Welcome to my net worth posts where I try to prove to myself and you that I wasn’t crazy for leaving work in the fall of 2017 to start my early retirement. A few important notes: we are mortgage free and our goal is have our income/investment gains exceed our spending on a 12 month rolling average (please note this metric is still under development).
Wife’s RRSP $91,230
Wife’s TFSA $86,840
Wife’s Taxable $45,740
High Interest Savings Account $40,270
Investment Net Worth $610,070 ($3950 Contribution, $650 decrease over last month from investments)
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.
- Wife’s Monthly Payment to House: $550
- Child Tax: $310
- Tax Refund $3950 (note I included this in the contributions above to avoid double counting this below).
- Total Income: $5077
Well thanks to our tax refund our net worth has made a nice increase this month because without it things would have been going down.
Last Month $2313
Again a average spending month but that is normal this time of year for us.
Net Worth ~$1,005,070
This Month Investment Gains & Income/Spending Ratio = (-605+5077)/2323 = 1.9 (Target 1 or higher)
Sept to Apr Invest Gain & Income/Spending Ratio = (10209+13839)/21498 = 1.12
Just a note on the multiple month ratio I stripped out all income related to my old job from the early months to provide a more realistic picture for retirement.
Ah, the lovely tax refund which helped most of the ratios do really well this month. Of course going forward I won’t be able to depend on that but that is fine during this up and down first year retirement.
(click to make bigger)