I like to review our finances at the end of the year so that I can update our goals and objectives and calculate our net worth.
There was a lot going on in 2012. Here’s a quick recap:
Expenses
- Owed additional taxes for the first time in my life which resulted in a $2,000 bill.
- Set up a corporation for my online business which cost me about $1,000 for the lawyer fees.
- Bought out my car lease for $10,000.
- Completed fence and landscaping at new house for $6,000.
Our daily living expenses went up a bit this year because we had another baby in June and our oldest daughter started preschool and dance in September.
Savings
- Paid extra $800 a month on mortgage
- Made $5,000 lump sum payment on mortgage
- Made $5,000 contribution to RRSP
- Saved $4,200 in TFSA
- Saved $2,400 in RESP
- Saved $7,800 in high interest savings account
Related: Our Fast Track To Financial Freedom
Net Worth
Our net worth went up 39 percent year-over-year, mainly due to an increased savings rate and an aggressive mortgage repayment plan. Here’s a look at the numbers:
Total Assets – $548,821
- Chequing Account – $1,500
- Savings Account – $8,000
- RRSP – $53,582
- Defined Benefit Pension – $51,698
- TFSA – $4,350
- RESP – $4,690
- Principal Residence – $425,000
Total Liabilities – $290,519
- Principal Residence Mortgage – $290,519
Net Worth – $258,301
Looking Ahead To 2013
I’m happy with the progress we’ve made this year and looking ahead to 2013 I’m aiming for another 35 to 40 percent net worth increase. That will put us around the $360,000 mark.
We’ll do this by continuing to be aggressive with our mortgage pay down. I’ve increased our monthly mortgage payment by another $200 so we’re now adding an extra $1,000 a month above our regular payment.
Related: Should You Pay Off Your Mortgage Early Or Invest?
I’m also conscious of the fact that three-quarters of our net worth is tied up in real estate. With the housing market softening, our net worth could take a serious blow in the next year or two.
Since we won’t have any big ticket expenses to worry about next year, we’ll be able to increase the amount that we’re saving. Here’s how we’ll do it:
- RRSP – $5,000
- TFSA – $10,000
- RESP – $2,400
- High Interest Savings Account – $15,000
That allocation may change throughout the year, but for now I’m focused on building a bigger cash reserve. At the end of the year I might put that money to work by making another lump sum mortgage payment or by making a bigger RRSP contribution.
Related: Why Your Financial Plan Sucks
Have you reviewed your finances yet this year? Will there be any big changes for 2013?
The holidays are coming to an end and 2013 is just around the corner. For my last post on B&E in 2012, I’m going to do a roundup of the some of the technology that came out this year.
Lots of bloggers write articles on this subject like “the 10 best gadgets of the year” but I’m going to cover it from a different angle. Let’s look at the new technology that has enhanced our quality of life and saved us money.
Ultrabooks
In my opinion, Ultrabooks have been one of the biggest stories in technology in 2012. While tablet devices have been marketed heavily, Ultrabooks haven’t been in the spotlight as much.
With solid state hard drives, lower power consumption, less weight and a sleeker design, Ultrabooks are the answer to the MacBook for the PC user.
Now that there are a variety of Ultrabooks on the market, consumers have choice which translates into better value. Those looking for a sleek, responsive, thin device can buy an Ultrabook ($550 and up) for far less than a MacBook ($999 and up).
Small Tablets
Every PC maker (and now Microsoft) makes tablets these days. Apple is the leader but others are trying to make a dent in the market.
The big story this year on the tablet front is the rise of the 7” form factor (iPad mini is 7.9”) as opposed to the 10” (iPad is 9.7”).
Related: Why We Aren’t In A Post-PC World
I took a look at the BestBuy website and saw that they currently have 171 tablets for sale. Of these, 36% are 7 inches and 27% are 10.1 inches. So why are tablet makers focusing so heavily on the 7” segment of the market this year?
First of all, since Apple didn’t have a small screen tablet offering, many of its competitors thought they would exploit this and try to carve out a slice of this market for themselves.
Second of all, I think tablet makers are trying to offer consumers more choice. Not everyone needs a 10” tablet or wants to pay the price associated with that size. Like with Ultrabooks, people want choice and choice leads to better value.
Smart TVs
Internet connected TVs really started coming to market in 2012 with a host of features. TVs from the likes of Samsung provide gesture and voice control, internet movie streaming, social media apps and much more.
Related: Is It Really Cheaper To Buy Electronics South Of The Border?
Personally, I don’t think advancements in TV technology are that great for our quality of life or for our pocket book, however purchasing a Smart TV may reduce our need for tablets.
For some, an internet connected TV may satisfy some of the craving for “always on” internet connectivity. If you need a new TV and upgrade to a smart TV and bypass the tablet craze, you in effect save yourself the cost of a tablet ($300-$800). Don’t just go out and buy both!
