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 by 102% on a 12 month rolling average (the extra 2% is a buffer for inflation).
Wife’s RRSP $93,660
Wife’s TFSA $90,650
Wife’s Taxable $45,250
High Interest Savings Account $31,530
Investment Net Worth $614,260 ($5590 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: $340
- Interest $30
- Total Income: $920
Last Month $3492
Fairly normal spending but included the yearly car insurance for $1026.
Net Worth ~$1,009,260
This Month Investment Gains & Income/Spending Ratio = (-5590+920)/3492 = -1.33 (Target 1.02 or higher)
Oct 2017 to Sept 2018 Invest Gain & Income/Spending Ratio = (9641+18472)/36943 =0.76 (Target 1.02 or higher)
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.
Well I was avoiding writing these posts because I knew the results would not be good. Yet dropping from 1.08 ratio to 0.76 in a month isn’t good. But this is what a few bad months in a row can do to your investments. Next up Oct and the blood bath results.
(click to make bigger)