CBB Year-End Financial Report : December 2014 Net Worth Update (+1.29%)

MONTHLY NET WORTH UPDATE

FINISHING UP THE YEAR   As another year ends we look back on what occurred to make the gains we made and the losses we took a hit on with our year-end financial report. The objective of financial reporting at the end of the year helps us to create goals for the following year and to somewhat forecast where we are going financially. For the first time in our lives we have been able to say we are mortgage-free and that happened back in April/May of 2014. This was not only an achievement for ourselves but set us on the right path to save and invest even more for a healthy retirement in the future. There hasn’t been one point during the last 4 years of using a budget that we thought, this isn’t worth it. It was and continues to be the best thing we ever did for our finances. In 2014 January to December we saw a 11.34% increase in our overall net worth which is more than we ever imagined. Thrilled, you bet. Motivated… beyond belief! Below is our final numbers for the 2014 year.   Our 2014 Financial Report   Below you can click the links […]

Would you put your wealth plan on hold for the kids? : November 2014 Net Worth Update (+1.91%)

wealth plan

WHAT’S YOUR FINANCIAL STRATEGY?   A wealth plan to me is exactly what it sounds like or just a fancy way of saying retirement savings but not everyone views retirement savings equally. When CBB fan Mary pointed out an online article about a retired Maritimes couple who were digging themselves out of $145,000 worth of debt I knew I wanted to read this debt story. The couple who are both retired civil servants earned a  combined income of $90,000 and over the years paid off their $45,000 mortgage. Now, I’m the first to say that you don’t have to live the extravagant life to blow through your money. Why? Because even the small amounts of money we spend all add up. It’s very easy to go broke spending little bits here and there as opposed to losing it all by making larger purchases. You never win no matter what way your swipe the credit card. The couple had $75,000 in credit card debt which snowballed into 16 maxed out credit cards and a refinance on their mortgage for $70,000. So where did all the money go? I’m not sure if they really know but what they do know is where […]

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

Financial Panic Attack

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%)

expense manager money out the window

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%)

money float away water

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%)

retirement investments

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%)

achieving goals strategy

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 […]

Making extra cash with a part-time job: May 2014 Net worth update (+1.15%)

make extra cash

LIFE CHOICES AREN’T ALWAYS SIMPLE   It’s been one of those months for me where I’ve worked non-stop and although I’m making extra cash it’s been a month of exploring options. The good thing about our net worth update this month is that we no longer have a mortgage which is a great feeling on its own. We are also faced with something that we’ve dreamed about for many years and that’s the freedom to do what we want with the extra cash that we have. My parents purchased homes with extra money they had and now those homes are fully paid and rented so a nice portion of the rental income funds their retirement and maintaining the homes. It’s nice to see that my parents are secure financially in their retirement years and are able to travel throughout the year to destinations we could only dream of. They earn more money retired than they did working, go figure that out although they still work part-time together while they are not vacationing although they don’t consider house-sitting as work. I guess it gives them something to do which is great for them. I’m not sure if we’ll be following in […]