June 1st Net Worth Update!

Jordann Net Worth

Spring is here (although it is still cold and wet out) and May has been a busy month in the MAL household. First and foremost, I paid for my husband’s last round of tuition. It ended up being about $4,500, which was more than I was expecting.

Even though the bill was higher than anticipated, we still managed to pay it with cash, which means we’ve officially paid for his entire post-secondary experience without loans or credit. Paying for his final two semesters of school with cash was a major goal of mine in 2019, so let’s just pause for a moment while I do a happy dance.

Good? Ok, now time to move on to other goals.

I also checked another significant DIY goal off my list this month: rebuilding the front garden beds and yard. The process involved a day spent digging out the sad old Alberta spruce trees that had been slowly turning our soil acidic and making it impossible for grass to thrive, and another day shoveling and spreading a literal dump truck load of soil and mulch.

The end result is gorgeous, and the entire project cost about $1,000 including new perennials and enough soil and mulch to upgrade the backyard gardens as well. Overall, we spent $5,500 in May between tuition and garden projects. That is a steep number, but the silver lining is that this is the last month of big spending, which means my net worth is only going to trend up from here!

Here are the details of how my net worth shook out this month.

(If I say “my” below, I mean “our” because my husband and I have combined finances, including retirement savings.)

Net Worth: $124,265 (-3%)

My net worth had another significant drop this month, but hopefully the last one of the year. In May my net worth dropped by $3,600, mostly due to paying out $5,500 in tuition and DIY projects, but also because the stock market perfomed terribly.

Liabilities

Consumer Debt: $0

My husband and I share a Scotia Momentum Visa Infinite credit card that we use for most of our daily spending, with a Tangerine Money-Back credit card for the occasional Costco run. We earn cash back rewards, and we make sure to pay off the balance every few weeks.

Mortgage: $227,210 (-0.29%)

My regular monthly mortgage payment is $1,089, which uncovers about $645 per month in equity on my home. Right now about half of our net worth is made up of home equity.

I’m not in a hurry to pay down my mortgage right now because my mortgage interest rate is just 2.29%, so I’m not making any extra payments. I also don’t have the spare cash to make additional contributions, as long as my husband is still in school. The recent interest rate hikes have changed things for me a little though, and once my husband is back to work full time, we’ll begin making extra payments.

Assets

Home: $291,000

Two years ago we bought our home for under market value ($270,000) because it needed some work that the seller was unwilling to complete before the sale. One year after that our real estate agent estimated our home was worth $285,000. This year I added the region’s growth of 2.1% to that number, bringing us to a home value of $291,000.

Car: $18,871

Two years ago I basically impulse purchased a 2014 Subaru Crosstrek. I paid it off in 2017, and since then I’ve been periodically updating the value. Some people don’t include their car in their net worth updates because they “need it” and while I do need a car in my life, I don’t need a $20,000 car. If I needed to, I could sell this car and buy a beater.

Retirement Savings: $$27,391 (-1%)

Although I contributed $550 to this account in May, it dropped in value.
I had paused my RRSP contributions in 2018 because we were living on one income as my husband returned to school full-time to upgrade his education. Getting back to long-term savings feels good.

TFSA: $4,209 (-2%)

I opened this account in 2017 and it has slowly grown as I’ve contributed about 10% of my freelance income every month. Since my husband has returned to school, I’ve suspended those contributions, and the growth within this account has slowed significantly, or in this month’s case, stopped completely.

Big Pile of Money: $7,123 (-39%)

The Big Pile of Money (nicknamed the BPM) is a no-fee, high-interest savings account at EQ Bank earning 2.30%. EQ Bank is where I’m hoarding cash at the moment. This account holds my emergency fund, which I had to dip into a little to pay for my husband’s last round of tuition. The next few months will be spent building up this account.

Other Money

If you’re doing the math, you know that there is some unexplained money in my net worth. I’ll tell you where that money is: in my planned spending account for budget deficits, mortgage payments, gas, the internet, etc.

I keep this money in a combination of chequing and savings accounts at Tangerine Bank. I use Tangerine for my daily spending because they have no fees on any of their accounts and the online platform is excellent. You can sign up for Tangerine using my Orange Key: 38939199S1 and we’ll both earn a bonus $50.

Previous Net Worth Updates

2018 (Age 28)

One year ago my net worth was about $117,000, and I’d just paid out my husband’s first round of tuition, funded from the Lifelong Learning Program. My home was valued at around $285,000 and we were settling in for over a year of single income life.

2017 (Age 27)

On June 1st, 2017 I was in New York and had the credit card bills to prove it. My net worth had just popped over the $90,000 threshold, and my car loan sat at an ugly $12,000. I owed $242,000 on my mortgage, and I valued my home at $280,000. My retirement savings were bobbing around the $25,000 mark, and my TFSA was still a baby with a balance of just $1,500.

2017 (Age 26)

In 2016 I had a respectable net worth of $56,000. My retirement account was sitting at $16,000 and my house down payment fund was blooming to $28,000. Little did I know in less than a month I’d be putting an offer in on my home.

2015 (Age 25)

In 2015 I was getting into the swing of living in my new city. My net worth was a solid $34,000, and my retirement savings had just popped over the $10,000 mark (which made me feel like a big girl), my emergency fund was full, and I had $6,500 saved for a home.

2014 (Age 24)

In June 2014 I was debt free and had a net worth of $17,700. I’d just accomplished my goal of a $10,000 emergency fund and was working to fill up my travel fund for FinCon in New Orleans.

2013 (Age 23)

In June 2013, I was preparing for my wedding! I still had $8,000 in debt, and my net worth was barely positive at $3,894. My biggest goal in June 2013 was to get married without incurring any debt – which I achieved!

You can read all of my net worth updates here; those early ones are pretty hilarious.