Today, I’m glad that I have started to build asset at a young age. At the age of 23, I was borrowing money to buy a land, 2 years later I had my first house and now I am at my 3rd house, I’m building up my RRSP’s, I have invested in my company and those 3 assets are pushing my net worth higher.
In early 2011, my pension plan will help me increase my net worth as I am still working with the 2008 figures. In the meantime, I have decided not to increase its value.
I didn’t do any changes in regards to my company shares. At the moment, I think it is unjustified to increase it over 150K (even thought I made close to this amount in a single year). To be honest, I would not consider an offer below 500K… which I will never receive ;-).
My House is Not an Asset Per Se
Technically, I don’t consider my house as a “real asset”. What do I mean by real asset? In my opinion, an asset is something creating value. My house will increase in value but will not create any. Why? Simply because if I sell my house today, I’ll have to buy another one at the same price (as all houses price will increase accordingly during the same period of time). Therefore, you don’t get much richer… but you worth more ;-).
This is why I include my house in the calculation of my net worth. On the other side, it would not make any sense to not count my mortgage…and having my mortgage in and not my house is stupid as well. Therefore, both are in 😉
Getting my expenses under control
As you can see, I didn’t drop nor increase much my debts during the past month. This is pretty good since I have to factor that all my Christmas gifts are bought and that I already paid for my 1 week vacation in January (we are renting a vacation property for the family before the RRSP season 😉 ).
I’m playing a lot with my lines of credit and my credit cards so I don’t pay interest fees on the latter. This will all be settled when I get my bonus in January… this is why I am not too worried about it.
So here’s the detail for the last month of the year :
|LINE OF CREDIT||$19,577||$19,512||-0.3%|
|MBNA 1.99% TRSF||$10,517||$10,217||-2.9%|
Total Net Worth : $152,166 (+4.88%)
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