Tuesday, March 4, 2008

Net Worth Update

As of March 1st, my net worth was $52 535 (up 1.8% from $51 609). The markets completed its recovery of the January downdraft, although there are signs they we may be in for another downdraft in March.

If I exclude house-related assets and liabilities, my net worth is $40 000 (up 1.2% from $39 530).

Assets ($127 360, up 0.3% from $127 028)
  • Bank Accounts $2 336 (down 30% from $3 331)
  • Emergency Funds $2 454 (down 27% from $3 376)
  • RRSP Accounts $33 694 (up 2.7% from $32 815)
  • Non-Registered Investments $7 484 (up 19% from $6 293)
  • Home $75 600 (stable)
  • Arbitrage $5 000 (stable)

Liabilities ($74 825, down 0.8% from $75 419)

  • Credit Cards $4 800 (down 2.1% from $4 904)
  • Student Loan $1 916 (down 11.6% from $2 167)
  • Mortgage $56 360 (down 0.2% from $56 467)
  • Heat Pump Loan $7 005 (down 0.7% from $7 054)
  • Arbitrage $4 593 (down 2.1% from $4 692)

I wanted to take advantage of the recent downdraft to boost my DRiP portfolio, so I deployed quite a bit of cash from my bank accounts and emergency fund. I may have slightly overextended myself, since I now have little liquidity left beyond the essential. Just as I did this, I got hit with some larger-than-expected car maintenance and repair costs. And my personal computer died last week.

So, for next month, I expect to see my non-house-related liabilities increase, since the unexpected expenses went on the credit cards. I will also need to rebuild some of my cash reserve. But I can still sleep at night, since I still have a fairly reasonable emergency fund.


phil said...

Where can you still find a house for 75k$? Are you sure you are pricing this correctly?

I find that calculating Net Worth without including the primary residence as an asset gives a better idea of financial positions. I make the assumption that I will never sell my house. If I move, I will only trade it for another of similar value.

Frog of Finance said...

As I mentioned in one of my previous net worth updates, I use only my part of the house in my net worth calculation (leaving out the part that belongs to my spouse).

On top of that, I use the yearly municipal tax evaluation as a basis of the value. The market value is probably 20% higher.


phil said...

My bad, should have read all your posts...

It makes a lot of sense to use only your part and to use a conservative estimate.