Do you know your net worth?

Net Worth

What is net worth and why should I know mine?

Net worth is a measuring stick. It’s the way to tell if you’re in debt as compared to just have debt.  You can have debt, but still have an overall net worth that is positive, but if you’re in debt your overall net worth would be negative. Net worth is a financial measure which can be calculated by taking the value of what someone owns and subtracting what someone owes.

Net worth of course like most financial tools can be much more complicated but we’re going to stick with being simple.  So, how do you calculate net worth simply?

Net worth = Assets – Liabilities

First let’s break down assets.

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2015 Q2 Update – My Net Worth is up!

Net Worth Quarterly update

So how’d your first 3 months go?

Well my whole goal for the first three months of this website were basically just to get 10 articles up and then start sharing this with family and friends.  I managed to get the ten articles up in my first month, so that went a little better than I initially thought it would. Most of the articles were personal finance and only a handful were travel related.

After those first ten articles I started to falter a bit with them so I decided to make a schedule for myself, which is the current Monday and Thursday updates. This started off with one update on Monday and then I got some terrible news and life got put on hold for two weeks at the end of May. Once the terrible news started to turn around and things got back to normal I started back and have hit the 4(5 including this one!) deadlines I’ve set for myself since I started back.

I’m planning to keep up the Monday/Thursday posts pretty consistently from here on in.  So keep checking back for my

Wait, I thought this was a net worth update?

You’re partially right, for me it’s actually more of an update in general about this site.  A big part of it is the net worth to see if I’m continuing to increase my wealth as planned but also I’ll be using these updates to set a few goals for myself.  Reviewing your life and what you thought would happen over the next 3 months from 3 months ago I think will really help me achieve more in life, not just financially but in my career and personal life as well. But since you asked for it

ON TO THE NET WORTH UPDATE! BA DADA DAAA!

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How do I save money on a cell phone plan?

save money on a cell phone

How do I save money on a cell phone plan?

How someone can save money on a cell phone plan is a topic comes up a lot at work actually. Just about everyone has a cell phone plan and pretty well everyone I know has a data plan with it. These can get expensive, especially if you’re adding multiple gigabytes of data to your plan.  So how do you save money on a cell phone plan? I’ll tell you how I’m doing it.

Back in 2013 when my Blackberry Torch(I know, shameful but I loved the idea of the physical keyboards) started to act up I knew I’d have to get a new phone by the end of its contract term.  Needless to say the Torch was a bit of a disappointment after seeing the phones that came out only a few months after its release.  Although it was great to have a decent camera at all times and access to my email and an easy way to type notes or schedule my days, it froze much too often and was lacking in internet browsing speed. Read more

How can Professional Athletes going broke help me?

How can Professional Athletes going broke help me

How can Professional Athletes going broke help me?

It’s no big secret that the majority of professional athletes are terrible at maintaining their wealth.  There has been plenty of coverage on it in the media over the last few years.  In April 2012 ESPN aired a documentary called Broke. The documentary interviewed multiple athletes, managers, analysts and  numerous others from a  variety of pro sports about the financial difficulties athletes face throughout their lives.  Sports Illustrated  also posted a popular article in 2009, How (and Why) Athletes go broke and more recently this topic was revisited by NPR.org and The Players Tribune.  All of these provide reasons on how and why athletes go broke.

That’s definitely interesting information, how can this help me?

Well that’s what I’m here to help you out with. There’s tons of information (linked above) and the documentary is interesting as well, but they’ll all take time to read and watch. So here’s my take on five things we can learn from pro athletes going broke. Read more

Cash not working for you? Why not try a rental property?

Rental property

As you may have noticed in my Q1 2015 Net worth summary, I had a lot of cash sitting around not working for me.  With the Alberta housing market looking like it was on a downward spiral, I didn’t want to buy there just yet. So I decided to look into a rental property.

In February 2015 I was looking at mls.ca like I normally do.  I have the tendency to surf MLS at least once a month looking at the prices of homes in all of the areas I’ve lived in. It’s only 4 different areas so it doesn’t take that much time.  I don’t know why exactly I do this, mostly just from to feed my interest in homes I think.

This one particular time I was looking at places in Cape Breton, Nova Scotia. It’s where I’m from and where a lot of friends and family still live.  If there were opportunities like there are in Alberta, I would think about moving back, but until that time, it doesn’t fit into my financial plans. Or at least that’s what I thought.
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Do you think this is bad planning or greed?

greed

This article “A house-poor couple confronts a looming cash crunch” was posted in the Globe and Mail on May 11, 2015. It got a lot of attention on their facebook page and /r/personalfinancecanada on reddit. A lot of redditors and Globe readers feel no sympathy for this couple and think it’s nothing but greed that has gotten them to this point.

It’s extremely hard to feel sorry for this couple even as you start to read the article. Sure maybe by the end of the first paragraph you might be thinking Oh no, a new baby on the way and they won’t be able to afford it! Until you get to the second paragraph and realize that they have a combined income of 128,000 dollars a year and that they purchased a 747,000 dollar home just four years earlier. That’s 5.83 times their gross salary!
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What risks are there when investing in your employer?

investing in your employer

Should you invest in your employer?  They’re already paying your salary in return for your hard work and time. Why would you invest in your employer with your own money that they just paid you? What are the advantages or disadvantages of investing in your employer?

Whoa, let’s slow this down for a minute and maybe start somewhere else…

How can you start investing in your employer?

There are a few different ways you can get started investing in your employer. Below I’ll discuss a few options I’m familiar with and how they work:
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Are you happy about your contribution increase to TFSAs?

contribution increase to TFSAs

If you haven’t heard already, the new 2015 budget was released last Tuesday April 21st, 2015 and it has a HUGE contribution increase to TFSAs (or Tax Free Savings Accounts, for those not aware of them).  We’re talking a 82% increase to our 2015 contribution room. This brings the 2015 contribution room to 10,000 dollars, which is effective immediately!
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Financial Freedom: What does it mean to you?

Financial freedom or financial independence, it goes by many names but I think the one that people think they know it best by is Retirement. Retirement by definition is the act of leaving one’s job and ceasing to work.  Most people tend to retire in their later years around 65.  This is usually when their pensions mature and old age security or whatever financial programs they have in place are able to be taken advantage of.  But is retirement financial freedom? If you could retire earlier, would you?

In my opinion financial freedom is not retirement, it’s the ability to not depend on the pay cheque from a regular job to maintain your desired lifestyle. People seem to want to make Financial Freedom and retirement the same, but they are two different things.
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Using Property Management on my first house

Property Management

If you haven’t read how about my journey to buy this house, you can check it out here – My first house – Buying in a Boomtown

Towards the end of March in 2014 I received some great news at work in the form of a promotion. Fantastic! It came with a nice pay bump, new responsibilities and it also came with a transfer to a different site for a new project. This was a camp only fly-in and fly-out site. Not so fantastic! As you know I had just taken possession of my house just five short months earlier.  Now I need to rent it completely, not just the one room.

This transfer took effect immediately. I would be in a camp an hour north of town and would be flying out of an airstrip on one of the work sites. I wouldn’t even have the chance to drop by on my way to the airport to show the house to prospective renters, nor would I be available to deal with any issues that may arise from the renters. My only option was to find a Rental Management company ASAP! Read more

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