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:
CHECKING ACCOUNT $1,000 $1,000 0.0%
$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%
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%)