September 2012 Net Worth Update Canadian Budget Binder

If you are a new fan here at Canadian Budget Binder I post our household Net Worth and Budget Update once a month. This isn’t a page where you will find celebrities with the highest Net Worth, far from it. We are just a normal couple who make an average salary and want to know where we stand each month.

What does Individual Net Worth mean? Net Worth is a snap shot of your financial health sort of like a picture. It’s a total of the value of your assets minus your liabilities. Posting our financial numbers is about showing others how budgeting has worked for us. It also helps us stick to our 2012 goals and budget.

Who’s the Man behind Canadian Budget Binder?

My name is Mr. CBB and I’m the frugal guy that does all the talking around here. Yes, some women think Frugal Men are Sexy and I’m here to show you how to spot one! Well not really but I’m sure you will have a good idea just by reading posts I’ve written around this blog.

I enjoy communicating with my fans daily and learning from them as well as sharing our financial triumphs and failures. I’m easy-going with a sense of humour and like to keep the conversation fun!! If you don’t understand British slang, well get used to it because I’m not changing for anyone!

There is also a Mrs. Canadian Budget Binder although she likes to hide in the background and do her own thing.

Together we are Canadian Budget Binder. We started our Canadian Budgeting Journey to lead us towards a happier financial future.

We’re in our mid-thirties residing in the Greater Toronto Area. Contrary to popular belief we do not hide away in our home and rattle the calculator whilst sipping milk and eating cookies we got free by using a coupon for entertainment. (I actually make my own cowboy quickies, better than any bagged cookie I’ve had) We do like to get out and enjoy life and a healthy lifestyle is part of our daily routine. Keeping fit on a budget is a great stress reliever and most exercise methods cost just about nothing, like running.

What we do? 

Every month I post our finances for all to see although we remain anonymous for the obvious reason. We do this to hold ourselves accountable for our actions. I enjoy learning from others who enjoy finance and taking care of their future before the future takes care of them.

No one will have the magical answers for your financial situation, you need to figure out what’s right for you. I can’t tell you what’s right or wrong, all I can do is tell you what worked for us. After all I’m not a finance professional and you should consult with one when dealing with your own money, just like we do.

I blog at Canadian Budget Binder to encourage, motivate and help others who think that budgeting is a waste of time and can’t help them out of debt. I also like to connect with people who believe a budget is what they need to get back on track and are positive about getting back on track.

If you aren’t serious or don’t understand the reality that budgeting is important than don’t waste your time. It doesn’t matter if you owe money, you need to see the numbers every month. Don’t make budgeting seem as if it’s only for people who are not in debt, because that’s the wrong way to perceive it.

How To Determine Net Worth

Realize that no one can snap their fingers and make your debt disappear. My update is to show the fans that they too can in fact calculate their Net Worth with a simple Calculation. Figuring your Net Worth is not hard it’s just a step in the financial process that comes together as long as you have all of your numbers ready. When budgeting anything is possible, we are proof of that although we still have a long way to go in our journey.

These are our numbers and our goals, not a means of comparison towards your own goals. I hope what I post for you, the fans, about our experiences perhaps will help guide you along the path towards debt freedom. Sometimes seeing the numbers is what it takes to kick it into high gear like it did for us. I encourage you to learn what your numbers are and make them work for you.

We are firm believers that….. If we want to save money, enjoy the present and live a comfortable retirement then we have to spend less than we earn, pay off our debts and build a retirement savings that will suit our projected retirement lifestyle.

“It’s Not About How Much Money You Make It’s How You Save It”-Mr. CBB

“Money is Money, Debt is Debt, A Budget is SMART”-Mr. CBB

Canadian Budget Binders Financial Health

Let’s see how we did in September!

We didn’t do as well as the past month but that’s ok because we were doing some extra work on the side that brought in some income that we don’t normally get. We are thrilled that we are only $2954.60 away from having enough cash to pay our mortgage in full and become debt-free in our mid- thirties. We essentially could do this now using our TFSA but we would rather not as we will continue to build that as our Emergency Fund once the house is paid. We also want to build up some extra cash on the side just in case we need it, approximately $3000.00.

I’m also hoping to get this blog self-hosted so I can finally let all the advertisers who are banging on my door in. I hate to say I can’t advertise when all these companies want a piece of the action so stick around to see where we take Canadian Budget Binder from here.

We don’t want to have to pull our TFSA unless it’s a dire emergency. Once our mortgage is paid we can take the accelerated mortgage payment of $1329.xx each month and save it or invest it. I’m still learning about investing and would like to one day dabble in some investments on my own but until then I will keep on learning. How did you start investing on your own and what advice do you offer?

Our Monthly Finance Goal(s)

  • To save as much money as we can while we are young to save for retirement while enjoying the present.
  • To spend less than we earn to carry out the above.
  • To lower our Grocery Budget with The Grocery Game Challenge and if you want to improve yours play with us!
Our Short Term Finance/Life Goal(s)
  • To pay off our mortgage with-in the 5 yr term ending in April 2014 and potentially save for a second home to rent out or our dream home.
  • Max out our TFSA and RRSP each year (still working on this)
  • To have a baby
Our Long-Term Finance/Life Goal(s)
  • To finance our retirement as best we can by continuing to educate ourselves on finance and investments.
  • To finish renovating our home.
  • To  sow and grow more vegetables/herbs in the garden to save money.
  • To learn how to be more self-sufficient in the kitchen so we can eat healthier and save money by cooking from scratch,canning,baking.
  • To continue to educate with further training so we are on top of our game when it comes to our careers. When you stop learning everything else stops.
  • To turn this blog into a self-hosted money-making machine (OK, it sounded good when I was typing it and I’ve given my head a shake) but yes I want to row out on my own.
  • To travel around Ontario and Europe.
  • Canadian Budget Binder Assets:
    • Chequing Account/ Cash-$460.00 We prefer to keep a buffer in the account. Current $816.26
    • Savings Account-$3330.45 This is the account we use for our projected expenses
    • Emergency Savings #1-$90,821.21
    • Emergency Savings #2-$63,200.00
    • Pension(s)-$29,101.61 (part of this goes up and down as it is invested in the UK ) Exchange rate is at 1.58 compared to 1.57 in August.
    • Registered Retirement Savings Plan (s) (RRSP)-$57,234.67
    • Tax Free Savings Account (s) (TFSA)-$16,836.68
    • Vehicles-$15,000.00 (I will update this once per year)
    • Principal Residence-$329,000.00 (I will update this once per year) 2012 MPAC assessment came in just under this at $319,000.

