We’re halfway through 2013, so now’s a good time to take a big picture view of our finances to see if we’re on track. I like to update our net worth and review our financial plan a couple times a year to stay on top of our goals.
The last time I updated our net worth was at the end of 2012. We had a net worth of $258,301 and aimed to hit $360,000 by the end of 2013.
Net Worth Update
I’m happy to see our net worth has surpassed $300,000 at the midway point this year. The $40,000+ increase was due in part to increased savings, RRSP contributions and an aggressive mortgage pay down.
Related: Why Do We Save?
Here are the numbers:
Total Assets – $581,976
- Chequing Account – $1,500
- Savings Account – $9,000
- RRSP – $63,305
- Defined Benefit Pension – $72,500
- TFSA – $4,388
- RESP – $6,283
- Principal Residence – $425,000
Total Liabilities – $281,861
- Principal Residence Mortgage – $281,861
Net Worth – $300,115
While I’m pleased with the results so far this year, I’ve tempered expectations for reaching $360,000 net worth by year end. At this pace, $340,000 seems more realistic.
For one, I was hit with an unexpected $3,500 bill for property taxes owed. I pay property taxes through my mortgage provider and they’d been withdrawing around $250 per month for taxes since mid-2011.
Last week I received a letter from the bank saying I was behind in my taxes and that they’d be increasing my monthly payment from $250 to $715 per month! Instead, I chose to pay a lump sum now and reduce the monthly payments to $325. Needless to say, that’s a big hit to the wallet.
Second, the markets haven’t been as strong this year as they’ve been since 2009. My RRSP portfolio is up just 6 percent on the year. The dividends are still flowing, but only add about $2,500 per year to the total.
To get another $40,000 increase in net worth by the end of the year, we’ll need to get saving.
We’ll continue to pay an extra $1,100 per month towards our mortgage, and top up my RRSP by $1,500 per month. Add another $500 per month to our savings account, plus my monthly pension contributions, and we’re nearly at our goal.
And, who knows, if the markets start to heat up then we might have an outside shot at reaching that stretch goal of $360,000.
Do you review your finances mid-year to see if you’re on track?