How I Calculate Net Worth

NET WORTH = ASSETS – LIABILITIES

What I consider ASSETS:
Cash on hand
Chequing accounts (the fiance and I still carry separate individual accounts, even though we use one budget spreadsheet – and pay off each other’s ccs etc, pay for wedding vendor downpayments, etc.  Shared money!)
(minus) Work reimbursement money:  the fiance gets his reimbursement cheque up front, while I hand in my work receipts at the end of the month then get a cheque.
(minus) Credit cards.  We try to pay EVERYTHING on cc for cashback rewards. We never carry over a balance though and send payments at least weekly.
Friendly loans:  A cousin borrowed money from me a year ago and is paying it off monthly.  This is set to be paid off by summer.
Gift cards
– TFSAs 
– RRSPs
– Vehicles:  This differs between individuals.  We don’t put  value on my fiance’s car.  But my car… carries a value that decreases every month.   The reason behind is that in a span of 5 months, I had a car written off after an accident AND a car stolen.  That’s TWO car loans in 5 months.  In order to not take a drastic hit on my net worth, I balanced it out with a car value.

LIABILITIES
– Car Loans x2
– Student Loan: 5.5% interest 😦
– Emergency Fund: Some consider this an asset since it’s only money set aside and not necessarily earmarked for a specific expense.  However, I intend to use this to pay down the fiance’s student loans AFTER the wedding.  For now, we need all the liquid we can get.
– Tax Fund:  I pay quarterly and save for it every month.
– Slush Fund:  We set a $600 discretionary budget for the both of us (which currently, does NOT meet our needs at all, looking to increase this).  Anything extra (read: none) goes in this fund.
– Travel Fund
– 
Gift/ Events Fund
– Car Fund
– Wedding Fund:  
Summer 2017!  Can’t wait!!!
– Charity Fund

As you can see, all our sinking funds are in our liabilities section.  This is because these are intended to be spent in the next 1-12 months.  We save monthly even for yearly expenses… or at least save for those big expenses little by little in advance.

No mortgage to speak off (yet) so a house asset/ mortgage doesn’t complicate this calculation.

How do you calculate your net worth?

February 2017: 10k!

Oh, hi Feb!  Ahhh I just want the next 6 months to fly by!  I’m itching to start married life already!!

Wedding concerns?  Finding a substitute for a preggy bridesmaid.  And having to study for a license exam in the middle of all this wedding prep!  Otherwise, I’d like to think I still have my calm.

January budget went okay… I just find it really hard to stay within out $600 discretionary allotment.  We’ll see how this month goes; but I’m considering increasing this to $800.

Also, our car fund is something that needs to be potentially reviewed in the future… not sure if it’s enough of a buffer.

Net worth… we finally reached $10000!!  *small wins, happy dance*

Things to look forward to in Feb?  Valentine’s day.  A short month.  A charity gala.  And a long weekend road trip to Pennsylvania.

Happy love month!

Show me the money, honey

2010:
Net worth:  Negative something.
Assets:  Opened an RRSP with $100 monthly payments.
Liabilities:  $28,000 student loan debt.  $20,000 car loan debt.

2012:   I became obsessed with spreadsheets:  budgets to plan and follow!

2013:  Paid off my student loan.
Net worth:  Negative something.
Liabilities:  Brand new car – $25,000 car loan debt.

2014:  Finally a positive net worth!  A temporary 6 monthly side hustle definitely helped.
Net worth:  $4k in May to $26,000 at the end of the year.
Liabilities:  $18,000 car loan debt.

2015:  Car accident in August, car got written off.
Net worth:  $40,000
Liabilities:  Brand new car loan –  $27,000.

2016:  That 5month old car got stolen in February!!
Net worth:  $50,000 in June 2016
Liabilities:  Brand new car loan –  $36,000.

Dec 2016:  Joint net worth:  $9000

I got engaged in October 2016 and by the end of the month, we had transitioned into a joint budget.

New debt:
Student loan – $11,800
His vehicle – $19,500
Her vehicle – $31,700

…not to mention a $50,000 wedding to plan and save for in less than 8 months!!!

2017, please be good to me us!! 🙂