Our mortgage amortization schedule is going in the bin: March 2014 Net Worth Update (+0.75%)

 amortization schedule dust pan NO SWIFFER NEEDED JUST A FIRE PIT

 

Yes, that’s right no more checking the amortization schedule on our mortgage to see how far we have come and costs involved with our mortgage.

The time is very near where we start the fire and light up those mortgage papers to say good-bye and good riddance.

Although the last few months of our budget have been filled with unexpected expenses we are still on target to say goodbye to our mortgage, for good.

Next months Net Worth update should be titled, Mortgage free at last…. or something to that effect lol. It’s been a long 5 years in this house but it was worth the sacrifices of using the budget (which is free if you want to download it) to save the money for all the necessities we’ve needed so we can be mortgage free before 40 years of age.

Although we’ve had the money for close to a year to pay the mortgage the exchange rate for the UK is at an all-time high since I moved to Canada back a few years ago now.

I’m pulling the money I have over there while I can. The last thing I want is to lose thousands more dollars because something happens with the exchange rate which to me is just as risky as investing your money.

Sure back in early 2007 my money was worth well over double when I came to Canada and I was loving every minute of it. Don’t let that excitement get you too cozy though because what goes up will come down and that is what we learned. Even though we’ve lost money since then and learned lessons along the way we know now that we still made the right decisions to wait it out.

I won’t get too much into it as I’ll save the juicy details for next months post.

 

We have a buyer

 

The interesting news for this month is that we received a letter from a real estate agent who has buyers for our home. I guess all my fancy landscaping and outside maintenance really does look swanky. See, landscaping on a budget can be done and impress even strangers into wanting to buy your home even if they haven’t been in it.

We’re not too surprised since we live in a sought-after area and our street is compiled of affordable family homes for most younger couples. The agent wants to bring the couple through our home for a private viewing to make sure the inside is as nice as the outside but it’s not finished yet.

We are upgrading pretty much everything and so far it looks 100x better than what we bought it for but with minimal investment. Keeping your house clean, fresh and updated doesn’t have to cost lots but when you get into the realms of renovations you need cash to do it.

We bought the house for less than market value so we have plenty of room for improvements. It’s great the way it is now with bits to take care of inside but we want to modernize it and finish off the basement.

Remember when I talked about buying the big house the other day and how it’s difficult to sell it sometimes because of a limited market well this is what I mean. It’s great when you own a home that you can sell fast because it’s affordable and well-kept but too bad for their clients as we aren’t ready to sell.

I was chatting with one of my Facebook fans the other day and told her that just to get some of the desired features in a home that we don’t have which we can really live without i.e. bigger property, walk-out basement, larger upper level it would cost us about $200,000- $300,000 more dollars on top of what we get for selling this house to pay cash for a newer bigger home in our city.

So just for a few extra hundred square feet in a home that is updated top to bottom we would be paying out the nose and having to look at another dreaded mortgage amortization schedule. No thanks, we’ll just stay right here.

The only way we will move is if you want our house so bad you’ll pay us double… how’s that for a deal! lol..

 

Amortization schedule

 

What is an amortization schedule anyways? I’ll tell you in my lame terms so maybe it will make some sense as mortgage jargon for some can get tricky. Don’t say you haven’t trusted someone and just signed on the dotted line.

An amortization calculator is basically a home cost calculator or what your mortgage will cost you over the life of the term or mortgage you have set up with your bank or broker. The calculator you can find free all over the internet and just about every mortgage company offers one for their clients.

You can enter in all your mortgage information and it will give you an amortization schedule which shares with you how long and painful a journey it is to pay off a mortgage when you pay month after month.

You can see how much principle you have or will pay off and of course the dreaded interest that is enough to make anyone bury their head. Mind you mortgage interest rates have been at an all-time low for years now so we can’t complain too much.

