This posts are in a transition phase, so please be patient as I work out the changes over the next few months. In that end, the focus of these posts will now shift from increasing our net worth to balancing our income & investment gains versus our spending.
The following is an update of Tim’s early retirement. Please note we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average but I’m just starting to track this as of last month.
Wife’s RRSP $91,190
Wife’s TFSA $81,630
Wife’s Taxable $53,010
High Interest Savings Account $53,130
Investment Net Worth $619,870 ($4,780 increase over last month from $1700 contributions, and investment gains $3,080 )
To keep things simple I’m only going to track what income comes into our main ‘house’ chequing account. I won’t be tracking my wife’s or my businesses income as those don’t really matter until the money moves over to the ‘house’ account. Also I won’t track investment gains since that is covered above.
- Tim’s Vacation Income: $1700
- Wife’s Monthly Payment to House: $2015
- Child Tax: $310
- Total Income: $4025
The high transfer from my wife’s business was her annual payment for her football season tickets which are due on Dec 1.
Last Month $4515
Christmas shopping was in full swing in November which consumed around $1300 and we did our annual visit to the dentist which was another $880.
As I mentioned last in previous updates I’m breaking out the renovations separate from the rest of our spending this year.
Trailing Last 12 Month Renovations $9254
Trailing Last 12 Month Average Everything Else $2891 (or $34,700 for the last 12 months)
Net Worth ~$1,014,870
Investment Gains & Income/Spending Ratio = (3080+4025)/4515 =1.57 (Target 1 or higher)
So by the way, yes I was ignoring this blog mostly this month. I was working on my novel and wrote 52,000 words or so (which would be around 208 pages or 70 blog posts…aka over a year’s worth of posts in a single month). I’m still not done the novel but I am scaling back on the writing pace so you should see more blog posts in December.
We did a bit of financial house cleaning and drained the excess cash off the TFSA and taxable accounts and moved that over to our savings account. I had planned on looking at if we need to rebalance the index funds in the RRSP accounts but didn’t get around to that yet. So that will be a December project.
I’m pleased to see the investment net worth is still going up even with us now taking money out for our expenses. As I mentioned in my previous post we got a bit of extra cash from my old job this month and that just got dumped into savings as a contribution for now. Once we get to the New Year it will likely get dumped into a TFSA account.
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