When I first started this blog in 2010, I only had about $300K of financial assets. I thought that was a lot of money back then, but as I learned more about personal finance I realized that it’s actually not that much. The average household net worth in Canada today is $400K. I looked at other people’s balance sheets and was really inspired by bloggers from Planting Our Pennies. They have multiple rental homes, multiple cars, and lots of stock investments It’s because of the success of other people that has given me the motivation to work hard.
Today I still do not have a $400K net worth. But I have however broken $700K in assets for the first time ever I am now in the same boat as many of my online friends and acquaintances like the P.O.Ps. I feel like I fit in more now.
- Part-Time Work = $400
- Dividends = $400
- Eating Out = $100
- Others = $2,000 (closing costs on farm)
*Net Worth: (MoM)
- Assets: = $738,800 total (+156,700)
- Cash = $1200 (-5100)
- Stocks CDN =$76,900 (-800)
- Stocks US = $45,000 (+1600)
- RRSP = $38,700 (+5800)
- Home = $252,000 (same)
- Farms = $325,000 (Farm 1 old value of 152,500, plus Farm 2 purchase price of 172,500)
- Debts: = $534,600 total (+155,500)
- Mortgage = $200,700 (-400)
- Farm Loans = $209,300 (+99,800)
- Margin Loan CDN = $26,100 (Same)
- Margin Loan US = $23,600 (+100)
- TD Line of Credit = $35,900 (+17,000)
- CIBC Line of Credit = $15,000 (new)
- HELOC = $18,000 (new)
- RRSP Loan = $6,000 (new)
*Total Net Worth = $204,200 (+0.6%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.05 CAD
Managed to squeeze in a small net worth increase despite some pretty big expenses in November. The legal fees were $1,700 to buy the farm, plus $300 for notarization so I didn’t have to be in Saskatchewan to sign the papers.
Cash – I used most of my reserve cash funds to complete the farm purchase. This would be the second farm I bought
RRSP – I borrowed $6,000 to invest in my retirement account. The borrowing cost is at 4% interest rate, not bad. I haven’t bought anything yet, but I’m looking at Cisco, Coke, Pepsi, Comcast, IBM, and Lockheed Martin
Farms – In my previous Fiscal Update I listed my 1st farm with a value of $152,500, and a 10% deposit on my 2nd farm. From now on they will be combined.
Farm loans – I got a $100,000 loan from the bank to buy my 2nd farm. I’ve combined the value with my existing loan for the 1st farm.
CIBC LOC and HELOC – I had to borrow extra money to cover the remaining balance for the farm purchase.