# Monthly Net Worth Updates



## Underworld

Screw it, I'll join in with the Net Worth updates! It might make me more accountable 

Just a bit about me and spending habits: I thoroughly enjoy building net worth. My wife is more about life experience, so we meet somewhere in-between regarding spending. I.e. we spend a lot on travel and eating out. But that's my compromise to keep her happy  I know a lot of people can be hardline frugal, so I thought I would share that information up front  I'd say I'm OK at paying off debt, I just need to get into investing more and start building up some experience and habit. I know the basic high level concepts of building net worth and investing, but I could always use extra feedback and input. 

My goal is to reach 1 million net worth at the age of 45 which is fairly aggressive, but it doesn't hurt to try. I am wary of the stock market and how emotion pushes it up and down. But I'm sure a solid % of my net worth will be housed in the stock market.

It's funny I found an old post I wrote 5 years ago, it's good to see I'm a bit further ahead than I was then! http://canadianmoneyforum.com/showthread.php/946-Please-provide-tips-for-my-financial-future

Anyway here goes:

As of August 2014

*Combined Gross Income*
~221k I'll report on what my exact Net is after tax time.
But usually the monthly net is roughly 12.5k

*Monthly Cash Flow*

Credit Card 12 month average: 5780 
Mortgage	2629.46
TV	150
Property Tax	224
Insurance	275
Cars	450
Utilities	300
Phone	150
Dayhome	450
Alarm	45
Cleaner	190
===============
Total 10643

*Assets*
House: 485000
RRSP: 5454.21 (Vanguard Total Market Index ETF - VUN)
Car 1: 6000
Car 2: 13000
Physical Silver: 600
IP: 5500
Resp: 2311 (TDB900 TD e-series Canadian Index Fund)
TFSA: High Interest Savings Account (1.25%) 10000
===============
Total: 527867

*Liabilities*
Mortgage: 351264.36
Car 2 Loan: 15500
Money Owed to Family: 15000
===============
Total: 381764.36

*Net Worth*
146,103.31

Notes:
We pay down an extra $250 with our mortgage payment every 2 weeks.
We put *all* purchases on credit card.
I probably shouldn't have the RESP in my Net Worth Listing, but it gives me a psychological boost 
The 10k in TFSA savings is us saving up for a rental property (I like tangible, physical things)
We didn't borrow more money from family members, just the wife's family decided recently that we owed them money from when she was younger and they lent her money. #whatever #familydrama. I'm holding out paying it back as they don't need it now as inflation eats away at that payment 

*Short term goals*
Stop spending money on coffee
Stop buying lunches everyday
Reduce the amount spent on credit card every month

*Long term goals*
Own a rental property
Own diversified dividend stock

Feel free to offer constructive feedback and tips 

Thanks!


----------



## Underworld

This is the chart from my spreadsheet that I use to visualize net worth growth. The redline is the line I need to hit to get to a million dollars by 45 years old!








P.s. sharp drops indicate engagement and marriage


----------



## OhGreatGuru

Funny how people with 6-figure incomes become obsessed with net worth.

_Credit Card 12 month average: $5780_ That doesn't really tell us (or you) where your money is going. All your housing, utility and vehicle costs seem to be listed separately. So what the heck are you spending 50% of your monthly cash flow on? That seems like a lot of groceries and entertainment.

This has been discussed elsewhere, but most people do not include their vehicles in net worth, as their market value is constantly declining.


----------



## Underworld

Can't tell whether your first line is a dig or not. But I've always had a strong interest in it if that is worth anything 

As I was writing that post, I thought the same thing about what money is going on with Credit Card. I'll do a propper breakdown tonight and update my post.

I'll keep on including vehicles as it is a nice sobering reality check when you downgrade their worth every few months and the loan you owe stays the same!


----------



## peterk

Saving 20% is of course admirable and will provide you a nice retirement at age 55-60, but I think you could pretty easily be saving 40% by cutting down those expenses to the basics, and reining in that $5800/month of extras.

$300 for phone and tv? Does that include internet at least? You should be able to cut this down to $150 total without suffering too much.

Are you both going to be working into the future? Perhaps you should start practicing living off of only 1 income incase one wants to stop to look after the children, or other reasons.

I think if you cut your expenditures down to ~8k/month you could still live a very nice life and your savings would soon shoot through the roof. You would be able to retire at 45-50 instead of 55-60 if you could just manage to dial back on some of the extras you are purchasing.

Awesome job on keeping yourself away from fancy import cars though! I know that can be a tough one.


----------



## Jon_Snow

With a similar family income, I retired in 10 years at 42. Spent a hell of a lot less though, and never carried that kind of debt... ever.

I do admit to being obsessed over my net worth - but once retired, well... now I'm obsessed with other things. :biggrin:


----------



## Underworld

> Awesome job on keeping yourself away from fancy import cars though! I know that can be a tough one.


Haha thanks that is so true. There is that devil in your shoulder at all times saying BUY IT BUY IT.



> With a similar family income, I retired in 10 years at 42.


That is awesome Jon_Snow - you are an inspiration!


----------



## Jon_Snow

I don't think it's all that inspiring. Just a result of carrying out a plan. When I was 32, I looked at the income my wife and I generated together, and figured out if we could save the bulk of our income, I would have the choice not to work till old age. Seemed like a good idea. And it was.


----------



## Plugging Along

I think based on your incomes, your spending is very high. There seems to be a lot do discretionary spending on the credit card. 

Before you even think about buying a rental property, you may want to get you personal spending in order first. Why because I am not sure you will have the cash flow to cover your rental if it goes unrented or of there are issues that require large repairs. 

You save only $2k a month right now, and that is with one child, are you planning more? it gets more expensive and then start throwing in activities and other costs. 

