April Net Worth Update

Well, better late than never in updating my net worth from March 2015:

Not much to discuss on the change front – a happy 4.22% increase over March; however, it was mostly due to two accounting errors and less so to an increase in net worth.

Note 1 – We had $2,000 in interest income on investments of $250,000 for the month.

Note 2 – RRSP’s increase as we had forgotten $37,500 of Ms. Frugaler’s pension, which has been added + investment income from Q1 repricing.

Note 3 – We have not yet invested into our TFSA – that won’t happen until RRSPs are maximized. I will be discussing our revised strategy for achieving our financial independence goals.

Note 4 – Last month I neglected that I have a car loan on my little FIAT that allows me to get around town, that was added in.

Onto the Millionaire To Do List, which will allow me to make it into the J. Money Millionaire Club.

As you can see, this list is a lot more comprehensive than last time.

What I realized in the past month and through discussions with my wife, we have a lot of unused room in Ms. Frugaler’s RRSP, which is very important to maximize because of the super positive return we get in utilizing it.

The above list, I estimate, will take us two years to work through, hopefully. To do this, we will need to maximize our RRSP’s first. Every $ invested in our RRSP returns us about 40% of the amount invested, which can then be used to invest in either our RRSP or our TFSA – RRSP first, of course.

When we invest the full $135,000 into our RRSP, then we will get back $54,000 from the Canada Revenue Agency, whichwec an in vest into our TFSA. Thus, to save $225,000 we will only need to save $171,000. This is an ambitious goal and it might not be achievable; however, by setting a SMART stretch goal, we are able to achieve great things.

That is it for the April Net Worth Update and next, I will be writing my Liebster Award post, thanks to Mr. Fervent Finance, a fellow accountant who is also passionate about financial freedom.

While FF nominated me a while ago, FF will recognize our day jobs can be challenging, and it is beyond that level of craziness right now. Add to that a young family and blogging / life has receded into the background…All the more reason to reach financial independence!