Category Archives: Net Worth

2008 Goals

With the end of the year looming on the horizon I’ve been wondering what to set as some goals in 2008. I was thinking of keeping it simple and just coming up with a dollar value to increase my net worth by, yet I realized I have a problem.

You see my wife will be taking a leave from her daycare after our second baby is born next spring. So rather than saving I will spend the next 12 months dipping into our savings and decreasing our net worth. Yet that shouldn’t matter entirely. My investments should still be making some cash and I will be making contributions to our retirement accounts regardless. So in the end I’ve picked a goal of increasing our net worth by $30,000 in 2008 or a 15% increase.

This should prove a very challenging goal for us. Here’s a breakdown of how I see use getting to it.

  1. Increase of house market value of 4%, which should get me around 40% of my goal. I’m not sure where the real estate market is going next around here but I’ve read a few different forecasts calling for double digits to continue. I’m going to assume they are wrong and shoot low. Also my home’s market value is a bit like an elephant in the room with my net worth, I can’t really ignore it even if I wanted to.
  2. Contributions to my work pension accounts (including company match). This should get me another 21% of my goal.
  3. Contributions to our RRSP accounts for another 8% of the goal. This is my minimum level, so if I have some extra cash I will likely increase this.
  4. Pay down the principle of the mortgage should give us another 20% of my goal.
  5. That leaves our investments returns to pick up the remainder (~11%) and offset our withdrawals from our savings.

I was originally thinking of shooting for a goal of $25,000, but then I decided to stretch myself a bit and see how far we can go. After all when I look back at my goals for 2007 I’m forced to conclude I was even close to challenging myself.

For your review these were my2007 goals and how we did:

1) Save $10,000 in 2007. This will include RRSP accounts, taxable account, and the pension plan.

I’ve easily made this goal. Year to date we have saved from my work pensions around $5000, my RRSP $1100, my wife’s RRSP $1100, and my wife’s taxable account around $4000 (Total = $11,200). Also that does not include the extra $1000 we put on the mortgage and the high interest saving account balance and I still have a month of savings left. Also these are just savings amounts, I haven’t included any investment returns in them.

2) Investigate other streams of income. I’m basically going to have a look at a possible small business or a rental property. I’m not entirely sure what, but I’m going to start devoting some of my time to looking at my options.

This was a bit of vague goal, but I did follow through on it. I looked at rental properties and other ideas for small businesses and in the end I rejected most of them. Why? I either lack the time or the money to do these well. So in the end I’m going to focus more on growing this blog in 2008 and see what income comes out of that.

3) Keep painting and other minor renovations to the house to boost its value by at least $10,000.

I did work on this goal. I’ve painted around 70% of the interior of the house and did a series of repairs/improvements to the house such as replacing a toilet and installing some new flooring in the front entryway. I just couldn’t have guessed the real estate market in Regina would explode like it did and make any renovations I did meaningless compared to the general market. Our house value shot up from around $200,000 this time last year to about $320,000 now. So again we easy made this goal.

The fact we met these goals fairly easily to me was an indication I wasn’t challenging myself enough. So that is why we are increasing the goal for 2008. Also the way this goal is structured, I can easily ignore the house value is I have to assess how we did on everything else.

So what do you think? And what are you going to try and do in 2008? Are you going to save for a trip, car, invest or buy a new house?

Net Worth – Oct 2007 Update

It’s that time again. Yes it’s Halloween, so enjoy all those kids on a sugar high ringing your doorbell! Meanwhile here’s some numbers and graphs to get you ready for all those brightly coloured costumes.

House $299,000
RRSP $14,000
Old Work Pension (LIRA) $12,100
New Work Pension $3700
Wife’s RRSP $6000
Wife’s Investment Account $8200
High Interest Savings Account $3200

Mortgage $144,900
Line of Credit $0

Therefore my net worth now stands at: $201,300. Overall an increase of +$4900 or 2.5% from my last check up.

Ok, I’m a bit overly happy I’ve officially broke the $200,000 mark. Perhaps what is most interesting about this update is the fact I’m almost one year from my first net worth post, where I started off from $66,000. To be fair I forgot about my old pension plan in that first post, so it should have been $76,500. Yet that is still a 163% increase, which was largely driven by a housing boom in Regina. But even if I take out the house value increase I’m still up 21% in a year. Or for those who love graphs, here’s the story (click on them to see a larger version).

Net Worth Oct 2007

Net Invest Oct 2007

Net Worth – August 2007 Update

I know I’m a bit early on this post, but I slept in this morning and it’s my only draft that was close enough to a complete post to use. So here we go.

House $299,000
RRSP $13,200
Old Work Pension $11,600
New Work Pension $2300
Wife’s RRSP $5500
Wife’s Investment Account $8400
High Interest Savings Account $2100

Mortgage $145,700
Line of Credit $0

Therefore my net worth now stands at: $196,400. Overall an increase of +$6,400 or 3.4% from my last check up.

There appears to be a bit of calming in the real estate market here. I’m hearing less stories of over bidding on houses, but the other thing I’m seeing is less listings in my area. So trying to gauge my house market value has been difficult. So this month I’m only increasing the value by $5,000 which is only based on one ‘sort of’ similar house that went for sale in the area.

The stock market slide has also impacted the accounts overall. They don’t look as bad as they should because the cash added to the accounts has been covering their losses overall so I’m at least breaking even on most of the investment accounts right now. I’ve taken most of the extra cash that we had in the old ING account and picked up some more EIT.UN. By the way I made the switch over to RBC’s high interest account, the thought of instant transfers was just too appealing. I guess this is the end for the traditional savings account. One last thing I did in the last while was prepare the mortgage to start accelerating it’s pay off.

So given the cooling in the local real estate market and the slide in the stock market I’m happy with my increase over last time. After all I’m still up by 145% from my net worth at the end of 2006.