I also do not list my cars, and would list the debt only. That's me though. When we buy cars we pay cash, and then that a month just poof... Disappears from our net worth forever. Keeps me honest


----------



## Jon_Snow

I think Underworld is fairly representative of high earning Canadian families - they make a lot and spend a lot.

High earning, LBYM (live below your means) types are a much rarer species.


----------



## Ihatetaxes

OP, good job getting your net worth from that negative position to where it is today, five years later. I didn't get serious about tracking my progress until my late 30's. I would suggest you set up some new aggressive monthly automatic contributions to your RSPs, TFSA and non reg accounts. Make it painful so you will have to cut back in other areas. I have always done this (although for many years it was to pay off our mortgage early which we have accomplished) and set it so the money disappears the day after it clears my account. If you don't see a flush balance you will tighten your belts a little.

I think your goal of $1m by 45 is conservative and you should easily beat that with a few small changes. Keep on tracking!


----------



## My Own Advisor

Jon_Snow said:


> I think Underworld is fairly representative of high earning Canadian families - they make a lot and spend a lot.
> 
> High earning, LBYM (live below your means) types are a much rarer species.


I would agree Jon. Usually the more you make, the more you spend. I know my wife and I spend, and travel quite a bit. That's where our money goes when we splurge.

That said, I wouldn't trade those travel experiences with her for anything. Saving for the future is critical but I also believe in living for today. Life can be short.


----------



## Underworld

I analyzed our spending on Credit Card for the last 29 months. There is a slight degree of error with how it categorizes spending by category, but it's not far off.

What stands out is that we spend too much money on food (Groceries, restaurants, fast food and coffee) roughly 40% of our monthly spend.
The other categories that stand out are shopping (clothes, electronics, household (other), sporting goods) roughly 14% of our monthly spend.
And travel roughly 10% of our monthly spend.

Note: These numbers are for 29 months.























We'll implement a budget starting now that will shave off $1000 per month. Whatever we save will be invested int RRSP.

We'll aim to make the following max spend per month:

Groceries: 981 -> 650
Restaurants: 476 -> 400
Fast Food: 152 -> 60
Coffee: 85 -> 20
=============
Savings: $564

Clothes: 214 -> 100
Sporting Goods: 110 -> 50
=================
Savings: $150

Transport: 430 -> 130
(This would be stopping driving and parking down town and taking the bus)
=================
Savings: $130

*Total Savings: $1014*


----------



## Plugging Along

I would look at your numbers again. $50k last year seems really crazy. My spouse barely did that when living in a hotel in New York for a year and eating it three meals a day. When I look at your second chart shows groceries of $28k, that's almost $2500 a month, not the $981. Coffees were $2k so $200 a month, not $85. Your numbers don't seem to match. If you do you monthly max, you actually should be able to save almost $35k a year or $3000 a month, not including any other cuts. It is important to have an accurate understanding of your numbers when making a plan. 

How many people are on your family? I am assuming 3. 

I would target under $1000 a month for all food including going out to eat.


----------



## Underworld

The charts were for a 29 month period. So its basically the numbers/29 for a single month. I grabbed the longest selection I could to smooth out the peaks and troughs between months.


----------



## Plugging Along

That makes more sense, thanks for the explanation. 

I would still try and get the groceries a little lower.


----------



## peterk

Nice breakdown. What is that "loans and credit cards" category all about? Surely not credit card interest ?!?! :eek2::eek2:


----------



## Underworld

Not sure - I'll crack open BMO Money Logic tonight and investigate. I find it incorrectly categorizes stuff sometimes.


----------



## techcrium

Ok so you spend about $1700 per month on food.

Can we have an idea of a cost of a typical night out and how often those nights out are?

I'm guessing your groceries amount to $500 per month and the other $1200 is fine dining where the cost is $120 for a meal at a fancy restaurant and you do that about 10 times a month or 2.5 times a week... Is that about right?


So basically every Friday/Sat night is a night out at a fine restaurant.


----------



## Plugging Along

I also notice fees and charges, though this was small, it really should be ZERO.


----------



## cashinstinct

What kind of pet costs $7.60 over 29 months? I want one :biggrin:

Seriously, congrats for taking care of your spending. You are doing well on the income side, but as you notice know, your spending could also be considered high.

Tracking is the first step to get spending lower so you can save more.


----------



## Underworld

September Net worth update.
155488.06 *+6.42%* up from August's 146,103

This month my wife went back to work full time (at least for a few months) which meant we could put a little more away into our savings for a rental property.
We put 4800 into our HISA.
I also bought my first non ETF dividend paying stock to put into my RRSP! 2 shares of BMO @ 86.33. I'm a complete novice at buying and selecting stock, but my life experience has told me that you can only learn by doing. So even though I might have bought a little high, I started my education process of how to select stock. I chose BMO for the following reasons: a) I've seen a lot of positive feedback from people about Canadian stock b) it pays a good dividend yield c) The P/E was fairly low. Some of the stocks I looked at like Starbucks were at a P/E of 247!

It seems to suck spending 4.95 per month to buy stock from Questrade. Doing that every month would cost me ~60 dollars per year. What do other people do? Pool up a few months of cash then buy every quarter to reduce commissions? I might stock up more on VUN as it is 0 commission to buy.

It was apparent that our spending was a bit high from my post last month. After talking to my wife, shes making efforts to watch her spending at the grocery store as well as we haven't been eating out too much this month. We did spend an extra ~$500 this month on buying shrubs and trees for the yard (I've been needing to do this for ages). I'm doing it myself to save on landscaping costs.

