March 2019 – 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 by 102% on a 12 month rolling average (the extra 2% is a buffer for inflation).

Investments

Accounts

RRSP $59,870
LIRA $18,010
TFSA $95,460
Pension $179,530
Wife’s RRSP $95,720
Wife’s TFSA $84,980
Wife’s Taxable $42,760
High Interest Savings Account $34,510

Investment Net Worth $610,840 ($2,960 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: $1100
  • Child Tax: $340
  • Interest $29
  • Tim Brewery Job: $102
  • Total Income: $1574

Spending

Last Month $2976

This looks worst than it is as this month included two major grocery runs and two withdrawals of spending cash.  So overall it will equal out next month when those won’t occur.  And we also spent $377 on house items, as my wife put in an order to IKEA for some business items so we added on some house wish list items as well (new rug for the living room, new chair for my son’s desk and a few other misc items).

Results

Net Worth ~$1,005,840

This Month Investment Gains & Income/Spending Ratio = (2960+1574)/2976 = 1.53 (Target 1.02 or higher)

April 2018 to March 2019 Invest Gain & Income/Spending Ratio = (142+19155)/36652 =0.53 (Target 1.02 or higher)

Commentary:

I helped out at the local brewery again for the day which gave me a bit more cash which I added to my pile for buying all grain brewing equipment.  I’ve been saving part of my spending cash up for the last six months towards this and I’m almost ready to start ordering parts for it all.

Well this month had a nice steady gains from the bond markets mainly.  So overall it is nice to see that the 12 month ratio, while being below target, is slowly heading upwards to our target over the last few months.  Our spending was a bit higher as noted above but main of those items were one off type purchases.  For example, the new chair we brought replaces the one that I bought over a decade ago.

The new book continues to move along.  The overall manuscript is now over 50,000 words (~200 pages) and I’m closing in on finishing the first draft (I would guess I’m around 95% complete).  I’m increasingly writing less new content and just cleaning up references and adding to sections the needed some expansion.  My goal for April is to finish the first draft and switch to full on editing the manuscript which will mean the word count will start to go down as I remove repeated information and clean up the text to be easier to read.  Then after I get to a reasonable draft I’ll pass along the manuscript to some beta readers hopefully in May for some big concept feedback (what works, what doesn’t work and ideas on how to improve it).  I won’t be asking for any copy editing (grammar, spelling, etc) as I intend to contract that out.

Any questions?

(click to make bigger)

4 thoughts on “March 2019 – Net Worth”

  1. Wouldn’t worry about monthly expenditures. We almost always spend more than we take in. I retired at age 38, in 2004.
    Investments continue to carry the load though. Thinking of taking some profits before end May, seeing how we are at near all time highs again. What are your thoughts on the old adage “go way in May come back in September”?

  2. @Rick – I’m always concerned with old adages as it means at best it is an occasional trend. I personally just stay invested and watch the rise and fall. Of course if you need some cash anyways yes right now would be a good time to take some money out. And thanks for your input, it makes me feel a bit better that these occasional months are not going to mean I’m screwed.

  3. Hi Tim, just curious how is the taxe return working out for your family? 2018 was be my last year with full earnings so next year when I file taxes it will feel strange for sure. =)

  4. Hi Misuchiru – Not sure, I haven’t finished my taxes yet. But I will post on that when I’m done.

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