Welcome to 2022! We’re midway into the month yet I’m still having a hard time believing a new year has started. The ongoing pandemic feels like it has blurred the years together for me. Perhaps this is the year life returns to some normalcy?! Let’s hope! Anyways, I wrote an article last January detailing our financial position and promised to write one yearly, so it’s time for a net worth update!
Note: If you want to learn how to calculate your own net worth, read this.
I felt incredibly nervous writing & sharing our numbers last year, but I’m grateful that I did. It was actually really fun to go back and read prior to writing this update! So, did we hit our debt free by New Years goal?!?!
Sorry if that was anti-climactic!
We did not clink champagne glasses at midnight as predicted celebrating our total debt freedom. In fact, we worked on DIY house renovations until ~ 11:30 PM that night, then sat at our coffee table eating a quick dinner before heading to bed at around 12:05. Sigh. Life; it can be a funny thing can’t it?
So, am I disappointed by our net worth update?
Not at all!
We’ve made incredible progress (we feel, anyhow) this year. The money just went to slightly different areas than expected.
Hmmmm…. what else derailed our plans in 2021? Oh right! I walked away from my well-paying hospital job to pursue self-employment.
I have zero regrets about my decision to walk away, but of course it temporarily put the brakes on our financial progress.
Ok, enough rambling. Let’s get to the numbers!
Net worth update: January 1, 2022
- Home equity: $57,000. I suspect 57k is a low estimate, but that’s what we’re using. I’m basing our house value on a realtor assessment from 2020, however house prices in our neighbourhood have sky-rocketed the past year so it’s likely increased. We’ve also made substantial improvements with DIY renovations that we completed with cash, which should further increase the house value. I’m basing the $57,000 on the house being valued at 370k with a 313k mortgage remaining. Here are some before & after photos of our completed renovations! We’re now working on updating the floors on the main level. Renovations will be paused after that for our Year of Less!
- RRSP’s: $106,000! I was sooo happy when we hit the 6 figure club. They say the first 100k is the most difficult!
- Vehicles & tear-drop trailer: $15,000? That’s likely a gross underestimate, BUT we have zero plans to sell them so in many ways their value doesn’t matter anyhow. I didn’t even include them in our net worth last year!
- Cash: $4000
Change from 2021: + ~$62,000! I didn’t include the trailer & vehicle value last year, so that makes up part of the difference. However, I feel like that’s likely offset by low-balling our house value estimate.
- Student loans: $32,000
= – $32,000
Change from 2021: Improvement of ~$41,000! We paid off the line of credit & vehicle loan last year, and a fair chunk of my student loans as well.
Total Net Worth:
= ~$150,000!!! A difference of about 103k in a year!!
Major milestones happened in 2021 financially. Our investments passed the 100k mark, our net worth passed the 100k mark, AND our overall net worth improved by ~ 100k.
This is why I’m happy about our net worth update despite technically falling short on our goal of paying off my student loans last year!
I also want to mention for newer blog readers that 4 years ago I had $100,000 in debt and NO savings. With commitment, you really can change your financial picture. I used to cry about money & debt most days. Now I feel comfortable and optimistic!
So, what are our goals for 2022?
I’m finding it more difficult to set financial goals for 2022. I have no clue what my self-employed income will be and Lars is decreasing his overtime hours dramatically. In terms of life balance I think 2022 will be amazing, but I’m not sure what the “numbers” will be!
Our hope is to continue making the same mortgage payments (currently set at an 18 year mortgage), continue to invest ~$1300 per month (including employer match), increase our cash savings to ~$10,000 since we’re down to one guaranteed income, AND hopefully finish my student loans.
On paper those goals are not currently viable considering the income we have coming in, buuuuut that’s the intention I’m sending out into the universe.
See you in Jan 2023 to update you whether we achieved it!
Thanks for following along with our financial journey 🙂