Assets
House: 485000
RRSP: 5689.82 (Vanguard Total Market Index ETF - VUN, BMO.TO)
Car 1: 6000
Car 2: 13000
Physical Silver: 565
IP: 5500
Resp: 2417.74 (TDB900 TD e-series Canadian Index Fund)
TFSA: High Interest Savings Account (1.25%) 14800
===============
Total: 532972.56

Liabilities
Mortgage: 347284.50
Car 2 Loan: 15
Money Owed to Family: 15000
===============
Total: 377484.50

Net Worth
155488.06


----------



## My Own Advisor

Nothing wrong with BMO, and VUN for that matter. Nice monthly increase, I wish mine would go up $10 k per month!

Spending $4.95 per month to buy stock from Questrade is peanuts.

You're likely spending 10 times that much in gas money per week.

That said, I try to keep my transaction costs to ~ $100 per year across all accounts.


----------



## Underworld

October Net worth update.
167,125.93 *+7.48%* up from Septembers 155,488

I assume this will be the same for most posters, but this month was exciting for me. I'm new to stock market investing and it was great to see a relatively big dip! I am hoping for it to nose dive so I can buy some cheaper stock.

I'm working my way through dividend investing books and used some of my new found (very limited) knowledge to analyze oil production companies. I had hoped to to buy some Enbridge but then after seeing the P/E ratio so high, I decided to pass. Instead I settled on Suncor as they have a big operation going on, good P/E ratio, good growth and yield and some "defensive moats". I sold 79 Vun @ 30.50 which brings me down to 100 shares and I bought 62 Suncor @ 38.80. I wanted to move away from the ~1.x yield of the index to a higher yield.

I also bought TD shares 5 @ 53.90. It was too small of a volume for the transaction cost, but I'm just learning to walk before I run.

This month we also put away 9k cash into the TFSA for the rental property. Prices are still really high. I wouldn't mind an interest rate increase to reduce the house price cost.

We've also been good with not going out for as many meals and are trying to be more cost conscious. I however haven't _yet_ taken the leap into taking public transit from driving.

I'm working hard to get to my year end goal of 196k net worth.

Assets
House: 485000
RRSP: *+7.7%* 6130.14 (Vanguard Total Market Index ETF - VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 13000
Physical Silver: *-4.8%* 538
IP: 5500
Resp: *-3.3%* 2339 (TDB900 TD e-series Canadian Index Fund)
TFSA: *+61.0%* High Interest Savings Account (1.25%) 23807.90
===============
Total: 542315.04

Liabilities
Mortgage: 345289.11
Car 2 Loan: 14900
Money Owed to Family: 15000
===============
Total: 375189.11

Net Worth
167,125.93


----------



## peterk

Good job on taking advantage of the dip! I too would like to see a big decline in the markets so I can spend the next 5+ years buying at a discount.

What is the money owed to family all about, why aren't you paying that back?
You make a lot of money... I hope there is no ill will developing due to this debt that you can easily pay back. Although maybe the family you owe are millionaires and it's all good 

What bank is you TFSA with? It seems you could be making more in interest, and it would be worthwhile if you're saving 25k+ in there to purchase a property. Many smaller institutions are paying 1.8% to 2%. You'll get an extra ~$15/month from switching at 25k.


----------



## Underworld

The money owed to family is just some money my wife owes to her family. They said they want to be paid back when they retire so thats in the next 3-4 years. No rush and no ill-will 

TFSA is at 1.25% at TD. It could be more you are right. I'm not really motivated that much to join a different bank for 100 dollars more, but thank you for the suggestion!

Thanks for the feedback and have a good weekend!


----------



## SkyFall

Is the funds in the HISA is for the down payment of the future rental property?

I don't know when you will be planning to buy the property, but if I may suggest something. Your biggest ''investment account'' is currently sitting at the lowest possible interest compare to your other ''investment account''. Since it's a TFSA might I suggest you fully use it and put it in mutual funds (i.e. TD E-Series) or ETFs. You can of course keep putting money in a HISA, but if you time horizon of buying the rental property is at least 3-5 years away, I would make the money work for me. You don't have to put the whole $23807.90 you can break it out and mix it with GICs, Mutual Funds, ETFs and cash.

Disclaimer: I recommended TD E-series, but you can pick any type of mutual funds. I work for TD Canada Trust and any recommendations here are only my personal opinion and does not reflect any how the opinion of TD Canada Trust.


----------



## Underworld

That is a fair point SkyFall, however I think there is a price to be paid for security. If the market tanks there goes our down payment. I don't mind loosing out on 1 or 2 percent for the safety. Also it is nice having cash in hand incase of hard times.

House prices for rentals are really high right now. It's hard to find something that cash flows for a decent price. Hopefully an interest rate hike might make an impact.
If I don't find a suitable rental we can use it to pay down on our main residence.


----------



## scorpion_ca

I've registered with CMF only to see attached file. However, I cannot access it. Any idea why? Thanks! 



Underworld said:


> This is the chart from my spreadsheet that I use to visualize net worth growth. The redline is the line I need to hit to get to a million dollars by 45 years old!
> View attachment 1881
> 
> 
> P.s. sharp drops indicate engagement and marriage


----------



## Saniokca

Underworld said:


> Some of the stocks I looked at like Starbucks were at a P/E of 247!


It's down to 29 now - I think what happens (someone correct me if I'm wrong) is that they just take latest earnings for this figure. If they had a one-time loss that would really bump the P/E. That's why it can be very misleading to just look at the P/E without any adjustments.


----------



## Underworld

November Net worth update.
174,785.25 +4.58% up from October's 167,125.93

This month was a bit slower. We had our second child which is great! But we had to buy a bunch of items for the new baby. We also splashed out on some big items such as some exercise equipment and a holiday next year. Total around: ~3k.

