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Net Worth Update for May 2016

Just as a background, I have been running my net worth numbers every month for over 10 years. It’s been a huge factor in my financial development and success. If you are new to personal finance I would suggest you get familiar with net worth with this post, if you are looking for a quicker way to calculate your net worth you can check out Personal Capital.


This May pales in comparison to last months wicked net worth report. We managed to trip upward with our net worth. A couple of things I noticed were that debt inched up along with cash, while our investments swayed basically unchanged.

Am I Worried about My Debt Increasing?


Nope, not at all. Because I know the reason it went up. The reason my debt goes up every month is because I have an amount for annual expenses. To offset the sudden shock of my net worth dropping I add a on twelfth of monthly amount of all my annual payments to a debt account every month.


Take my house insurance, if I was to pay it annually it would be $1750 a year (It’s jumped up 20% each year the last 3 years with out a claim. I’m furious about it… and getting off track… my bad) so if I pay it monthly it  should be $1750 / 12 = $145.83


So every month I put $145.83 into a separate bank account and add $145.83 to my debts in my net worth statement. It nets out to a zero effect on my net worth statement but when you look at debt and see it goes up it’s good to know why.

Now Check Out  Net Worth Update: November 2015


One other benefit of paying things annually and saving for them is you get the interest instead of paying interest. Our car insurance has anywhere between4-6% interest charge for the luxury of paying monthly…. Thanks but no thanks.


That said, we have been making smaller debt payments the past few months so we have our reserves topped off for the summer and beyond. It’s not the smartest financial move, but it’s the one I’m most comfortable with. When it comes to money, I’ll take a good nights sleep over a few cents of interest I could have saved. Maybe not a few dollars, but cents I’m ok with.


Changes in Total Net Worth

(As I mentioned in the inaugural net worth update. When it comes to monthly reports I’m going a different route than a lot of others. Instead of going through the nitty-gritty of every detail on my net worth statement. I’m taking a macro view so we don’t get bogged down by the details.)


Net Worth Update May 2016Our increase in net worth was 33% of our take home income. This is quite a bit lower than we would like. Part of it is because of the basement renovation we are doing and part of it is just the market trying to figure out which way it is going to go next.


Looking at our expenses for the month, they are about $1,000 higher than I would like them to be (again!), but there were several expenses that showed up for the bathroom reno (again) that are one time expenses. All in all I’m happy the direction we are headed in. 🙂

Now Check Out  Net Worth Update October 2015


Honestly when it comes to the summer months we tend to go a little more lenient in our spending we love getting together with people, going places and making the most of our summer so some of what we have saved up will get put to good use and memorable experiences. Which, in my opinion, is the whole reason for looking after your money. 🙂

Save the Savings Challenge

This months’ Save the Savings Challenge saw us bank a solid (drumroll)….


This takes us up to over $1290 of actual in the bank savings in three months. I love doing this.

If you want to join this months Save the Savings Challenge you can join the Facebook group here I would love to see you there and be able to interact with you.


Passive Income for the month of May and The Grid

Our Passive Income for the month wasn’t as big as it has been in other months. Going forward, I’ll only be sharing the passive income numbers with members of the Family Money Plan newsletter. We would love to have you as part of our weekly newsletter.

If you would like to see our passive income, you will need to sign up for the newsletter in the box at the bottom.

A Few Other Notes

Tracking my net worth has been the biggest thing that has made a difference for my finances. There is a lot of science that shows what you focus on and measure, you improve on. But doing it manually can be a pain when you are starting out.

Now Check Out  Net Worth Update for February 2016

If you would rather track your net worth with software Personal Capital or are good choices. Both are completely free.  Most people swear by Personal Capital but it’s not available to us northern folk (a.k.a. Canadians).

If you are wanting to track your net worth either one are a good place to start. Personally, I absolutely love being able to see my net worth every day as it’s a huge motivator to keep making smart financial decisions.


If you are needing a primer on net worth, you should check out this post here.

Have you calculated your net worth for May? I’d love to hear how your month went, post a comment below.


This post may contain affiliate links, thanks for supporting my blogging endeavors! is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to


    • Reply

      Thanks Andrew! Even if you don’t share it’s still worth tracking your net worth. Give attention to the things you want to improve on and you will start to see improvements. At least that’s the way it has always been for me.

  1. Reply

    Tracking my net worth is not something I do regularly but I do track expenditure on a month by month basis. I guess my life is probably a lot simpler than yours so is easier to track. Although I’m in a relationship we have our own separate finances and investments and none of them cross over. That’s probably a result of both being stung previously and then hooking up later in life. We’re quite comfortable with that.

    As you say, there’s always room for improvement in the household financial management but at the end of the day it’s what you’re comfortable with. Great post.

    • Reply

      Thanks Martin! When I first started tracking my net worth I did it every day for a month. It was a great way to see how things changed on a day to day basis. 10 years later I love tracking it every month. It’s a great way to keep an eye on things. Now with software it’s so much easier

  2. Reply

    I only calculate our net worth on a quarterly basis so I will have official numbers next month but from quick glances at Personal Capital, it looks like we went up a bit. I still need to finalize our spending numbers for the month but I think our spending was a bit higher as we did some yard work around the house and built/planted our garden for the year.

    I’m curious as to why you add portions of your annual expenses under debt since they technically aren’t owed until the policy is due, just like any other monthly expense. Might be my accountant brain over thinking it 🙂

    • Reply

      Hey Thias! That’s a great question. I use it to offset the upcoming expense. In accounting terms. I’m accruing a payable, except it technically isn’t actually accruing (I think, because we pay the annual expense in advance).

      Simple terms. I got tired of seeing my net worth drop every few months for an annual bill that would come up. Having this growing expense as a debt shows me how much I should have saved up, while at the same time it doesn’t affect drops in my net worth when the bill becomes due. I hope I’m explaining that right, my head hurts…

      You could try doing your net worth every month for a quarter, I’m curious to see if you notice a difference, good or bad.

  3. Reply

    Nice to read that other people also budget big yearly bills and set cash aside cash each month. we do the same.
    It is in another account, an account we do not add to our networth. Hence, we have no need to create the debt against it to offset that.

    Each month, I also track our net worth and publish it in a somehowe different way. Not as a EUR number, rather as progress towards FIRE.

    • Reply

      I like the idea of doing a net worth number as progress towards FIRE. I’m going to consider doing it that way. Thanks! 🙂

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