Welcome to the FindependenceCanada June 2019 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!
When it comes to our net worth we try not to make any goals that are too concrete as we are aware that there are so many variables that may work for, and against you, especially in short time periods, so flexibility is key! Instead, we focus on our savings rate (currently at approx. 50% take home pay) and investing in companies we believe to be stable and truly blue chip in their respective industries. We feel as long as we take care of what’s in our control: earning, saving and investing diligently, the rest will take care of itself and the results will come over the long haul.
In spite of a little bit of market turmoil, this month ended up being a great one for us as we are up over $15,000 dollars for the month! Woohoo, that sure feels great! Although we’ll be sure to keep a level head as we know the reverse can happen just as easily.
Lets take a look at the numbers:
On the asset side of the equation we were able to make some decent headway thanks to a fairly aggressive push towards the “RRSP (his)” account as this is shaping up to be a good earning year so we will be taking full advantage of what will hopefully be a nice tax return next spring. You should be seeing this account and Mrs. FIC’s RRSP filling out over the second half of 2019.
The liabilities are the boring side of the equation right now (thankfully) as we’ve only made the one mortgage payment for the month and the regular payment to Mrs. FIC’s student loan. Some may wonder why we aren’t paying off this loan while we have the cash, and the answer – her student loan is only being charged roughly 1.5% interest! which was quite the shock to a Canadian who, if I’m remembering correctly was being charged around 6% rate on my own student loan several years ago! At this low of rate it just doesn’t make sense to prioritize paying it off over our mortgage or investing.
And there’s the bottom line. I can’t tell if we’re starting to see that “snowball effect” now that our net worth has been growing or if we just had a lucky month but either way this $15,000+ improvement from May’s number has a smile on my face. I don’t want to go jinx’ing it, but I feel that we can hit the quarter-million dollar mark by the start of fall but time will tell.
Thank you as always for the read and we hope you enjoyed this months update, there will be more content on the way shortly and we hope you stop back around these parts to check them out!