Monthly net worth update: December 2019
I'm very glad that this is the second month in the row I can keep at this new series! Let's take a look together at how the month went.
Note: Most of our money is saved in our national currency, but I'm converting it to CAD here for simplicity.
- Savings: 33,970 CAD – liquid savings account 17,175 CAD – 5% annual non liquid savings account due July next year 215 CAD – checking account that gathers the 5% interest coming in quarterly (another three 215 CAD installments to come)
Total savings: 33,970+17,175+215=51,360 CAD ~38.590 USD
Savings specifically for the move to Canada: 4,580 CAD – savings account 2187 USD / 2,910 CAD – remaining cash wedding gifts
Other savings: 255 euro / 375 CAD – leftover cash from a holiday (part of it will probably be spent on our trip to Italy in February).
Total savings for the move to Canada: 4,580+2,910=7,490 (Planned for 2-3 months while I'm looking for a job, including rent + security deposit and all the house stuff and other things necessary to set up my life there. If I'll need anything else, we'll tap into the liquid savings account.)
Other than that, for December we have ~450 CAD (for both of us), left in our personal accounts for current spending. We had ~535*2=1,070 CAD in November.
- Net worth changes in December: | + 2,660 CAD liquid savings account | – 3,800 CAD 1st family loan | – 443 CAD 2nd family loan | + 215 CAD 5% quarterly interest from non-liquid savings account | – (535*2 – 450) CAD = -620 difference in cash left in our personal accounts compared to last month.
Total net change = +2,660-3,800-443+215-620 = -1,988 CAD ~1,518 USD If we don't count the family loans which will be returned soon in January: +2,660+215-620 = +2,255 CAD ~1,722 USD Compared to November's +7,041 CAD / +5,378 USD – that's tiny, even thought I'm still grateful that with all the expenses we had this month (see below) we were able to come ahead.
- Grand total net worth 60,295 (last month's value) – 1,988 (total net change)= 58,307 CAD In USD: 45,378 – 1,518 = ~ 43,860 USD Without counting the family loan: 60,295 (last month's value) +2,255 (total net change without family loan)= 62,550 CAD In USD: 45,378 + 1,722 = ~ 47,100 USD
Our biggest expenses this month were, high to low: 1) 3800 CAD – Family loan, expected to be returned in the first half of January. 2) 960 CAD – Presents for everyone, including the gifts we're giving to one another. (I gasped when I saw the final number. It might actually be higher! 😭) 3) 585 CAD – Rent 400 EUR. 4) 443 CAD – A second family loan to be payed back in January. This one is for my mom's ticket to Montreal – she decided to move back to Canada after about 3 years in our home country, and she'll arrive after about a month after my move. 4) 307 CAD – Plane ticket to Italy 210 EUR. My father moved to Italy about half a year ago and he won't be able to come home for holidays, so we're visiting him in February before my flight to Montreal. We will sleep on a mattress at his place, so our expenses for this trip will be minimized. We will also travel together by car to another part of Italy where a big part of my husband's close family moved about 10-15 years ago – so we can see everybody before my move to Montreal. 5) 340 CAD – Plane ticket SF-Chicago 260 USD. Mr. Pirate Owl is going on a business trip to San Francisco for 2 weeks in January and he decided to fly on the weekend and see some family members who he didn't saw for a very long time (about 5 years or more). That was a good opportunity to make the most of his business trip. 6) 160 CAD – Dental expenses (a few more to come in January), 50% of which is expected to be returned with the company insurance. Our country is often used for medical travel – especially dental work – and for good reason. I would've spent about 10x more in Canada for the same things and the quality of service did not suffer at all.
A big theme for this month was family – trips, gifts, family loans. I feel a bit behind our goals because of excessive gift expenses (we bought the most expensive ones on Black Friday in order to save) and, similarly to the holidays in the past several years – a bit “empty” inside, for the lack of a better description. I'm going to use this feeling in January to minimize unnecessary expenses and hopefully save more. I know, though, that the light in the eyes of the gift receivers will justify it, because the gifts are necessary, useful and expected.
Also – if we didn't prioritize putting savings aside right after receiving our paychecks, we might have gone overboard even more. The “Pay yourself first” strategy works, guys!
Our December Savings Ratio was: 2,660 CAD (savings) / 6,270 CAD (both of our salaries) => 42.4% If I consider the 2nd family loan as savings (it will be returned in CAD cash, so it would be for the Canada move savings): (2,660+443)/6,270=> 49.5%
If I look at it this way, our spending seems a bit more reasonable, since we aim to save half of our income. What's interesting is that, in my mind, the savings for the Canada move don't really count, since I'm planning to spend the money – but still, there's an opportunity to save a big portion of that if I find a job soon enough. I don't want to rush it, though, because I plan to be there for a long time and don't want to be miserable! I feel like this at my current job, because for me the high salary doesn't justify 10h working days several days per week – and I had periods when I had to be at the office for 12h a day, but I try to make the most out of it by saving, thus creating more opportunities for the future. I learned a lot in the 2 years I've been with the company, but it's time for me to move on to a more peaceful lifestyle.
With all this being said, cheers for a happy 2020! 🥂Let's hope the new decade brings peace and gentle growth, allowing us to create a solid foundation for our best possible future. Happy New Year's! 🥳