    Total Assets: $605,340.88

    Our Liabilities:$156,975.81 (mortgage)

    • 17.66 years left to pay 3.99% 5yr fixed rate (Goal is to pay off by end of 5 year term 2014)
    • $605,340.88 (Assets)-$156,975.81 (Liabilities) =$448,365.07
    • Our Total Net Worth: $448,365.07
    • Our Net Worth in September $448,365.07-August $441,256.94= +$7108.13
    • Our Net Worth since August 2012 has gone up by +$7108.13

    Do you know how to calculate your own Net Worth? Why not go ahead and calculate your own using our Free Tool Net worth Calculator (Canadian Budget Binder 2012)

    I welcome all suggestions and tips on our Net Worth Update. If you wish to ask me a question privately you can click here.

    Are you NEW to Canadian Budget Binder?

    If you are new Start here!

    Do you have a Question for Mr.CBB please click HERE to ask him!

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    You can also subscribe to Canadian Budget Binder so you don’t miss a blog post. Fill in your email address on the HOME page of the blog off to the left where it says “Subscribe Via Email”- No Spam, I promise!

    Are you on Mr.CBB’s Blog Roll? Check HERE… if not and you want me to check out your blog and add you to my ever-growing blog roll simply click here and fill out the form. Introduce yourself and lets LINK UP!

Photo Source: Copyright (c) <a href=’http://www.123rf.com’>123RF Stock Photos</a>

Mr. CBB
I’m from the UK and now a recent permanent resident in Canada. I bought my first house at the age of 21 after University then my second at the age of 24. I’ve always been fascinated with personal finance, savings, learning to make money and watch it grow while combating debts along the way. Canadian Budget Binder is a place where I get to share my experiences with personal finance and learn about yours along the way. I hope you stick around and check me out on Twitter, Facebook and Pinterest where I am active on all social media sites. Cheers, Mr.CBB
Mr. CBB
Mr. CBB

Comments

  1. mycanuckbuck says:

    Wow! I am so impressed by your financial situation – you are in amazing shape! Can’t believe you will have enough cash to pay off your mortgage (if you want to). That’s an amazing feeling to have.

  2. John S @ Frugal Rules says:

    Great job Mr. CBB. I whole heartedly agree on a budget, it’s the way to go in my opinion. Otherwise, how’re you going to know where your money is going?

  3. Mary F Campbell says:

    Mr CBB, do you know how you increased the net worth? It might be interesting to show others how you grow your net worth. For example:

    New money added to Emergency Savings
    New money added to RRSPs
    New money added to TFSAs
    New money added to Pensions
    New money applied to Mortgage reduction
    New money in Chequing
    New Money in Savings Account
    Appreciation/Depreciation on home (annually)
    Appreciation/Depreciation on cars (annually)
    Investment Income & Interest Earned – Emergency fund 1
    Investment Income & Interest Earned – Emergency fund 2
    Investment Income & Interest Earned – RRSPs
    Investment Income & Interest Earned – TFSAs
    Foreign Exchange Income/Loss on Pension

    Total Net Worth Increase/Decrease this Month
    Total Net Worth Increase/Decrease this Year

    % increase in portfolio this month
    % increase in portfolio this year

    The reason that I suggest adding these categories to your analysis are:

    1. I think it would make this posting more meaningful to both yourself and Mrs CBB as well as your fellow bloggers. It’s nice to know how much your net worth increased or decreased but we don’t see what made up your increase/decrease so we really don’t know how you got there.

    2. For yours & Mrs CBB’s best interest, it is important to see what categories of your portfolio are performing well and what areas need more attention because their rate of increase per month/year is not satisfactory to you. You may choose to evaluate your holdings and possibly even adjust a few of your holdings.

    This is just a suggestion, it’s entirely up to you if you decided to adopt the methodology. You are doing a lot of number crunching already but if all that work could be even more meaningful, your time might provide even better results for you and Mrs CBB over time!!

  4. Congrats – can I ask what type of instruments you keep your emergency savings 1 & 2 in? That seems like a LOT of cash to have on hand, so I assume it’s something else?

  5. I second that Wow! You guys are doing amazingly well! Congrats you Financial Idols! I dream of being half as financially successful as you guys.

  6. Wow, sir…well done. Adding $7100 in a month to your net worth is truly an impressive feat! Enjoy your weekend Mr. CBB!

  7. Way to go Mr. CBB. I had a pretty good month in September as well, but not quite as successful as yours was. I’m most surprised with how much assets you have. Looking forward to the day when I’ll have $600K in assets too :D.

    • Thanks.. we’ve been working hard at it our entire life. It’s almost odd to think we’ve been frugal all our life but sadly we could have saved much more knowing what we know today. I always say to look to those that have been there done that, listen and learn… for some reason. I always shake my head when I make it to their age thinking, why didn’t I do that. Thanks for dropping in mate. Mr.CBB

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