Wifi Enabled Cameras
2012 saw wifi enabled cameras picking up steam in the consumer market as well. These cameras allow you to transfer pictures to your computer or upload them to social media sites without having to remove memory cards or worry about cords.
This advancement is alright but not that compelling when you think about all the people walking around with Smart Phones in their pockets that already have a camera and wifi built-in.
Related: 10 Fees You Can Avoid Paying
This new class of camera will certainly save you time and effort but don’t run out and get a new point-and-shoot just for this feature. Professional photographers will love this feature however! Look for more companies getting on the wifi bandwagon in 2013.
So what about the technology that didn’t make the cut this year? To me, the developments in large form factor tablets, smart phones, mp3 players and eReaders just don’t offer compelling reasons to buy.
The never ending upgrade cycle
When it comes to enhancing your lifestyle and saving money, remember that technology is always about bigger, better and faster. Every year companies try to get us to buy their latest and greatest products. Don’t fall into the constant upgrade cycle that many people get sucked in to.
Here’s a table I’ve created to give you an idea of how long to wait before upgrading your digital devices in order to actually feel like you are getting a big upgrade and good value for your money.
| Price | Product Type | Years to own before upgrading |
| $$$$ | TV | 5 years or more |
| $$$ | PC (Laptop/Desktop/Ultrabook) | 3 years or more |
| $$ | Digital Camera | 4 years |
| $$ | Smart Phone | 3 years |
| $$ | Tablet | 2 years (time will tell) |
| $ | MP3 Player | 5 years |
| $ | eReader | 2 years (time will tell) |
Generally speaking, the more expensive the product, the longer you should wait to upgrade it. Also, products that are experiencing a lot of innovation will probably need to get upgraded more often.
Related: Is Gadget Insurance Worthwhile?
2012 saw a lot of new features that make our lives easier but also a lot of run of the mill faster, bigger, upgrades. When you go out and make a new tech purchase in 2013, think about what products will enhance your lifestyle!
Andrew Martin is a personal finance and investing blogger from Toronto, Ontario with a background in technology and a passion for travel. His blog, She Thinks I’m Cheap aims to help Canadians make more money by sharing facts, stories and advice.
The Christmas gift from your sister Barb is beautifully wrapped and beribboned. The card attached to the outside includes a thoughtful note.
Tucked inside the box is a small envelope with a Bridal Shower card inside it. The envelope is addressed to Barb, and inside is a card signed by Shelley. You have been regifted, and – if your name is Shelley – with your own gift!
Related: These Gifts Keep On Taking
When is Regifting Okay?
Is regifting rude? Is it tacky? More and more people think it’s acceptable to regift and the practice is growing in popularity. There are some rules to make it okay, but be very careful:
- The item must be brand new in the (preferably unopened) original packaging with no obvious signs of use – no crumbs in the toaster for example.
- Keep careful track. Make sure the person receiving the gift is in a completely different social circle than the person who gave it originally – especially if it’s an unusual item, or one of a kind.
- Don’t regift something that has been sitting in your basement for decades. If you have to dust it off, it’s not an acceptable gift.
- The gift shouldn’t be something so hideous that you are regifting just to be rid of it.
- Don’t try to pass off an item as something you’ve purchased just for them.
- Never regift an item someone has made for you, is monogrammed, or has an inscription on it.
- Don’t regift free, promotional items.
- Avoid foodstuffs. The world’s most regifted food item is fruitcake. Food and drinks in gift baskets can go stale, rancid or curdle and can be dangerous if eaten past the due date.
Remove any tell tale signs about where the gift originated. Take off old tape and bits of attached wrapping paper. Make sure any cards and notes are removed.
Give good stuff
Turn a gift you can’t use into one you can, but have some consideration. There’s nothing wrong if you’re truly thoughtful and respectful toward the recipient’s needs, interests and tastes.
Related: How to find discounted gift cards and save big
Some good candidates are (unopened) bottles of wine or spirits, new household items and inexpensive jewelry – something useful you don’t need, or already have, or simply not to your taste – that you know the recipient will love.
Regifting a family heirloom (or similar) is acceptable. In fact this is what many “old money” families do.
Final thoughts
I would not regift because I don’t want people to think I’m thoughtlessly unloading something I don’t want to someone who won’t want the item either. I don’t want the feelings of the regiftee to be irreparably hurt by thinking I can’t be bothered to spend time and money on a gift they will appreciate.
When people say, “Really, you shouldn’t have,” I don’t want them to mean it.
I would more likely donate an unsuitable gift to a charitable organization. But I seem to be in the minority.
This site has declared the third Thursday in December as “National Regifting Day”, something to keep in mind for the ubiquitous gift exchange at your next office party.
Ebay Canada markets “National Regifting Week” as an annual event from December 26 – 30.
What are your thoughts on regifting?