May 2009 Net Worth Update: Mortgage Pay Down Edition (+5.32%)

Welcome to the Million Dollar Journey May 2009 Net Worth Update the mortgage pay down edition.

As I mentioned before, we are going to get aggressive in paying down the mortgage.  Having said that, we have dumped most of our savings onto the mortgage along with increasing our payment by about 50%.  The result is a 50% reduction in our mortgage balance with the end in sight.   The plan is to have the mortgage completely eliminated before our mortgage expires in a little under 2 years.

As with most equity investment accounts this past month, our portfolios have experienced a significant boost due to a rising market.  The 15%+ gain in the RRSP is due to a $5,000 contribution + gains.  The leveraged portfolio gains (+9%) however, are all organic.  I would actually be happy if we had another market correction as I still have quite a bit of cash to deploy (HELOC).

You may have noticed as well that our vehicles have been depreciating at an accelerated rate.  That’s intentional as I am looking to take the cars off the balance sheet soon.

Assets: $441,650.00 (-3.87%)

  • Cash: $4,500 (+0.00%)
  • Savings: $7,500 (-80.00%)
  • Registered/Retirement Investment Account: $63,300 (+15.93%)
  • Pension: $22,350 (+0.00%)
  • Non-Registered Investment Account: $15,000.00 (+3.45%)
  • Smith Manoeuvre Investment Account: $45,000 (+9.76%)
  • Investment Property: $ 124,500 (+0.00%)
  • Principal Residence: $275,000 (+0.00%) (purchase price)
  • Vehicles: $9,000 (2 vehicles) (-10.00%)

Liabilities: $93,200.00 (-27.53%)

  • Tax Liability: $3,000 (-0.00%)
  • Investment Property Mortgage: $92,000 (-0.11%)
  • Principal Residence Mortgage (readvanceable): $38,000 (-48.30%)
  • HELOC balance: $52,200 (+0.19%)

Total Net Worth: ~$348,450.00 (+$17,600) (+5.32%)

  • Started 2008 with Net Worth: $309,950.00
  • Year to Date Gain/Loss: +12.42%

May has turned out to be another record breaking month for 2009 and has pushed the net worth gain for the year (thus far) into the double digits.

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.  We also need cash to cover any future tax liabilities.

Real Estate

Our real estate holdings consist of a primary residence. 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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14 years ago

luck has nothing to do with it

14 years ago

I don’t think it is luck that places the FrugalTrader family in their current financial position. FT, in my understanding, comes from a family that values education, and I expect his wife has a similar family background. They both have completed university and earn professional salaries. They have been cautious about their expenditures, and fastidious in their savings & investments.

If you read “The Wealthy Barber” or “Findependence Day” or watch “‘Til Debt do us Part”, you will learn the same basics they have applied.


14 years ago

FT, wow, you’re lucky to be this rich. Well done.

14 years ago

great progress, always enjoy your net worth posts!

14 years ago

Wow, great job on the networth… I can’t wait to get to that point myself! Right now I just focus on cashflow and trying to increase my passive income. Then at some point I’ll finally sit down and learn this Smith Manoeuvre and hopefully be able to purchase a house at that point, too. Looking about four years out, though.

14 years ago


Last month, your savings went from $37,500 to $7,500, a loss of $30,000. In the mean time, your mortgage went from $73,500 to $38,000, a decrease of $35,500. Therefore, the net deposit was $5,500. Add the $5,000 you put into your RRSP, the total was $10,500.

14 years ago

Who cares what your home is worth. Are you going to sell it right now? The bank is giving money away. Buy rental property in Western Canada. Choose to work.

14 years ago

From what I remember, FT had over $35k in savings 2 months ago, so I only assume that the mortgage payment and investments came from there.