January 2009 Net Worth Update (+2.94%)

Welcome to the very first net worth update of 2009!

The most notable update this past month was that I took a portion of our savings ($20k) and put a lump sum payment on our mortgage.  I’m hoping to do this again later in the year to meet one of my financial goals.  However, the priority is to maximize my RRSP and TFSA before paying down the mortgage any further as my mortgage rate is currently very low (2.15%).  Why not take advantage of cheap money while it’s offered?

My portfolio’s recovered a bit (for now) which helped in the net worth increase this month.  However, the bulk of the net worth gain is again due to savings (here are some ways to save money).

I mentioned last year that I may adjust my home value with inflation.  For now, however, I’m going to keep it at my purchase price.  Although comps in the area would bring the house value well above my purchase price, I’m not sure if the local housing market will be negatively affected by the weakened global economy.  Personally, I’d rather under value my personal residence than adjust monthly based on volatile market conditions.

Here are the assets/liabilities results for the month of January 2009 (compared to December 2008):

Assets: $563,950.00 (-2.00%)

  • Cash: $4,500 (+0.00%)
  • Savings: $31,900.00 (-29.77%)
  • Registered/Retirement Investment Account: $39,700.00 (+5.31%)
  • Pension: $22,350 (+0.00%)
  • Non-Registered Investment Account: $13,000.00 (+4.00%)
  • Smith Manoeuvre Investment Account: $41,000 (+1.23%)
  • Investment Property: $ 124,500 (+0.00%)
  • Principal Residence: $275,000 (+0.00%) (purchase price)
  • Vehicles: $12,000 (2 vehicles) (-7.63%)

Liabilities: $244,900.00 (-7.77%)

  • Investment Property Mortgage: $92,000 (-0.11%)
  • Principal Residence Mortgage (readvanceable): $101,200 (-16.98%)
  • HELOC balance: $51,700 (+0.35%)

Total Net Worth: ~$319,050.00 (+2.94%)

Started 2008 with Net Worth: $309,950.00

Year to Date Gain/Loss: +2.94%

Some quick notes and explanations to net worth questions I get often:

The Cash

The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.


Our savings accounts are all held with PC Financial. We hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair.

Real Estate

Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price despite significant appreciation in the real estate market that we’re in.

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FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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15 years ago

Hi million dollar journey,
My daughter’s RRSP limit was 1562, she purchase from vancity, but later I come to know that she made only 2000 dollars income. Well her RRSP won’t go waste. As per calculation by put or without putting RRSP she is getting refund of $ 241.00. Well she did mistake or there is still some solution to correct it.

15 years ago

Julie –

Let’s say that Current Net Worth is in J50 and last month’s net worth is in H50. In another cell, type:

After entering the formula in the new cell, format it as a percentage with one or two decimal places.


15 years ago

Hi FrugalTrader,
I really enjoy your newsletter even though some items are not relevant to Australia.
I would like to include your very useful %increase or %decrease in my own net work balance sheet but I am having difficulty getting the formula right in Excel.
Would you be kind enough to help?

15 years ago

I’m wondering about your pension amount. I’ve noticed that this number hasn’t changed much, if at all, since the inception of your blog. Is this a defined benefit or defined contribution plan? If it’s a defined contribution, I’m wondering how you have it invested? My defined contribution plan allows me to invest in certain mutual funds which rise and fall with the market. I’m curious why you don’t adjust this amount to its market value?

A good pension plan can be a great way to have money for retirement and can be an important part of increasing your net worth – especially if it comes with some free money!

Stock Investing Guru
15 years ago

I’m working on thinking about what will generate my passive income. Most likely real estate and stocks/bonds, but maybe buying a business that needs little management.

15 years ago

I saw your blog referenced on Rob Carrick’s personal finaince slide show of “Ten ways to make the most of your money”. Good work! On the Net worth too.

15 years ago

ahh… I see, that makes more sense. Thanks for the clarification and congrats on the positive net worth update!