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 $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)
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.
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.
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.
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.
(click to make bigger)