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Net Worth Update May 2016 – Smiling Saver – Student Loan Edition (+100%)

Net Worth Update May 2016 – Smiling Saver – Student Loan Edition (+100%)Net Worth Update May 2016 – Smiling Saver – Student Loan Edition (+100%)

Welcome to the Million Dollar Journey May 2016 Net Worth Update – Team MDJ edition. A select group of readers were selected to be part of Team MDJ which was conceived after the million dollar net worth milestone was achieved in June 2014. SmilingSaver was selected as a team member and will post net worth updates on a regular basis. Here is more about him.

  • Name: SmilingSaver
  • Age: 30 (+0.00%)
  • Net Worth: $107.8
  • Day Job:Engineer
  • Family Income: My main salary: $78,000, Wife salary: $ 16177 (Part time)
  • Goals: Start 2016 Debt free. Be debt free by 31!!!
  • Notes: Married in May 2015. Wife graduated from school with second degree in May 2015. Immigrated to Canada 13 years ago (full story here). Debt free May 2016.

Hey Everyone.

I’m very happy to announce that the debt-free goal is now achieved. Being frustrated over my financial progress, I took action and  worked all the overtime I could get my hands on.  In addition, my wife is now getting paid for her previously volunteer work.  As you can imagine, oil and gas engineering job opportunities is not plentiful, so she is struggling to find anything in her field. But she has not given up hope and is still looking.

Having just $107 to our name may sound terrible, but it actually feels amazing. But without the blinders (every extra dollar went to the student loan), I realize how much other stuff was neglected. Health and wardrobe specifically.

During the last couple of updates, FT asked me to clarify my next goal. To tell you the truth I actually have no clue. Family net worth of 500k by 35 sounds unattainable, but 500k by 40 sounds too low of a mark. I am open to your ideas! Maybe I should be targeting something I have not even thought about.

After a weekend of celebrating being debt free, my wife and I sat down and went over our budget. When we were in “student loan payoff mode”, the budget took the back seat. We were closing off our loan first and living on what was left, so you can’t spend money you don’t have.

However now the allure of having extra available money is scaring me because it is so tempting to indulge. That is why we put more details into our budget.  Apart from the necessities like rent and food in and out, the following extra lines were added to the list: Home, Clothing, Car Fixes and Gas, Trips and Savings.

Now I am struggling between the RRSP and TFSA. Still having a healthy deduction available from university for next tax year, TFSA seems more plausible in our scenario. I think RRSP will wait till we both working in a full time position. So my next baby step is to put our savings into Tangerine TFSA and purchase balanced growth funds. I will revisit this step when we have savings over 50k.

On to the net worth numbers:

Assets: $107 (-94.9%)

  • Cash: $107 (-94.9%)
  • Registered/Retirement Investment Accounts (RRSP): $0,000 (+0.00%)
  • Tax Free Savings Accounts (TFSA) : $0 (+0.00%)

Liabilities: $0.0 (-100.0%)

  • Student Loan (Wife) : $0.0 (-100.00%)

Total Net Worth: $107 (vs. -$13,727)

Some quick notes and explanations to common questions:

The Cash

We have $107, just 107 dollars. No more no less. My first priority will be to build back up to 2k emergency fund sitting in Tangerine checking account.

Savings

$0 in TFSA and RRSP.

Student Loan

Student loan. What student loan? It is done!

Check out more Team MDJ updates here.

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