July 2018 – Net Worth

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).

Investments

Accounts

RRSP $65,820
LIRA $17,960
TFSA $96,460
Pension $173,700
Wife’s RRSP $94,110
Wife’s TFSA $88,860
Wife’s Taxable $46,140
High Interest Savings Account $34,480

Investment Net Worth $617,530 ($4630 increase over last month from investments)

Home Equity

Estimate $395,000

Income

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: $712
  • Child Tax: $341
  • Interest $30
  • Total Income: $1083

Our Child Tax Benefit went up slightly starting in July and my wife owed a bit more to cover her liability insurance which is included in our house insurance policy which we paid last month.

Spending

Last Month $3824

Ugh, that was WAY more expensive of a month than what I wanted. But in all honesty it included several one off expenses like my tent broke and we had to buy a new one ($325), our car finally got fixed from a hit and run so we paid our deductible ($700),  we took vacation (~$550) and my wife and I did a special overnight trip to Saskatoon to celebrate both of us turning  40 in the last year ($250).

Then to top it off I broke down and took part of a Kickstarter for Reaper Bones 4 miniatures for our D&D game for $244.  Which seems like a lot but I am getting 172 minis in 2019 so the average cost works out to $1.42 per mini which is cheap compared to the $8 for two you pay at a local store.  In essence I just did all my game shopping for the next two years all at once.  The trade off of this decision is I’m parking my all grain beer brewing equipment purchases for several months to balance things out.

Results

Net Worth ~$1,012,530

This Month Investment Gains & Income/Spending Ratio = (4630+1083)/3824 = 1.49 (Target 1 or higher)

Sept to July Invest Gain & Income/Spending Ratio = (17669+17472)/34709 =1.01

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.

Commentary:

Okay I’m officially I’m fine. Our multiple month ratio shows our income  just over our spending for the last 11 months.  The concerning part to me of those numbers is our spending is pushing $35,000 and I still have one more month left which is bit higher than my planned spending (which was ~$32K).  Partly I know the reason for that is the $32K target didn’t include vacation spending and we had some odd one off things in the last year (eg: new tent and new glasses for my wife).  So the plan for August is very simple.  Keep our spending down for the month to try and bring the numbers back in line.

I should also mention when I modeled our retirement for the next five years I knew the first year contained the most risk.  At best I was to keep the net worth about the same over the year and depending how bad the markets did I could have seen a small loss.  But in 2019 things will turn around as our Child Tax Benefit will spike in July 2019 and I should see more income from my projects.

Any questions?

(click to make bigger)

8 thoughts on “July 2018 – Net Worth”

  1. Don’t beat yourself up for being selfish and taking vacation. It was well deserved.

    In any event, the progress is amazing, keep it up!

  2. @Church – Oh I’m not really that worried about. I’m more noting the issue of spending this last year is a bit higher than normal for the last 11 months.

    @Matt – The long term model includes 2% inflation adjustment, but I really should include something like that in the month to month ratio metric. Thanks for pointing that out. I might have to shift the target to 1.02 if I keep using this metric going forward.

  3. If you can take a family vacation for $550 , I tip my hat to you . we just got back from a family vacay to the Tennessee and the American southeast and even with all the things we did to cut costs like drive 12 hours to fly out of Seattle , exhaustively shop for hotel deals , stay with friends some and fast food breakfasts , it still cost 10X as much !I know the comparison is apples and oranges as staycations relatively close are much more economical but my point is that no matter how much one try to save , at the end of it all you just look back and think wow , we spent a lot !

  4. I was going to say the same thing as diharv. That $550 vacation and $250 for a night in Saskatoon is really something. We had a couple close by vacations this summer and ended up spending about $5,000 for each week (could have been more). An overnight out in the city for me and my wife would be $800 to $1,000 for hotel, dinner and drinks. So you are doing something right. Or maybe Saskatchewan is just really inexpensive.

  5. @diharv @Samuel – Oh we have had those expensive vacations as well. Just not that frequently. I know our Hawaii trip was over $5k and our east coast tour was over $8k. Also my numbers above I realized didn’t include gas so add perhaps another $50 to each set. Anyways, we keep the costs down for camping by cooking almost all our own meals and then our entertainment is mainly going to the beach, hiking or having a camp fire in the evening.

    As to the Saskatoon trip, we hit a really good deal on the hotel room. The rates normally start at around $260 just for the room and I found a rate for $120 which included parking (which is normally another $15). Then we were touring some local breweries so we bought and shared samples of most of the beers rather than full pints (otherwise I would have been on the floor on the first stop) so the keeps the costs in check while getting to try more beers. In the end, we only bought one full pint each other than the samples and then ate supper.

    We tend to focus on what we enjoy which happens to generally be a good deal even with having to buy a new tent.

  6. Seems to me you are skating on thin ice meaning that you have no surplus income after the year is done. Keep da wife working.

  7. I love that you are able to keep close track on your expenses when travelling. I find that I have usually underestimated the costs entailed in travelling for vacations etc.

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