Debt | Our Net Worth

How To Stop Pretending You’re Financially Stable: Sept 2021 (-1.70%)

Are you financially stable? I would NEVER ask that question to anyone as it’s none of my business.

It’s amazing though how so many people pretend they are wealthy but the only wealth they have is plastic.

I don’t know what it is or why people will go into debt to look like they have money.

However, you probably know many people who act like they have money, but they don’t.

It’s easy to spot these types of men and women by talking to them.

If you go by the fake look on the outside, you’ll never spot the hidden debt with-in.

These days where we live if you own a house, you’re sitting on the top of the millionaire mountain.

It really means nothing other than your house is worth what it is.

If you sell your house you still need to buy a new one which is why we look at our net worth with and without the equity in our home.

Stop Pretending You're Rich When You're Not And Pay Off Your Rich Debt
Stop Pretending You’re Rich When You’re Not And Pay Off Your Rich Debt

Financially Stable Vs. Wanting More Money

While at the park with our son after school, a friend of ours was there with her kids.

As we sat at our usual picnic table while the kids played, Mrs. CBB asked our friend what she had done for the day.

That was a typical question that would start our conversation setting the stage about what’s going on around the neighbourhood.

Lately, we’ve had quite a few break and enters into houses, garages and vehicles.

For that reason, I installed a full set of Arlo Pro cameras and a doorbell camera.

By far the Arlo Pro Camera system with the solar power charger so we never have to worry about dead batteries.

The peace of mind vs the cost is worth the money and they are awesome cameras.

Her house is a complete mess every day as the kids go room to room, and she’s right. It’s not easy keeping up with one kid, let alone 3.

Both her and us have a child on the spectrum with ASD 1, and I don’t know how she does it.

She lives in a simple two-story home with one garage and a small back garden.

The conversation about the million-dollar homes in our area is crazy.

Like us, her family lives a simple life and doesn’t get involved with the rich or wannabe rich person.

When you’re rich, you’ve got money at your disposal, and when you wish you were rich, you pay for it dearly.

There are so many people in this world, no matter where they live, that act as if they have it all.

From the perfect kids who play piano to the biggest house on the block.

Making Dreams Come True

Recently our hairdresser, who we’ve been going to for years, built a two million dollar home.

When they moved to Canada, their first home had four bedrooms, a double garage, a deck, a walk-out, fully finished, etc.

It was your average cookie-cutter home, similar to our current home that she sold for just over $800,000.

She became a hairdresser about 12 years ago, from her basement which was very busy. Only cash was accepted.

Her husband ran a gas bar hours away and often slept there instead of coming home.

The winter drives were tough but the apartment attached to the store allowed him to stay.

When Mrs. CBB was at her beauty appointment, she told my wife that they had sold the small business.

She was shocked because she wondered how in the world they could afford this mansion.

Answer coming right up.

Flipping Houses To Millionaire Status

Her husband started flipping houses the past year.

Damn, I’m in the wrong business. Haha. Nah, too much headache dealing with contractors and companies.

Some people love being the boss as her husband does and they both work hard

I will never buy a flipped house, but I guess it was fruitful as their home is massive and all brick.

Are they financially stable or just showing off a mansion with a massive mortgage?

I know that they have a mortgage, but with three kids away to University, it seems a bit large for two people.

Well, don’t get too cozy because she told us her husband plans on flipping the new house as well.

I couldn’t believe it and asked her how she felt about moving all of the time.

When the going is that good some people keep on trekking.

Getting Ahead Putting Yourself Last

She says she’s tired of it, but her husband likes to make money and build an even bigger home.

My point is that people who seem financially stable are often the ones who are struggling the worst.

Mentally she looks and sounds exhausted as she works full-time from her home with tradespeople in and out all day.

Now that they are in their 40’s she doesn’t want a bigger house or moves again.

The problem is she can’t change her husband’s mind because earning money is a big deal.

She told me he shows the house to family back in our country and they think we are successful.

Perhaps they are but successful with debt or successful without debt?

Anyone can max credit cards, lines of credit, borrow money etc, just to look wealthy.

Personally that seems over the top and something I would NEVER do.

I don’t care about what other people have, nor am I jealous.

Financially Stable Is Just A Blanket Deal

For some reason, people don’t want to tell anyone that they are struggling to pay the bills.

They would be considered losers, can’t hold a job, spends too much money, someone to stay away from.

The rich hang with the rich remember?

If you want to know what your successful friends are doing get in there and find out.

For example, your friend may knit and is selling hundreds of masks every week on Etsy and other social media.

