Last updated on September 15th, 2021 at 12:19 am
Welcome to my net worth update for June 2021! These numbers represent my wife and I’s net worth as of June 1st. If you haven’t already, check out our previous net worth update.
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I’m so happy to report that I achieved another one of my New Year’s Resolutions for 2021. That’s right, I earned the promotion I had been working for! Thanks to this promotion, I started to see an increase in my paycheques last month. I’ll be making an extra $700 per month on average.
I plan to use this money to continue saving and investing aggressively. I’ll also work to avoid the lifestyle inflation that tends to show up when you get a raise—even a modest one.
Expenses in Depth
Last month was absolutely beautiful the majority of the time here in the Lower Mainland. And because the weather was so nice, we found ourselves hiking at least once per week. It was great to spend some time out in nature, but this led to us getting gas 3 times (2 more than usual!), totalling $180.
We also had some important birthdays to shop for. And although they were socially distanced, we tried to be generous with our gifts. Our total spend on this category came to $460.
Probably the most exciting expense was our food budget. We normally spend around $250 per month on groceries, but last month we spent a lot more. At $402, our grocery bill was our highest in quite some time.
I attribute this to a new diet we’re trying: the Mediterranean diet. This means spending a lot more on fish and nuts, which are both somewhat expensive. Let’s see if this diet (and higher grocery bills) continue next month and beyond.
Net Worth Increase
Despite some early volatility, May was a pretty good month to be an investor. Our investment returns helped juice our net worth by $900. Add to that our savings, pension contributions, and home pay down, and you’ll see that our net worth increased by $6,500. Our total net worth is now $396,500, up 1.7% from the $390,000 I reported in our previous update.
Passive income was a small part of that investment gain. We totalled just $73 for the month, which all came from the two monthly dividend payers my wife holds: XDIV and XDG. It’s nice to see some monthly dividends in between the larger, quarterly dividends we get from our portfolio.
The bulk of our net worth is still in our home equity. I expect this to be the case for at least a year or more, as we continue investing heavily in our TFSAs, and hopefully, max them.
Looking to the Future
I’m not entirely sure which account we’ll target after we max our TFSAs. Investing in an RRSP has considerable benefits at my income—my marginal tax rate was 38% last year. However, we’re a bit cautious of investing too much in an account that will be essentially locked away until retirement.
I should note that our long-term investment strategy is skewed by the fact that, unless something changes, we’ll have a pension we can rely on in retirement. This makes having a regular retirement a lot easier, as it essentially forces you to save 10% of your income per year, plus another 10% from your employer. So when it comes down to it, we may not need an RRSP at all unless we’re trying to retire relatively early.
In discussions with my wife, we’re not totally sure of our medium-term goals. We’ve yet to start our family, but we’re imagining a future where we want even more space—say, in 5 or 10 years. And with home prices being so high, we’d need to start planning for that expense now.
What do you think we should do? Should we start investing in a taxable account? I’m curious what you all think.
Thanks for Reading!
Thank you for checking out my net worth update for June 2021. I recently wrote a few articles that you may be interested in. This includes my list of the best REIT ETFs in Canada and my latest views on the COVID real estate boom. Consider giving those a read if you think they’ll help you on your financial journey!
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