I’m sure many of you who owned a home with a mortgage back in the 80′s could share a horror store or two about how high the mortgage interest rates were back then.

I wouldn’t want to look at my amortization schedule back then it would scare me but not deter me from working hard and doing whatever we could to pay off the mortgage as soon as we can.

Sure there are some of you that would never pay off your mortgage because you are investing gurus and you know, that’s great. Some people just don’t know how to invest or want to take risks with their money in hopes they score a return higher than what their mortgage interest rate is.

No one can tell me that they know what the crystal ball will of investing will provide day after day, month after month as it’s based on stats and hope that it gets better hence more returns for the investor.

Many people have been successful that way and hopefully one day that will be us but until we learn more about investing we’ll stick to what we know and that is our mortgage costs us money.

How often do you check your amortization schedule and make changes to speed up the mortgage pay-down process? Do you pay a chunk of you mortgage in bulk each year?

 

Understanding net worth

 

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.

 

Determining net worth

 

How to Determine Net Worth?

Net Worth = Assets – 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 the question, how do you find out your net worth? Why? 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)

 

Goals

 

Below are our 2014 target goals some of which are the same from 2013 and many which are new for 2014. I don’t like to move on to new goals if I have other goals that are unfinished but I also like breathing room and play time if you know what I mean.

I hope by posting them each month it motivates me like it has this past year to get stuff done and reach our target goals with some form of ease although nothing in life is that simple.

I find it’s much easier to be held accountable when I share what we need to do with all of you.

Do you set goals for the year?

 

Our short-term goals 2014

 

  • First is to pay off our mortgage in full as of April 2014. :) This is very near… gone by the end of this month yay!
  • To renovate the upstairs bathroom
  • Re-model the spare bedroom (ie: decor, furniture)-done
  • Start working on putting in the new flooring in the living and dining room
  • Install a central vacuum system- Bought and on its way!
  • Purchase a new washer and dryer
  • Purchase all new kitchen appliances
  • Purchase 2 medium-sized freezers
  • Finish the landscaping in the front and back yards.
  • Invest more in our TFSA, RRSP etc.
  • Continue to meal plan, create new homemade meals- I’m always whipping up something new in the kitchen (check out all my new recipe index on the blog)
  • To  sow and grow more vegetables/herbs in the garden to save money- We decided to scale back on this for 2014 summer.
  • Learn more about passive income
  • To read a new personal finance book
  • Learn more about Search Engine Optimization and blogging and how to manage my blog.

 

Our long-term goals 2014

 

  • Finish renovating the entire kitchen
  • Finish renovating the entire master bathroom
  • Save for a holiday
  • Start planning basement renovations (bathroom, bedroom, family room, laundry room, office, storage area.
  • Look at new ways to invest our money i.e. rental units
  • Continuing to educate ourselves on personal finance and investments
  • Continue to network with other like-minded people
  • Continue in my new career in hopes of it becoming long-term permanent

 

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 to others target goals.

We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition. I hope our experiences perhaps will help guide you along your financial path working towards debt freedom.

 

Different paths

 

Not everyone has the same path in life. Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.

Others may have divorced, lost money in the stock market or other investments, lost a job, fell ill and so on but you can’t let that stop you, I didn’t.

Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start 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. No one cares about your money as much as you do so don’t waste your energy trying.

The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery. The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who are negative towards their own situation.

I urge you to be optimistic and little by little with determination you too should see improvements, if you want that to happen.

 

Our net worth

 

We are always looking for ways how to increase our savings and by tracking our net worth these numbers below show us how well we are doing in terms of meeting our target numbers or what areas we should put a bit more focus in.

 

net-worth-update-march-2014

 

Net worth updates 2014

 

Below you can click the links to read past net worth updates to see if we were on target or if we struggled with some of our numbers.

net-worth-preceeding-12-months

 

That’s all for this month’s Net Worth update. Check in at the beginning of May to see how we made out in April and what has happened to our finances since.

