We will become Financially Independent in 2024, and to do that, we track not only our spending but also our Net Worth by sharing our progress with you. Let’s see what happened in October 2023.
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 – October 2023
Assets: $1,776,733
- Real estate (Canada + Brazil): $1,110,000
- Pension plan: $34,054
- Investments (all accounts but the SM): $487,210
- Smith Manoeuvre (SM): $145,469
Liabilities: $753,204
- Principal residence (Canada): $753,204
Net Worth: $1,023,529
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Net Worth Calculation video from October 2023
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Financial Independence Summary
- When comparing MoM:
- Assets: Decreased -1.3%
- Liabilities: Increased 0.58%
- Net worth: Decreased by -2.7%
- Even with the net worth down 2.7%, we could keep it over 1 million dollars. This is the fifth month in a row
- Our goal is to reach 1,300,000 million dollars in 2023. With October’s numbers, we are at 78% of this goal.
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Is the pension amount a total amount or annual payment once you retire?
Great question, Sue. This would be the annual amount once Kristine retires.