand, if I continue to manage my budget this way with no extra costs, I should be in pretty healthy shape for 2013. It’s only a matter of keeping the momentum going! In 2013, I’ll attack my pool loan!
Here’s the detail of my assets and liabilities:
|CHECKING ACCOUNT||$1 000||$1 000||0,0%|
|$1 450||$2 139||47,5%|
|RRSP ACCOUNT||$28 948||$29 703||2,6%|
|PENSION PLAN||$26 131||$26 131||0,0%|
|HOME||$351 640||$351 640||0,0%|
|COMPANY SHARES||$131 521||$131 521||0,0%|
|MAZDA TRIBUTE||$15 190||$14 756||-2,9%|
|MAZDA RX-8||$3 200||$2 800||-12,5%|
|TOTAL||$559 275||$560 193||0,2%|
CREDIT CARD $7 985 $7 607 -4,7%
LINE OF CREDIT $19 819 $19 517 -1,5%
HELOC $264 154 $263 279 -0,3%
CAR LOAN $15 190 $14 756 -2,9%
Personal Loan $9 583 $9 374 -2,2%
Pool Loan $5 600 $5 547 -0,9%
TOTAL $322 331 $320 080 -0,7%
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