 

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Photo Courtesy of: Freedigitalphotos.net/artur84

Finances are like moon phases: February 2014 Net Worth update (+1.25%)

Moon phases of our net worth financesWATCHING INVESTMENTS GROW

 

Like moon phases, our finances including Net Worth is constantly changing and this month is no different.

There will always be ebb and flow in everyone’s finances, sometimes purely by the choices we’ve made.

In the CBB household we didn’t have an awful lot left over as spare cash from last month as we had city taxes and pet costs leave the bank.

However, there was positive news on the finance front in the form of yet another increase in the exchange rate due to the falling dollar.

This increase has led to our UK funds exceeding the total of what is left to pay on the mortgage and with quite a chunk of money left over.

 

Moon phases

 

We are definitely moving into our Waxing Gibbous phase where our finances and what we have set up are starting to fall into place.

The Full Moon phase will be when our mortgage is paid off and we can move on knowing that fact that we will be carrying zero debt. In the very near future we have to decide what we will be doing with the spare cash that is left over once the mortgage is paid off.

The money that we would have spent on mortgage payments needs to go somewhere and we are struggling to weigh up which investments to place it in.

There is another choice if investing is a little too sensible, expensive renovations that include the basement and kitchen. A visit to our financial advisor gave us good news about our investments, the returns were around the 12% mark.

There were of course variances between certain investments but they were good returns considering the market ups and downs and the fact we’re quite modest in our aggressiveness.

We’ve reached the $100,000 mark in our investment portfolio with our financial advisor which then leads us to lower costs in managing the funds as we will change over to a fee based system.

You may have read from our previous Net Worth update in January that we included an increase in our principal residence.

To put an actual figure on that we asked our real estate agent to present us with a calculated figure based upon comparative market analysis.

The estimated value for our house is $365,000, which is great news for us although one increase a year is more than enough for our egos. That is a $100,000 increase in value in just under 5 years of owning the home. Location, Location, Location.

We have therefore decided to leave our house value at $345,500 as of the January Net Worth.

How did you make out in February?

 

Understanding net worth

 

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.

 

Determining net worth

 

How to Determine Net Worth?

Net Worth = Assets – 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)

 

Goals

 

Below are our 2014 target goals some of which are the same from 2013 and many which are new for 2014. I don’t like to move on to new goals if I have other goals that are unfinished but I also like breathing room and play time if you know what I mean.

I hope by posting them each month it motivates me like it has this past year to get stuff done and reach our target goals with some form of ease although nothing in life is that simple.

I find it’s much easier to be held accountable when I share what we need to do with all of you.

Do you set goals for your year?

 

Our short-term goals 2014

 

  • First is to pay off our mortgage in full as of April 2014. :)
  • To renovate the upstairs bathroom
  • Re-model the spare bedroom (ie: decor, furniture)
  • Start working on putting in the new flooring in the living and dining room
  • Install a central vacuum system
  • Purchase a new washer and dryer
  • Purchase all new kitchen appliances
  • Purchase 2 medium-sized freezers
  • Finish the landscaping in the front and back yards.
  • Invest more in our TFSA, RRSP etc.
  • Continue to meal plan, create new homemade meals- I’m always whipping up something new in the kitchen (check out all my new recipe index on the blog)
  • To  sow and grow more vegetables/herbs in the garden to save money
  • Learn more about passive income
  • To read a new personal finance book
  • Learn more about Search Engine Optimization and blogging and how to manage my blog.

 

Our long-term goals 2014

 

  • Finish renovating the entire kitchen
  • Finish renovating the entire master bathroom
  • Save for a holiday
  • Start planning basement renovations (bathroom, bedroom, family room, laundry room, office, storage area.
  • Look at new ways to invest our money ie: rental units
  • Continuing to educate ourselves on personal finance and investments
  • Continue to network with other like-minded people
  • Continue in my new career in hopes of it becoming long-term permanent

 

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 to others target goals.

