What’s better than a few days off? I guess nothing!
It has been a little bit over a week that I haven’t opened up my laptop to write an article for my blogs. I wasn’t really on vacation per se since I was in a training course for work. The problem is that I usually blog in the morning and I didn’t have a single spare moment last week to write anything. I thought I would look at it on the bright side and see it as a week off from blogging. This is usually good for my level of inspiration!
I decided to start my week of writing with my quarterly net worth update. I’ll also update my 2013 personal goals at the same time.
My net worth barely budged over the past three months. My assets are sitting slightly under $566K but there were some movements. I cashed out some of my employer stocks (which is part of my plan to pay off debts)… but to invest in our new project; my wife’s daycare. We needed a few things (furniture, toys, paint) before we could open up in September. This is why we decided to take about $2,000 and invest it in this project. Since my wife is expected to earn roughly $2,000 in net income (after expenses and taxes) per month, this will be repaid by the end of September already. After this point, most of this extra income will be directed towards our debts to achieve our main financial goal for 2013: dropping under 300K in debts. When you want to make more money, you should never hesitate to invest. You don’t need a lot, but you often need money to make money.
The second major change in my assets is the gain in value of my pension plan. I received my update as at December 31st 2012 and my value is now up to $33,386 (from 26,131). Since it is a defined pension plan (e.g. the employer will pay me a fixed pension at retirement), this is an actuarial value calculated in the event I would leave my employer prematurely. Each year it goes up by 5-7K so it’s always nice to receive my booklet to update my net worth!
Unfortunately, we also had to update our company shares. Since there was a small drop in income compared to last year, the share value dropped accordingly. The method we used to calculate what our company is worth is quite simple:
Average of past 12 months of gross revenue * 36 months – debts + cash in bank account
This enables us to follow our progression and plan for the future. On the other hand, I have no desire to sell so this is definitely a virtual value. Fortunately, this drop of value was compensated by my pension plan so it doesn’t really affect my total net worth.
I opened my TFSA account to fund my children’s private education once they reach high school. Since I still have debts to pay off, I’ve started investing $50 every two weeks. I continue to use the “pay yourself first” method to fund my children’s education. So far, it is going pretty well since I struggle to pay off my debts, but I make sure my kids will have enough funds to study what they like without bothering with money. Opening a TFSA this year was another of my personal goals, yeah!
Here are my assets & liabilities as of July 2012:
CHANGE (%) CHECKING ACCOUNT $1 000 $1 000 0,0% EMPLOYER STOCK
$2 507 $3 853 53,7% RRSP ACCOUNT $35 573 $37 734 6,1% RESP $2 003 $2 633 31,5% PENSION PLAN $26 131 $26 131 0,0% HOME $351 640 $351 640 0,0% COMPANY SHARES $131 521 $131 521 0,0% MAZDA TRIBUTE $12 586 $11 284 -10,3% MAZDA RX-8 $800 $- -100,0% TOTAL $563 761 $565 796 0,4%
CREDIT CARD $6 831 $5 092 -25,5%
LINE OF CREDIT $19 597 $19 918 1,6%
HELOC $263 015 $262 803 -0,1%
CAR LOAN $12 586 $11 284 -10,3%
Personal Loan $8 333 $7 916 -5,0%
Pool Loan $5 370 $5 290 -1,5%
TOTAL $315 732 $312 303 -1,1%
I’m a little bit disappointed (once again!) about my debts since it didn’t go down by much. Since we used about $2,000 to build a nice day care, I can always find solacethat I don’t owe this money. Still, I was looking for a little bit more in terms of debt repayment. At least, I know that my bonus will be big enough to cover at least 6K in debt repayment in January. Therefore, I need to concentrate on finding the next 6K and I have almost 6 months to do it. I think it’s a realistic, especially since my wife will be earning extra income from the daycare.
It sucks that she has to go back to work in the near term but it’s good to see this money coming!
Another of my personal goals for 2013 was to lose weight. I was showing 193 lbs in January and am now down to 185 lbs. I wish I could drop under 180lbs by the end of the year but this will require a lot of work and constant healthy eating habits!
In order to achieve my weight loss goal, I decided back in January to run at least 10 miles per week. I thought that by running 500 miles for the year (I’m giving myself 2 weeks of vacation), I should be able to lose weight. So far, I am holding on with 293 miles ran in 28 weeks. I’m even running a few extra miles to not fall behind. The key is really to run at least 3 times a week for a minimum run of 3 miles each time. This is good as I burn fat while I gain muscle at the same time.
My last two yearly goals are really linked to each other: I am aiming at a total income over $150,000 and want to go to Hawaii in 2014. So far, I haven’t done anything to put money aside for Hawaii but I’m working very hard on making over $150K. I need to make a bonus around 30K to make it happen and I’m right now expecting 15K if the year would end today. Since we are half way in our year, this still all makes sense. I just need to keep working harder to make it happen!
This is one thing I love about my blog is that I can track my goals publicly. It adds up to accountability and make me work hard to achieve them! Do you track your goals? How are you doing so far?
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