I've been doing a bit of reading on Quantative easing, and probably been watching too many "TheMoneyGPS" videos on youtube with a Peter Schiff-esqe rhetoric (still interesting none the less). Anyway I think I donned a gold bug mentality this month. I'm in the process of buying my first Bitcoin - I guess it could be seen as a hedge against the USD. Also if it jumps up 10 fold, that would be nice.

I also did a bit of a knee jerk buy when energy stocks got hit again. With a 6% drop in a day on Suncor I bought some more. 14 @ 36.79.

Regarding my reading into Quantative Easing, I feel that I should really start piling money into the US over Canada. I think I should ride the wave of money printing in the south then hopefully jump back into Canada when conditions change. I'll be selling my RESP e-series Canada index and buying e-series US index.

Anyway on to the Net Worth Breakdown:

Assets
House: 485000
RRSP: +6.4% 6547.31 (Vanguard Total Market Index ETF - VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 13000
Physical Silver: -4.8% 513
IP: 5500
Resp: +2.1% 2389.31 (TDB900 TD e-series Canadian Index Fund)
TFSA: +19.0% 28323.15
Bitcoin: 435
===============
Total: 547707.77

Liabilities
Mortgage: 343290.06
Car 2 Loan: 14600
Money Owed to Family: 15000
===============
Total: 372890.06

Net Worth
174817.71


----------



## Underworld

Saniokca said:


> It's down to 29 now - I think what happens (someone correct me if I'm wrong) is that they just take latest earnings for this figure. If they had a one-time loss that would really bump the P/E. That's why it can be very misleading to just look at the P/E without any adjustments.


Yea you are correct. I randomly checked Starbucks again and it had dropped to a "normal" P/E ratio.


----------



## Underworld

December Net worth update.
$177,818 +1.72% up from November's 174,785.25

A poor month this month due to juggling of finances and that I only got paid 3/4 of my usual money last month. I don't think we spent too badly for Christmas. I believe it was under $700 for the entire family. No investments made :*(

Assets
House: 485000
RRSP: +2.6% 6717.16 (VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 12500
Physical Silver: +5.3% 540
IP: 5500
Resp: +~0% 2392.12 (Moved to TD US Index fund)
TFSA: +~0% 28345.38
Bitcoin: -7% 407
===============
Total: 547707.77

Liabilities
Mortgage: 340284.63
Car 2 Loan: 14300
Money Owed to Family: 15000
===============
Total: 369584.63

Net Worth
177817.53

Happy New Year - may it be a prosperous one!


----------



## Underworld

January Net worth update.
$189,605 +6.63% up from November's 177,818

Almost at 1/5th of my goal of millionaire.

This month flew by! Did a lot of work and a lot of vacation.
My goal for this next month is to enrol in the Questrade artificial DRIP, start my daughters RESP, open the other RESP for my son (to get the $500 free money), open a new line of credit with my bank.

Assets
House: 485000
RRSP: +4.7% 7029.81 (VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 12500
Physical Silver: +16.7% 630.75
IP: 5500
Resp: +6.3% 2544.01
TFSA: +31.86% 37376
Bitcoin: -26% 301
===============
Total: 556881.57

Liabilities
Mortgage: 338276.43
Car 2 Loan: 14000
Money Owed to Family: 15000
===============
Total: 367276.43

Net Worth
189605.14


----------



## Underworld

February Net worth update.
$194802.96 +2.74% up from Januarys 189,605 

I was really really, busy with work and didn't look at investing at all this month. My wife and I have agreed to get our basement renovated which will be a hit to our net worth, but we need the extra space for when family stays. That should cost us around ~35k. She is also going back to school over the next 3 years which will be an 11k investment. We've also planned on going on vacation again in October which should be around 5k. It is going to be an expensive year :|

Assets
House: 485000
RRSP: +0.5% 7062 (VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 12500
Physical Silver: -6.5% 590.75
IP: 5500
Resp: +3.8% 2642
TFSA: +7.3% 40129.71
Bitcoin: +14% 343
===============
Total: 559767.51

Liabilities
Mortgage: 364964.55
Car 2 Loan: 13700
Money Owed to Family: 15000
===============
Total: 194802.96

Net Worth
189605.14


----------



## Underworld

March Net worth update.
$208,977 +7.28% up from February's 194802.96 

Yey 20% of the way towards my goal of a million net worth. I had some inheritance money this month so we are going to use that on the downpayment for the rental property. We bought some flights for a vacation at the end of year too. I re-labelled TFSA to Savings.

Assets
House: 485000
RRSP: 7185.89 (VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 12500
Physical Silver: 595
IP: 5500
Resp: 2628.01
Savings: 51907.11
Bitcoin: 309.65
===============
Total: 571625.66

Liabilities
Mortgage: 362648.99
Car 2 Loan: 13400
Money Owed to Family: 15000
===============
Total: 362648.99

Net Worth
208976.67


----------



## mind_business

Nice job on the savings. You're going to hate to part with some of it for the basement reno 

Money owed to family members is a tough one. Although they may say to you that it can be paid off in a few years, privately they may be disappointed that it's taking so long to get paid back. They can see your lifestyle, and may wonder why they can't benefit from the interest on $15k over the next few years.


----------



## Underworld

Yea I really don't like the idea of my Net Worth going backwards. But we figure it should be only about 15k or so. It beats spending 300k more to buy a bigger house!


----------



## Underworld

April Net worth update.
$214,603 +2.7% up from Marchs' $208,977.

Wow it seems like the months are flying by! It's been a few months since I've made an investment, just pooling cash for a rental property. I wan't to get some investments going again pretty soon. My contribution room to RRSPs is getting pretty big, so I should utilize some of that soon. I think it will likely be adding more VUN index when I come round to doing it.