We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition.

I hope our experiences perhaps will help guide you along your financial path working towards debt freedom.

 

Different paths

 

Not everyone has the same path in life. Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.

Others may have divorced, lost money in the stock market or other investments, lost a job, fell ill and so on but you can’t let that stop you, I didn’t.

Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start 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. No one cares about your money as much as you do so don’t waste your energy trying.

The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery.

The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who are negative towards their own situation.

I urge you to be optimistic and little by little with determination you too should see improvements, that is if you want that to happen.

 

Our net worth

 

We are always looking for ways how to increase our savings and by tracking our net worth these numbers below show us how well we are doing in terms of meeting our target numbers or what areas we should put a bit more focus in.

 

net worth update February 2014

 

Net worth updates 2014

 

Below you can click the links to read past net worth updates to see if we were on target or if we struggled with some of our numbers.

 

 

networth feb proceeding 12 months

That’s all for this month’s Net Worth update. Check in at the beginning of April to see how we made out in March and what has happened to our finances since.

Money-quote

 

Are You New To Canadian Budget Binder?

Photo Courtesy of: Freedigitalphotos.net/Exodus

 

What is a high net worth?: January 2014 Net Worth Update

high net worth money growsBELIEVE IN YOUR OWN WORTH

 

If you believe you have a high net worth that means you have likely achieved many of the goals you have set out for yourself financially. That’s great.

Nothing happens over night unless you win the lottery or something extraordinary happens in your life financially.

For most people we put a little bit of money in the buck and hope that it continues to grow into our retirement years so we  have something to look forward to.

 

High net worth

 

What is a high net worth?

It’s all relative to what your income might be, your savings ability, your debt load, your investments, your age etc. Sometimes we hear that our net worth is high but really it may be high to someone else but not to us because our goals are set and we are aiming to achieve them.

When I think high net worth I think being able to live comfortably for the rest of my life being able to do the things that I want to during retirement. I’m working hard now to make sure that the money is there so we don’t have to worry.

Not everyone will look at our net worth as being high, we don’t in comparison to our long-term goals. We look at other couples who are similar in age and have what we believe is a high net worth but comparing your net worth will never work.

I wrote a post once about how comparing your financial numbers is a big but for the sake of argument an measure to see how others in your age group may be doing. Everything in your financial bank depends on your life.

In essence, we all have our own personal beliefs of what a high net worth is and what will make us sleep better at night.

In fact, some people could care less what their net worth is and would rather just track how much actual cash they have in the bank. They feel that anything other than cash could sink in a heartbeat so it’s not money in your hands until it’s real money in your bank account.

Whether net worth is important to you is for you to decide no matter what way you look at it. What you set as a high net worth or a long-term goal is financially is set by the way you choose to live your life and how you use your finances.

It’s your money at the end of the day and if you want to have more, then make your money work for you.

However you choose to do that just know that everything that deals with money comes with risk. Money can come in one door and out the other in an instant.

What is a high net worth to you?

 

Understanding net worth

 

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.

 

Determining net worth

 

How To Determine Net Worth?

Net Worth = Assets – 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)

 

Goals

 

Below are our 2014 target goals some of which are the same from 2013 and many which are new for 2014. I don’t like to move on to new goals if I have other goals that are unfinished but I also like breathing room and play time if you know what I mean.

I hope by posting them each month it motivates me like it has this past year to get stuff done and reach our target goals with some form of ease although nothing in life is that simple.

I find it’s much easier to be held accountable when I share what we need to do with all of you.

Do you set goals for your year?

