February Summary
We manage to squeeze out a small increase in our overall net worth. As expected savings had a huge drop off as I shifted $21k from savings over to my RRSP. As well we haven’t put any additional money into the emergency fund. The money we set aside for our emergency fund continues to sit in our Bills chequing account (which we don’t track in our net worth) because of some of the shifting of funds I needed to do to meet my $21k commitment. In the next two weeks there will be a good amount of cash moved to savings as all of our finances will have returned to their normally schedule program.
American banks continue to weigh down my portfolio. Continued fears of nationalization brought the stock prices to new lows. I still have about 20% in cash waiting for a stable point to add to my positions.
The monthly mortgage payments have been increased by 25%. Now over 50% of our payment is going towards principal.
Our current net worth:
Savings: We currently maintain $4500 in our personal checking accounts so we don’t have to pay any banking fees. The rest in our accounts is being set aside for an emergency fund which we hope to reach $30k.
Mortgage: There is debate on how one should include their home in their net worth. Some people try and track the present value of their mortgage and others prefer to use their purchase price and leave it at that. I’m in the latter camp. I feel tracking the value of your home on a month to month basis isn’t worth while. We have no intention of selling since we need a place to live and it takes away from true net worth growth of saving and investing properly.
Line of Credit: This will remain the same as I will continue to only pay the interest since I’m claiming it on my taxes. I will eventually pay down the loan I just haven’t decided on when.
Vehicle: We are currently leasing our vehicle. This is preexisting to my fiance and I meeting. Our intention is to ultimately purchase the car once the lease expires. We won’t be tracking its value as it is a depreciating asset and serves no purpose in helping us achieve our goals. It’s benefit comes in the way of us running this car for as long as possible allowing us to save and invest more.
-mfd-
Related posts:
- Net Worth Update - January 2009
- Net Worth Update - The Beginning
- Net Worth Update - May 2009
- Net Worth Update - April 2009
- Net Worth Update - August 2009
