Category Archives: Net Worth

Net Worth Update – Dec 2007

Here is my net worth from Dec 31, 2007 (yes just a little late I know).

Assets

House $308,000
RRSP $13,900
Old Work Pension (LIRA) $11,800
New Work Pension $5700
Wife’s RRSP $6100
Wife’s Investment Account $7400
My Investment Account $2800
High Interest Savings Account $5900

Debt
Mortgage $143,700
Line of Credit $2900

Therefore my net worth now stands at $215,000 for the end of 2007. That is an increase of +$13,700 or 6.8% from my last update.

Regular readers might notice that I have a few changes to my net worth statement.  I’ve added my investment account and a balance to my line of credit to reflect my decision to leverage invest.  I’ve decided to keep this amount small to see how comfortable I am with the entire thing.  So far I’m down about $100 on this experiment.

Over the holidays most real estate markets slow to a crawl, but I lucked out and found a couple of comparable houses to mine which made me feel comfortable increasing my house market value up slightly.

The other increases were the pension account where I’ve rolled in my new pension amounts and the high interest account where we are building up cash to pay for my wife’s maternity leave and my parental leave in the spring.  All of these increases are nice, since the markets took down most of our existing accounts even with contributions.

So in the end 2007 was very good to us.  We paid off over $6000 on the principle of our mortgage and also managed to increase our investments total from $32,100 to $53, 600. So in total (excluding the house market gains) that is an increase of just over $27,000 in 2007.  In 2008 I hope we can do better, but with our new baby coming I’m not sure if that is going to be possible or not.    I’ll keep you all posted on how we manage.

The Dangers of Comparsion

Despite our wishes to all get along in universal peace, there are always going to be arguments about things. For example, people start comparing things and then get upset by the results. A classic case came to mind this morning when I noticed a post over a Million Dollar Journey comparing PF bloggers net worths.

I give Frugal Trader credit that he also put up the ages of the people on the list to help assist people when comparing and a disclaimer that the calculations of each number might be a bit different. The danger of a list like this is when you start comparing yourself to someone else is not realizing what the detailed differences are.

Net worth is a bit of a slippery comparison method as each net worth will be completely different when you strip back the layers. For example, my own I know is heavily weighted by my house’s market value. So if I compare it to someone else who have more in stock and cash does it mean I’m worse off then they are? No, the fact is it doesn’t mean anything at all.

Everyone in life has a unique path financial speaking. Some have college paid by their parents, while others get student debts or skip going entirely. Some buy a house young and others wait or prefer to rent. Some have a couple of kids before they turn thirty and other don’t have they first until after thirty five. Each of these factors can have a huge impact on your net worth value and what makes up your net worth.

So when MoneySense magazine came out with their “wealth test” a few months ago I had a quick look at the results to see where my net worth compared. Generally speaking I didn’t really compare with the average person at all, but it doesn’t mean that the average person was wrong. We each choose to live our lives how we see fit and your net worth comes out of it. Also people have difference opportunities and skills which will define their net worth. For example, I don’t own many individual stocks, since I’ve never been that good at picking them until I did some reading on the subject, so now I’m trying.

In the end, your net worth is a number for you. It’s a sign post telling you your doing the right thing if it is going up on a year to year basis. If you do compare it to some one else, keep in mind the results could be meaningless if you looked into the details.  Beware the dangers our comparing yourself to others, you might just end up releasing feelings of fear or envy.

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.

Assets
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

Debt
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