Earlier this year, I posted about my Financial Goals for 2012. One of the goals that I posted was that I’d like to increase our networth to $85,000. I only began tracking our networth about 9 months ago or so and haven’t been doing it monthly, I’ve only tallied it up a couple of times. Since I don’t have a very clear pattern for growth in our finances yet I am not sure if this goal will be easy or difficult to attain. I figured though, that since I posted this as a goal, it is about time that I give you a picture of the numbers as they stand right now.
At the end of last year, we had a networth of about 61,000. Today our networth looks like this:
Cash:$652 This includes money in our wallets, chequing accounts and savings accounts. I don’t keep a bunch of money liquid like this (this is a bit more than usual) because I like to keep it in the Manulife One account so I pay less interest.
Real Estate: $210,000 This is a pretty conservative estimate of the value of our home. We are lucky to have bought a fixer upper in an area that the local university is literally throwing money at. We live kitty corner to a huge empty lot that used to be a metal fittings factory and the university is talking about developing this land. We are hoping that if we hold onto our house for another few years we will see a dramatic rise in value however, like anything, we are not banking on it.
Investments: $8700 Since our consumer debt is gone, we are shifting some of our focus to this area of our finances. Obviously, we have a whole bunch of RRSP and TFSA room to use up. Since we would like to save up for an investment property, we will probably use the TFSA room to save for this since we can pull it out without penalty when we have saved enough.
Personal Property: $11,000.00 This includes our vehicles, motorcycles, household appliances and electronics and collectibles. I grouped the silver that we’ve bought in this area though I wondered whether I should put it into the investment category. I decided to keep it here since it’s more difficult to affix a value to and I found that more in line with the other items in this category. I valued everything in this category extremely conservatively. This is because if something happened and we needed to liquidate these items very quickly, we’d probably have to sell some of this stuff at less than it’s actually worth. Since our vehicles are quite old and not in awesome shape, I valued them quite low at $1500 apiece. The motorcycles got similar treatment since three out of four of them are older and they would all need a bit of work to get the most money for them.
Credit Card: $2000 We pay off our credit card each month so we don’t pay interest on it. I charge everything to this card for the points and this is the current balance.
Mortgage: $153,800 This number fluctuates quite a bit since we have a Manulife One account but this is what it’s sitting at right now. After purchasing our home, we spent some money renovating it and rolled a bit of this debt into our Manulife One account when we got it. Because of this, our mortgage is higher today than it was when we switched to Manulife One but the debt is much better sitting here at 3.5% than on a line of credit or worse. We are looking forward to making some headway on this number this year!
Loans: $6000 My parents gave us a personal loan several years ago. They told me to pay it back when I could. I used the grace period to pay off a bunch of high interest debt and now that that’s gone I am working on this one (no interest). They had loaned us a total of $9000 and awhile ago we paid $3000 off. Now we are saving money up to give them the rest back- can’t wait!
This leaves us with a networth today of $68,552.00.
It feels like that is not very different from December 28th of last year (when I did my last networth tally) but I have to remind myself that things will change drastically once I am back to work and earning my regular wage again. Judging by how things have moved in the last couple of months while we’ve been squeaking by on my maternity benefits, we shouldn’t have a problem reaching our goal for 2012 at all.
Note: When I began calculating my networth, I found this great networth spreadsheet at Squawkfox and have been using it ever since! Thanks Squawkfox!!