Ahhh… when assets are stronger than liabilities, I love that. Unfortunately, the situation is not always perfect. As I am writing this article about my net worth, I realize how hard it is to understand what I am doing right now; my debts are growing and my assets are “virtual”.
Why do I say that? Because while I now report total assets over half a million dollars; 20% of it is in my online company shares. Going back to our annual meeting, we have decided to increase the value of the company shares from $150,000 to $196,000 (I own 50% and my business partner holds the other half). As my RRSP’s are going down this month (thx to my heavy position in RIM… yeah I know, you told me to short it…), my house and pension plan are stable, the only real increase is coming from my company shares “virtually” going up.
On the other hand, if I had to sell my company as a whole or separately, I know I would sell it for way more than 200K. Therefore, I am comfortable to give it such a conservative value.
I also continue to put roughly $500/month in my employer’s stock… This will be cashed out at one point in time in order to pay off a part of my debt.
Speaking of which, my debt is rising…once again. But this time, it is more substantial. Why am I still spending more than I earn? Because April was a big month:
- I did some landscaping
- I paid for a part of my central A/C
- Part of my municipal taxes were due in April
- We had several birthdays to celebrate
Once I will be done paying off my A/C, I will add the same value to my house as it will really be a plus if I would be selling it tomorrow. In April and May, I am spending money that I will earn in June-July. I know for a fact that I have a great bonus coming in so this is why I am not too worried. Remember, 30% of my annual income is coming from my bonuses. On top of that, my net income has increased as of my last pay check since I have paid the maximum for Quebec Pension Plan and unemployment insurance.
I also paid off my credit cards with a personal loan. I did this for 2 reasons:
a) The low interest rate was ending soon
b) I need to pay this debt down and I wasn’t doing a great job with the credit card
This is why I thought that having a loan with a fixed payment would help. While the second part of the year will be better than the first part in terms of debt reduction, I definitely need to set my finances in order to start paying off my debts .
In May, things won’t get any better as I will probably have to pay the balance of my A/C (which is 4.5K). Then, I’ll be able to breathe .
Here are the tables:
CHECKING ACCOUNT $1,000 $1,000 0.0%
$5,332 $5,774 8.3%
RRSP ACCOUNT $23,685 $22,175 -6.4%
PENSION PLAN $12,000 $12,000 0.0%
HOME $338,640 $338,640 0.0%
COMPANY SHARES $75,000 $98,000 30.7%
MAZDA TRIBUTE $21,700 $21,266 -2.0%
MAZDA RX-8 $9,200 $8,800 -4.3%
TOTAL $486,557 $507,655 4.3%
CREDIT CARD $11,779 $14,870 26.2%
LINE OF CREDIT $19,348 $19,348 0.0%
HELOC $261,214 $264,348 1.2%
CAR LOAN $21,700 $21,266 -2.0%
Personal Loan $9,500 $12,500 31.6%
TOTAL $323,541 $332,332 2.7%
Net Worth: $175,323
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