Assets
House: 485000
RRSP: 7122.95 (VUN, BMO.TO, TD.TO, SU.TO)
Car 1: 6000
Car 2: 12500
Physical Silver: 569.75
IP: 5500
Resp: 2533
Savings: 55420
Bitcoin: 287.21
===============
Total: 574932.91

Liabilities
Mortgage: 332229.75
Car 2 Loan: 13100
Money Owed to Family: 15000
===============
Total: 360329.75

Net Worth
214603.16


----------



## Vicjai

Those are healthy figures Underworld. Perhaps contributing to the TFSA can be a focus since they increased the allowable limit to 10K effective a couple weeks ago. (if you haven't done that already)each:


----------



## Underworld

Thanks Vicjai - I hadn't seen that they had increased the limit! Good news.

May Net worth update.
$221977.35 +3.4% up from Aprils' $214,603.

Well this month was the first month in what seemed like ages that I made an actual investment. We bought our first rental property against the advice of many seasoned investors here lol. The cash flow is so-so, it was expensive and doesn't look like a home run, but we wanted to take baby steps and for our first investment didn't want to buy something that was super run down or in a seedy area or needed flipping. My wife works best taking baby steps - I think I could have done something a little more adventurous for our first - but we work as a team so what works best for both of us. We wanted a new, clean and attractive place that would attract good quality tenants. Our next house investment will be a little more adventurous - I'd like to try to flip a property (depending on what the market is doing) to increase our available cash.

We paid a bit more for the rental property than I'd have liked - however there is a dollar value to convenience. Dragging 2 young children (both under 3) around properties sucks. It also backs onto a very pretty green space and lake. The property is also a short walk from a lot of shops and speedy transit. The appraisal done by the bank had it at 5.5k more than we paid for it so thats a bonus.

We also accepted a pre-approved, 25k unsecured line of credit. Having a bit of a transitionary period for work this helps me cover cash flow. So now we are at 45k of unsecured line of credit.
After the rental purchase my next immediate goal is to save up 20k cash - just for a psychological factor.
Then after that I'd like to start bringing my ETFs up a bit.

Assets
House: 485000
Rental Property: 308000
RRSP: 6985.04 (VUN, BMO.TO, TD.TO, SU.TO)
IP: 5500
Resp: 2617.51
Physical Silver: 602
Bitcoin: 279.61

Car 1: 6000
Car 2: 12500
===============
Total: 827484.16

Liabilities
Mortgage: 330206
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 12800
===============
Total: 605506.81

Net Worth
221977.35


----------



## Underworld

Oh wow - didn't realize I'd missed posting my net worth updates for 5 months! I thought it was 2 months. Oops.

June Net worth update.
$225,205 +1.4% up from Mays' $221977.

Re-adjusted what we owed on the car. I thought we owed less, so brought it back to 15,000. Also I didn't start reducing the second mortgage yet as I didn't know when the first payment was.

Assets
House: 485000
Rental Property: 308000
RRSP: 6,876.48
IP: 5500
Resp: 2,581.83
Physical Silver: 573.5
Bitcoin: 338.79

Car 1: 6000
Car 2: 12500
===============
Total: 827370.6

Liabilities
Mortgage: 327165.46
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 15000
Line of Credit: 3000
===============
Total: 602165.46

Net Worth
225205.14


----------



## Underworld

July Net worth update.
$229,004 +1.6% up from Junes' $225205.14.

Assets
House: 485000
Rental Property: 308000
RRSP: 7,068.75
IP: 5500
Resp: 2,737.54
Physical Silver: 573.5
Bitcoin: 358.13

Car 1: 6000
Car 2: 12500
===============
Total: 827737.92

Liabilities
Mortgage: 325,133.26
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 14700
Line of Credit: 1900
===============
Total: 598733.26

Net Worth
229004.66


----------



## Underworld

August Net worth update.
$233401 +1.9% up from Junes' $225205.14.

Assets
House: 485000
Rental Property: 308000
RRSP: 7,236.00
IP: 5500
Resp: 2,716.78
Physical Silver: 610.25
Bitcoin: 335.84

Car 1: 6000
Car 2: 12500
===============
Total: 827898.87

Liabilities
Mortgage: 323,097.35
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 14400
Line of Credit: 0
===============
Total: 594497.35

Net Worth
233401.52


----------



## Underworld

September Net worth update.
$235425 +0.8% up from Augusts' $233401.52

Assets
House: 485000
Rental Property: 308000
RRSP: 7,026.63
IP: 5500
Resp: 2,583.56
Physical Silver: 631
Bitcoin: 342.5

Car 1: 6000
Car 2: 12500
===============
Total: 827583.69

Liabilities
Mortgage: 321,057.71
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 14100
Line of Credit: 0
===============
Total: 592157.71

Net Worth
235425.98


----------



## Underworld

A lot of shenanigans over the last few months. We put some money on the line of credit to get the new rental property over the finish line as we didn't have any spare cash.
My wife also decided she wanted a new house so we're building a new one. Its a step up in quality and size. Yea I know its not the best thing financially but we're reducing some end game wealth for present day enjoyment. I'm happy to have a linear enjoyment of our accumulated wealth rather than spending it all when we are older. Plus she nagged me for a month every night.

We would have had to develop our basement otherwise for about 40k. We had run out of space. The new place is 700k. We're keeping our old place as a rental (worth about 485k (just had a valuation)). We'll then have 2 rental units.
I personally feel a bit stressed by the amount of debt - but oh well I have to roll with it and get it paid down a bit. We're going to be formulating a plan to get that line of credit paid off as quick as possible. Then after that I want to save 30k cash and buy some bitcoin too!

