Every time I get paid (every two weeks), I update my net worth. The idea behind this is that my goals are that my liabilities drop every two weeks, and by tracking them in this way, I am able to get a nice picture of where I stand financially. Its not a perfect balance sheet that I have (because of student loans I have a negative net worth), but the progress is what I am looking for.
ASSETS:
- up $602.22 from June 5th
- up $7175.48 from June 19th, 2009 (one year ago)
These assets include my house (I give it 1% appreciation each year in my appreciation), my RRSP and my TFSA. The stock market rose this week bumping my assets. Three condos on my block sold this week (all for at least $20,000 more than I have mine valued at), so when frugala and I decide to move, there will be some extra assets in our pockets.
LIABILITIES:
- better $280.30 from June 5th
- better $17,157.58 from June 19th, 2009(one year ago)
These liabilities include my mortgage, student loans and a consolidation loan (mainly for my Masters Degree for teaching). A nice little improvement, which I hope to continue as the summer progresses.
NET WORTH:
- better $882.51 from June 5th, 2010
- better $24,333.06 from June 19th, 2009(one year ago!)
A nice set of weeks, and I want to keep this up through the summer. I will have a few tutoring gigs throughout the summer which I will put directly against loans to pay them down. As well, my buckets are filling nicely, meaning that when we need to buy new floors, or new clothes for me, or go to Golden Lake for a week, it will not impact my liabilities. This cash isn't included on these spreadsheets so there will be no effect.
The last thing I am going to track is the value of the TSX. I have some asset allocation goals that are dependent on the value of the TSX.
TSX Graph
Current Value: 11,927.59
Highest Value in Last 2 Years: 14790.15 (June 19th, 2008)
We are exactly two years from the high within the two years. The market hasn't been over 12,000 consistently since September, 2008. For these purposes, the stock market was about 13000 in mid September 2008, so I will either rebalance when the TSX hits 13000 or 12500 after September (once I get my raise).
Sunday, June 20, 2010
Friday, June 18, 2010
More Buckets: Donations
Another bucket that I created for myself this year is my "donations" bucket. Everyone feels that they should give more (or at least I do), and when a good cause comes along that I feel I should donate (be it sponsoring one of my students, or at church, or just a worthy cause) I used to have major problems with this because of my lack of spare cash. This year I have begun putting $20 aside each paycheque towards "donations" and then one I need to, this money comes out of that bucket. From a personal point of view, it makes you feel good to donate, and from a financial point of view you get a generous tax deduction because of it so everyone wins!
Monday, June 14, 2010
My Most Important Bucket of 2010
I am somewhat of a spender. What I have to do to limit myself is not to bring my wallet with me when I go shopping (or to school in the morning), as well as only spend cash within a paycheque. My wife and I went for some snacks last night and I said to her "I think this is the first time in the last year that I have used my debit card".
Nonetheless, in order to manage my cash I have decided to create "jars" or "buckets" of money that I will contribute to each paycheque and then spend out of them from day to day. When the cash is gone, I have no money to spend. It is a great system to me and has allowed me to limit my spending.
My most important bucket that I have created for myself in 2010 though has been the "XMas Bucket". Now, you may be asking yourself, isn't it June? Why is Christmas so important to you in June. Let me clarify myself: this cash isn't just used for Christmas, although it was the original intent, it is used for gifts all through the year. So when people have babies, or it is Father's Day, or you go to a wedding or whatever, you don't put yourself in the hole because of it. It is also always good to have some spare cash laying around so that you can take part in these wonderful events as the year progresses.
On the negative side, my goal was to have Christmas entirely paid for before hand. For 2011 I will probably have to create another bucket for Christmas (because that is definitely my biggest gift giving time of the year) along with my generic gifts bucket, so I don't go into the hole around Christmas as usual.
Nonetheless, in order to manage my cash I have decided to create "jars" or "buckets" of money that I will contribute to each paycheque and then spend out of them from day to day. When the cash is gone, I have no money to spend. It is a great system to me and has allowed me to limit my spending.
My most important bucket that I have created for myself in 2010 though has been the "XMas Bucket". Now, you may be asking yourself, isn't it June? Why is Christmas so important to you in June. Let me clarify myself: this cash isn't just used for Christmas, although it was the original intent, it is used for gifts all through the year. So when people have babies, or it is Father's Day, or you go to a wedding or whatever, you don't put yourself in the hole because of it. It is also always good to have some spare cash laying around so that you can take part in these wonderful events as the year progresses.
On the negative side, my goal was to have Christmas entirely paid for before hand. For 2011 I will probably have to create another bucket for Christmas (because that is definitely my biggest gift giving time of the year) along with my generic gifts bucket, so I don't go into the hole around Christmas as usual.
