I’ve disclosed our prior debt numbers, and I’ve hinted at our mortgage, but I’ve been hesitating sharing another number with you: our net worth.
I think it’s partly because it’s actually pretty big, so some of you may wonder why we’re still working. (We’re not FIRE-ing – we’re FIRE-ish / FIRE-lite.) But it also explains why I’m spending some time doing research into charities and giving back, as well as ethical investing. We’re doing well, so it’s the right time to do that.
Our net worth includes:
- The approximate value of Mr. EM’s pension (+)
- estimated house value (+)
- mortgage remaining (-)
- vehicle (+)
- savings (both cash and investments) (+)
Total, as of December 2018: $902,000 (Canadian)
There are a couple of things I want to say about this. This is certainly not all investible assets – there’s lots of illiquidity in there with our house and pension. I also don’t consider us to be rich. We’re VERY comfortable and don’t want for anything, but we do still watch our budget and work hard to save.
My goals with regards to net worth is to get more money into investible assets and reduce our mortgage. This year, I’d LOVE to see our net worth number pass over $1 million (we technically already have a million in assets, but we’ve got that mortgage dragging things down…). But in my mind, and not really based on too much analysis or research, I want to see our investible assets hit $1 million. That’s not happening this year, or next.
But this year, I think it’s entirely reasonable that we can hit $1 million if we can get a 3% rate of return on our investments. That’s a big “if” given the state of the markets, but I’m hopeful. Here’s what our numbers would look like if we got that rate of return, plus our debt repayment (mortgage) and additional savings. (I held house & pension value constant.)
Of course, that suggests not major hiccups, which we all know isn’t a thing in life. (That big jump in March is when I’m expecting a significant tax return. We’ll see if my numbers hold.)
Wish us luck!