A financial panic attack cost one guy thousands : October 2014 Net Worth Update (-0.06%)

STAY CALM WHEN DEALING WITH MONEY   One of the first things my wife said to me this month was “Why do we have a negative net worth statement for October?” and right then I knew she was starting into her financial panic attack mode. Don’t laugh because some people really do suffer from anxiety and in some cases a panic attack when they know their finances are potentially in danger. Some people might have grown up in families who suffered financial loss, watched their parents lose everything, low-income, suffered disability or job loss etc. which triggers financial hoarding tendencies like my wife. When I say hoarding I simply mean they struggle to let go of their money or they make sure that they have money stashed away so that they will be safe if something were to happen. There are people who are scared to let go of their money let alone have someone invest it for them or even worse investing it themselves for fear they screw up. My wife isn’t scared to that extent but she wants to know exactly what is happening every step of the way. I didn’t have to worry about her having debt […]

Why you should be your own expense manager : September 2014 Net Worth Update (+0.51%)

SOMEONE HAS TO BE IN CHARGE   If you’ve ever heard the saying “pay yourself first” it’s likely because you should. You are your own expense manager when it comes to your budget and overall household finances. I never gave much thought to it until yesterday when I was running the numbers for our net worth update for September. If you read our September budget update you’ll know we blew a heavy amount of money on a new mattress and bed. Typically we don’t splurge on ourselves because all of our money is budgeted and if we do need something like a mattress we need to justify that expense before we commit to it. You don’t need to have management skills to run your own finances but what you do need is patience and determination to make it work.   An expense manager takes charge   What is an expense manager? I know it might sound like something you’ve never heard before but if you think about it the two words are self-explanatory. I actually made it up but it holds a great weight in our household. An expense manager to us simply means someone who is in charge of […]

Are you letting free money float away? : August 2014 Net Worth Update (+0.99%)

MAKE REAL MONEY WITHOUT TRYING   I don’t have any money-making millionaire ideas up my sleeves but what I do know is that when free money is offered, I’ll take it provided it’s legal. The other day while visiting work with our son the conversation of money came up and how much it costs to raise a child. Although there is no concrete number since it depends on many factors including if you buy high-end stuff, too much stuff or are frugal with your cash. That’s only a few reasons of watching your budget grow when you have a child but we also got on the topic of pensions and RESP’s. One co-worker said he wouldn’t bother investing in an RESP if he had a child as he was going to save the money himself nor did he participate in the works pension plan. I was surprised considering how much it costs for him to get his University education however we don’t know if his education was paid in full by his parents or someone else. I know since I had to work to pay for my education I wouldn’t miss out on free money from the government for my […]

Retirement investments revisited: July 2014 Net Worth Update (+1.40%)

STAYING ON TOP OF OUR FINANCES   This month we finally sat with our financial advisor to chat about topping up our retirement investments like we’ve been planning on doing once the mortgage was paid in full. Now that we have told all of you that we are expecting our first child very soon our budget and net worth will change but we will worry about that when the time comes. Our finances are not just about us anymore so although we are planning our retirement investments we need to start thinking about Baby CBB. We will be setting up an RESP for baby as soon as we can so we don’t fall behind on any important educational investing. Most of this month’s net worth increase came from our net income because we worked some overtime and combined with last month almost net close to $20,000. The news of us having a baby has really changed our financial mindset but one thing is for sure we will be putting our money to work for us best we can. No, we don’t invest on our own and I know for some of you that is a big no, no but not […]

Achieving goals ahead of schedule: June 2014 Net Worth Update (+1.31%)

JUNE NET WORTH AT A GLANCE   It’s been a busy year so far and we are finally ahead of where we want to be in terms of achieving goals with our finances. After the ups and downs of previous months dealing with unexpected costs and circumstances we weren’t sure where we would be financially. Since running the numbers we now feel confident we can stay on track. As of December 2013 I started to log how we were doing in relation to meeting our goal of hitting the million dollar net worth mark and it stood at 6 years meaning that December 2019 would be our million dollar target date. The monthly changes moved the time frame around a little depending on how we did financially that month but nothing really jumped us ahead or behind.   Achieving goals   I have noticed in the last four months that a trend appeared where we have increased our average net worth yearly average causing our forecast of hitting the million dollar mark to happen 6 months earlier than predicted. That means we are achieving our goals faster than we expected which is great news. I would contribute this increase to […]

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