Welcome to the Million Dollar Journey September 2015 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 (+3.33%)
- Net Worth: negative $22,725 (vs. -$33,929 last quarter)
- Day Job: Engineer
- Family Income: $74,000
- Goals: Start 2016 Debt free.
- Notes:Married in May 2015. Wife recently graduated from school with second degree in Oil and Gas Engineering. Immigrated to Canada 13 years ago (full story here).
This was one roller-coaster of the quarter financially. Remember that I told you about my car in my last update? Well the car decided that it did not like the clutch while I was driving. No grip no nothing. $1,700 later, my car is running again. This put a small damper into paying down my wife’s loan as we had to buff up our emergency fund again. The good news I was able to help a friend of mine with programming project and also got a small raise that put us back on track.
In this update I will talk a little about my wife. While she was studying for her Oil and Gas Engineering degree, she worked for a small consulting company for two summers in the row. This company intended to hire her after she graduated. Unfortunately, with the current state of the energy market in the Alberta (and the rest of the world), the company closed down. After that, my wife carried a dark cloud over her head resembling nothing of the smiling Mrs. SmilingSaver I married. What makes this harder is that she graduated with her first degree in the financial crisis in 2008. As she currently can’t find any work, she has signed up in a temp work office and will start bringing in a bit of money to close the student loan faster. Some good news though, she scored another grant of $5,000 against her student loan because of her high GPA.
In a nutshell the goal of becoming debt free by the end of the year is becoming a bit of a dream. We were banking on Mrs. SmilingSaver to be working by this time. It does not mean that we are giving up on the idea, we are still frugal and put every extra dollar against the loan.
Goal for the Future:
Some readers are asking what we will be doing when we get out of debt. We will start off with the Tangerine balanced fund. After we have saved enough of a lump sum, we will transfer the funds to the TFSA TD e-series funds in a couch potato portfolio. I am also open for the suggesting for starting out saver (books to read and ideas).
Assets: $2,700 (-20%)
- Cash: $2,700 (-20%)
- Tax Free Savings Accounts (TFSA) : $0 (0.00%)
Liabilities: $25,425 (-31.8%)
- Student Loan : $25,425 (-31.8%)
Total Net Worth: ~LOSS: $22,725 (+33.0%)
Some quick notes and explanations to common questions:
We have $2,000 as an emergency fund sitting in Tangerine checking account. Currently there is also a portion of my future rent and monthly payments of $700 making the total $2,700
$0 in TFSA. This is no longer the wedding TFSA. The account will be kept so we can start saving a lump sum using Tangerine Balanced Portfolio.
$25,425 is currently with Canada student loans. The interest is high 4.75%, but it does give a tax credit. The moment the balance hits $12,000, I will take advantage of 0% money transfer for 12 month on my credit card. I read through all the fine print. We have to pay 1% of the money transferred up front and pay minimum payments each month to keep the 0%. I think it will be a smart move to keep the interest payment low. Do you think it will be a smart move or I am missing something?If you would like to read more articles like this, you can sign up for my free newsletter service below (we will not spam you).