How To Go Broke Quick In 5 Easy Steps : Our Net Worth Update Jan 2018 (+0.39%)

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If you want to learn the secrets about how you can go broke quick, I’ve got you covered. It’s not about wanting to earn more money it’s about understanding why you don’t have any.

Often it’s easier to see outside a pane of broken glass than it is through a foggy window that seems like it will take forever to defrost. Instead of waiting some people decide to jump out the hole where others will wait for the heat.

Why on earth would you want to read about how to go broke quick on a blog about frugal living and budgeting?

One simple answer

The only way up is making sure you’ve got a ladder that is on solid ground. This means understanding what NOT to do even if you think it’s financial common sense.

You might be saying, “I don’t need to find out how to go broke quick, I am broke“. That’s fine and dandy but do you really understand what you got you to this point?

I’m not talking about excuses either because those people you pay your bills to, don’t care. It really is painful listening to people complain about money yet they blow it on stuff they can do without. If you’re struggling for cash start chopping services and minimizing what you need and don’t need and do it now.


Going broke can happen in the blink of an eye


This is no joke, in fact I have yet in over 6 years of blogging have had anyone ask me the easiest way to go broke which had me question, why. It’s about learning what you did wrong so you don’t do it again.

It doesn’t matter how hard you work or how much money you earn if you don’t have a clue how to grow that money you might as well just be tossing it out the window. Sure, you may have fun along the way but the fun stops when there is no money left to play with.

You might think you’re going to earn a solid income until you retire without worry but let me tell you something I’ve learned, nothing lasts forever. I have a father-in-law who was injured (don’t ever think it can’t happen to you) over 25 years ago and is now on his final stretch of life. He has spent the last 25 years in and out of hospitals with illness after illness as if a domino effect attacked his health.

When he was working he earned a good salary with benefits including a pension fund which seemed brighter at the time. So much for those dreams but even he made crucial mistakes along the way with money. They went from savings to nothing in the blink of an eye in part from zero financial planning and spending money they didn’t have.

I’m sure many of you can tell me about a job you were working in that paid well and enjoyed and then it was wiped out from underneath you. Now what do you do if you’ve got debt to pay, no job?

Just as easily as you can earn money it can be swallowed up in one large wave. If you aren’t wearing a life-preserver you had better hope and pray that you can at least float back to shore.

Related: Simple ways to earn money when you are broke


The Great Gazoo has an evil twin


Why are we so concerned about getting rich quick or finding ways to earn more money before we learn the basics of going broke. If you can’t manage going broke you sure as hell aren’t going to manage getting rich. Paper money is real money, plastic credit cards are not. Say this over and over, rinse and repeat until you understand what this means.

Survey says, you aren’t going to get ahead with your money unless you lock-down and give a damn. That’s right if you think that debt is no big deal or that it’s easy to pay off you’re walking the path of financial destruction. Maybe you get money and your partner doesn’t and this post resonates well with you but isn’t for you.

Show them, help them, educate them but only they can rid of The Red Gazoo that eats up their income. That evil sits on your shoulder and whispers in your ear all the wonderful things you want to hear about getting what you want from life today without worrying about tomorrow. Bring back


Money opportunities can make you go broke


It’s hard going to work when you’re broke inside and out because you’re struggling to pay the bills. In fact, I know some people who earn minimum wage who are happy and living life without adding debt to their plate. Sometimes eliminating debt paired with a simple life is really all most people want.

These are the types of people I like to hang around with because they understand money. Their bank account may be slim but they understand how not to go broke even when their income is just paying the bills and some retirement savings.

There was a time when typing jobs or working in an office environment was prestigious for both men and women and it may still be that way today however your career doesn’t make you successful, your bank account does. Take that as you wish but my point is you can have a swanky annual salary, the biggest house, shiny cars, flashy clothes and piss-all in the bank. Means NOTHING.


5 Steps That Will Take You From Cash to Crash


  1. Spend Money You Don’t Have
  2. Spend Money You Don’t Have
  3. Spend Money You Don’t Have
  4. Spend Money You Don’t Have
  5. Spend Money You Don’t Have

Whether you spend money you don’t have to pay for an emergency or not these types of practices become the beginning of what can be a long journey towards debt freedom. Become aware of your financial surroundings and how you can better manage your money.

Financial freedom is a feel good feeling that YOU can achieve as long as you remind yourself that there are no brakes just skids and crashes. Your best defense is to always be a step ahead of the game.

Never give up is the message even if you are saving $5 a month, budgeting and giving your money a fair shot at survival is far easier than being buried alive. You don’t have to be debt free to feel free from financial burden you simply need to be comfortable with your plan and making sure there are no leaks in your system. Money wasted could be money invested.

Go ahead, spend money you don’t have and you’ll soon find how easy it is to go broke fast.

Discussion: What helped you go broke and what helped you fix the problem?


Our Net Worth January 2018


January 2018 Net Worth Losses and Gains

Where all the money went:

The nose dive of the stock market at the end of January didn’t really help us in any way, but the increase of the pound against the dollar did. What we dropped in investments we gained back a little in exchange rate on UK based money. Agreed, it didn’t make the kind of positive impact we would like but it smoothed out the loss on the investments somewhat.

The last few months has seen us really struggle to get to our goal of a million dollars in Net Worth. We are getting there, however, it’s much slower than we thought it was going to be.



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.

We credit the growth of our net worth due to patience, perseverance, using a monthly budget and not giving up. Your numbers may go up and down but don’t let the numbers scare you rather understand why and move on.

Canadian Budget Binder Budget Spreadsheet - money problems

If you would like to use our budget I offer a FREE downloadable budget which I created and that you can use at home just like we do. I don’t charge for it because I want you to save money not spend more!

There are tonnes of other free printable lists offered at Canadian Budget Binder to help you achieve some of those financial goals and build your net worth.


Determining net worth


Figuring out net worth is fairly easy as long as you know your personal numbers or monthly finances which means you need to do your homework. 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.

How to Determine Net Worth?

Net Worth = Assets – Liabilities


Calculate net worth


Do you know how to calculate your own Net Worth? We like to calculate our net worth every month so we know if we are still on track. Some people calculate it yearly or quarterly but it’s up to you and how informed you want to stay when it comes to your financial health.

Net Worth is only an estimate and not everyone uses the same type of figures to tally it up. Some of you may not include vehicles like we do or leave out assets inside the home like we have. You might be that person that believes that your house should be excluded. It depends on what you want to calculate or what you can sell today and make money on for tomorrow.

Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)


Why you should set financial goals


Below is our progression chart towards our goal of a million dollars net worth which should happen according to our net worth calculations by Mid August 2017 (this year). Note: Since we went on holidays and spent money buying a new truck in 2017 this goal has now changed and will likely take us into 2018. I will have a more accurate update shortly.

2016 Progression towards the Million Mark - money problems

Setting goals are the only way we work towards achieving what we want to get done as a couple around the house and in our financial life. I know that without them we would be flying by the seat of our pants which wouldn’t work for us.


Our financial numbers


January 2018 Preceding 12 Months Net Worth

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 financial 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, suffered job loss, fell ill or injured on the job etc. but you can’t let that stop you from achieving your financial goals.

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”.

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 have a negative attitude towards their own financial situation.

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


Net worth updates 2018


Click the links below to read 2017 net worth updates to see how we made out following our own budgeting and investing rules.

That’s all for this months net worth update but please check in at the beginning of March 2018 to see how we made out in February 2018 with our financial portfolio.


It’s Not About How Much Money You Make It’s How You Save It

Check out our 2012-2018> Monthly Budget Updates

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