Financial Independence – March 2019

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Hi everyone! Here is my FI update for March 2019 end of 2019Q1.

  • My FI goals are outlined here!
  • Last FI update as at 2018Q4 here!

For 2019Q1, we were superb savers with very few surprise expenditures. Equity markets also rebounded (for now) driving up our net worth to a very important number in my books!

  1. Save, save, save¬†– We put away about $4.3K in Pre-Tax accounts, along with about $7.5K in After-Tax savings. Pre-Tax was solely through my corporate gig’s payroll deductions where I take full advantage of employer matching. My goal was to target about $2K per month in After-Tax savings but the first quarter has been good to us. We smashed this target due to keeping superfluous expenditure down, and treatin’ ourselves minimally here and there on experiences that provided utility (or happiness) to us.
  2. Large expenditures? Nah – We were fortunate in that we had no surprises or large expenditures of any kind. It’s welcoming to say it was business as usual in the FN household, and I’m in the business of stashing cash.
  3. Rebound in Equities – What a rebound in 2019Q1! My TFSA and Pre-Tax accounts got a nice boost of about $7.8K due to the jump in market value, but of course these are unrealized gains (i.e. expect they will fluctuate in value as long as they’re invested in an underlying asset).

So while I did not hit my target of $150K by 2018Q4, we did manage to hit it as at 2019Q1! We (mostly me) are VERY excited and I can’t believe how far we’ve come when I look back on the start of our financial pilgrimage. From when I started tracking net worth only 27 months ago, we’ve doubled our net worth through simple techniques such as application of utility theory, review of all expenditure to see where the f*ck our money goes, finding & living within our ethos, and improving our environmental impact.

All that being said, here’s my update:

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Observations

  1. TFSA (Down -71%)
    • Way, way down. While we had a bounce back of about $2.5K in market value, I cashed out about $16K to put into our high interest savings account for purposes of funding remaining wedding costs and accumulating our down payment for a potential house purchase this Summer. As the purpose of these funds is very short-term in nature, I’m removing the risk entirely for the cost of lower returns – but I know my stash won’t decrease in value.
  2. RRSP (Up 16%)
    • Markets rebounded as we know. This resulted in gains of about $5.3K.
    • I contributed approximately $4.3K in Pre-Tax dollars, as a combination of employee/employer contributions. I maximize my employer contributions (I kick in 7%, they match 7.25%), and my employer offers a flex benefits program, where I’m able to generate some additional funds based on the benefit options I select, allowing me to kick in some extra funds into my RRSPs.
  3. Cash (Up 46%)
    • Liquidated about $16K from my TFSA. In addition, we added about $7.5K in After-Tax savings ($2.5K per month).
    • Earned maybe a couple hundred dollars in interest in the Savings account.

Looking forward to keeping the momentum going in 2019Q2, along with getting hitched! We will be tying the knot this May and can’t be more excited about the next steps we’ll take together in life. Financial Independence is important to us both, but it’s only one leg of the journey!

2 thoughts on “Financial Independence – March 2019

  1. Pingback: Financial Independence – June 2019 | The Frugal North

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