 

Our short-term goals 2014

 

  • First is to pay off our mortgage in full as of April 2014. :)
  • To renovate the upstairs bathroom
  • Re-model the spare bedroom (ie: decor, furniture)
  • Start working on putting in the new flooring in the living and dining room
  • Install a central vacuum system
  • Purchase a new washer and dryer
  • Purchase all new kitchen appliances
  • Purchase 2 medium-sized freezers
  • Finish the landscaping in the front and back yards.
  • Invest more in our TFSA, RRSP etc.
  • Continue to meal plan, create new homemade meals- I’m always whipping up something new in the kitchen (check out all my new recipe index on the blog)
  • To  sow and grow more vegetables/herbs in the garden to save money
  • Learn more about passive income
  • To read a new personal finance book
  • Learn more about Search Engine Optimization and blogging and how to manage my blog.

 

Our long-term goals 2014

 

  • Finish renovating the entire kitchen
  • Finish renovating the entire master bathroom
  • Save for a holiday
  • Start planning basement renovations (bathroom, bedroom, family room, laundry room, office, storage area.
  • Look at new ways to invest our money ie: rental units
  • Continuing to educate ourselves on personal finance and investments
  • Continue to network with other like-minded people
  • Continue in my new career in hopes of it becoming long-term permanent

 

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 to others target goals.

We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition.

I hope our experiences perhaps will help guide you along your financial path working towards debt freedom.

 

Different paths

 

Not everyone has the same path in life. Some of  you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.

Others may have divorced, lost money in the stock market or other investments, lost a job, fell ill and so on but you can’t let that stop you, I didn’t.

Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start 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. No one cares about your money as much as you do so don’t waste your energy trying.

The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery.

The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who are negative towards their own situation.

I urge you to be optimistic and little by little with determination you too should see improvements, that is if you want that to happen.

 

Our net worth

 

We are always looking for ways how to increase our savings and by tracking our net worth these numbers below show us how well we are doing in terms of meeting our target numbers or what areas we should put a bit more focus in.

net-worth-update-Jan-2014-1

 net-worth-update-Jan-2014-2

As you will have noticed by now, there are two graphs this month. This is intentional and is all part of the changes that happened at the end of year 2013 and beginning of 2014.

The first table shows the increases in Net Worth as per usual. January was a good month with a helping hand from a falling dollar which increased the part of our net worth currently held in UK Sterling.

The second table shows exactly the same amount of changes with the addition of a reduction in vehicle values. As almost all cars depreciate in value, then it was always going to be inevitable that I would have to reflect it in the net worth statement sooner or later.

We have also increased the house value due to smaller houses on the same street going for a figure of $349,000 on a fairly regular basis with no signs of trouble.

This news is fantastic, but I have gone ahead and shaved off 10% as that is what is suggested the housing market is over valued at.

This new net worth figure of $565,306.28 will now be used as our base figure for the forth coming year.

If at any point the housing market crashes, then an appropriate figure will be replacing this new house value.

 

Net worth updates 2013-2014

 

Below you can click the links to read past net worth updates to see if we were on target or if we struggled with some of our numbers.

Net-worth-2014-proceeding- 12-months

Overall:
There are two Jan 2014 bars in the above chart, they represent the two increases posted above in the two tables. The first Jan 2014 figure is the normal increase in net worth and the second illustrates the increase in house value and depreciation in vehicle value.

Money-quote

 

Are You New To Canadian Budget Binder?

Photo Courtesy of: Freedigitalphotos.net/Pixomar

December 2013 Net Worth Update (+1.01%): Yearly outcome on target

bow-arrow-targetNOTHING IS FOR CERTAIN NOT EVEN FINANCES

 

We weren’t too sure if we were going to be on target to reach our yearly 2013 net worth goals but after running the numbers we were pleasantly surprised that we made it through as planned.

 

Should you celebrate success if the money is not in the bank?

What I mean by that it is should you celebrate when you are merely seeing numbers on paper or on your computer screen not cash in the bank? After all it could change depending on how you have your money invested and/or what it is invested in.

Have you met your targets?

