October 19, 2010, 5:00 am

October Net Worth Statement $151,019 (-0.62%)

by: The Financial Blogger    Category: Assets and Net Worth
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I thought I was done with extraordinary expenses for 2010 but it seems not! About 2 weeks ago, I had to buy a new washer / dryer set. Why did I buy both since it was only the washing machine that broke down? Here’s how it works:

If you buy the combo, you pay $1,500, no taxes + $200 gift card.

If you buy the washing machine, you pay $1,000, + taxes, no gift card.

Since my dryer is also 10 years old and it usually takes 2 hours to dry a huge load of clothes (compared to 45 minutes with the new one), I thought I was making a good deal in changing both of them and selling my old dryer…which I yet have to do. It’s still in my basement but I have to take a picture and put it on the net. If I’m lucky, I will get $75 for it ;-D. But in the meantime, this pushes my  credit card balance a little bit further…

The good news is that I don’t expect to spend much for the next couple months (after that, it’s Xmas 😉 ). So I should be able to get my finances under control before I get my bonus in January and pay off my credit card completely. With the way things are going right now, I am not planning any major purchases in 2011 except for a central AC (that will be paid cash with my bonus). Therefore, I should be able to make my net worth grow a little bit faster.

As of now, my company shares have been one of the major reasons why my net worth increased in 2010. The problem I see with my shares is that it is only a hypothetical value. This means that it doesn’t really mean that I could get this amount of money if I was to sell my company tomorrow morning. The good news is that it generates good cash flow and pays for several expenses. Therefore, it also helps to pay off my debt faster ;-).

Right now, I am holding on to my employer stocks as long as I can.  I know that I will have to cash them in to pay for a few expenses but I try to keep them as long as possible since they are paying a good dividend and the share price continues to grow. So instead of paying off my debts at 1.99% and 1.25%, I keep my holdings paying me a fat 4% dividend yield + capital gains. Not bad, eh?

So here are the details of my assets and liabilities:

Assets: $476,685

ASSETSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CHECKING ACCOUNT $1,000 $1,000 0.0%
EMPLOYER STOCK
ACCOUNT
$4,970 $5,660 13.9%
RRSP ACCOUNT $15,465 $15,955 3.2%
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 $24,304 $23,870 -1.8%
MAZDA RX-8 $11,600 $11,200 -3.4%
TOTAL $476,339 $476,685 0.1%

Liabilities: $325,666

DEBTSPREVIOUS
MONTH ($)
CURRENT
MONTH ($)
CHANGE (%)
CREDIT CARD $7,419 $9,467 27.6%
LINE OF CREDIT $18,638 $18,595 -0.2%
HELOC $262,839 $262,555 -0.1%
CAR LOAN $24,304 $23,870 -1.8%
MBNA 1.99% TRSF $11,179 $11,179 0.0%
TOTAL $324,379 $325,666 0.4%

Total Net Worth: $151,019 (-0.62%)

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Comments

About the washer and dryer, one thing you must realize is that the decrease in drying time is probably caused more by the new washer than by the new dryer.

That’s because recent washer machines tends to spin at a higher speed. When we replaced our washer 5 years ago (for a front loader), we noticed right away a 50% decrease in drying times for big loads (down from 90 to 45 minutes), even though we had not replaced the dryer.

Still I would tend to agree that you got a good deal, since the new dryer ended up costing you just $171.

Why Heloc vs Mortgage? Is it just different up there?

by: The Financial Blogger | October 19th, 2010 (12:23 pm)

@ Frog of finance,
you just burst my bubble in regards to my dryer ;-(… glad it didn’t cost much ;`-)

@Evan,
a HELOC works as a line of credit (which means that you can borrow money at any time without having to go at the bank). when you have a mortgage, you have fixed payment and you can’t borrow money back by writing a check.

Mike,

I should have been more specific – it was odd to see a HELOC but no mortgage liability…

Your net worth is definitely an inspiration. I want one just as high, but now I’m considering renting instead of buying. Any other tips for having a high net worth without a house/mortgage?

Your home value stayed the same. How do you know it?

Didn’t realize that washer/dryer sets were so expensive…Ouch!

Hello Aloysa,

I update my house value only once a year (at the end of the year). changing it from month to month is not too realistic. I will use a 3% increase this year since the market is still very good in Quebec.

by: The Financial Blogger | October 20th, 2010 (3:52 pm)

@Briana,

I would say that building a company would be another way to build your net worth ;-D

[…] Financial Blogger presents October Net Worth Statement $151,019 (-0.62%) posted at The Financial Blogger, saying, “A net worth update for the past […]

[…] Financial Blogger presents October Net Worth Statement $151,019 (-0.62%) posted at The Financial Blogger, saying, “A net worth update for the past […]