I was half excited, half scared to write this article. Since I don’t track my debts anymore, I was hoping that my balance sheet would look better after the first three month of 2013. Since we have come back from Disney, we are very cautious about our budget. I’m glad it’s paying off! Here’s my net worth statement:
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%
I must admit that my assets were helped by the great bull market. My RRSP gained 6.1% in value since I made my contribution in January. This is all paper profit but we are going to take it for now J. I’m very happy about my Dividend portfolio and my investing strategy is now paying off big time.
My employer’s stock keep going up as I invest $603 per month in them (part of it is paid by my employer). My goal is to wait as long as possible before cashing them out and paying off more debt with them. I’m allowed to withdraw 75% of the total of my shares annually and still keep the plan up and running. If I can make till the end of the year, I should have around $9,000 in this account. At 75% of the value, this is another $6,750 I could put on my debts. So this is obviously a big part of my plan of paying down $16,000 in debts this year.
I didn’t update my pension plan as I will probably receive my “employee booklet” in May with the new value. As for the online company shares, we will use the same method to value them in a few weeks (3 times the annual gross income – debts). I expect the value to be similar as our gross income slightly dropped over the past 12 months while our debts are down too.
As for my house, my biggest asset, I do not plan on increasing the value in 2013. I’m definitely concerned about the housing market in Canada and I would not be surprised if we take a 10% hit during a price correction. This is why I keep my house undervalued in my balance sheet. If I had to put it for sale today, I would probably list it around 375K and sell it around 365K.
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%
Yippee! I’m down by almost $3,500 since my last update! The original plan is to pay off $16,000 this year. This makes for an average of $1,333 per month to pay off. After three months, I’m only $500 behind my main goal while I’m putting money aside in my employer stocks. Technically, if I can keep up and not use my employer’s stocks until the end of the year, I only need to pay $770 of debts per month to reach my objective. With this number in mind, I’m way ahead of my debt repayment plan!
I must admit that my tax return had played a great deal in the equation this year. I’ve accounted for the checks I’ll be receiving in a few weeks in this update as I received confirmation from my accountant about two weeks ago. I will be using my whole tax return to pay off debts and this is why I show such strong figure. If I forget about my tax return, I would be showing a smaller debt repayment of about $1,200.
When I take my tax return out from the equation, my debt repayment plan seems to be in a slump. But this could be explained by the fact that my income in this beginning of the year is a lot smaller than last year. Since we are aggressively paying down our corporate debts, I haven’t taken any dividends from my company. I used to pay myself a few hundred per month to keep up with my budget. I don’t have this money anymore. So I’m spending less, but I’m also earning less money too!
The good news is that starting in May, I’ll be done with a part of my taxes taken from my pay check. I will reach the maximum for pension and unemployment contributions. Therefore, my pay check will bounce up by $200 net bi-weekly. In addition to that, a small raise should be coming in June. This should be enough to bring back my budget on track and add more money to my debts.
I will also start a TFSA account to fund my kids private school tuition. I want to send my kids to a private high school and my older son will reach high school in 5 years. I wish to put $100/month in this account for now so I can have a small buffer of two years when he enters school.
Another of my goals for 2013 was to lose weight. On January 1st, I stepped on the balance and showed 196 lbs. This is definitely way too much for a man who’s 5’9’’! My plan to lose weight was similar to my plan to pay off my debts: concentrate on doing more activities (or more cash) and try to improve my eating habits (and my spending habits!).
I can say I’ve done a better job at dropping down my debts and eating less! I’m now trying to be careful throughout the week and eat what I want over the weekend. However, I’m darn steady with my workout program. My goal is to run 500 miles in 52 weeks. Considering vacations, it’s like running 10 miles per week.
After 12 weeks, I’m showing a total of…. 126 miles ran! It was hard at first since I was lagging with my plan due to my Disney vacation but I didn’t want to bring excuses on the table. Now that I’ve stabilized my running schedule, I started to lift weights again. I now run 3.2 miles 4 times a week + 25 minutes of weight lifting each time.
I weight myself each week to have an idea of where I’m heading. My weight is going up and down mainly due to my eating habits (plus wine over the weekend obviously!). However, I’m proud to say that I’m now showing 186lbs so I’m down 10 lbs in12 weeks. Ultimately, I would like to reach 170-175lbs. Another 16 pounds in 40 weeks seems achievableJ.
If I can simply cut down on wine I would probably reach 2 objectives at the same time: losing weight… and losing debts! Hahaha!
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