Q1 2016 Net Worth Update – !!$$!!Million Dollar Club!!$$!!

Do I feel like I sandbagged? Yes, yes I do. That said, do I feel like the real estate market where I live has been crazy the last 12, 18, 24…months, yes it has and I would not have predicted it to continue and thus, sandbagging may be extreme. Do I feel a little like Donald Trump in that my net worth is going up based on my changing feelings? While a little, not 100%. Instead, I have had the fortune, as the Financial Samurai says, to be “Chinesed” and it’s had a materially positive impact on our net worth. As a result we have joined the Million Dollar Club!

million dollar club seal

When I first did the Frugaler 2015 / 2016 SMART goal setting and financial forecast, we anticipated that we would have a net worth of $1,095,000 by the end of 2016. I now anticipate that we will be at least $1,250,000 by December 2016 barring a downturn in the Vancouver real estate market, if not in excess of $1,300,000.

Without further ado, please see below our net worth update:

March 2016 net worth update

The notes 1, 2, and 3 sum it all up. We have had a modest $20,000 return on investments of $600,000 this quarter and very little ‘savings’ but we have had an uptick of $117,000 in real estate over the same time period. While this would seem like a big jump to make in one quarter, I feel that my wife and I are being conservative in valuing our home and investment properties and would expect that the next appraisal (early 2017) will be higher than what we have posted.

Through the remainder of the year, I do not expect we will have cause to increase the real estate pricing; however, I do anticipate further returns on investments of ~ $60,000 and savings of ~ $100,000+. The $100,000+ in savings is usually salary later in the year and saving 100% of all bonus amounts paid out.

Given the increases in real estate market value, which may not be forever, I have suggested to my wife that we maintain a maximum loan to value ratio of 60% on our home and investment properties, while having home equity lines of credit that will allow us to draw up to 80%. If we are presented with amazing investment opportunities, or feel the market has fallen out and can only go up, we will draw up the 20% and invest it and focus all savings on repaying that amount.

Until next time, Mr. Frugaler OUT!



8 thoughts on “Q1 2016 Net Worth Update – !!$$!!Million Dollar Club!!$$!!

    1. Thanks very much Personal Economist. While I recognize a tremendous amount of it is luck of the economy and the real estate market, it’s also been hard work to continuously be saving for homes to position us to be successful. The investment propperties are also in Vancouver. The $ amount is so low because those are presale condos that are going to completing in 2016 and 2018. The lift in each is relative to when we placed our first deposits (2 years ago and 6 months ago, respectively).

      Liked by 1 person

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