Sorry for this late update. I could make elaborate excuses, but let’s not waste your time (*^_^*;)
The following details are my financial summary for the month of January, 2012. The first month of the year is when the gov’t assesses our home’s values. This is also the time I make adjustments to my apartment value for my net worth calculations. I calculate the value by taking my original purchase price in 2009 and add inflation to it every year. This year, I will raise my home’s price by $5,000 to $248,000. The assessed valued is actually more, and the market value is even higher than that, but let’s stay on the conservative side. As for stocks, I’ve decided to make my holdings easier to understand from now on. In the past I would add the net equity value of my margin account (securities minus loans) to my stock’s total, but now I will add the market value of all my securities held in my margin and move the margin loan under the Liabilities column. This doesn’t change my net worth of course. I’m just shuffling things around to show a better picture of what’s going on inside my investments. Numbers below.
- Part-Time Work = $400
- Dividends = $400
- Eating Out = $100
- Others = $300
*Net Worth: (MoM)
- Cash = $2,100 (-$2,200)
- Stocks = $71,800 (+$5,700) $16,700 added from margin securities.
- RRSP = $21,500 (+$300)
- Home = $248,000 (+$5,000)
- Mortgage = $208,200 (-$300)
- Margin Loan = $16,700 (new)
- Bank Loans = $5,400 (-$1,700)
*Total Net Worth = $113,100 (+10.56%)
* Numbers are rounded to the nearest $100.
That’s an increase in wealth of more than $10,000
in 1 month. A couple weeks ago I wrote that one of my financial goals in 2012
is to grow my net worth by $40,000.
Looks like I’m off to a good start ＼(^o^)／ It’s important to set goals. It will push you to do amazing things.
I love doing fiscal updates for January because on my net worth graph, every January since I bought my home shows a bigger jump than normal months. This is the new year bump
. Jan is one of the 4 months in a year when my dividends are higher than normal
due to the mix of quarterly dividend stocks I hold. I spent a lot of money on CDs and restaurants and blew my discretionary budget for the month :0( I used up some cash to buy Goldcorp
and pay down some debt. My stocks did well because the markets did well. My recent swing trade also helped with that. Home, like I mentioned earlier increased in price too because this is Vancouver after all. I’m glad I bought my home with a 5% downpayment rather 20%. Not only would 20% take longer to save for, but I would need to save additional money just to keep up with growing prices in the last 3 years.
It’s not an issue of strategic timing though. I time the stock market sometimes because I can handle losing a couple thousand dollars. But I wouldn’t time buying my primary home
because I can’t afford to be homeless (>_<) Buy buying early I save on rent, am protected from inflation, and will build up equity by regularly paying down the principle on my mortgage. I bought in 2009 simply because I wanted to move out, and I wanted to pay down my own mortgage rather than help someone else with their’s. But everyone’s different. If you travel around a lot for your job and don’t have a permanent city, then this plan probably wouldn’t work for you ヽ（´ー｀）┌ My bank loans include an RRSP loan and a LOC. Looking forward to see what surprises February will bring.