Senior shares trick to save money for retirement in three words : April Net Worth Update 2015 (+1.14%)

MONTHLY NET WORTH UPDATE

EMOTIONAL CONNECTION TO MONEY   We all want to know money saving secrets and this past week I learned something from a witty senior that will help you save money, although it may not come as a huge surprise to you. Do you feel stress coming on when you have to dip into your savings? We do at times because we aren’t getting any younger and know that life as a senior citizen can be difficult especially if you don’t have the funds to back up the lifestyle you need or want to live. There are people who are happy living from the Canada Pension Plan which is by the way max $1065.00 (2015) a month at age 65 but will it really be enough? Jim Yih at Retire Happy says, “Don’t count on the maximum” either when he talks about how much CPP will pay us in retirement. You would think with $120,000 savings that we have in the bank that it would be easy to spend money but it’s not especially after you know it may decrease your overall net worth and set you back a bit from attaining your retirement goals. This is why we budget and […]

Why personal net worth numbers interest people : March 2015 Net Worth Update (+1.48%)

MONTHLY NET WORTH UPDATE

THE COST OF HAVING NET WORTH   Your personal net worth may be more important to other people than it is to yourself depending on who you are. In the CBB house we have tracked our net worth for a couple of years now and it’s more of an indication of our financial health. It helps us to answer questions that we have regarding the way we save and spend our money. Are we improving our personal wealth using the tools and knowledge that we have or do we need to follow a different path?  This is what runs through our minds when we pull the data every month to share it with all of you. So far, we’re happy about how far we’ve come although growing our savings and retirement fund will require dedication to our budgeting system and how we apply it to daily living.   Personal Net Worth Fuels the Fire   If your passion is personal finance knowing your numbers is critical to your success. Without knowing what your personal net worth is it’s hard to make financial decisions that may increase that number. You have to spend money or invest money to “make money” and […]

Building our dream house could mean another mortgage : February 2015 Net Worth Update (+1.99%)

MONTHLY NET WORTH UPDATE

WE DON’T ALWAYS GET WHAT WE WANT   The mortgage is gone, vanished, disappeared and you own your house but now you want something more. Do you stay put, sell or build your dream house? This is the burning question at the back of our minds lately. Let me explain more. When I bought my first home at 21 my dream house always included large rooms because space came and still does with a premium price-tag. If you’re like me you enjoy having space BUT not everyone NEEDS a large space to get on with daily living. Every day we read about people who live in a tiny house and find ways to make it work for them. This type of living is NOT for everyone. Your dream house compared to someone else’s idea of a cool house will ALWAYS be different because our needs are not the same. We tend to focus on things in life that will help us to meet or exceed our needs especially if settling is NOT an option. Dream house living for some people may simply be…living in any type of house rather than an apartment or vice-versa. You might be the person who […]

What would you do with $100,000 in savings? : January 2015 Net Worth Update (+2.53%)

MONTHLY NET WORTH UPDATE

SPEND MONEY TO MAKE MONEY   If you are new to Canadian Budget Binder welcome to our monthly Net Worth Update post. I’ve posted our losses and gains for the past 3 years and this is the start of year 4 for us. This year however will be much different for us as we have some decisions that we should make with the $100,000 in bank savings which we have accumulated. At first you might think that’s a large amount of extra cash to be kicking about but as you will see by the end of this post that number will dwindle down in size with our projected expenses. There’s not going to be as much as you think by the time I’m done chopping down the pile. It was never out intention to keep long-term savings in the bank of this amount but in talking with a banking representative it’s certainly not uncommon. What I mean is keeping more than $100k in one bank account which is not necessarily the smartest thing to do. If you think about it money has to sit somewhere until it is invested. Some people have no intentions of doing anything with their money […]

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 […]