Welcome to the Canadian Budget Binders February 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.
We’re a married Canadian couple in our mid thirties with no children living in the Greater Toronto Area. We post our finances and budget for all to see although we remain anonymous. We do realize having children costs money so your budget may differ from ours from that perspective.
At the end of the day if you make more or less money, have more or less debt, or have children a budget is a necessity for everyone. If you want to save money and not spend more than you make you need a budget.
Our numbers are small compared to what some people stash away but we don’t care. We care about what we save and you should only care about what you save. No one is going to pick your family up from the ground but you, so care about your own life first- forget what your neighbour has!
This blog is about learning from each other, our mistakes, our triumphs and how Canadians can keep themselves above water in tough economic times.
Thanks for being a follower of our blog and we hope you enjoy and learn from the vast degrees of experience and knowledge all the fans bring to this site.
What’s Been Happening In February??
We have made some significant changes to our budget since last month. The budget spreadsheet has gone through a huge overhaul and we are now testing it out for the next month or so. That we will be able to tweak it if need be. Hopefully we will be able to roll this out to our subscribers shortly.
Some changes you will see to our Net Worth are reflective of the Budget Changes I talked about earlier here.
As of today March 1, 2012 our Investments have dipped about 0.52% which is kinda crappy but it is what it is, at the moment. I’m sure tomorrow will be a better day. We are down about $335.21 today compared to yesterday February 29, 2012.
Some Changes and Insights
- Instead of putting all the money left at the end of the month into our savings account we are now saving monthly for items we know we will need to pay for throughout the year
- We have set up another savings account to put this money in. We will use this money to pay bills as they come in.
- Our Emergency Savings account is now true and we don’t have to worry about paying anything out of it unless we go far over our budget.
- We are now adding in our vehicles as part of our Net Worth after much thought. In reality if we had to sell them today they would bring in some money.
- We are also keeping a $460.00 buffer in our Chequing account at all times.
- We have chosen not to add in assets inside the home to our totals thus far.
- We contacted our real estate agent again to get a true market Value on our home if we sold it today so I am now using this price in my mix.
Our Goal each Month
- Simply, to put as much by as we can now to save for the future whilst enjoying the present. To spend less than we net each month. At the end of the day we are not competing with our neighbors or anyone for that matter. I believe once you have that mindset saving will be much easier.
- Chequing Account Cash: $460.00- This is our buffer always in our chequing account. The amount in the account at any given time goes up and down.
- Savings Account- $ 1006.35- This is money we have but we will use at some point for bills. We accumulate money here each month in anticipation of certain expenditures.
- Emergency Savings #1-$42,000.00
- Emergency Savings #2-$15,295.00
- Emergency Savings #3-$48,300.00
- Pension(s)- $24,242.43
- Registered Retirement Savings Plan (s) (RRSP) $55,067.94
- Tax Free Savings Account (s) (TFSA) $12,776.37
- Vehicles-$15,000.00 – This is estimated value of both our vehicles if we sold them today.
- Principal Residence- $329,000.00
Total Assets: $543,148.09
In today’s market the house is worth about $329,000 as we purchased it under market value $265,000.00 due to repairs: painting, roof, new flooring in all bedrooms and kitchen in 2009.
I found this article on the Housing Bubble in Canada in January interesting as it highlights Canada’s housing prices are overvalued by 29% relative to income. Eventually we may start to see prices on homes in certain areas come down if they haven’t started already. Who know’s??
Our Liabilities:$163,654.92 (mortgage only)
$543,148.09 (Assets)-$163,654.92 (Liabilities) =$379,493.17
Our Total Net Worth: $379,493.17
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!
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