Last updated: August 07, 2014
A journey to become a self-made millionaire.
This is my sixth net worth updates report. For those new to my finance journey, a net worth update is a simple report I post every month which tracks the progress of my journey to reach my financial goals. My ultimate goal is to become a self-made millionaire in 10 years by saving and investing in stable dividend paying blue-chip stocks.
My investment portfolios gained around $1200 in July even the U.S and Canadian Stock markets plunged and wiped out all July’s gain in one day, July 31.
In July 2014, my net worth was increased by $4200 or 6.84% from my last update, mostly because of my saving and the gained in my Canadian stock portfolio. My dividend portfolio organically gained 1.25% or $1200 (no new stocks or cash transfers into the accounts) in July 2014. Also, I received $294.37 dividends during the period.
Net worth update – August 07, 2014 ()
Let’s look at my net worth in numbers:Assets: $117 400 ()
- *Cash : $5000(no change)
- Deposited to our new home: $15000 (no change)
- Canadian Stocks:$82200 ( )
- U.S. Stocks: $15200 ()
Liabilities: $51 800 ()
- Student loan: $29500 ()
- Margin loan: $4500 ()
- Credit card 1: $0 ()
(low interest credit card – 0.99% special rate for 8 months) - Credit card 2: $8900 () (low interest credit card – 0.99% special rate for 12 months)
- Credit card 3: $0 Paid off
(low interest credit card – 1.99% special rate for 6 months) - Credit card 4: $8900 () (low interest credit card – 0% special rate for 6 months)
- Credit card 5: $0
(low interest credit card – 2.9% special rate for 6 months)
Net worth : $65 600 ()
My net worth up by since my last update.
Note
- all amounts are rounded to the nearest $100;
- all numbers are in CAD; and
- Conversion rate 1.00 USD = 1.09 CAD
*I usually don’t keep cash in my bank accounts, but I keep $5000 in my chequing account for the new home deposit.
I have a huge credit card debt because I took advantage of “low balance transfer promotion and invested in high quality dividend stocks. Taking modest risk and leveraging are the keys to become wealth.
Good job on the net worth increase, especially when it’s organic growth. +6.84% since last update is very good. Keep up the good work.
Thank you Tawcan for taking the time to comment,
Always great to see my net worth grow without my putting lots of hard work (organic growth). Hope this treads will continue for couple of months.
Cheers,
Your leverage approach may not work well all the time. Your net worth hits twice in down turn. Careful!
Hi Robin,
Leverage approach is not suitable for everybody. My net worth may go down twice, but it will come back eventually as the stock markets started rise.
Thank you for stopping by,
Cheers,
If you’re buying a home you might want to get rid of the credit card debt regardless of your tactic. You’re effectively buying on margin, which people tend to do when the stock market has had a great run (like since 2009). Unfortunately, that’s also the time when markets correct – and because you’re leveraged every dollar you lose costs you two (a 50% correction would wipe you out, should you sell to pay off your CC debt).
Theoretically you’ll make twice as much. In practice… I won’t be following your example. The credit card company also has a habit of misplacing your payment when the promotional period ends. I recommend paying it back a month early and confirming the payment a few days later.
Thank you Joel for stopping by,
Actually, I am not buying my house on Margin. Currently, I am in progress to pay down the CC debts and save money for the down payment.
I know I am taking little risk to accelerate my net worth. I will consider your advise regarding the early payment.
Cheers,
It’s always nice to see organic growth inside a portfolio 🙂 Nice job. By the way, would you mind if I used your credit card balances as an example in an upcoming blog post I’m writing about credit card debt? Thanks.
Hi Liquid,
Thank you stopping by! Always great to see organic growth inside my portfolio, but I am still in buying stage so sometimes I worry when my watch list stocks go up so high.
Also, feel free to use any information from my blog (if I have any 😀 ). I really learned a lot from you, and you helped me (through your blog) to understand many financial information. So, I would like to say THANK YOU here for all your help. Looking forward to learn more from you.
Best Wishes,