Saturday, June 12, 2010
Too Tight?
As you have read recently, the improvement in my finances has been slowing recently. There are two options to improve this: either spend less, or earn more money. I had been earning more money for tutoring, and this kept me moving in the right direction. Additionally, one of my biggest loans was recently paid off so that will give me a little more breathing space, but yesterday evening was an example to myself that I am far too tight now.
I received my HST cheque for $100 from the Ontario Government last night (the next coming in December 2010). I was fairly excited, because despite the fact that a lot of things will be more expensive because of this, I had just received a cheque for $100. I talked to "frugala" and gave her about five scenarios on what I could do with this money. She finally looked at me and said "It's only $100". At that moment I knew that my financial picture was far too tight...
I received my HST cheque for $100 from the Ontario Government last night (the next coming in December 2010). I was fairly excited, because despite the fact that a lot of things will be more expensive because of this, I had just received a cheque for $100. I talked to "frugala" and gave her about five scenarios on what I could do with this money. She finally looked at me and said "It's only $100". At that moment I knew that my financial picture was far too tight...
Saturday, June 5, 2010
Net Worth Update - June 5th, 2010
Every time I get paid (every two weeks), I update my net worth. The idea behind this is that my goals are that my liabilities drop every two weeks, and by tracking them in this way, I am able to get a nice picture of where I stand financially. Its not a perfect balance sheet that I have (because of student loans I have a negative net worth), but the progress is what I am looking for.
ASSETS:
- up $259.90 from May 22nd
- up $6707.03 from June 5th, 2009 (one year ago)
These assets include my house (I give it 1% appreciation each year in my appreciation), my RRSP and my TFSA. Things are bouncing back quite nicely, and because I live in a condo I can get an accurate value of my house based on what others in the neighbourhood and my estimates are extremely low. What this means is that when I sell, my assets will immediately rise because I am underestimating the equity in my house.
LIABILITIES:
- better $93.89 from May 22nd, 2010
- better $16,379.97 from June 5th, 2009(one year ago)
These liabilities include my mortgage, student loans and a consolidation loan (mainly for my Masters Degree for teaching). Although the year-to-year numbers have been great, the week to week pace has slowed to almost a crawl. Since April 24th, I have only improved about $400. This will be my goal in the summer not to make any hugely extravagent purchases (although we are planning to paint and put laminate flooring in...)
NET WORTH:
- better $353.79 from May 22nd, 2010
- better $23,087.00 from June 5th, 2009(one year ago!)
Things are starting to slow down for me, and without me doing summer school this year I will be unable to make a nice dent in my loans, although the sanity is more than worth it. I just have to remember that this is a long range plan rather than a short term plan.
The last thing I am going to track is the value of the TSX. I have some asset allocation goals that are dependent on the value of the TSX.
TSX Graph
Current Value: 11,569.61
Highest Value in Last 2 Years: 15073.13 June 18th, 2008
For these purposes, the stock market was about 13000 in mid September 2008, so I will either rebalance when the TSX hits 13000 or 12500 after September.
ASSETS:
- up $259.90 from May 22nd
- up $6707.03 from June 5th, 2009 (one year ago)
These assets include my house (I give it 1% appreciation each year in my appreciation), my RRSP and my TFSA. Things are bouncing back quite nicely, and because I live in a condo I can get an accurate value of my house based on what others in the neighbourhood and my estimates are extremely low. What this means is that when I sell, my assets will immediately rise because I am underestimating the equity in my house.
LIABILITIES:
- better $93.89 from May 22nd, 2010
- better $16,379.97 from June 5th, 2009(one year ago)
These liabilities include my mortgage, student loans and a consolidation loan (mainly for my Masters Degree for teaching). Although the year-to-year numbers have been great, the week to week pace has slowed to almost a crawl. Since April 24th, I have only improved about $400. This will be my goal in the summer not to make any hugely extravagent purchases (although we are planning to paint and put laminate flooring in...)
NET WORTH:
- better $353.79 from May 22nd, 2010
- better $23,087.00 from June 5th, 2009(one year ago!)
Things are starting to slow down for me, and without me doing summer school this year I will be unable to make a nice dent in my loans, although the sanity is more than worth it. I just have to remember that this is a long range plan rather than a short term plan.
The last thing I am going to track is the value of the TSX. I have some asset allocation goals that are dependent on the value of the TSX.
TSX Graph
Current Value: 11,569.61
Highest Value in Last 2 Years: 15073.13 June 18th, 2008
For these purposes, the stock market was about 13000 in mid September 2008, so I will either rebalance when the TSX hits 13000 or 12500 after September.
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