Welcome to my 10th Financial Report Update in a row! With a $18.5k increase since I started tracking my Net Worth (which was in August 2016) and a $14.5k Net Worth increase since the end of last year, we’re definitely on our way to crushing our goals this year! We’ve finally switched to a single income couple for a few months, until my SO finds a new job after finishing her studies, but we still managed to have a really nice 51% Savings Rate this month (40% on average for the year) and a $2.9k Net Worth increase since last month.
I’m once again kinda late regarding the publishing date of my June financial report (like three weeks late!) but I have a good reason, as my son is born early July which led to a small and much needed break from blogging and from the Internet in general. It’s definitely exciting and an overwhelming feeling at the same time to be a father now!
In the next upcoming weeks, I’m still gonna try to stick to my schedule of one post per week / per ten days, and I’ll try to schedule and write ahead of time my upcoming posts from mid-August to end-September, as we’ll be leaving to Europe to visit our family for a long 7 weeks vacation with our little boy. Anyway, here’s what happened in June!
If you have already read the following introduction section at least once, feel free to skip down to the juicy new content starting here: Financial Report June 2017.
Once a month I’m publishing a detailed report regarding my financial stats, in which I try to reflect over the past month – what went well or what didn’t go as planned. This also allows me to stay motivated towards the dream of being financially independent someday. My goal with these monthly reports is also transparency and I’d like my readers to emulate my successes and avoid my failures.
It feels kind of strange to publish all my financial details here, but it’s also a very motivating feeling. We have all pretty much different backgrounds regarding our personal finances, but hopefully my detailed reports will motivate you to keep on pushing harder. Whether it is to start a blog, or at the very least to start tracking your Net Worth, you can’t go wrong here as there are no bad choices! You can check out my favorite resources if you don’t know where to begin with.
My go-to tool to track all the data to generate these reports are extracted from my Mint account. I find it really easy to budget / analyze and visualize the trends, and I’m also a big fan of their iOS App! A nice feature is that it can be integrated very easily with Wealthsimple (since early January, Wealthsimple is now also available to people living in the U.S. and it’s already in beta for people in the U.K.). Feel free to read my complete Wealthsimple review here, if you want to start investing easily and you’ll get a nice $100 bonus when you register with my referral link.
If you’re living in the US, you should also definitely check out Personal Capital. I have many friends back in the US using it and they absolutely love it! Basically it’s like Mint, still totally free, but more focused on investments, and it allows you to see your checking, savings, investments and retirement accounts in one secure, convenient place. Unfortunately, it’s not available in Canada (hopefully this will change someday).
All stats on this report are combined for Mrs. FFG and I, and are in Canadian dollars, as we’re currently living in Canada. Here is a list of the sub parts of my report (you can click on each link to reach directly one specific part):
- June 2017 Income
- June 2017 Expenses
- June 2017 Investments & Savings
- June 2017 Net Worth
- June 2017 Savings Rate
- June 2017 Summary
If you’re interested, all the reports I have written since I started this website are listed on my financial stats page!
So here it is, my complete financial report of June 2017. I hope you’ll find it inspiring, and perhaps this will motivate you to start your own website.
June 2017 Income
So that’s it, we’re back to a single income household since late May, but I had a small bonus paid out before going on parental leave on early July. Hence our income for June was still relatively high with a $5.5k total gross income. I’m still unsure as to how much I’ll earn during my 6-month parental leave (which should be around 75% of the average of my last six months of gross income). Anyway, due to our newborn and our upcoming limited entertainment expenses, things should turn out ok regarding our income, even more since I already topped up our emergency fund.
Total Gross Income June 2017: $5,660
- Previous Month: $7,479
- Difference: –$1,819
June 2017 Expenses
Somehow we managed to keep our expenses much lower in June! I don’t recall exactly, but I’m pretty sure that one year ago, we were spending nearly 30% more (at least in the Food & Dining category). In fact, we’re way below our estimated average of $4,000 per month. With 50% of the year already behind us, we’re at a total of $19.5k expenses, which adds up to 40% of our projected $48k expenses per year. Still really good on the expenses side this month and we might be able to stay under $40k total expenses for the year.
- Home: $1,175
- Bills & Utilities: $248
- Auto & Transport: $320
- Health & Fitness: $50
- Food & Dining: $500
- Travel: $0
- Shopping & Entertainment: $150
Total Expenses June 2017: $2,443
- Previous Month: $3,140
- Difference: -$697
June 2017 Investments & Savings
For the past few months, we’ve been investing and saving in five different ways which are nearly all on auto-pilot:
- My Simplified Pension Plan (SIPP), where my employer offers a 100% match of my contributions, up to 2% of my salary (pre-tax). This was the last month this year I got this, as I can’t contribute anymore while on parental leave.
