After telling you that I won’t be disclosing all my blog income info yesterday, it feels awkward to continue with a “Net Worth” article where I tell you exactly what happened with my wallet this month… Oh well, I guess I’ll get used to it. On the other hand, I will still be sharing a lot of info about my sites, just not sharing what could hurt me.
On that topic, before I start with my update, I’d have to say that a talk I had with a well-known blogger back at the FINCON11 should have enlightened me on revealing my stuff. Since this blogger shares most of his stuff online, he admitted that a lot of people who copy his model and therefore faces a lot more competition than he used too. I was expecting this, but I never expected to create enemies… oh well, enough said! Now let’s get back to the topic of the day:
How I Survived a Pay Cut During My Parental Leave
February and March were 2 tough months in terms of personal finance since we had our 3rd child. While I experienced a significant pay cut due to my parental leave, my level of expenses increased during the same period. This is definitely not a good combination when you are trying to pay down your debts ;-).
March would have been negative as well if I hadn’t paid myself a dividend from my online company. Instead of “suffering” from the pay cut, I decided to pull a few bucks out of my company to compensate for the loss. This was great timing for a dividend because I was able to pay off about $1,500 in debt instead of growing my debt by about $1,500. Yup, this was how much my pay was cut for a month. The parental leave pays up to 75% of your salary but it is capped to a maximum pay check (which I obviously exceed).
During the same month, I decided to buy a treadmill and start working out at home instead of going to a gym. I have been working out for the past 3 years with a “man of steel” consistency. I am not afraid of training 4 days a week at home and was looking for ways to save money. So from now on, I’ll be saving about $50/month from my gym membership. The problem is that before I see this money being saved, I had to pay $600 for the treadmill. I’ll eventually buy myself a set of weights as well in order to be able to do my full work out. So far, I’ve been running 5km (roughly 3 miles) 4 days a week for the past 2 weeks. Since I have plenty of space in my basement, I can build a complete gym without taking space away from anyone else in the family. I must admit that I really like working out at home: I save time and money… it seems like the perfect solution!
In 12 Months, My Car Will Be Worth Less Than a Caramilk
When I updated my assets this month, I realized that next year, for my March 2013 net worth update, I’ll put a $0 value for my RX-8! That’s crazy isn’t it? This is because I amortize $400/month in value since I’ve purchased the car. I think it is fair as a car value should never represent the bulk of your net worth. On the other hand, I don’t think it should penalize your net worth either. This is why I’ve put an equal value to my Tribute and the loan attached to it. Since I’ve paid my RX-8 cash, I thought I would just cut $400 of value each month. The good news is that my car is probably worth about $6,000 – $7,000 today and will certainly still be worth $5,000 next year when it will show a $0 value. The day I will sell it, it will provide a small bump in my assets. But I don’t expect to sell it until it reaches 200,000 km. Since it is at 140K now and I only use it to go to work (it’s 5km away from my house), I guess I’m good for many years ;-).
When you do your net worth, do you include your car? How do you manage its value and the loan?
Here’s the detail of my net worth for March:
CHECKING ACCOUNT $1,000 $1,000 0.0%
$3,139 $3,574 13.9%
RRSP ACCOUNT $29,545 $29,167 -1.3%
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 $17,360 $16,926 -2.5%
MAZDA RX-8 $5,200 $4,800 -7.7%
TOTAL $520,102 $519,325 -0.1%
CREDIT CARD $8,287 $6,371 -23.1%
LINE OF CREDIT $19,213 $19,945 3.8%
HELOC $263,400 $263,400 0.0%
CAR LOAN $17,360 $16,926 -2.5%
Personal Loan $10,416 $10,416 0.0%
TOTAL $318,676 $317,058 -0.5%
Net Worth: $202,267 (+0.42%)
|How I Suck at Not Paying Debts||Hitting 6 Figures Income at 28|
|How I Get a Huge Income Raise Each Year||Making $125K Online in 12 months|
|How I Buy Blogs||Most Debated Articles: The Primerica Saga|
|How I Have Survived My MBA||What is So Wrong With Making Money?|
|How I run multiples blogs and makes money without burning out|