October Net worth update.
$230967.71 -2% down from Septembers' $235425.98

Assets
House: 485000
Rental Property: 308000
RRSP: 7,026.63
IP: 5500
Resp: 2,583.56
Physical Silver: 577.75
Bitcoin: 406.68

Car 1: 6000
Car 2: 12500
===============
Total: 828182.05

Liabilities
Mortgage: 319,014.34
Rental Property: 242000
Money Owed to Family: 15000
Car 2 Loan: 13800
Line of Credit: 8000
===============
Total: 597214.34

Net Worth
230967.71


----------



## nobleea

What can you rent your existing house for when you convert it to rental? With a value of 485K, it doesn't seem like that would yield very much. I would guess your after tax income from the new rental will be lower than just selling it and investing in dividend companies. With far less hassle and downside risk.


----------



## SpendLessEarnMore

Hey we share many similarities. My networth is about $240k and in 2009 I was also pretty much negative networth like you. I'm just a bit older at 37 with wife and kid.

It will be interesting to track your progress with my progress since we accumulate wealth in different ways.

All the best.


----------



## Underworld

The house will rent for 2300. I'll re-look up what the cash flow is and post when I get that calculation.
Fair point nobleea, I'll look into what you say. Always good to consider all information 

@Spendlessearnmore - Thats cool - I'll track you too. I assume ill start lagging behind on net worth a bit due to the new house. I'm also coming up to rolling the dice a bit on starting a new company. Hopefully it works out and bumps my networth a chunk.


----------



## SpendLessEarnMore

Lol I got a new house currently being built with closing date of March 2016. Already spent $3000 for upgrades. Plus have to buy all the appliances and closing cost and who knows what other fees for new builds.


----------



## Underworld

Whats the cost of the new place? I assume it is where you are going to live given the upgrades 
Glad to hear you are building - makes me feel less guilty haha


----------



## Underworld

We borrowed money against our current house plus from the line of credit. Right now we have a debt but no asset against it.
Bitcoin prices jumped up. They seem very volatile. I'd like to buy more - but my first goal is to pay off that line of credit. We're in frugal mode, watching our credit card every 2 weeks and adjusting accordingly.
As we have a much larger debt burden and given the economy I really want to get the line of credit paid off and save up around 60,000 cash. I've come to realize as I get older I really hate debt. Wife not as much 

I've made some cost reduction and income increasing steps, so hopefully I can hack away at that debt. Debt attacking is something I rise to the challenge on.

November Net worth update.
$231821.47 0% change from Octobers' $220967.71

Assets
House: 485000
Rental Property: 308000
RRSP: 7,304.05
IP: 5500
Resp: 2,768.35
Physical Silver: 576.75
Bitcoin: 486.66
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 903135.81

Liabilities
Mortgage: 384,014.34
Rental Property: 240800
Money Owed to Family: 15000
Car 2 Loan: 13500
Line of Credit: 18000
===============
Total: 671314.34

Net Worth
231821.47


----------



## nobleea

I think your downpayment needs to show up as an asset on the list. It's your money. It's not like it's disappeared. It's likely being held in trust for you.

Sell the bitcoin and the silver. They're small enough amounts to essentially be useless.


----------



## Underworld

That's a fair point - I'll adjust the networth.

No way on Bitcoin and Silver. My bitcoin holds are purely speculative  I'd be happy to see a large jump on it.


----------



## nobleea

Underworld said:


> No way on Bitcoin and Silver. My bitcoin holds are purely speculative  I'd be happy to see a large jump on it.


And a large jump in the bitcoin will have zero impact on your net worth. It's just a distraction. Put it against some of the debt. And if it did jump in value, you might be tempted to continue with speculative gambles with bigger dollar amounts.


----------



## Underworld

December Net worth update.
$236898.54 +2% change from November's $231821.47

Assets
House: 485000
Rental Property: 308000
RRSP: 7,435.43
IP: 5500
Resp: 2,856.22
Physical Silver: 605
Bitcoin: 632
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 903528.65

Liabilities
Mortgage: 383,275.49
Rental Property: 240,154.62
Money Owed to Family: 15000
Car 2 Loan: -3200
Line of Credit: 15000
===============
Total: 666630.11

Net Worth
236898.54


----------



## Underworld

End of year update!

It's been a busy year with the wife starting her masters, a new kid, tons of work, new condo, starting to build a new house, emergency trip to Australia.

Edit: I noticed I missed a month in my calculations. I'm happy to see our net worth is up 33% from last year. We entered 2015 with 177817.53 net worth end ended up with 236898.54.

The red line is a line we need to match or be above to hit being a millionaire by 45. You can see a downward bump when we got engaged, then married now with the recent property purchases. I'd like to try some more speculative moves next year - perhaps 20% of our capital going towards speculation and 80% towards investment. A goal for next year is to be careful with money - less spending on food, dining and travel.

Have a Happy Christmas and an Amazing New Year!''


----------



## Causalien

Underworld said:


> End of year update!
> 
> It's been a busy year with the wife starting her masters, a new kid, tons of work, new condo, starting to build a new house, emergency trip to Australia.
> 
> Edit: I noticed I missed a month in my calculations. I'm happy to see our net worth is up 33% from last year. We entered 2015 with 177817.53 net worth end ended up with 236898.54.
> 
> The red line is a line we need to match or be above to hit being a millionaire by 45. You can see a downward bump when we got engaged, then married now with the recent property purchases. I'd like to try some more speculative moves next year - perhaps 20% of our capital going towards speculation and 80% towards investment. A goal for next year is to be careful with money - less spending on food, dining and travel.
> 
> Have a Happy Christmas and an Amazing New Year!''
> 
> View attachment 7602


Your bitcoin should be $600. You need to update its current value in CAD.

