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?
CHECKING ACCOUNT $1,000 $1,000 0.0%
$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%
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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