November 29, 2011, 5:00 am

November Net Worth Statement (-0.20%) Baby, Xmas and other considerations

by: The Financial Blogger    Category: Assets and Net Worth
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Another month has just passed and we are already thinking about Xmas shopping! I haven’t been looking at my expenses until recently when I took austerity measures in order to get back to a “black” budget. So this month has been quite challenging in terms of expenses for 2 main reasons:




Xmas shopping


Our 3rd baby




While we have been pretty reasonable with Xmas shopping this year (we give gifts to our kids), the arrival of our 3rd baby is generating tons of unexpected expenses.




But you already have 2 kids, what else do you have to buy for the 3rd one that you don’t already have????




Well, this is the problem.




A very frustrating problem.




We have to buy all kinds of stuff that we already have because they are not considered safe anymore!




Man! It’s not like we had William and Amy back in the 40’s!




Watch this; we had a problem with our stroller so we have to change it… all right $300


Our baby seat for the car is overdue (they only last 5 years !?!?!). Another $200


There was a recall on our baby crib (that we only paid $400 not so long ago!) so we can’t use it anymore! Aaaahhhh! Thank God, one of our friends kept his so we can borrow it.




So while we have tons of clothing,both our children were born during summer time and this one is due Feb 2nd. So half of the clothes won’t work… ugh!




So this is why we have been struggling between Xmas and baby shopping in the month of November. I’ve decided to sell more of my stocks to pay for these expenses in order to avoid increasing my debt level. Good news! It worked! Not going to the restaurant or ordering out for a second month in a row was a great help! It’s a bit frustrating sometimes but it is nothing compared to not paying your credit card balance in full!




As I mentioned earlier, I’ll get a pretty fat bonus this year. Even though I have to pay a huge load of tax (50%) on it, I will still have enough to pay back about $25K in debts in one shot. On top of it, I’ll be reducing the cost of transportation by about $700/month starting the last week of January. So, I’ll not only start fresh with less debts but I will also have a balanced budget that doesn’t count on a huge bonus at the end of the year to pay down my debts!


Right now, my biggest issue is to resist the temptation to “treat myself” and buy more stuff. I love to go to restaurants, dress well and do activities. I just have to lock up my wallet and ignore the fact that I’m getting this bonus. Sorry capitalism, I have to stop making the economic wheel turn and think about paying down my debts ;-).





CHECKING ACCOUNT $1,000 $1,000 0.0%
$2,699 $1,113 -58.8%
RRSP ACCOUNT $30,309 $29,581 -2.4%
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 $19,096 $18,662 -2.3%
MAZDA RX-8 $6,800 $6,400 -5.9%
TOTAL $523,762 $520,614 -0.6%





CREDIT CARD $22,342 $19,597 -12.3%
LINE OF CREDIT $19,868 $19,828 -0.2%
HELOC $263,109 $263,734 0.2%
CAR LOAN $19,096 $18,662 -2.3%
Personal Loan $11,458 $11,249 -1.8%
RRSP loan $10,000 $10,000 N/A
TOTAL $345,873 $343,070 -0.8%


Net Worth: $177,544

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Kids do cost. When we had our third I remember thinking we already have everything so we wont have to spend a thing, wrong! It is amazing how so many little unexpected things pop up on you. Congrats on the big bonus and being able to pay things off, that will really add a lot to your bottom line.

Congratulation on the 3rd kid. I have 2 brothers and it was great growing up. I agree about the car seat, we got a used infant carrier for our kid and didn’t know about the expiration date. We used it for 9 months and just got a new bigger one.
I’m sure in other countries, they will use the infant carrier for 10+ years….

You should go crazy with that big new bonus and upgrade to a Porsche 911!

Congrats on baby no. 3!

We are about to enter round 2 and it is amazing how much you need when you seemed to have it all the first time around! The pram is the big one currently, apparently ours won’t take an extra seat so we have to buy another…. I could get a decent second hand car for what they charge for them!

@KC & Retiredbbyforty,

It’s crazy how much we spend on kids, heh?

@Financial Samurai,

My Porsche payment lies within my 3 kids 😉 lol! I already have my sport car (ok, it’s far from being a Porsche) but I’m happy with it 😉

That is crazy – Who would’ve thought that car seats expire. It’s one of the benefits of not having kids. Not to rub it in or anything. 😉

What’s the interest rate on the car loan and CC? Any temptation of paying it off with your business income?


interest rate on car loan is 0.9% and I don’t pay interest on my CC since I pay it in full each month (except the month of October of this year 🙁 ). therefore, I have no incentive to pay off my debts with my business income.

Another point to consider is the growing rate of my business income as compared to my interest rate. My online income grows by more than 10% right now so unless I borrow from a loan shark, this would not be a good idea to use my extra income to pay off my debts at the moment.

Gotcha. So this month, you will pay the $19,597 in full to avoid interest? If so, that’s an excellent move!

yeah I always go back an forth with my CC and my HELOC this is how I avoid to pay the fees on the CC.

in January, I’ll be able to drop that debt to a lower level.

Also, keep in mind that if I take money out of my corporation, I’ll be paying 48% in taxes due to my marginal tax rate… this hurt!