Up and down the ladder is a good way to describe our finances this past month because money was coming in and money was going out, literally. The good news is we did break the $500,000 net worth mark which was a goal of ours. I’m not expecting any major increases in our net worth this month but that’s OK, that’s life but we’re happy with the +1.77% increase none the less. We just keep on truckin’ because that’s what we have to do but it’s been great spending some money to get renovations done around the house.
Like my mate John at Frugal Rules commented that it’s better to save up money to buy quality products instead of spending money on cheaper products. That’s essentially what we are doing with our money although paying off the mortgage is priority.
Then again there’s no sense saving money if our house is falling apart or outdated to the point that we’d have to sell for alot less than if we put some money into the home. If we come to sell it in a few years time at least I won’t be running around trying to make the house look good because I’ve already done it along the way.
I’ve seen many people who let their surroundings fall apart because they were too interested in watching the bank account grow rather than doing what is necessary to protect their kingdom. Then they cry when they don’t get what they want when they sell their house.
What do you expect though. You can’t have it all unless you have more money than you know what to do with it. Remember the story about the family who has one house, one home, 2 mortgages and a pool. Well they still have the house for sale although they dropped the price by $1000 only because it’s clear they are maxed out and can’t go any lower.
Best part is they are at the house every day fixing things, doing lawn work and landscaping when all of that should have been done BEFORE they put the house on the market and bought new. That’s what I mean about don’t be afraid to spend money, even if your bank account goes down it doesn’t mean you are worth any less.
Individual net worth is just a number not a competition or a self-defining factor on the rich and famous scale of the everyday family. It’s simply a number you should know if you are tracking your financial health in my opinion.
As you may have read in our May Budget Update our pet fell ill and that’s taking a bit of money out of the pot at the veterinarian this month but that’s OK, family first. He’s not finished yet with his visits so I suspect another big bill in the upcoming couple of weeks.
We also started the landscaping on the front yard which has run us about $2400 so far including everything although that cost will increase as I’ve had some expenses since the May budget update. The good news is all the hard work is done, now I just have to accessorize by adding plants, mulch and sod.
You will see the mortgage has dropped and that’s because as soon as we could at the end of April we dropped another 25% or $37,000 on the mortgage as our pre-payment for the year. We also decided that since we are waiting for paperwork from the UK to come in to move my money to pay the mortgage in full that we would up our weekly mortgage payment to $303, which is essentially one extra payment per month of the $243.03 regular weekly payment we used to make.
Since we also bank with President’s Choice Financial we took advantage of the promotional 2.6% interest rate on any new incoming funds into our bank accounts. It’s not the same as when I first moved to Canada because if I recall correctly it was around 3% in the savings account and dropped significantly afterwards. It wasn’t much but it’s certainly lots more than the menial percentage rates that some banks are paying.
What Does Individual Net Worth Mean?
Net Worth is a snap shot of your financial health sort of like a picture or debt to net assets. In simple terms it’s a total of the value of your assets minus your liabilities.
Figuring out net worth is fairly easy as long as you know your personal numbers or monthly finances. Net Worth is simply adding up all your assets (what you own) then taking away your liabilities (what you owe) which will give you a net worth number. Understanding your net worth will help you determine if you are on track to meeting or beating your personal financial goals. It doesn’t get any easier than that.
Do you know how to calculate your own Net Worth?
Now you can stop asking yourself , how do you find out your net worth because it’s easy to determine. Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
Our Short Term Finance/Life/Blog/ Goals 2013
- To pay off our mortgage with-in the 5 yr term ending in April 2014
- Focus on TFSA and other investing
- To Save money for smaller renovations
- Continue to meal plan, create new homemade meals
- To sow and grow more vegetables/herbs in the garden to save money.
- To take vacation somewhere in Ontario this summer
- To take this blog to self-hosted and get a redesign (happening 2013!)
- Learn more about Passive Income
- To Read a new Personal Finance Book
- Learn more about SEO and Blogging
Our Long-Term Finance/Life/Blog/ Goals 2013
- Continuing to educate ourselves on personal finance and investments
- Continue to Network with other like-minded individuals
- To finish renovating our home
- To continue with educational training to further careers.
- To save money for big renovations
- Start thinking about saving for a second-hand vehicle in the next 5-7 years
- Save up for a European Adventure in the next couple of years
- Potentially save for a second home to rent out or build/move to our dream home
Our Financial Numbers
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. We don’t care how much money others make or if their net worth is lower or higher as it’s not a competition. I hope our experiences perhaps will help guide you along your financial path towards debt freedom.
Not everyone has been given the same path in life as we are all unique in our journey. Some of you may have had to start over, go to school a second time, got divorced, lost money, lost jobs, fell ill etc but don’t let that stop you, I didn’t. Some may have been given trust funds, homes, paid educations or perks in life that gave them a kick-start to their financial journey and that’s Ok too. Remember what I said, “It’s not about how much money you make, it’s how you save it”.
Focus on YOU and Don’t let the evil eye of money jealousy or keeping up with the Joneses cloud your vision because you know what, no one cares about your money as much as you do so don’t waste your energy trying. The only reason people accumulate money no matter which way they get it is because they know how to save or invest it wisely, full-stop.
We should focus more on our own financial health and how we can make improvements utilizing some of the tips that others share. The littlest improvements should mean big strides to you. That’s how we were able to look at our finances over the years.
We do the same as we reach out to others who share their journey so we can learn from them. Money can be a great evil for some people especially for those who are negative towards their own situation. I urge you to be optimistic and little by little with your determination you too should see improvements but only if you want that to happen.
Keep the faith.
Canadian Budget Binders Financial Health
Net Worth For Preceding 12 Months
Net Worth Updates 2012-2013
- March 2012
- April 2012 (+0.94%)
- May 2012 (+1.19%)
- June 2012 (+1.17%)
- July 2012 (+1.51%)
- August 2012 (+1.67%)
- September 2012 (+1.61%)
- October 2012 (+1.91%)
- November 2012 (+0.96%)
- December 2012 (+1.76%)
- January 2013 (+1.39%)
- February 2013 (+0.75%)
- March 2013 (+1.61%)
- April 2013 (+1.42%)
- Three Hands And An Action Plan~I’m A Mom On The Go! (canadianbudgetbinder.com)
- Bust Our Budget- April 2013 CBB Budget Update #4 (canadianbudgetbinder.com)
- I Can Buy It, But Can I Afford It (canadianbudgetbinder.com)
- Working Towards A Debt Free Lifestyle In 8 Steps (canadianbudgetbinder.com)
- Financially Savvy Teen Budgets Cash Using The Envelope System! (canadianbudgetbinder.com)
Photo: Freedigitalphotos. net ddpavumba