Also 1 bitcoin is too little. It will either become like gold and silver or it will go to zero. So ask yourself this question, when do you need to enjoy the fruit of bitcoin? In 50 years, what will the price be when everyone will hold about 1oz equivalent of bitcoin. I.e. 1 BTC. So how much do you need to have a million CAD worth of BTC? Now discount it back in time to when you plan on using it. 

Anyway, that's how I went about calculating how much I wanted. I really enjoy some of these zero or moon shot investments. It's very fun and often, the money you have to spend is very little.


----------



## My Own Advisor

Well done UnderWorld...."happy to see our net worth is up 33% from last year."

Keep killing your debt and you'll be set.


----------



## Underworld

@Causalien I totally agree - I'm chomping at the bit to get more Bitcoin. I'd like 10k in Bitcoin as a speculative hold. In fact a goal over the christmas period was to get a Mathematical understanding of how Bitcoin works as well as the potential threats to bitcoin. I was interested in Quantum Computers being able to figuring out Private Keys. At the moment my highest priority is building up fat stacks for cash flow due to our high debt commitments.

@My Own Advisor - thank you - it's good getting feedback good or bad as it keeps you motivated or on track. I agree - I really hate debt and I that has definitely become apparent with purchasing the new house. I HATE DEBT. Oh well - you have to keep your wife happy too


----------



## Underworld

Well hasn't this been a rocky few months! Alberta battered by Oil prices, big layoffs & stock market draw backs. It feels like general confidence is really low and the markets are volative. 
My short term goal is to remove line of credit debt (we put our money into this, this month), then to build cash, then to reduce the debt burden a bit by paying off the car.
Getting a positive amount of cash would give me some psychological relaxation. We have 45k of line of credit available, but i still prefer to have 30-60k cash on top of that.
Our approach to getting on top of the line of credit has been to become more frugal. We've had a smack down in expenses - because we were being pretty lazy before to be honest. I should be frugal more often as I enjoy it. I don't notice any difference in happiness between spending more and less on living.
My wife has been really enjoying it trying to hit our new budget levels for the month. We managed to shave off 1,000 from our credit card this month. I think our historical average is ~5,600 per month and it was 2,500 this month.

It will be little to no savings/loc paydown next month unfortunately as we need to buy plane tickets for the family.

The portion of my RRSP that was a US index got hit. I decided I wanted to cash out a portion of it and move it to Canada so sold ~30% of my VUN shares and moved it back to Canada and put it into TD. In my mind with finished Quantative Easing plus a down trodden CAD - it might be a good time to springboard a bit of money into Canadian. As I had mentioned on a previous post, the only 2 stocks I've researched (with my limited skills) was TD and Suncor. I decided to put more into TD as their P/E ratio was ~11. Last time I looked it was 15 or more. I also bought 2 XEG as i had some dividend money and felt like gambling 

January Net worth update.
$243815.69 +2.9% change from December's $236898.54

Assets
House: 485000
Rental Property: 308000
RRSP: 6,939.40
IP: 5500
Resp: 2,714.76
Physical Silver: 619
Bitcoin: 529
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 902802.54

Liabilities
Mortgage: 382,549.50
Rental Property: 239537.35
Money Owed to Family: 15000
Car 2 Loan: 12900
Line of Credit: 9000
===============
Total: 658986.85

Net Worth
243815.69


----------



## Underworld

I had to buy 3k worth of flights for the family - boo. But it will be fun when we get there  I know most people on the site look down on travel - but I love all the memories I have of our holidays and family time together. I guess its just finding a balance between moving forward in net worth and enjoying life.

I'm trying to pay down that line of credit, and will be moving onto building up cash reserves. When I feel comfortable with that I will pay the car off which will reclaim ~400 per month.

I'm watching the price of Oil keenly - I want to see Alberta recover somewhat from the hammering. It has been definitely a good lesson. Investing heavily in an area where you work without diversification is not a good idea. It can cause a double whammy effect. I'm now keen on real estate down in USA for dollar exposure.

Getting close to the quarter million mark!

February 2016 Net worth update.
$248449.53 +1.90% change.

Assets
House: 485000
Rental Property: 308000
RRSP: 6,951.94
IP: 5500
Resp: 2,668.76
Physical Silver: 613
Bitcoin: 556.86
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 902790.56

Liabilities
Mortgage: 381,822.04
Rental Property: 238,918.99
Money Owed to Family: 15000
Car 2 Loan: 12600
Line of Credit: 6000
===============
Total: -654341.03

Net Worth
248449.53


----------



## NorthKC

You're still doing well in such a bad economy. Congrats to you! Keep up the good work and enjoy those memories!


----------



## Underworld

Thanks NorthKC, yea I'm not sure how bad it is out there I just keep my head down and work harder lol. I'd like to start attracting work from the US as its an instant discount for them if they pay in USD.

I'm hoping at some point to start seeing my net worth to progress from linear growth to a curve - hopefully with the introduction of real estate mortgage pay down.

I'm trying to make my money diary more personal with perhaps some more of my mindset capture and thoughts to be more engaging for other forum members.
Some of the stuff I'm working on is education for career enhancement. My belief right now is spending 2% of gross income on education. Sounds a lot but when you look into the cost of books, seminars, mentoring etc it adds up. Actually I don't really like buying material things - I'm happiest buying education and investing which is a good trait to have!


----------



## Underworld

This month we payed off the line of credit - I've been wanting to do that for quite some time! We're then aiming to stash cash, then towards the end of the year perhaps start looking at paying down "Money Owed to Family". I should have really put some money into my RRSP for the 2015 year and reduced my tax, but we had some plans around real estate that we were pushing money into, plus the Alberta market sucking - I prefer to keep cash handy. Also all of the upside of the stock market looks very attractive - I haven't participated in that at all :\

March 2016 Net worth update.
$256,500 +3.2% change.

