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.
- down 349.00 from June 19th, 2010
- up $6571.09 from July 3rd, 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 took a dip this week and thus my assets dropped for this week. In the next net worth update, frugala's assets will join mine on paper so these will rise significantly!
- better $3.27 from June 19th, 2010
- better $16,957.30 from July 3rd, 2009 (one year ago)
These liabilities include my mortgage, student loans and a consolidation loan (mainly for my Masters Degree for teaching). Even though this was my three pay month, things didn't go quite as nicely as I had hoped. On my next update, I will have all my bills coming off so there will be a huge decrease here.
- worse $345.72 from June 19th, 2010
- better $23,528.39 from July 3rd, 2010 (one year ago)
You have to ignore the slight bumps and look at the long term progress. We are going on vacation (which I have saved up for throughout the year so it won't be affecting my assets/liabilities) so we'll see how this affects me in the upcoming weeks.
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.
Current Value: 11,196.06
Highest Value in Last 2 Years: 14153.57 (July 3rd, 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).