- My Registered Retirement Savings Plan (RRSP) account with Wealthsimple, in which I contribute $100 per paycheck (post-tax).
- Our emergency fund in an High Interest Savings Account (HISA) with Tangerine in which I contribute $100 per paycheck (post-tax).
- Our vacation fund with Mylo (Non-Registered Account). So far the last few months, Mylo has invested a total of $178 from rounding up my usual transactions, which I think is awesome as I didn’t even notice it!
- Our car loan. Since early May, we’re the proud owners of a $15k car loan (already down to $11k as we speak)! So this category of savings consists only of the extra repayments we make to our car loan, which does not include our regular payments (which are around $280 per month).
Also, for the sixth and last month in a row I’ve decided to make two lump-sum contributions to both my RRSP and my emergency funds accounts ($500 in both). As we’re back to a single income I’ll stop these lump-sum contributions at least until September.
- SIPP Account (employer & employee): +$166
- RRSP Account (Wealthsimple): +$700
- Emergency Fund (Tangerine): +$700
- Vacation Fund (Mylo): +$30
- Car: +$1,100
Total Investments & Savings June 2017: +$2,696
- Previous Month: +$3,911
- Difference: -$1,215
June 2017 Net Worth
Since buying back our car a few weeks ago after a three-year lease, our car loan is now our only liability. Our assets are slowly progressing and this should be the same for the next two months as I’m still reevaluating our savings opportunities. We might actually see a small boost of our assets without doing anything specific as we’ll be on vacation in our family, so our spending should remain quite low. Anyway here are the details of our assets and liabilities as of early July.
- SIPP Account (employer & employee): $11,413
- RRSP Account (Wealthsimple): $6,110
- Emergency Fund (Tangerine): $6,150
- Vacation Fund (Mylo): $178
- Car: $14,800
- Car Loan: $10,998
Net Worth June 2017: $27,653
- Previous Month: $24,762
- Difference: +$2,891 [+11.7%]
My short-term goal is to reach a Net Worth of $100,000 (which we should be able to reach before 2019). We’re currently at 27.65% on this goal.
Net Worth short-term goal: 27.65%
June 2017 Savings Rate
In terms of savings, we were aiming at a 15% Net Savings Rate last year, and an average of 20% for 2017. So far this year, it’s been six months in a row that we’re crushing this goal (29%, 39%, 32%, 32%, 59% and 51% as of this month!). We’re currently sitting on an average 40% Savings Rate for 2017. As explained earlier, I’ve already started to reduce my contributions to our retirement accounts for the summer, at least until I know how much I’ll earn exactly while on parental leave, so our savings rate should drop a little. But with such a good start the last six months, we should definitely be able to crush our 20% savings rate goal on average this year.
Net Savings Rate = Savings / (Gross Income – Taxes + Pre-Tax Contributions)
- June 2017 Savings: $2,696
- June 2017 Gross Income: $5,660
- June 2017 Taxes: $521
- June 2017 Pre-Tax Contributions: $166
Net Savings Rate: 2696 / (5660 – 521 + 166)
Net Savings Rate June 2017: 50.82%
- Previous Month: 59.19%
- Difference: -8.37%
June 2017 Summary
I’m always planning ahead with a zero-based budget in mind. This is an easy way to figure out where everything we’re earning is going. Keeping this in mind, let’s summarize where our gross income for the month of June 2017 went to:
- Gross Income (I): $5,660
- Expenses (E): $2,443
- Investments & Savings Post-Tax (S): $2,696
- Taxes (T): $521
- Transfer from Savings (TR): $0
As a zero-based approach, here are the details:
I – E – S – T + TR = $5,660 – $2,443 – $2,696 – $521 + $0 = $0
And this wraps up my detailed financial report of June 2017! I hope I’ve inspired you with this report (my complete list of reports are listed on my financial stats page), and that you had as much fun looking at mine as I had looking at others! Remember that it’s not a race though, even if the journey seems like a marathon sometimes.
It took me a few months before deciding to start a blog, but this really helped me to focus on my long-term goal of reaching financial independence. Everyone has to take the first steps if they are willing to reach financial freedom, and I’m convinced that everyone with the right resources and some reading can reach its goal!