Think of ways you too can earn money that will help you pay off your debt and wipe away your fake life.

As easy as that sounds there are people who would rather hide it and find other ways to keep the I’m financially stable role going.

Creditors start calling and threatening to pay the bills and it affects mental health for so many people.

Then why are you spending the money in the first place? NO answer but they know it and hopefully won’t do it again.

Showing people how successful you are by accessorizing yourself with adult toys, homes, and apparel is just a cover-up.

It will be a very expensive cover-up if you don’t have the means to pay for the expenses of your fake life.

Credit Cards Don’t Make You Financially Stable

It’s easy to look rich when you’re not if you know how to decorate, dress and play the role.

Why would anyone want to act financially stable when they are not?

Good question and tough to answer apart from the obvious.

  • Showing an ex-boyfriend or ex-husband that you are doing so well financially
  • Jealousy
  • Show the relatives how hard work gets you everything you want. (with plastic)
  • Achieving a new role with a company, getting a raise and hosting fancy events at the house to fit in.
  • Just becuase they want to and know it will never happen unless they make it happen even at the cost of debt.

Moving And Renovations Stops Here

Back to our friend at the park, she seemed amazed that we had paid our mortgage off years ago.

Why don’t you move and find a property in the country like you wanted to do years ago?

Yes, we were hyped up to renovate this house, sell it and buy a country property,

We’ve changed our minds and decided to stick with the simple life.

Time Changes Everything

Now that we know our son is on the spectrum it’s easier for him that the school is a 5-minute walk.

There are good reasons why we’ve decided not to sell and move up.

Let’s have a look at some of them that we both came up with.

  • We are financially stable, tired and still have to renovate this house.
  • There is no mortgage and if we moved we’d need a mortgage or downsize but around here there’s no such thing.
  • Our house is big enough for us as it’s a bugaloft which means our room is on the main level. This will be great once we retire or can’t walk the best.
  • The property is small and just the perfect amount to take care of.
  • We just don’t care to pay a massive city tax bill or clean a bigger home or take care of the property.
  • We’d rather be happy than be miserable wondering where to find money to pay the bills.
  • Travelling is on our list of things to do before we pass away and we’d rather be doing that.

It’s Easier To Talk To Someone Who’s Not Pretending Money Grows On Trees.

We asked our friend if she baked the after-school kid’s snacks or if she bought them pre-made.

She laughed and said, there’s no way I’m buying muffins pre-made when I can make them myself.

But what about those pre-mixed muffin mixes where you need to add water, stir, pour and bake?

No, never, she said because it’s just too expensive for our grocery budget.

It was interesting to note that she did use a budget that included food for the after-school kids.

This means she had to do the math to see if after-school care was increasing her income.

She provides very healthy snacks to the kids and is an excellent mother.

  • Grapes
  • Apples
  • Oranges
  • Homemade cookies or cupcakes
  • Cheese Strings
  • Cheddar Fish Crackers

A few minutes into the conversation, Mrs. CBB asked her if she shopped at Costco.

Right away, she said no. She’s been to Costco before, but she doesn’t need the mass amounts of food.

She also said that she spent the $450 most people spend once they cash out the one time she did go.

We explained that we only go in for staples and not the produce, meat or fish.

They have some fantastic deals such as our electric toothbrush heads, nuts, hotdogs, luncheon meats, bread etc.

Cheapest Grocery Stores In Canada

She also pointed out that once she finished shopping at Costco, she’d stop at No Frills.

No Frills is on my list of cheapest grocery stores in Canada, and that’s because they are far less than others.

We shop at Food Basics, which is also another frugal grocery shopping trip for our family.

Too Much Food In The House

Shopping at Costco became too much for the budget that she decided to make what she could homemade.

Even during the Fall and summer months, her vegetables and fruits thrive in the community garden.

The fruits and veggies she serves the kids come from No Frills, where prices are lower.

I’m sure many of you who go to Costco can resonate with her, and it’s true.

Aside from the few staples we get at Costco, I always get my gas there as it’s cheaper than anywhere else in the city.

So what does all of this have to do with Net Worth?

Pretending To Be Wealthy

Nothing more than people spend too much money pretending to be financially stable when they are not.

These types of behaviours have to stop; otherwise, they can cause significant financial problems.

I have a Gucci bag and designer clothes, hair extensions, eyebrow extensions, botox, and other beauty and accessories.

However, go for it if you have the money and pay cash and are comfortable with the expense.

You’ve worked hard for it, but don’t pretend to be someone you are not.

