March 18, 2016 Progress Update

This post is a little bit delayed because last night, we attended the engagement party we had previously been stuck on how much to budget for a gift. (We ended up giving $100.)

This week’s paycheck was significantly lower than my last one two weeks prior which was my biggest ever at nearly $2,000. However, it was still higher than what I anticipate a normal paycheck without overtime will be at $1,765.37, so I’m not complaining 😀

After setting aside enough to cover our upcoming bills, I was a little disappointed to see we only had $335.80 leftover to pay off our HELOC balance, which had previously broken the $13,000 mark. Still, that amount is higher than the weekly minimum payment of $317.06 required to meet our goal of having it completely paid off by December 31, 2016. With our balance now at $12,663.77 and 40 weeks remaining, we’ve dropped the minimum payment slightly to $316.59 per week. At least we’re seeing progress! We’ve now paid off $2,113.27 in principal, but are still $1,087.52 away from our starting balance last year of $11,576.25.

HELOC - March 18

We’re also seeing a slow but steady increase in our Net Worth which is nice! This has mostly been a result of our deliberate focus on cutting down our expenditures by staying on our Crash Cash Diet since the less we spend, the more we have available to pay down our debt. Our Net Worth is at an all-time high of $493,779.23, most of which is due to our home, valued at a monstrous $825,000 on our balance sheet. (We never did end up listing it at a million dollars despite our neighbours listing theirs for $1,000,000!)

Balance Sheet - March 18

Without the equity in our home, our Net Worth would only be $58,357.65 so I’m definitely glad we made the decision to purchase our house! (We had bought it at $560,000 back in 2012, and I’m confident we could definitely net at least $825,000, an increase of 47.32% in just 4 years.) Of course, the equity in our home isn’t liquid unless and until we decide to sell (which we won’t) but it does grant us access to a Home Equity Line of Credit, which I can see us using in the future for future investments.

Balance Sheet - March 18

When we met up with our Financial Advisor a few weeks ago to transfer the TFSAs to our RRSPs before the deadline, he offered us a new product which is similar to a Mutual Fund but isn’t quite one as it’s managed by several different specialized managers as opposed to one Fund Manager, who can’t possibly be an expert in all the different segments (s)he invests in. It also offers a monthly income much like a dividend, which was super exciting for me as the beginning of this month saw an income of $19.16! Of course, it’s nothing big enough to start dreaming of Financial Independence, but it’s our first foray into Passive Income aside from our rental income.

As of February 29, we had $56,331.95 invested in this Fund, so an income of $19.16 is a return of approximately 0.03%. Annually, that would work out to be 0.4%, so it’s not very much, but that doesn’t take any capital gains into account. Since that fund is now worth $57,756.17, it has gone up by 2.53% in less than a month; assuming growth continues at this rate (which of course is a wild assumption), this would be an annualized return of 30.34%, NOT including the dividends we’d receive! I’m super curious to see how this fund will perform over the upcoming months but so far, I’m pretty impressed!

Mrs. Unchained 55

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