Assets
House: 485000
Rental Property: 308000
RRSP: 7252.59
IP: 5500
Resp: 2,680.03
Physical Silver: 619
Bitcoin: 541.45
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 903193.07

Liabilities
Mortgage: 381,093.10
Rental Property: 238,299.54
Money Owed to Family: 15000
Car 2 Loan: 12300
Line of Credit: 0
Savings: 100
===============
Total: -654341.03

Net Worth
256,500


----------



## My Own Advisor

Depending upon the interest rate (0% financing?), is the car loan next or family debt?


----------



## Underworld

And I didn't notice we are at a quarter million dollars! Yey. Next milestone is 300k.

That's totally a valid point about the car loan! We should hit that next. It would be nice not paying ~400 per month out any more for increased cash flow!

Looking at our numbers of where our net worth is invested - it's ~96% real estate and that's all in Calgary. I'd like to start putting some money into stocks specifically the opposite of Oil and gas to almost as a straddle to work against any downwards push in oil and gas. I'm thinking battery components, solar, water piping, water extraction, aluminium. I'll get researching!

I've also been looking into buying property in the States, specifically Phoenix, Florida. They seem to be good prices down there ~200k USD.


----------



## NorthKC

Congrats on paying off the LOC and reaching your milestone! I agree with focusing on paying off the car loan. It will also be nice to have a fully paid off loan in case it breaks down and you're not stuck paying for both the loan and the repairs. You can also do a 50/50 split as well. Paying down loan while starting to pay your family as well. The one thing that I have noticed is that you only have savings of $100. Do you have an emergency fund given that you're in Alberta right now? If not, I would think that's a bigger priority right now? 

You've mentioned being so heavily invested in RE. ARe you sure it's a good idea to look at buying the US property? Keep in mind that Florida generally charges about 2% of the home as property taxes and there are extra non-resident taxes. In addition, who's going to look after your property while you're away? Just things that I hear from my clients but I'm sure that you are currently your research right now.


----------



## Underworld

Regarding buffer - we have a 45k line of credit which I treat as a cash equivalent. You are right - I do like the mental satisfaction of having a buffer sitting there just in case.
Its funny when we had say 65k sitting in cash - we were a lot less frugal and less careful with our money. I find a bit of psychological pressure makes us work harder! Its just getting the right balance I guess!

Thanks for the info regarding home property tax and non-resident tax. I wasn't aware of the non-resident tax  Yea its a good point regarding who would be looking after the place. I'd be looking for a property management company or an individual down there who is building joint venture agreements on rentals. I want US dollar income and down the road GBP income too. We're an international family and I don't want to be at the whim of the Canadian dollar!

Thanks for the feedback guys + girls - much appreciated!


----------



## Underworld

Boring month this month and for the next while. I'm stashing cash and building up a buffer to combine with my Line of Credit (40k).

April 2016 Net worth update.
$261121 +1.8% change.

Assets
House: 485000
Rental Property: 308000
RRSP: 7262.75
IP: 5500
Resp: 2,609.55
Physical Silver: 619
Bitcoin: 571.83
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 906163.13

Liabilities
Mortgage: 380362.68
Rental Property: 237679
Money Owed to Family: 15000
Car 2 Loan: 12000
Line of Credit: 0
Savings: 3100
===============
Total: -645041.7

Net Worth
261,121


----------



## Underworld

We're working on building up the savings, although I'm finding it hard to mentally do that when I see bitcoin running up  I'm investing $500 in June for Bitcoin and Etherum. Etherum is around ~23 CAD per coin and it doesn't hurt to diversify in my speculation  I also spent ~1300 CAD on education this month for my profession. I try to spend ~1-2% of my gross income on education. I think it's the best investment. We're spending ~10k CAD on my wife's education over a 3 year period.

May 2016 Net worth update.
$267556.58 +2.5% change.

Assets
House: 485000
Rental Property: 308000
RRSP: 7,433.24
IP: 5500
Resp: 2,751.78
Physical Silver: 467.75
Bitcoin: 691.99
New House Downpayment: 75000

Car 1: 6000
Car 2: 12500
===============
Total: 910944.76

Liabilities
Mortgage: 379,630.77
Rental Property: 237,057.41
Money Owed to Family: 15000
Car 2 Loan: 11700
Line of Credit: 0
Savings: 7600
===============
Total: 643388.18

Net Worth
267,556.58


----------



## Underworld

I bought some Etherum an alternative to Bitcoin. I bought really high though oops. I think I bought at 26 dollars and now it is at half that. Oh well 
I'm tempted to sell my shares in Suncor down the road. I feel that global appetite is for a new electric autonomous vehicle. When I last looked into it I thought that vehicle consumption was ~1/3 of all oil consumption. I'd imagine this to reduce over the next 15 years but that would be a maximum of 30% decline. In the meantime I'm going to be researching battery storage companies, industrial robot manufacturing companies.
No real savings or investments this month as we are saving up for additional costs due to the new house. Such as furniture, moving costs etc... When we do start saving again it will be to build up a cash reserve.

June 2016 Net worth update.
$269649.3 >+1% change.

Assets
House: 485000
Rental Property: 308000
RRSP: 7,348.33
IP: 5500
Resp: 2,808.80
Physical Silver: 574.25
Bitcoin: 900
New House Downpayment: 75000
Etherum: 150

Car 1: 6000
Car 2: 12500
===============
Total: 911381.38

Liabilities
Mortgage: 378,897.37
Rental Property: 236,434.71
Money Owed to Family: 15000
Car 2 Loan: 11400
Line of Credit: 0
Savings: 7600
===============
Total: 641732.08

Net Worth
269649.3


----------



## Steve Divi

Great work. You're on a good path.


----------



## Holland

Awesome work! I look forward to more updates!


----------

