November 24, 2010, 5:00 am

November Net Worth Update; Lifestyle Inflation Still There (-3.93%)

by: The Financial Blogger    Category: Assets and Net Worth
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My situation is not that bad. In fact, I am not worried at all about my financial situation. However, I got a reality check over these past months and I just hit my first financial bump in a long while. Opening my eyes this morning was like pulling out an old pair of jeans that you really like but that you have completely forgotten in your closet. You get all excited to wear it with your favorite shirt… until the moment you realize that you have gotten fat and the jeans don’t button up anymore… you are not going to die because you are too fat, but you certainly need to do something if you want to fit into this pair of jeans again. This is how I feel ;-).

Last month, I got hit by the washer and dryer. During the same month, I also decided to write my will (yes, it wasn’t done yet!). And finally, at the beginning of November, I finally received my welcome taxes along with the rest of the municipal taxes for the year (that totals $5,000). Since I recently moved into my new house in June and bought a second car during the same period of time, this 6 month period before my bonus (in January) has exposed my financial vulnerability.

The good news is that it is a temporary vulnerability. While my credit card bill is still high and I have sold most of my employer shares to pay off my taxes (the goal of buying my employer shares is to pay my taxes by the way), I know that I’ll be getting a good lump sum bonus mid January. While I don’t know the exact number yet, I have a pretty good idea of what is coming to me.  And this is enough to pay off my debts and let me breath again ;-).

So while I am going under the bar of 150K net worth, I know that I’ll be jumping over the bar shortly. In fact, I have a few reassessments to do and will be receiving money in the upcoming months:

December: I’ll increase the value of my house according to inflation (2%).

January: I’ll get my end of year bonus (probably around 10k after taxes).

Spring: Around the month of March, we receive our pension plan valuation, since I’m working with 2008 values, my guess is this will make a good jump as well.

But the most important part will be to not buy more stuff ;-). I’ll make sure to concentrate on paying off a good part of my debt in 2011… it’s about time, isn’t?

Assets: $473,464

ASSETSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CHECKING ACCOUNT $1,000 $1,000 0.0%
EMPLOYER STOCK
ACCOUNT
$5,660 $1,639 -71.0%
RRSP ACCOUNT $15,955 $17,589 10.2%
PENSION PLAN $12,000 $12,000 0.0%
HOME $332,000 $332,000 0.0%
COMPANY SHARES $75,000 $75,000 0.0%
MAZDA TRIBUTE $23,870 $23,436 -1.8%
MAZDA RX-8 $11,200 $10,800 -3.6%
TOTAL $476,685 $473,464 -0.7%

Liabilities: $328,379

DEBTSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CREDIT CARD $9,467 $9,935 4.9%
LINE OF CREDIT $18,595 $19,577 5.3%
HELOC $262,555 $264,914 0.9%
CAR LOAN $23,870 $23,436 -1.8%
MBNA 1.99% TRSF $11,179 $10,517 -5.9%
TOTAL $325,666 $328,379 0.8%

Total Net Worth: $145,085 (-3.93%)

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Comments

I like reading you cause you make finance easy to understand. But I’m still not an expert. So I was wandering, is there a big difference between 100K net worth and 150k net worth other than personnal achievement? You seem to be a bit disappointed being “under the bar of 150K net worth”. Are they any consequences to that in a financial point of view?

I’m not trying to be really rude but I find it hard to believe that you’re some kind of expert in the financial field with all the debt you have. Credit cards, LOC, HELOC, etc. If you were so smart with your money, why do you have so much debt?

by: The Financial Blogger | November 24th, 2010 (9:12 pm)

@Vero,

It’s more like a personal goal to get to 150K and then 200k and so on. It’s my way to keep track of my overall budget. If my networth increase years after years, I know that I am doing my things right.

@ Other TFB,
I don’t mean to be rude, but you can use another name to comment 😉

At the age of 29, I don’t know many people who can claim that have a networth of 150K. I am not like many people who don’t like debt. If you can manage your debt to create more assets, I don’t see the problem. In the span of 5 years, I went from $0 net worth to 150K. Look at what will happen in the next 5 years and you will understand my way of thinking 😉

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did you dip in to your employer stock account or did the stock value plunge on you? (-71%).

And the CC balance. shame on you. 🙂

by: The Financial Blogger | November 28th, 2010 (2:51 pm)

I did dip in my employer’s stock to pay off my municipal taxes.

credit cards…. they will be paid off on January ;-0

Fantastic work TFB, however I disagree with you! You are way above the 150K mark. You fail to add your online empire – it is worth something.

by: The Financial Blogger | November 30th, 2010 (8:30 am)

@ Evan,

the problem is that I did. I just value it at 150K, so 75K for me and 75K for my partner. It’s pretty conservative but I feel better this way 😉