Welcome to the FindependenceCanada January 2021 Net Worth Update. This is where we track our monthly updates on our quest to a One Million dollar net worth and beyond. We have worked diligently over the last few years to go from having a negative net worth to the position we are in here today, and we hope that we are able to motivate others to join us on our quest to financial independence!
To view last months update click here.
Here we are in 2021 and so far not a lot has changed with the calendar flip – but at least there are signs of progress.
Speaking of progress, if you checked in on our final update of 2020 you would have seen that we finally eclipsed the $400K net worth “barrier”. That means that we’re now patiently counting down the days until we’ll reach the half-millionaire club (if that’s a thing?).
Our strategy for reaching a $500K net worth in 2021 is pretty straight forward and will involve relying heavily on market returns. We’re simply going to keep plowing money in monthly to our favourite stocks and continue to top up our workplace retirement accounts as well. There’s also a side goal since we began tracking expenses in 2020, and that is to spend less this year than last.
Let’s get started with the assets:
The main changes from last month’s update was as you can see my workplace savings plan got cashed out and we transferred those funds into our dividend account, more specifically the “Non-Registered (his)” account.
We also transferred $5K into our son’s RESP which we will continue to track on our net worth updates since it is going to be funds we spend on him that would have come out of savings if we didn’t decide to put it into a registered account and get that 20% match from the government.
Next, on to the liabilities:
Slow n’ steady on this end of the equation. Another month and another mortgage payment is about the only change for now. For newer readers this student loan is a UK loan which only charges about 1% in normal conditions but also has that 1% waived until this coming September so there is zero incentive to make any progress on this account. We’ll go back to making minimal payments on it later on this year.
Also, in our plans for retirement we don’t put any weight in the home equity we may or may not be building at this point, we simply assume we’ll sell the house for whatever is left owing on it when the time comes to leave that way if there are profits from the home it’s all bonus money.
That leaves us with our total net worth to cover:
Our first net worth update of 2021 officially comes in at $413,361! That’s about an $8,000 increase over our end of 2020 update. This is about a 2% increase month over month and would theoretically be about the pace we’ll have to keep up month over month to reach $500,000 by years end.
That is where we will leave off for today, we hope you enjoyed the update.
As always if you’ve got any questions or comments feel free to leave them below or over on Instagram @FindependenceCanada and we’ll be sure to get back to you.
Thanks for stopping by,
FIC.