Sure, go ahead and celebrate you’ve reached a milestone and there is no reason why you shouldn’t be proud of the accomplishments you’ve made over the course of the year. Nothing is for certain but what you do know is that you’ve worked hard to make sure your numbers are on target and continue to meet or exceed the goals you set forth at the beginning of the year. It’s not an easy road to walk but with optimism and perseverance anything is possible.

I think when we understand that our numbers will fluctuate and especially investments we will learn to appreciate how our money works for us and we will work even harder to make it a positive factor with-in our financial health.

For some that means learning more about how their money is invested or even learning to invest on their own or simply using a budget to get control of their money. I’ve been learning as much as I can about investing, but slowly because my time is fragile these days but I have many personal finance bloggers to thank for sharing their wisdom and motivating me especially Mark over at My Own Advisor who has been an inspiration to me for a while now.

We are only bound by the limits we put on ourselves but it’s always important to look before you leap because you can lose everything in an instant if you don’t know what you are doing. Be smart with your money and it will keep you smiling.

For this month only I’ve added in an extra table showing the summary of net worth increases month by month. As you’ll notice I couldn’t generate an average figure for the early portion of 2013 purely from lack of data in the preceding 12 months.

There have been many ups and downs over the course of the year, but mainly positive changes. The mortgage was paid down with 2 lump sum payments, which probably didn’t make the mortgage company happy but we got a big smile out of it.

Another positive change happened only in the last three months of 2013 and that was the increase in the value of the British Pound and the slide of the Canadian Dollar, which took our money in the UK up in value from the doldrums it was suffering from for so long. The current exchange rate for this months figure was $1.7587 dollars to the pound, which is about as high as it’s been in the last 3 years.

 

End-of-year-Net-worth-2013

 

As you can see from the table above the average yearly increase stayed fairly stable throughout the year even with the highs and lows of the investments, pensions and TFSA’s. So after all the downs that took our finances on a bit of a ride this year we finally ended the year on a positive note with a sense of accomplishment and right on target.

From the figures generated I also managed to forecast our Million Dollar point and that will be in exactly six years time on New Years again. That will be a celebration.

 

Understanding net worth

 

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.

 

Determining net worth

 

How To Determine Net Worth?

Net Worth = Assets – 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)

 

Goals

 

Below are our 2013 target goals and I left remarks in bold to share how I/we made out with them and what the plan is moving forward. When I post the January 2014 Net Worth Update I will include my/our long-term and short-term goals for the 2014 year.

I hope by posting them each month it motivates me like it has this past year to get stuff done and reach our target goals with some form of ease although nothing in life is that simple. I find it’s much easier to be held accountable when I share what I need to do with all of you.

Do you set goals for your year?

 

Our short-term goals 2013

 

  • To pay off our mortgage with-in the 5 yr term ending in April 2014- Update: We’ve decided to hold off paying in full until the mortgage comes due in April 2014.
  • Focus on our tax-free savings accounts (TFSA) and other investing- will look at this once the mortgage is paid in full.
  • To Save money for smaller renovations- trying little by little
  • Continue to meal plan, create new homemade meals- I’m always whipping up something new in the kitchen (check out all my new recipe index on the blog)
  • To  sow and grow more vegetables/herbs in the garden to save money- garden is done for the season but we are growing radicchio in the house which we eat all winter long in our salads.
  • To take vacation somewhere in Ontario for summer 2014-This is on hold for the moment.
  • Learn more about Passive Income-I’ve been learning as much as I can from some of my favourite personal finance bloggers which has helped me to get a better idea of where I want to go with this blog.
  • To Read a new Personal Finance Book- I’m the worst reader around I think. When I start reading it’s hard to put a good book down but my life has been side-tracked since July but it’s slowly back on track so I hope to get more reading in if I can.
  • Learn more about SEO and Blogging- I’m always learning something new but it’s all beneficial and has helped Canadian Budget Binder grow the way that it has.

