When we began tracking our budget and net worth updates, we didn’t give much thought to wealth-building strategies.
There was nothing more than using a budget to track our expenses and pay off any debt we owed.
Even today, now that we are debt-free in our 40’s, our wealth-building strategies continue to be fairly simple.
Why do you ask?
Life is too short of stashing all of your money away for a rainy day without enjoying it.
We think differently, although we continue what wealth-building strategies we’ve incorporated over the past ten years.
Today, I have our final December 2021 Net Worth Update and let’s chat about why things have changed for us.
Stash, Invest And Increase Wealth
At the start of our wealth-building strategies, we created a financial plan that included having a large retirement savings fund.
We were very frugal and did anything to save money on anything we needed to purchase.
Since we have no debt, we are open to spending a bit more money on ourselves.
We still don’t go out to eat, but if we want to buy a nice cut of steak, we will.
Our mindset has moved over to thinking simple while building wealth which our son will likely benefit from.
From there, we maxed out our RRSP, TFSA and non-registered investments. Plus, I have a defined benefits package at work.
Even our life insurance policy works for us, and we bought our son’s life insurance.
Once we pay for this for the next ten years, he’ll never need it ever again because he’s covered.
Lastly, he will have Canadian Budget Binder to run if he wants to, or he can sell his choice.
There’s been so much forward-thinking and planning about retirement, death or illness in 2021.
Then, someone dies in the family, and another is waiting to die.
You can’t unsee these things, and they weigh heavily on your heart and mind.
We thought either we were getting old and settling, or we were just tired. Probably both, lol.
The big question is, how much money do we really need for retirement?
Do we want to travel? Maybe if we are healthy.
For now, we continue to utilize simple wealth-building strategies and save just in case we need it.
You never know what will happen, and we’re also going to start saving for our death expenses.
Although we both have life insurance, you never know what you’ll die from and whether your policy will cover it.
For the most part, everything is covered from getting hit by a bus to dying of natural causes.
I’ll be writing a blog post about that, and it will be incorporated into our projected expenses each month.
Our 11 Solid Ways To Build Wealth
- Pay Off Debt
- Stop Creating Debt
- Track Our Money
- Plan Ahead For The Future
- Invest Our Money
- Think Second-Hand
- Be Frugal
- Negotiate Whenever We Can
- Financial Education
Your Purpose Is Different From Everyone Else
I’ve never taken advice from a blogger who is not successful in all that they do. I’m not sure I’d want to take money advice from someone who went bankrupt or has so much debt they are swimming in it.
That’s my personal opinion about financial education and the internet. Everyone’s out to make a buck, and I know of some greedy bloggers who I wouldn’t even trust.
I don’t expect anyone to take what I say as the holy grail but believe me when I say you can build wealth.
Your wealth ideals may differ from mine or the next person, but all that matters is yours.
For example, you may want to rent for the rest of your life, and someone else would rather own a home.
Both of you want to be debt-free and live a happy, fruitful life into retirement and the world over.
There’s nothing wrong with that at all; often, it has more about where you came from and where you’ve brought yourself.
Have you ever heard of breaking the financial cycle and doing better than your parents?
I’m sure many of you reading this have either done so or are following in their steps.
If you’re not where you want to be, YOU have to make that choice for financial freedom.
Always remember, no one cares about your money more than you do.
Wealth Building Strategies To Explore
- 6 Money Building Strategies To Build Wealth
- How To Start Building Wealth In Your 30’s and 40’s
- Building Wealth Without Earning Big Bucks
- Wealth Building Starts When You Stop Making Poor Financial Decisions
- Simple Steps That Helped Us Increase Wealth In Our 40’s
- Creating Wealth From Zero Using Simple Financial Principles
- 5 Ways The Wealthiest People Get Rich
- 10 Wealth Strategies To Train Your Brain
- 5 Examples Of A Wealth Mindset
- Would You Put Your Wealth Plan On Hold For Your Kids?
As you can see, there are many blog posts I’ve written over the last ten years about wealth building.
If you’re serious about crushing debt and getting into the positive, educate and get moving.
Discussion: What are some of your wealth-building strategies? Please leave me your comments below.
Final 2021 Net Worth Update Numbers
The red line depicts where we should be in terms of net worth at this time based on the historical data from the past ten years.
In March 2020, when Covid-19 hit, we took a large dip in our investments as most people did.
Then it slowly began to increase, and now we are ahead of where we thought we would be by about a year.
Net Worth Increases And Decreases 2021
Understanding your net worth will help you determine if you are on track meeting or beating your personal financial goals.
The chart above reflects our net worth increases and decreases throughout 2021.
Our net worth had been on a steady incline until April and again in September when it dipped because of the markets.
The financial dip that we had was corrected from May to August.
We started December 2020 at $1,359,582,46 and ended at $1,435,963.44 with an increase of $76,380.98.
With the 2021-current increase in housing prices, our net Worth would increase by approximately $1 million if we sold our house.
We won’t be selling our house any time soon, so that extra one million dollars is just dust in the air, for now.
Should You Add Your Home Into Net Worth?
We bought our home for $265,000 in 2009 and have done one increase to $345,000 for our net worth.
I stopped there because I questioned whether it made sense to add it to our net worth.
Housing data, in my opinion, is irrelevant unless you are downsizing into cheaper accommodations.
Moving into an apartment, condo, or a cheaper home in a smaller city would accurately increase our net worth.
For example, our neighbour sold her home and bought a new trailer home in Grand Bend for $200,000.
Had she sold her big-city house for near one million dollars, she would have walked away with an extra $300,000.
She was a hoarder and sold the house for cash to companies who would buy and resell a house.
Often we look at the big picture and then remove the house, so we see more of an accurate number.
Determining Your Net Worth
Do you know how to calculate your Net Worth?
Net Worth adds up your assets (what you own) and then removes your liabilities (what you owe), giving you a net worth number.
Net Worth is only an estimate, and not everyone uses the same type of figures to tally it up.
Net Worth = Assets – Liabilities
Calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
CBB Net Worth Losses And Gains Final 2021
Like most Canadians, December seems a busy month of buying gifts and groceries for the holidays.
We were no exception since we were hosting Christmas Eve and Christmas day.
PC Optimum points and spending over on groceries cost us more than anticipated with our Christmas projected expenses.
Overall, we’re happy we save for Christmas every month, so it’s not a massive hit to our net worth savings.
Also, rewards points are awesome to spend if you collect them year-round. I believe we paid $70 for our son’s new X-Box at Shoppers Drug Mart.
For next month’s net worth update, I’ll reduce the cost of our truck as it has likely depreciated to reflect accurate information.
Other than that, you can read our December budget for more information on what changes we plan for 2022.
Our December net worth increase was $16,505.31 or 1.16%.
Earn It, Save It, Invest It, Build It
Remember, “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 their money.
The most negligible improvements should mean significant strides in working towards your goals.
Be optimistic, and little by little with determination, you too should see financial improvements.
Canadian Budget Binder Net Worth Updates 2021
Click the links below to read our net worth updates for 2021.
- January Net Worth 2021
- February Net Worth 2021
- March Net Worth 2021
- April Net Worth 2021
- May – Oops I forgot to post this one.
- June Net Worth 2021
- July Net Worth 2021
- August Net Worth 2021
- September Net Worth 2021
- October Net Worth 2021
- November Net Worth 2021
That’s all for this month’s net worth update, but please check back in February 2022 to see how we made out In January 2022 with our financial portfolio.