End of the Year Net Worth Update

This has been some kind of crazy year for me in terms of finance. While I had great expectations for 2009, it seems like I finally found the lightspeed button and have made the jump to hyperspace giving a real push to increase my net worth.

Assets

- Bank account: $1,000

This is the regular balance I keep in my chequing account just to make sure my payments actually go through. It doesn’t fluctuate much since I have automatic payments set everywhere.

- Car: $30,000

Some people may say that I should not put my car value in my net worth. I would actually tend to agree with them but since I have car loan attached to it, I simply offset both the car and the car loan together. There are some points in time where the car will be worth less than the loan but at the end of my 6 year term, I am 100% sure that my car will still be worth more than $0 (probably only a few thousand, but still ).

- RRSP Account: $15,000

I didn’t do much with my RRSP account this year. Since I was holding a few stocks before the crash of 2008 came, I have decided to stick with my decision and wait. This was a good thing since I have gotten most of my investment losses (on paper) back. I am about to receive my bonus just after the Holidays and I will put the maximum contribution into my RRSP (about $6,000 due to my pension plan). With this fresh new money, I’ll probably invest them in indexes, but I will talk about it later on.

- Stock account: $4,500

This is all my employer’s stocks. I contribute 8% of my income and my employer is adds another 25% of my contribution. So it’s like putting 10% of my income into my employer’s stock. I must not touch this account until the end of 2010 as it will be part of my plan to reimburse my parent’s loan (maturity date is November 1^st 2010).

- Pension plan: 12,000$

Since I have a defined benefit pension plan, I don’t exactly know how my pension plan worth. I have decided to put an approximate value. Since it is not part of my biggest assets, I figure it won’t make a big difference overall

- House: $325,000

Last year, I had my house appraised at $300,000. While an increase of 8% seems a lot in one year, I have seen houses similar to mine on my street being sold at $330K and $335K. So I am sure that I would get 325K. In addition to that, the city I live has one of the best house value growth records in of the Greater Montreal area.

- Company shares: $30,000

Our online company made slightly more than $30K in the past 12 months. Since it is still growing and that we usually sell websites for 24 times the monthly income, I have figured that our company worth twice last year’s revenue. Since we are two in this company, our shares are worth about $30,000 each. I think it is quite conservative since we are able to pull out about $9,000 each per year, in paid expenses and dividends. So at 30K, I am making a 30% return per year

Total assets: $417,500 (wow, this looks nice!)

Liabilities:

Home Equity Line of Credit (HELOC): $250,000

This amount has increased since I have invested more money into my online company. I am not too nervous about the interest rate so I will probably leave my HELOC pretty stable for a few years before I start concentrating on paying off this debt.

Personal debt: $30,000

This debt is due in 1 year at a rate of 4.80%. I have now to started putting money aside to pay it off On November 2010, I’ll owe $31,000. So far, I have 4K accumulated (my stock portfolio). This account should grow up to 10K by November. I’ll still have 21K to find… this will be my main goal in 2010. However, I’ll discuss this matter in another post

Car loan: $30,000

Aahhh… to buy new or not! A well debated question over the web. I had decided to buy new and don’t regret it! My loan is at 0% for the next 5 years so it doesn’t hurt too much .

Total Liability: $310,000

So this makes my net worth = 117.5K! Yipee! I have almost trippled my net worth in 12 months. This is mostly due to my company shares and my house value going up. While my company shares value are disputable, I am convinced of their value nonetheless

• End of the Year Net Worth Update
• March Net Worth Update: 111,813 (+3.1%)
• February Net Worth Update (+0.7%)
• A Look at my Net Worth – January
• Why Calculating Your Property Value In Your Net Worth

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