 

Our long-term goals 2013

 

Did we meet our 2013 long-term goals?

Well we worked hard to reach our target goals in 2013 but sometimes it’s hard to achieve everything you set out to do. For this reason we try to set realistic goals and keep them relatively simple so we don’t get so overwhelmed during the year.

  • Continuing to educate ourselves on personal finance and investments- Always learning and educating
  • Continue to network with other like-minded individuals- I am networking as much as I can and have chatted to many personal finance bloggers and non-bloggers in 2013.
  • To finish renovating our home- Landscaping is pretty much completed as of the end of September. Next is bathrooms.
  • To continue with educational training to further careers- I did so much training in 2013 that it is now paying off for me in the form of a new career but also continuing with my other career. There is never a reason not to learn, train and educate because somewhere down the line you will use that information and you never know what organization will find you valuable for knowing that information.
  • To save money for big renovations- Saving for renovations will be on-going since there are many things I need to renovate in our house.
  • Start thinking about saving for a second-hand vehicle in the next 5-7 years- I was thinking about selling my vehicle to buy a larger version of my vehicle however I may just keep what I’ve got as it’s in excellent condition and go from there.
  • Save up for a European Adventure in the next couple of years-This may have to be put on hold right now.
  • Potentially save for a second home to rent out or build/move to our dream home- We’re not sure where we will go with this idea as things have changed.

 

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 to others target 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 working towards debt freedom.

 

Different paths

 

Not everyone has the same path in life. Some of  you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back. Others may have divorced, lost money in the stock market or other investments, lost a job, fell ill and so on but you can’t let that stop you, I didn’t.

Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start 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. No one cares about your money as much as you do so don’t waste your energy trying. The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery.

The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who are negative towards their own situation. I urge you to be optimistic and little by little with determination you too should see improvements, that is if you want that to happen.

 

Our net worth

 

We are always looking for ways how to increase our savings and by tracking our net worth these numbers below show us how well we are doing in terms of meeting our target numbers or what areas we should put a bit more focus in.

 

December-net-worth-update-2013

 

Net worth updates 2012-2013

 

Below you can click the links to read past net worth updates to see if we were on target or if we struggled with some of our numbers.

net-worth-preceeding-twelve-months-December-2013

Overall: As you can read we were very happy that we were on target to reach our financial goals for 2013 and hope that 2014 brings us the same achievement if not surpass what we set out to meet over the course of the year.

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Photo Courtesy of: Freedigitalphotos.net/Bplanet

November 2013 Net Worth update: (+1.35%) The end of year clock is ticking

clock-timeTIME IS IT REALLY ON YOUR SIDE?

 

Many of us tend to put things aside thinking we will get to it later on and for most later on never happens.

The same goes with a budget and our finances because we might not want to face what we will uncover once we start digging through the paperwork. Facing up to reality is the hardest part of getting started when budgeting and getting your finances in order but that is the way we all had to start.

Finding out where you stand and how much you are worth is just a stepping stone for what lurks ahead.

Time is never on your side when it comes to finance because every day that we put off what we should have done the day before is lost and we can never get back.

We are now in the home stretch for 2014 starting the month of December in hopes that by the end of the month we can look back over the 2013 and congratulate ourselves for accomplishing many of our goals and then set new goals for 2014.

I read something on instagram the other day and said something like “Get out of bed and get going because what you put off today will be forgotten tomorrow” and that my friends is the honest truth.

Every day something new comes up in our lives and keeps adding to the pile of “things to do” so set yourself some time to get your financial house in order.

If you want to start a 2014 budget start the prep work now and download my free excel budget spreadsheet so you are ready to go for the new year.

Know your numbers inside out, know the facts, set goals and make your 2014 the best year you can financially.

