February 4, 2010, 5:00 am

February Net Worth Update (+0.7%)

by: The Financial Blogger    Category: Assets and Net Worth
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This year will be quite interesting in terms of our financial situation. Since September 2009, I work 4 days a week at my day job in order to devote more time to my online business. While my wife quit her job in 2009 to stay home with our children, I have managed to reach the milestone of a 6 digit income. In 2010, we are looking to accumulate $31,000 to pay back the loan to my parents. Since having taken the decision to look at my net worth on a monthly basis, I tend to be more careful with my spending and I always have my parents’ loan in mind.

So here’s where I stand after the first month:

ASSETS:

ASSETPREVIOUS
MONTH ($)
WORTH ($)CHANGE (%)
CHECKING ACCOUNT$9,060$1,488-83.6%
EMPLOYER STOCK ACCOUNT$4,910$5,328+8.5%
RRSP ACCOUNT$16,122$17,069+5.9%
PENSION PLAN$12,000$12,0000%
HOME$325,000$325,0000%
COMPANY SHARES$30,000$30,0000%
CAR$27,776$27,342-1.6%
TOTAL$424,868$418,227-1.6%

DEBTS:

DEBTSPREVIOUS
MONTH ($)
WORTH ($)CHANGE (%)
CREDIT CARD$1,686$4,056+140.5%
LINE OF CREDIT$19,335$18,308-5.3%
HELOC$238,349$232,976-2.3%
PARENT LOAN$30,000$27,100-9.7%
CAR LOAN$27,776$27,342-1.6%
TOTAL$317,146$309,782-2.3%

TOTAL NET WORTH : $108,445

Major Changes:

I don’t think it will be like this every month, but we had a few major money movements.

Parents Loan

I managed to get an extra $3,000 from my year end  bonus (I didn’t get a bigger bonus, I just decided to use this amount of money differently) and give it back to my parents right away. Since I have to finish this debt in November of this year, I do not want to wait to give them money back when I have an opportunity. Since I know that I may spend the money if it stays in my bank account, I would rather start making payments 😉

Getting ready for wedding$

I am best man for 2 weddings this year (my best friend and my sister-in-law). Therefore, we’ve already started to spend money towards their wedding gifts. Since they are very important people to us, we will definitely not be cheap ;-). This is what explains my small net worth increase even if I was concentrated in paying back my debts.

What is coming in February?

I am almost sure that I will be able to make another payment to my parents! The online company has shown a great start to 2010 so we will probably be able to withdraw money from it. My partner has to buy a computer so I will withdraw the same amount to pay back my parents. The only problem is that I started to have pixel bars showing on my laptop screens… I am in the process of requesting an extended warranty payment from my credit card… I don’t know if it will work (gotta find my bill first!).

Follow other PF Bloggers net worth update at The Suburban Dollar.

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Comments

Great stuff payiing off a healthy 10% of your debt to your parents! That’s got to be #1. I would start myself to squeeze water out of a stone to pay off my parents at our age.

What about dedicated all blog income to bank of mom and dad?

Keep up the good work!

Since the blog is part of a bigger company with a partnership, I can’t use it all to pay back my parents. However, I’ll surely use all my “dividends” to pay them back!y

I am impressed! Nice moves 🙂 About your laptop, I hope for you that your warranty isn’t over (sometimes… you need it, find the invoice to learn that it ended up… yesterday)… frustrating!

I don’t really understand why you put your house in your assets if it isn’t fully paid off?

@Mama Zen,

The warranty is over but I have an extended warranty on with my credit card. However, I need to find my bills to get paid back ;-(

Since I have to consider my mortgage (HELOC), I have to put my house in my balance sheet. If not, I would end-up with a negative net worth and it doesn’t reflect the reality.

Since I could use my equity to pay back my parents, I can use it as an asset 😉

@TFB oh okay, I have the same kind of warranty too… one of the reasons I think it is better to use your credit card to pay for expensive stuff even if you could do it cash… I did it for my diswasher, washer, dryer, laptop, camera, tv… I saved me more than 500$ extra fees than buying extended warranties offered from vendor… when you add all this you find it is quite expensive at the end! Just to extend warranty on a product that is supposed to work correctly for more than a year!

Thanks for explanations about mortage… Its because when I log in my account, my bank doesn’t take my home worth in my net worth calculation. But yeah, I understand that even if isn’t fully paid off, my home worth more than my actual mortage (we did several renos… LOTS of renos in fact! we’re a DIY couple 🙂 )

I will include it manually and see the difference… it will be less dissapointing next time I log in 🙂

by: The Financial Blogger | February 5th, 2010 (9:32 am)

@ Mama Zen,
this will actually be an intersting adventure to get reimburse (I still have to find the time and patience to call Mastercard to get my statement from 2008….) I’ll surely write about my experience once I’m done 😉

When I enter in my online bank account, I surely don’t see my house value (as they can’t assess it) but it is my biggest asset so far… can’t wait to have my company shares go up!

[…] Financial Blogger shows us what he is worth with a February Net Worth Update (+0.7%) posted at The Financial […]

Not to suggest how you spend your money, but if your parents aren’t charging you interest, why not stick a fixed monthly payment that you can afford, and use those bonus months to pay down your highest interest bearing debt first?

by: The Financial Blogger | February 15th, 2010 (5:36 am)

@ Jordan,
considering that I am paying my credit card on a monthly basis (hence i don’t pay credit card interest), my parent loan is my highest interest debt (4.80%). It is just that they didn’t ask for payments until their mortgage is due, so November 2010…