Another month has gone by already which means it's time to do a quick financial checkup.

Lets start with the markets.  It seems that the markets have stabilized and even on an uptrend.  I'm not sure how long this is going to last, but I'm not too worried as most of my money is in long term investments these days. 

In terms of spending, we kept it under control this month as most of our time was spent caring for the newborn baby.  The biggest expenses were perhaps diapers, groceries and other tidbits related to baby care.  For now, we have decided against cloth diapers mostly because of the convenience factor.  I can see the summer time getting a bit heavier on the credit card as we still need to do landscaping and other finishing touches around the house.  For the new readers out there, when I say that I'm going to use a credit card, I use it for the points/benefits.  I've never carried a credit card balance.

Income was another big issue this month.  As maternity/paternity government benefits take about 30 days to kick in, we went through the whole month on 50% of our regular salary (not including side business income).  I thought it would be a lot more stressful with the new baby and mortgage, but it's working out ok as we have reduced spending.  Cash gifts that we have received for the newborn have also helped. ;)

Assets: $574,450 (+0.65%)

  • Cash: $4,500 (+0.00%)
  • Savings: $ 37,000 (+4.52%)
  • Registered/Retirement Investment Account: $ 52,500 (+5.00%)
  • Pension: $ 22,350 (+0.00%)
  • Non-Registered Investment Account: $18,300 (+1.67%)
  • Smith Manoeuvre Investment Account: $25,300 (+1.20%)
  • Investment Property: $ 124,500 (+0.00%)
  • Principle Residence: $275,000 (+0.00%) (purchase price)
  • Vehicles: $15,000 (2 vehicles) (-6.25%)

Liabilities: $279,520 (-0.38%)

  • Investment Property Mortgage: $93,700 (-0.21%)
  • Principle Residence Mortgage (readvanceable): $152,700 (-0.65%)
  • HELOC balance: $25,120 (+0.48%)
  • Other Liabilities: $8,000 (-0.00%)

Total Net Worth: ~$ 294,930 (+1.65%)

Started 2008 with Net Worth: $279,300

Year to Date Gain/Loss: +5.60%

My net worth gain up to this point, as compared to March 2007, seems to be on track.

Interested in seeing how my net worth has progressed up to this point?  Check out my history of net worth updates.


  1. Four Pillars on April 30, 2008 at 9:14 am

    Yah, the cash gifts come in handy – much better than the cute little dress up outfits with shoes (which will NEVER get worn).

    It’s nice to see the market rebound – and by markets, I mean the Canadian financials… :)

    Will it last?

  2. FrugalTrader on April 30, 2008 at 9:45 am

    FP, i’m hoping for one more correction so that I can top up my portfolio. :)

  3. moneygardener on April 30, 2008 at 10:49 am

    Great progress with a newborn in toe, and also the YTD numbers looks solid. I always enjoy your nw updates.

  4. Dividend Growth Investor on April 30, 2008 at 12:17 pm

    Good job Frugal Trader!
    I hope the SPX moves above 1400 so that we can get some nice capital gains along with the dividends.. This should lift global markets…

  5. ETF Income on April 30, 2008 at 1:21 pm

    Seems like your “Smith Manoeuvre Investment Account” is doing quite well, positive cash flow over the interest paid.

  6. The Reverend on April 30, 2008 at 1:34 pm

    FT, how do you calculate the value of your vehicles each month? We financed our car because the interest rates were low, but I hesitate to put it on our net worth statement (assume value of vehicle = outstanding balance). I’m somewhat conservative since we have a short amortization period (life of car > finance period, knock on wood), but it still doesn’t seem like much of an asset, even once its paid off.

  7. FrugalTrader on April 30, 2008 at 2:01 pm

    Thanks for the feedback guys.

    Reverend, I use the Canadian Black Book and use the lower appraised value.

  8. Cannon_fodder on April 30, 2008 at 2:53 pm

    Moneygardener – “…newborn in toe…” – is that a reference to “This little piggy goes to market”? ;-)

  9. Canadian Capitalist on April 30, 2008 at 4:46 pm

    Yeah, it’s nice to see the markets recover a little bit. But, I agree that while it would be painful in the short run, falling markets are better for building long-term wealth.

  10. Finance_Addict on April 30, 2008 at 6:00 pm

    Love your site. I am in an almost identical demographic as you (age, profession, one 16 month old with another on the way in August etc) May I ask what exactly what your savings account is for? and why do you keep a fairly high balance? Would you rather not do lump sums off the mortgage or RRSP contributions etc?

  11. Cash Instinct on April 30, 2008 at 8:48 pm

    It seems this month is the month where you are asked many questions about your net worth results.

    I looked at many months and your cash is always at $4,500. Do you invest everything that is above $4,500 just before doing your net worth update, or is it an approximation?

    I have also the same question about your savings accout number. Is it a large emergency fund?

    • FrugalTrader on April 30, 2008 at 9:55 pm

      Hey Cash Instinct,

      The $4500 cash amount is the min amount that our chequing accounts require for free banking, everything else goes to savings/investing or paying bills. Yes, we have a habit of having a large balance in savings. A portion is for a rather large cash liability coming, and the other portion is either an emergency fund or will be deployed for other investments. Some of it will be deployed into the mortgage shortly.

  12. Cash Instinct on April 30, 2008 at 10:09 pm

    Thanks for the answer FrugalTrader. It makes sense to keep your cash at the minimum level for the account and to keep cash aside for a future liability payment coming.

    I don’t remember seeing whether or not you calculated that your chequing account would cost you more than the interest that could be generated yearly on $4,500. It depends of the services you use with the bank. This could be something interesting to analyze in a future article and compare the different chequing accounts available in Canada.

    Personally, since I am a student at a university affiliated with a specific bank, I get free banking with no minimum amount and no restrictions, great stuff…. it will get more complicated when I will graduate!

  13. Cannon_fodder on April 30, 2008 at 11:40 pm

    I have a very old TD Chequing account that still allows me free banking with a minimum balance of $1,000. In the words of Rick Astley (sung by who knows?), “Never gonna give you up…”

  14. Al on May 1, 2008 at 10:01 am


    I have the same account and the same plan with it. I didn’t realize that the min balance on new accounts had gone so high ($4500!).

  15. FrugalTrader on May 1, 2008 at 10:06 am

    Al, the $4500 is a “little” higher than the required amount. However, it does take into consideration 2 separate bank accounts. One for me, and one for my wife.

  16. on May 5, 2008 at 2:08 pm

    Great job on the net worth updates! I really enjoy your blog and wish you the best in achieving your goals!

  17. marc warnke on May 12, 2008 at 1:21 am

    I’m new to the site, I’ve enjoyed what I read so far. I need a little more info to comment intelligently. Looking forward to more reading time I have a new little one as well.

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