I’m about a week late with our December net worth update but the good thing is I pulled the numbers on the first of the month. If you remember last month I found a concern I had with pulling the numbers even a week into the next month which messed everything up. Now that the 2012 year is over we can reflect on how we did overall. When we started in January 2012 we began with a net worth of $317,069.63. Our initial house value was not accurate which we corrected in February along with the addition of the value of our 2 vehicles. This would have artificially inflated our net worth gains from January 2012-February 2012 so we dismissed them from our 2012 net worth final calculations.
In March we received back a loan of $30,000 which was added to our net worth but in the chart you can see this reflected in the figure $89,970.32 gain in net worth. As this is not a regular occurrence under the difference column I removed the $30,0000 to give a us a realistic accumulated figure of $59,970.32. Payments made throughout the year reduced our outstanding mortgage balance from $163,654.92 to $154,000 as at end of Dec 2012. Our intention is to use the cash we have to pay the mortgage in full in 2013. You can read about our mid-month error in our November net worth update for an explanation. Even with the simple error you will see that the % change between October and December would have averaged out. In 2013, you will notice additional changes to our figures and explanations about how we arrived at them. Overall, we are very happy how our 2012 ended and hope that in 2013 we can continue to build wealth and learn of other avenues that might help us achieve this.
Who’s the Man behind Canadian Budget Binder? My name is Mr. CBB and I’m the frugal guy that does all the talking around here. I’m documenting and sharing our journey to pay down the mortgage and increase our net worth in hopes of an early retirement.
Determining Net Worth is fairly easy as long as you know your personal numbers. 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. It doesn’t get any easier than that.
Our Monthly Finance Goal(s)- 2012
- To save as much money as we can while we are young to save for retirement while enjoying the present.
- To spend less than we earn to carry out the above.
- To lower our Grocery Budget with The Grocery Game Challenge and if you want to improve yours play with us!
- To pay off our mortgage with-in the 5 yr term ending in April 2014 and potentially save for a second home to rent out or our dream home.
- Max out our TFSA and RRSP each year (will concentrate on this in 2013)
- To have a baby
- To finance our retirement as best we can by continuing to educate ourselves on finance and investments.
- To finish renovating our home.
- To sow and grow more vegetables/herbs in the garden to save money.
- To learn how to be more self-sufficient in the kitchen so we can eat healthier and save money by cooking and creating homemade meals.
- To continue with educational training to further careers.
- To take this blog to self-hosted and get a redesign (happening 2013!)
- To travel around Ontario and Europe.
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 what I post for you about our experiences perhaps will help guide you along that financial path towards debt freedom. Sometimes seeing personal financial numbers is what it takes to kick it into high gear like it did for us. I encourage you to learn what your own numbers are and make them work for you.
Money is Money, Debt is Debt, A Budget is SMART-Mr. CBB
Canadian Budget Binders Financial Health
If you want to see our actual budget for December you can read it here.
Do you know how to calculate your own Net Worth? Why not go ahead and calculate your own using our Free Tool Net worth Calculator (Canadian Budget Binder 2012)
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