Finally… My first ever net worth post! I started my blog in November and I decided that I would post my first net worth update for the month of December. Although this is my first net worth update, it will be the last one of 2018. I can’t wait to get started on my goals for 2019 and see the monthly results in my net worth statement.
I’m going to break down my net worth update every month into three sections.
Firstly, I will talk to my Assets and what the changes were from month to month. I break all of these down so I can easily speak to if it’s on hand cash related or investment related.
Second, I will share with you my liabilities and the changes on that from month to month. I don’t have a lot of debts, so this section will be brief for the most part every month.
Third, I will compare my net worth to the same time last year to understand my year over year growth. This is where it gets exciting!
If you are interested in learning how you can calculate your net worth, I recently just finished a three part series on how to do just that. You can get started with the first post on the 3 Reasons Why You Should Track Your Net Worth
December 2018 Net Worth Update
Here is a simple pie graph that my excel template spits out for me on my net worth. You can find this in my How to Calculate My Net Worth, with an easy to use excel template! post on my net worth series. My net worth for December came in at $167,911.
This is growth of +2% vs the previous month. For the most part I saw growth across many areas of my savings. Over the last two months I started automatic savings in many areas which actually helped me out a ton in covering some aggressive vacation expenses that I had to pay this month. I’m going on a two week South America trip in a few months so I purchased my flight and also a tour with a couple more flights. This was over $2,000 in expenses, so my net worth would have been higher.
We all gotta live a little bit and I do that by traveling the world!
The largest liability I have is my mortgage at over $320,000. Luckily this will continue to decline, and I will make that up and continue to grow my net worth as my equity continues to build and the value of my condo continues to climb.
The most significant change this month was an increase in my line of credit of $1,500 which was my flight costs to South America. I am actually going to get this reimbursed and my dad mentioned he would cover the cost of my flight this year as a Christmas gift. Instead of taking this out of cash on hand, I put it to the line of credit so I know exactly what it is worth, This will be covered off in January, so I’ll see a positive increase to my net worth at that time.
Versus last year, my net worth only climbed +11%, or +$16,720. You may think this is incredible, and yes I agree it is. But man, I was targeting so much more growth in my net worth! The markets this year have been very unpredictable and I haven’t seen my growth in any of my investments, coupled with the purchase of my condo.
You can see that from July onwards my net worth decreased from an all time high of $173,693. If you have purchased a home, you know that there are a ton of costs that are factored into the closing and moving into a new place. This took a hit on me, and I feel like I’ve finally been able to recover as it was my highest growth month since I purchased my condo at +2%.
To be honest, I was not expecting to purchase a condo this year. It was something I have wanted to do for such a long time, and I think I just ended up saying that it was time. I was tired of paying someone else’s mortgage the last 7 years living in the city and I was ready to pay myself. I put an aggressive 15% down, which cost me about $60,000 in my savings which I feel was the absolute right thing to do. It was almost like the old stock market rule that you can’t time the market. Although the market is high, I plan to hold this baby for the long term. I’m hoping to live in it for the next 3-5 years and renovate to increase the value. Then rent it out and buy something a bit bigger. I can get enough rent out of it to cover the carrying costs of the mortgage and all inclusive condo fees every month.
What are the 3 things I am going to do differently next month?
- I need to have a “no spending” week. I feel like all I have been doing is spending money the last couple of months! It’s time to bunker down and get on my budget in a hardcore fashion. I’ll be sharing my budget prep series over the month of December to prepare ourselves for the new year! I’ve been working on this for quite some time, so stay tuned as I’m super excited about this!
- Cook my meals at home and avoid eating out. I know that I have spent a few hundred dollars the last couple of weeks and it’s really starting to irritate me. I need to stop eating out again and start cooking my lunches and suppers so that I can avoid the spending.
- Lay out an action plan for my 2019 financial goals. I’ve got my goals written out, but I need to ensure that I’ve got the details action plan in order to accomplish. I’m going to take the rest of this month to get these down on paper and I’ll share them with you shortly.