Wow! Last Thursday, I really felt that Christmas had come late this year as I got my bonus deposited into my account! I had to do a mental block to not see how many taxes I paid on it (51% in total…) but the “residual” was still amazing!
Thx to this bonus, I was able to achieve one of my 2011 personal goals which was to finish with a 200K + net worth. So I’m very happy to tell you that my net worth jumped by 14.62% and reached $203,500 this year!
Since my goal for 2012 is to take control of my personal finances, I’ve decided to not be aggressive on the value of my assets with this first net worth statement of the year. I usually increase the value of my house by the rate of inflation (which should have been 2.7% for 2011) but I didn’t do it. I’ve already increased it by 7K last summer which is the cost of the central AC I added.
I also depreciated the value of my cars on a monthly basis. The Tribute drops as fast as my loan payment ($434/month) so my car loan is always evened out with the value of my car. For my RX-8, I drop the value by $400/month as well. So technically, my sports car will be worth nothing in 2013 ;-). I do that because a car is definitely not an asset and should not artificially boost your net worth. As for my company shares, I won’t reassess them until our annual meeting that happens in spring. I should be seeing a great increase in value as the company is probably worth around $300K right now (so my shares should be valued at $150K instead of $98K). But then again, my goal this year is to pay down debts, not to look at my growing assets ;-).
Speaking of debts, it’s payback time baby!
Wow! As much as I am bored to see a huge deposit in my account and to make it disappear in 5 minutes through online payments, I am darn proud of paying down those debts! The feeling of being “liberated” from this burden is awesome! I can now start the year fresh with less expenses and a cleaner balance sheet.
With my bonus, I’ve paid off my RRSP loan in total (and my RRSPs are maxed btw 😉 ) and I paid back a huge chunk on my credit card. It sucks that I couldn’t enjoy anything out of my bonus but on the other side, I’m living an awesome life on a daily basis so I guess it’s okay.
Since my car broke down right before Xmas and the gifts I bought cost a little bit more than expected, my 2012 of going down under $300,000 in debt is now equal to paying off $17K this year. This is slightly over what I was expecting (13K) but I still think it’s feasible. I already have monthly payments towards the car loan and another personal loan that will drop my debts by 7K by the end of the year. Therefore, I just have to drop down my HELOC by 10K this year and I’m all set for my goal. I’ll definitely work it out!
So here are the details of my net worth as of January:
Assets: $521,336 (+0.01%)
CHECKING ACCOUNT $1,000 $1,000 0.0%
$1,113 $2,381 113.9%
RRSP ACCOUNT $29,581 $29,869 1.0%
PENSION PLAN $20,218 $20,218 0.0%
HOME $345,640 $345,640 0.0%
COMPANY SHARES $98,000 $98,000 0.0%
MAZDA TRIBUTE $18,662 $18,228 -2.3%
MAZDA RX-8 $6,400 $6,000 -6.3%
TOTAL $520,614 $521,336 0.1%
Liabilities: $317,836 (-7%)
CREDIT CARD $19,597 $6,975 -64.4%
LINE OF CREDIT $19,828 $19,804 -0.1%
HELOC $263,734 $261,996 -0.7%
CAR LOAN $18,662 $18,228 -2.3%
Personal Loan $11,249 $10,833 -3.7%
RRSP loan $10,000 $- -100.0%
TOTAL $343,070 $317,836 -7.4%
Total Net Worth: $203,500 +14.62%
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