Makin’ it Rain in the Cold November Rain: Net Worth Update

Makin’ it Rain in the Cold November Rain: Net Worth Update

Below is my net worth update as at November 30, 2014. All’n’all it was a good month as the markets continued to rebound a bit and I increased my cash from last month with some side hustles.

The big decision over the next few years is whether it’s more beneficial to pay down the mortgage, or continue to top up my RSP and TFSA. Currently the prime interest rate (which my mortgage is tied to) is ridiculously low, which makes contributing to my savings more tempting, however, I (and just about every bank) suspect over the next few years this will change. I’m a fairly risk adverse person when it comes to investing (meaning I’m more concerned about losing money than I am about gaining money), so I’ll likely start to do a blend over the next few years.

nov update

2014 FINANCIAL GOALS UPDATE

Investment portfolio of $70,000 – Currently sitting at $70,067. Beating this goal a month ahead of schedule was due to solid market gains for the majority of 2014. I also managed to stay on track with my contributions, and I’ll likely be making an additional end of year contribution to RSP.

Earn $2,000 outside of day job – Back in October I revised this goal to $4k as I had already earned $2,617. I’m currently at $3,967 on the year, so I need another $33 to hit my revised goal, which I think is attainable in December (it may come down to shoveling driveways!). It should be noted I spent quite a bit to earn this, so it’s not all gravy, but I think next year I should be able to replicate the earnings without the expenses as much.

Pay off line of credit– Currently sitting at $0!

Invest 25% of my take home pay (after tax salary) – I’m still on pace for this mark. In The Wealthy Barber, a book written by David Chilton (of Dragon’s Den), it claims we should be setting aside 10% of our income for retirement PLUS additional savings in order to comfortably retire. The best way to accomplish this rate of savings is by paying yourself first. This means setting up automatic monthly withdrawals (similar to a mortgage payment) where a portion of your pay is put to your savings account. The more I learn about money the more I learn it is a psychological battle within yourself – so be preemptive and strike first.

I’ll be posting some 2015 goals sometime in December, but need to think long and hard first before I commit. It’s also good timing as thinking ahead might help curve the Xmas spending BULDGE.

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4 comments

  1. Nice increase in November (and great reference to G&R!)
    You did really well with the side hustles. Wow – Mine were negative so any progress will be a good thing.

    I also struggle with the mortgage vs. invest decision. Right now we are putting more into the mortgage and I think we might be missing out on some growth (that could be put towards the mortgage if rates do go up in the future.) The other thing is I want to sleep too so its about finding the right balance. Let me know if you figure it out.
    May recently posted…The Joy of Dollar Store GiftsMy Profile

    • Jonny

      With investments your rates of returns can vary (and even be in the negative). With the mortgage payment you’re guaranteed a return immediately. I’m only allowed to pay off a certain percentage of my mortgage each year before I get hit with some penalties (those lenders always make sure they get theirs!), so that will limit my additional payments.
      Haha that Slash guitar solo was legendary!

  2. Congrats on almost hitting your doubled side income goal! The mortgage rates will rise, but it’s hard to say when. Higher rates will probably slow the economy down again.
    Tre recently posted…Weekly Update #21My Profile

    • Jonny

      Thanks Tre.
      Agreed – no idea when those rates will go up, so no point in trying to time it. I’ll tax return refund from my RSP (or 401k) contribution and pay that towards the mortgage. A nice balance of investing and paying off debt.

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