It is time to crunch the numbers for 2022. As you know, we will become Financially Independent in 2024, and in order to do that, we track not only our spending but our Net Worth by sharing our progress with you. What is Net Worth and why is it important?

Here’s an excerpt from Wikipedia:

For individuals, net worth or wealth refers to an individual’s net economic position, the value of the individual’s assets minus liabilities. Examples of assets that an individual would factor into their net worth include retirement accounts, other investments, home(s), and vehicles. Liabilities include both secured debt (such as a home mortgage) and unsecured debt (such as consumer debt or personal loans). Typically intangible assets such as educational degrees are not factored into net worth, even though such assets positively contribute to one’s overall financial position

Net Worth Calculation Breakdown – Dec 2022

Assets: $1,679,203

  • Principal residence (Canada): $1,030,000
  • Condo overseas (Brazil): $137,500
  • Pension plan: $34,054
  • Investments (all accounts but the SM): $309,211
  • Smith Manoeuvre (SM): $168,438

Liabilities: $787,135

  • Principal residence (Canada): $776,504
  • Car finance: $10,631

Net Worth: $892,068

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Net Worth Calculation video from December 2022

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Financial Independence Summary

  • We ended the year with assets increasing 9.42%, which is a result of the house appraisal at the beginning of the year as well as the money invested throughout the year
  • The liabilities also increased 17%. This has a direct correlation with assets, because with the new house appraisal, we used the money to buy more assets
  • The final result was an increase of 3% of our Net Worth. We initially planned to end the year with with a net worth over $900,000. As you can see, it did not happen
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