It’s time again to see how my net worth has changed since my last report back in June, 2016. From now on, I’d like to do an update every 3 or 4 months depending on whether there’s anything interesting to report or not.
Related Post: My First Net Worth Report (June, 2016)
I anticipate that there will be lots of changes in the coming months (possibly years) and I’ll explain why below.
Moving on, the point of these net worth updates are to look at how I’ve done with my finances since I published my first net worth report. I have tracked my net worth since I started my personal finance makeover in 2012 but only started publishing them publicly this year.
As I got more serious about my goal of early retirement, I felt bold actions were required to help keep myself accountable – hence publicly announcing to the internet what I’m worth!
I am aiming for non-mortgage assets worth $720,000 before I give up my career job and I’ll explain how I landed on that number in a future post.
So how did I do?
Before I get to the numbers, you’ll see that the net worth value I used in the following table below for June, 2016 ($32,931) is different from the one I posted in the actual post I published ($34,345). That’s because I added my checking account value as well as my credit card debt that I planned on paying off right away into my June, 2016 net worth calculation…oops! I shouldn’t have added those because they don’t contribute to my overall wealth. They were just a reflection of my everyday spending.
For a quick rundown on how to calculate your net worth properly, watch this video by Bridget from Money After Graduation. She helped me point out that flaw in my calculation above.
Net Worth by April, 2017
In summary, my net worth is now $28,938 which is a decrease from my last net worth report by $3,993.
Whomp… what a set back but bear with me, I can explain!
I Bought My First House
The biggest difference here is the purchase of my house in November, 2016. Here were the stats for that purchase:
- Purchase Price = $440,100
- Down Payment = $44,200 (10%)
- Interest Rate = 2.29% fixed rate over 5 years
- Amortization Period = 25 years
- Mortgage Insurance Fee (CMHC) = $9,525
- Mortgage Amount = $406,425
This bumped up both my Asset and Liabilities values and will be staying there for a while as I’m paying only the minimum on my mortgage right now. Also, I received the city assessment of my property for 2017 and it came in at $444,000 – $3,900 increase, not a bad start!
Home Buyers Plan
I borrowed $25,000 from my RRSP under the Home Buyers Plan to pay for part of my down payment. I have 15 years to pay this back and I’m planning to drag that loan out for that long – unless something changes later on.
I put that $25,000 under my “Liabilities” section because even though it’s a loan to myself, I still need to pay that back to avoid penalties for withdrawing from my RRSP.
I’m paying into a defined benefit pension plan through work. Over the course of 3 years working full-time, I was forced into saving almost $20,000 for retirement – and this is my portion only! My employer more than matches this amount; but I decided not to include their matching into my net worth.
Honestly, I still haven’t decided on how my pension will fit into my early retirement plan. I read that one reaps the most benefit from it if they work for the same company for decades. If I choose not to do that, I can withdraw the money into a Locked-In Retirement Account or leave the money until I can redeem it in retirement. But don’t quote me on the details as I haven’t researched into this too deeply. It’s mandatory for permanent full-time workers anyway and I’m holding on to my full-time hours for now.
My student loans have had to take the back burner over the events of the last few months. Between buying the house and the associated costs of moving in, I haven’t been able to keep up with my aggressive student loan payments like I wanted.
At this point, I’m paying only the minimum $370 monthly and currently am NOT on track to pay this loan off by September, 2018 as I’d hoped.
My current plan is further delayed by some new life changes below. I am just so happy that I was able to work my total student loan debt from over $40k to just over $15k in two years – a 40% progress!
Gahh… that’s a big red $22,625 I owe my ex-partner after “selling” him the 1999 Honda Civic he wanted to keep.
We find ourselves in a complicated situation because he put that money into the down payment for the house with the agreement that the house is “ours”. Unfortunately, since the breakdown of the relationship, we haven’t landed on a fair agreement for division of the house and financials.
It’s frustrating to say the least but there are lessons learned which I wish to share with you in the future. Fortunately, as difficult as this sounds, we do have several pretty good options to play… we just have to decide on one!
Life and her curveballs… just when I thought things were going well and I’m steps closer to early retirement, she spikes me one square in the face!
My ex-partner and I could not have foreseen the next events after buying the house and moving in together. I am just grateful that these problems showed up earlier than later in our relationship when things tend to be harder to fix and separate.
Net Worth = $28,938
I’m happy to still be in the green though and I’m confident this is only a temporary set-back. Once my ex-partner and I have things figured out, I can proceed on my upwards financial (and emotional) trajectory. I have built up healthy financial habits over the years and because of that, I am still in great shape with my money despite the inevitable curveballs – just another reason to start developing those habits early (save and invest, manage debts, live below your means and take advantage of work benefits).
Readers how do you manage your money in relationships? How did you (or would you) cope with relationship breakdowns and splitting finances?