There was a slight decrease in our net worth at the end of the month. We manage to increase our savings (which is in fact a lump going towards my RRSP) by nearly $4k. However my investment portfolio continues to take a beating mainly because American Banks continue to take a beating. All we can do is continue to save and push forward.
Our current net worth:
Savings: We currently maintain $4500 in our personal checking accounts so we don’t have to pay any banking fees. As well a large portion is being held in savings which will then be put as a lump sum towards my RRSP contribution for 2008. The rest in our accounts is being set aside for an emergency fund.
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 as I will continue to only pay the interest since I 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.
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