 

CHANGES TO NET WORTH

 

As you can see we had quite a reasonable month in November. Problem was the not exactly great earnings on our investments were thankfully compensated for by the ever-increasing Pound Sterling to Canadian Dollar exchange rate. From a horrible low of £1 = $1.52 to a reasonable $1.74 as of 10th Dec 2013 a very slow increase has suddenly picked up over the last 2 months.

I’ve researched a little bit into the cause of this sudden change of fortune but didn’t find any one specific cause. It turns out that the UK is coming out of the recession it was once in and has posted larger than forecast growth figures over the past 3 months. There are other factors in play here and I can pretty much guarantee that tight government spending habits have helped a little.

I’m sure none of us are out of the woods yet as regards the financial crisis, but there is hope on the horizon.

I will certainly keep an eye on the exchange rate, but inevitably the money will still have to be pulled to pay off the remaining mortgage before the end of the term next year. Still, some good news has come out of keeping our money in place and not just pulling it in fear that it may go down further.

At a rate of $1.52 our money was worth $61,643.60 but now it has increased to $70,768.48, which is a gain of $9,124.88. That’s not bad considering we haven’t done a thing with it yet. I don’t think we would have saved that amount pulling the money early and paying off the mortgage sooner.

 

Understanding net worth

 

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.

 

Determining net worth

 

How To Determine Net Worth?

Net Worth = Assets – 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 goals 2013

 

  • To pay off our mortgage with-in the 5 yr term ending in April 2014- Update: Money has been moved to my bank account now I have to transfer it to Canada.
  • Focus on our tax free savings accounts (TFSA) and other investing- will look at this once the mortgage is paid in full.
  • To Save money for smaller renovations- trying little by little
  • Continue to meal plan, create new homemade meals- I’m always whipping up something new in the kitchen (check out all my new recipe index on the blog)
  • To  sow and grow more vegetables/herbs in the garden to save money- garden is done for the season.
  • To take vacation somewhere in Ontario for summer 2014- planning this now!
  • Learn more about Passive Income- working on this one
  • To Read a new Personal Finance Book- working on this, slowly..very slow as my time gets eaten up almost every day.
  • Learn more about SEO and Blogging- I’m always learning something new but it’s all beneficial and has helped Canadian Budget Binder grow the way that it has.

 

Our long-term goals 2013

 

  • Continuing to educate ourselves on personal finance and investments
  • Continue to network with other like-minded individuals
  • To finish renovating our home- Landscaping is pretty much completed as of the end of September. Next is bathrooms.
  • To continue with educational training to further careers- More training for me coming up in December then who knows what the new year brings me.
  • To save money for big renovations- I’m starting to tear out the bathrooms and measuring up the kitchen to purchase new cabinets and counter tops and do a full makeover. 
  • 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 working towards debt freedom.

 

Different paths

 

Not everyone has the same path in life. Some of  you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back. Others may have divorced, lost money in the stock market or other investments, lost a job, fell ill and so on but you can’t let that stop you, I didn’t. Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start 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. No one cares about your money as much as you do so don’t waste your energy trying. The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery.

The smallest improvements should mean big strides in working towards reaching your goals.

Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who are negative towards their own situation. I urge you to be optimistic and little by little with determination you too should see improvements, that is if you want that to happen.

 

Our net worth

 

We are always looking for ways how to increase our savings and by tracking our net worth these numbers below show us how well we are doing or what areas we should put a bit more focus in.

 

Net-worth-November-2013

 

Net worth updates 2012-2013

 

Net-worth-preceeding-twelve-months

Overall: November was on ok month although we did spend a bit more than normal since it the last couple of months of the year when we break the budget for Christmas although most of the money is already saved in our projected expenses. The vehicles also require maintenance this time of year and we have been spending a bit more money on clothes in 2013 than anticipated. All of our final numbers will be looked at next month so we can devise a new plan and budget with realistic numbers based on the 2013 facts we will have gathered.

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Are You New To Canadian Budget Binder?

Photo courtesy of: Suat Emat Freedigitalphotos. net