Welcome to my eleventh Net Worth Update.
If you haven’t read my Million Dollar Journey post yet, then I recommend you start there before consuming this update.
Q4 was rough. My severance package ended the first week of the quarter!!! I went into serious cost cutting mode. Even worse Christmas was upcoming, so I still had a significant outlay of cash. Even worse, my job search was stagnant. So it was a bit of a scary month.
Luckily, as they say in The Millionaire Next Door, I’m a Prodigious Accumulators of Wealth, so I had a lot of money to tap into if need be. I estimated that I could have stayed unemployed for another year and still be able to meet all my obligations (Housing costs, Child support, Spousal support…), but as all you savers and investors can relate to, I didn’t want to spend the money I had saved.
I was fortunate to find a new job on December 19th, with a start date of January 3rd, 2017. But it’s not without it’s issues:
|It’s a job||I had to take a 16% pay cut|
|It’s close to home||I had to take a semi title cut|
|The people seem nice||It’s still a 35 minute drive|
|The actual thing I’m doing is very interesting||The companies business is ethically questionable|
So with all that in mind I’ll be continuing to look for a better job. That being said, it’s nice to be working again and generating income.
First the numbers, then more of the explanation of what happened in this quarter’s Net Worth Update.
ASSETS: $455,358.63 (+13.2%)
- Cash $8,780.67 (-28.2%)
- Savings $3,229.52 (-1.2%)
- Registered/Retirement Investment Accounts $79,891.29 (+2.7%)
- Tax Free Savings Accounts $30,526.74 (+1.7%)
- Non-Registered Investment Accounts $18,035.14 (-18.2%)
Smith Manoeuvre Investment Account $0.00 (0.0%)
- Principal Residence $307,505.27 (+22.8%)
- Other Seizable Assets $7,390.00 (+12.1%)
LIABILITIES: $180,314.06 (-1.2%)
- Principal Residence Mortgage $164,061.35 (-1.4%)
- Consumer Debt $657.98 (+a lot%)
- Investment LOC balance $15,594.73 (-3.2%)
- Future Tax Liability $0.00 (0.0%)
KIDS: $29,054.26 (4.2%)
- Cash $6,670.66 (+4.3%)
- RESP $22,383.60 (+4.2%)
BUSINESS: $3,547.28 (-20.0%)
- Assets $3,547.28 (-20.0%)
- Liabilities $0.00 (0.0%)
TOTAL PERSONAL NET WORTH $275,044.57 (+25.2)
TOTAL BUSINESS NET WORTH $3,547.28 (-20.0%)
TOTAL KIDS NET WORTH $29,054.26 (+4.2%)
COMBINED NET WORTH $307,646.11 (+22.1%)Progress: 30.8% towards my goal, Reporting Period: 11 of 28
Summary of what happened in Q4:
1) I had a house appraisal done this quarter, so that’s why it seems like I had such a large bump in net worth. If you excluded that change I would have probably been negative. Additionally going forward I plan on tracking my house value monthly using http://www.housepriceindex.ca/, part of the thinking here is that Canada will most likely see some decrease in real estate value, and I’d like to track it.
2) Zero business revenue for Q4, while still maintaining regular expenses, plus my yearly depreciation write down.
3) Lived on my savings for most of the quarter (since government unemployment doesn’t cover much)
4) Finally got to move my retirement funds from RBC (I had to use them with my old employer). I now have everything at my discount brokerage. In addition to that, the stock market was good to me.
Overall my personal net worth increase 25.3% this quarter and my combined net worth went up 22.1%, not bad, but I’m falling behind on my 28 quarter journey to 1 million dollars.