Welcome to the Canadian Budget Binders first Net Worth Update of 2012. I would like to have this posted by the end of each month or at the earliest the beginning of the following month.
You can follow along by subscribing to my blog and get updates as I post them. I hope to have this a little more detailed as I go along.
The reality is that there will be inconveniences and we hope to work through them and show you how you can as well. Planning for the future is by no means straight forward but planning for ups and downs is inevitable.
Our Goal is simple, put as much by as we can now to save for the future whilst enjoying the present. At the end of the day we are not competing with our neighbours or anyone for that matter. I believe once you have that mindset saving will be much easier.
You can’t compare what your neighbour has relative to you as circumstances are different, wages are different etc. In the end work with what your numbers offer you and be happy you are saving.
There is no number attached to our goal yet as we still need to sit and talk about what we expect from retirement as a couple. I will update you in the upcoming months.
We do have 2 relatively new vehicles that hold $0 balance but I don’t like to add them to our net worth as they just decline in value.
- Cash: $1000.00
- Emergency Savings #1-$40,460.36
- Emergency Savings #2-$15,295
- Emergency Savings #3-$48,300
- Registered Retirement Savings Plan (s) (RRSP) $54,139.96
- Tax Free Savings Account (s) (TFSA) $12,160.36
- Principal Residence- $286844.52 at 2% inflation per year.
Total Assets: $481,069.63
In today’s market the house is worth about $329,000 or more as we purchased it under market value due to repairs ie: painting, roof, new floors.
I found this article on the Housing Bubble in Canada interesting as it highlights Canada’s housing prices are overvalued by 29% relative to income. This is why I aim low and in the end it is what it is and that number will reflect it’s overall worth.
- Principal Residence: Bought for $265,000- $164,000 (current assets contained in principal residence ) = $101,000
Our Total Net Worth: $317,069.63
$481,069.63 (Assets)-$164,000 (Liabilities) =$317,069.63
How did you make out with your finances this month?
How will you make changes for the next month?
Share your comments here as I would love to read them.
Happy Saving Everyone!
Canadian Budget Binder 🙂
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