March 27, 2012, 5:00 am

March Net Worth +0.42%

by: The Financial Blogger    Category: Assets and Net Worth
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After telling you that I won’t be disclosing all my blog income info yesterday, it feels awkward to continue with a “Net Worth” article where I tell you exactly what happened with my wallet this month… Oh well, I guess I’ll get used to it. On the other hand, I will still be sharing a lot of info about my sites, just not sharing what could hurt me.


On that topic, before I start with my update, I’d have to say that a talk I had with a well-known blogger back at the FINCON11 should have enlightened me on revealing my stuff. Since this blogger shares most of his stuff online, he admitted that a lot of people who copy his model and therefore faces a lot more competition than he used too. I was expecting this, but I never expected to create enemies… oh well, enough said! Now let’s get back to the topic of the day:


How I Survived a Pay Cut During My Parental Leave


February and March were 2 tough months in terms of personal finance since we had our 3rd child. While I experienced a significant pay cut due to my parental leave, my level of expenses increased during the same period. This is definitely not a good combination when you are trying to pay down your debts ;-).


March would have been negative as well if I hadn’t paid myself a dividend from my online company. Instead of “suffering” from the pay cut, I decided to pull a few bucks out of my company to compensate for the loss. This was great timing for a dividend because I was able to pay off about $1,500 in debt instead of growing my debt by about $1,500. Yup, this was how much my pay was cut for a month. The parental leave pays up to 75% of your salary but it is capped to a maximum pay check (which I obviously exceed).


During the same month, I decided to buy a treadmill and start working out at home instead of going to a gym. I have been working out for the past 3 years with a “man of steel” consistency. I am not afraid of training 4 days a week at home and was looking for ways to save money. So from now on, I’ll be saving about $50/month from my gym membership. The problem is that before I see this money being saved, I had to pay $600 for the treadmill. I’ll eventually buy myself a set of weights as well in order to be able to do my full work out. So far, I’ve been running 5km (roughly 3 miles) 4 days a week for the past 2 weeks. Since I have plenty of space in my basement, I can build a complete gym without taking space away from anyone else in the family. I must admit that I really like working out at home: I save time and money… it seems like the perfect solution!


In 12 Months, My Car Will Be Worth Less Than a Caramilk


When I updated my assets this month, I realized that next year, for my March 2013 net worth update, I’ll put a $0 value for my RX-8! That’s crazy isn’t it? This is because I amortize $400/month in value since I’ve purchased the car. I think it is fair as a car value should never represent the bulk of your net worth. On the other hand, I don’t think it should penalize your net worth either. This is why I’ve put an equal value to my Tribute and the loan attached to it. Since I’ve paid my RX-8 cash, I thought I would just cut $400 of value each month. The good news is that my car is probably worth about $6,000 – $7,000 today and will certainly still be worth $5,000 next year when it will show a $0 value. The day I will sell it, it will provide a small bump in my assets. But I don’t expect to sell it until it reaches 200,000 km. Since it is at 140K now and I only use it to go to work (it’s 5km away from my house), I guess I’m good for many years ;-).


When you do your net worth, do you include your car? How do you manage its value and the loan?


Here’s the detail of my net worth for March:



CHECKING ACCOUNT $1,000 $1,000 0.0%
$3,139 $3,574 13.9%
RRSP ACCOUNT $29,545 $29,167 -1.3%
PENSION PLAN $20,218 $20,218 0.0%
HOME $345,640 $345,640 0.0%
COMPANY SHARES $98,000 $98,000 0.0%
MAZDA TRIBUTE $17,360 $16,926 -2.5%
MAZDA RX-8 $5,200 $4,800 -7.7%
TOTAL $520,102 $519,325 -0.1%


CREDIT CARD $8,287 $6,371 -23.1%
LINE OF CREDIT $19,213 $19,945 3.8%
HELOC $263,400 $263,400 0.0%
CAR LOAN $17,360 $16,926 -2.5%
Personal Loan $10,416 $10,416 0.0%
TOTAL $318,676 $317,058 -0.5%


Net Worth: $202,267 (+0.42%)


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“When you do your net worth, do you include your car? How do you manage its value and the loan?”

I just didn’t bother with it all. When I had a loan it was a clear negative but I just never put the corresponding asset. Was I underreporting? Maybe but who cares as long as you do it consistently. I’d rather keep my net worth lower than inflate it higher with assets I am not likely to sell at a moment’s notice (Car/House/Wife’s Jewelry)

When I do my net worth, I treat my cars value as zero. My cars are old and only have marginal value anyway. If I were to include the cars, I would use a Kelly Blue Book and use the wholesale value.

by: The Financial Blogger | March 27th, 2012 (8:11 pm)


Selling wife’s jewelry… hum.. interesting way of paying down debts 😉 hehehe!

I’m trying to make a realistic portrait, not always easy. On the other side, The Canadian Black Book (equivalent to Kelley Blue Book) says that my car worth about 8K (asking price) or 5K (exchange value). at 4,8K and decreasing by $400 every month, I’m sure I’m giving a fair value!

[…] I’m proud of my numbers, but they won’t impress you like Crystal’s at Budgeting In The Fun Stuff or Mike at The Financial Blogger […]

My car, named Moose is priceless! As such, I enter a conservative $1 million for him 🙂 J/k.

Nice to see you were able to pay yourself a dividend from the company. How is that taxed btw? As normal income, or hopefully no tax!

by: The Financial Blogger | March 30th, 2012 (10:05 am)

lol! that must be a cool car 🙂 hahaha!

Dividend are taxed at roughly 33%, it’s better than my marginal tax rate (45%!) but not ideal either…

I see! Well, if you are saving 12% through dividends, you might as well dividend that money to yourself all day long right?!

by: The Financial Blogger | March 30th, 2012 (10:42 am)

I rather keep most of my profit within my company to reinvest for now.