Happy New Year and welcome to the inaugural casual net worth update!
Please bear with me as I’m tweaking the format and figuring out how much and what to reveal in these updates.
Overall, December was a quiet month for us.
We kept our holiday spending in check, ate moderately, and made the conscious decision to steer clear of expensive vacations this year.
Money-wise, it was a surprisingly great month, all things considered.
I have explained our assets and liabilities in greater details in another post, which you can check out here.
Bear in mind that my husband and I combine our finances, so these figures below reflect our household net worth.
Primary Residence: +0%
The value of our home has not budged even a teensy bit in December, as expected.
Since the introduction of Ontario’s Fair Housing Plan and the 15% foreign buyer’s tax, Toronto’s real estate market (with the exception of condos) has cooled down considerably in recent months.
I use HomeOptima to keep track of real estate listings in our neighborhood, and shockingly, some of the houses in our area have been on the market for months – unthinkable considering that just a year ago, any half-decent house was attracting multiple offers and would get snatched up within a week.
Cash Savings: +65.8%
If 65.8% seems like a humongous increase in savings, it is because we’re actively saving every penny we have towards the down payment of our first rental property.
Also, this drastic increase is in part thanks to some windfall money we’ve received in early December. This is completely atypical.
Not an eventful month, RRSP wise. My husband and I have already maxed out our yearly contributions prior to December, so this gain is entirely attributable to the strong market and the dividends that we’ve received.
Without making new TFSA contributions in December, we managed a 2.45% increase. Not bad.
What a crazy month for cryptocurrency!
It sure seemed that Bitcoin was making headlines every single day last month.
As for yours truly, I’m not even close to being a Bitcoin millionaire, despite what a 550% month-over-month increase might suggest.
I’m not going to lie, it felt AWESOME to see my portfolio soar during the first half of the month. Then the cryptocurrency market started to show signs of slowing down, followed by single-digit daily declines, then simply nosedived on Christmas day.
At its peak, I more than doubled my investment in cryptocurrency. As of right now, I’m still making money, but I can tell that a correction is imminent.
Although I have mentioned that one of my millionaire to-dos is to invest an additional $2,500 in cryptocurrency, I’ve already decided against that course of action. I’ll hold on to what little cryptocurrency I currently own, but I no longer feel comfortable putting more money into it.
On a random note, I’ve surprised myself by how calm I am about the whole thing. For days, the market goes up and down by large percentages every single day, but my mood was completely unaffected by the fluctuations.
Though let’s face it, I’ve only invested a fraction of my monthly income into cryptocurrency, so that probably helps.
Life Insurance Cash Value & Other Assets: +0%
No change whatsoever in these 2 categories of assets.
Total Assets: $1,223,045.90
Credit Cards: +84.62%
My husband is carrying a balance on his credit card, and it’s scaring me.
The source of this debt: car insurance!
Because we chose to pay a full year’s car insurance premium in advance (instead of monthly) in order to lower the overall payments, when the huge credit card charge arrived, it was hard to pay it all off at once.
I hope we can clear this balance by the end of next month.
Our regular bi-weekly mortgage payments were automatically deducted from our joint account like clockwork.
Car Lease: -3.86%
We dutifully made our monthly car lease payment. Business as usual.
Student Loans: -1.53%
I’m slowly chipping away at this debt, $260 at a time.
Total Liabilities: $564,360.96
Net Worth: $658,684.94
We’re happy with this result. If our net worth keeps going up at the same rate, we’ll be able to meet our 2018 net worth goal of $750,000 with flying colors.
But that is a BIG IF. After all, we did receive windfall money last month. We won’t be that lucky every month.
Stay tuned for January 2018’s net worth update!