Getting Financially Stable

If you want to get financially stable, you need to stop spending money you don’t have.

You’ve heard that a million times but never took it seriously enough.

Pay off the debts you have and find ways to buy what you need and Nothing more.

Stick to the bare minimum and borrow stuff if you have friends or family who can help.

For example, I helped my sister-in-law renovate and saved her about $10,000 this summer.

Showing off and pretending to be wealthy is just another illusion that no one cares more about than you.

Discussion: Do you know someone who pretends they are financially stable, but they are not?

Please leave me your comments below.

Net Worth For The Preceding 12 Months Canadian Budget Binder 2021
Net Worth For The Preceding 12 Months for Canadian Budget Binder Family

This chart reflects our net worth increases and decreases throughout 2021.

As you can see, it has been a steady incline until April where it dipped because of the markets.

That was quickly corrected in May, June, July and August and back down for September.

Not everyone checks their net worth monthly, but we like to because we choose to.

With the increase in house prices, if we sold our house today, it would increase our net Worth about $850,000 to $900,000.

The only catch is that we’d need somewhere to live, which is why we stopped increases in the house.

Often we look at the big picture and then remove the house, so we see more of an accurate number.

Calculating Net Worth 101

This chart reflects our net worth increases and decreases throughout 2021.

As you can see, it has been a steady incline until April where it dipped because of the markets.

That was quickly corrected moving forward in May, June, July and August.

Not everyone checks their net worth monthly, but we like to because we choose to.

With the increase in house prices, if we sold our house today, it would increase our net Worth about $850,000 to $900,000.

For example, if we sold our house today and had an offer of $900,000, we would adjust our net Worth.

I bought the house for $265,000 in 2009 and since then have only done one increase to $345,000 for our net Worth.

I stopped there because I was questioning whether it made sense to add it to your net Worth.

The only catch is that we’d need somewhere to live, which is why we stopped increases in the house.

Often we look at the big picture and then remove the house, so we see more of an accurate number.

Net Worth Is What You Own Minus What You Owe

Do you know how to calculate your Net Worth?

We like to calculate our net Worth every month to 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.

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 as we have.

You might be that person who decides not to include your home in your net worth calculation.

It depends on what you want to calculate or sell today and make money for tomorrow.

Figuring out net Worth is relatively easy as long as you know your monthly financial numbers.

Net Worth adds up your assets (what you own) and then removes your liabilities (what you owe), giving you a net worth number.

Understanding your net Worth will help you determine if you are on track meeting or beating your personal financial goals.

Determining Net Worth

How to Determine Net Worth?

Net Worth = Assets – Liabilities

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

Financial Numbers

When budgeting, anything is possible; we prove that we still have a long way to go in our journey.

These are our numbers and goals, not a means of comparing your plans to others’ target goals.

We don’t care how much money others earn or if they have a high net worth or lower than ours as it’s not a competition.

I hope our experiences will help guide you along your financial path, working towards debt freedom.

Not Everyone Follows The Same Path

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, but you can’t let that stop you from achieving your financial goals.

You may have been gifted trust funds, paid-for homes, educations, or other perks that give you a financial kick-start, and that’s OK too.

Net Worth Losses and Gains

Net Worth September 2021 Canadian Budget Binder
Net Worth September 2021 Canadian Budget Binder

Hi Friends,

Where did our money go in September 2021?

Down the toilet, that’s where, however, that’s the way net Worth works.

We don’t get overly excited about net worth numbers where our investments are concerned.

It’s just one number that will fluctuate month after month and is just a picture.

I wouldn’t get too worried about a net worth drop, especially if you are young.

We did, however, get laser hair removal surgery done for Mrs. CBB, which I will explain in another post.

It was for medical purposes.

Besides that, money is money, and we will wait to see what the markets do month after month.

Earn It, Save It, Invest It, Build It

Remember what I said, “It’s not about how much money you make; it’s how you save it.”

People accumulate wealth because they know how to save or invest the money they have.

The most negligible improvements should mean significant strides in working towards reaching your goals.

Sometimes we have to fail to learn, and we’ve all been there.

Money can be evil for some people, especially those who negatively affect their financial situation.

Be optimistic, and little by little with determination, you too should see improvements.

Canadian Budget Binder Net Worth Updates 2021

Click the links below to read our net worth updates for the year 2021.

That’s all for this month’s net worth update, but please check in November to see how we made out in October 2021 with our financial portfolio.

~Mr.CBB

How To Stop Pretending You\'re Financially Stable: Sept 2021 (-1.70%)

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