This is my eighth net worth updates report for the year 2016. For those new to my finance journey, 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 financial goal is to become a self-made millionaire in 10 years by saving and investing in stable dividend paying blue-chip companies.
I am posting all my financial information in this website because I love to inspire and motivate people to start their own journey to reach their financial freedom.
You could learn from my successes and failures (experience) and improve your financial IQ.
Along the way, I will make financial mistakes and share my experience in this blog with you. So, you could learn something, avoid those mistakes and save money.
In August 2016, My net worth increased by a tiny amount of $600.
We spent a little bit extra money for some fund summer activities and also for few trips within Canada.
We are summer people. We love only warm weather. We do lot of activities in summer. We rarely stay home in weekends and afternoons if weather is above 20 degree Celsius. So, we decided to spend some money to enjoy the last month of this summer session.
Also, the stock market was flat.
Now my net worth is more depends on my stock portfolios performance than my saving/spending rate.
A tiny market move will create a significant impact on my net worth. My entire investment portfolio is now worth more $200 000. If it is up by just 2%, then my net worth will also increase by $4000 (assume no saving or spending), and vice versa.
I can’t even imagine a saving rate of $4000 from day job. I make less than $3000 per month from my day job, plus a side income of around $200 from this website.
Thus, market performance will create a significant impact in my net worth.
Now let’s my net worth in numbers.
Last month, my net worth increased by $600 or 0.42% from my last update.
Year-to-day gain is $34 600 (31.95%).
Net worth update as of August 31, 2016 ()
Assets:$479 200 ()
- Cash: $500 ()
- Home: $270 000 (no change) – Yearly adjustment with inflation
- Canadian Stocks: :$162900 ( )
- U.S. Stocks:$38700 ()
- Employer’s Pension Plan: $7100()
Liabilities:$336 300 ()
- Mortgage :$185 400 ()
- Student loan: $25 100 ()
- Margin loan:50 700 ()
- Credit card 1:$8000 () (low interest credit card – 0.99% special rate for 10 months – will be expired in October 2016)
- Credit card 2:$9500 () (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2017)
- Credit card 3: $24 200 (no change) (low interest credit card – 0.99% special rate for 10 months – will be expired in November 2016)
- Line of Credit 4: $9500 ()(low interest balance transfer – 2.99% special rate for 12 months – will be expired in May 2017)
- Credit card 5: $4800 (no change) (low interest credit card – 0.99% special rate for 10 months – will be expired in December 2016)
- Credit card 6: $0 (no change) (paid-off)
- Credit card 7:$600() – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 : $10 300 (no change) – (low interest credit card – 2.99% special rate for 12 months – will be expired in April 2017)
- HELOC:$8200 () – (low interest of 3.30% – primte + 0.5%)
Net worth :$142 900 () as of August 31, 2016
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 = 1.31 CAD
I have a huge credit card debts because I take advantage of low balance transfer promotion rate and invest in high quality dividend stocks. Learn, earn, save,invest and leverage your skills are the keys to become wealth.
Thank you so much for being in my finance journey and for your support.
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Nothing wrong with leveraging credit cards and 0% intro or low APRs to borrow against. Back in 2008 credit card companies were giving money away. I remember, I had a few cards that offered me up to $30,000 cash for 18-months with no interest. I wish I had taken this cash right after the big market crash. This would’ve paid me back 10-fold.
Hi IH,
Thank you for stopping by,
I wasn’t in the market in 2008-2009. So, I didn’t experience the real ‘crash’ in my life. As I always say, leverage investing is very risky. If you don’t know how to use it, you will lose more than you have.
Best Regards,
Hey, just wondering what type of an accounts you use? TFSA? unregistered? I started my own dividend portfolio, but it’s in my TFSA and there seems to a general idea that dividend investments are better in a non-reg since there’s a significant tax-credit for dividend income (i.e. $50,000 in BC).
Anyways, love the updates and I enjoy your blog greatly.
Hello Kenbond,
I use non-registered, TFSA and RRSP accounts.
I keep all my REITs, bond ETFs, Limited partnerships units and other stocks that pay interest (not dividend) in my TFSA accounts. Most of the U.S dividend stocks in my RRSP and all other Canadian dividend paying stocks in my non-registered accounts.
Hope this helps,
Best Regards,
With the amount of leverage that you are employing, I would have trouble sleeping at night worrying that the next bear market could squeeze me out at the worst possible time (not that I or the “experts“ have the ability to predict what will trigger the next bear market or when it will occur, but it has been close to eight years and a 200% run up since the end of the last 50%+ decline so we are due at some point). You want to be sure that you have the staying power to remain in the game. Not knocking your strategy – just providing some food for thought. Good luck.
Hello Rob,
Thank you for stopping by and for your comments,
My portfolios have already gone through some bear markets in the last 4 years. And, they performed well in good and bad times, and hopefully they will do well again.
I totally understand that leverage investing is very risky, and I stopped bumping money into the markets as I am taking necessary steps to go through the next bear market. Hopefully, I will survive 😀 .
Best Regards,
Good blog. Best wishes ARUN. Don’t know how old you are, but you seem to be doing very well. Try the PAW calculator on my website to see how you are tracking. Yes, FI is very much possible with single income, my own experience is proof. Best wishes in your 10! Journey.
Thank you TFR for stopping b, I will try the PAW calculator.
Also, I am very confident that I will hit my financial goal in 8 years.
Best Regards,
Hey FJ, any net worth update that’s worth $140K+ and increases by $500+ is a good update in my books 🙂
I’m glad you read you make use of the summer temperatures, seasons (and time) go all too quickly – so we have to enjoy it.
Tristan
Hey Tristan from DDU,
Thank you for stopping by,
We should enjoy our current life first before thinking about future. For me, life & enjoyments come first before money.
Best Regards,
Hi,
Very interesting site. You publicly make available your financial details. What will be the impact?
Wish you all the best to reach your million dollar goal.
Hello Khabil,
Thank you for stopping by,
I am not quite sure about the ‘impact’ of sharing my financial details with readers. Please advise if it is good or bad..
Thanks once again for your well wishes…
Cheers,
You’ve mentioned that you earned $200 from your website. Would you please mind sharing some details for me? I am planning to start a blog and interested learn about how I could generate income from it.
I like to say you are a great inspiration me. Thank you!
Hello Jonathan,
Thank you for your comments!
I like transparency, and I am happy to share about this blog income with readers. I will try to make a post about it, please visit back in few days.
Wish you all the best for your blog!
Best Regards,
thanks for sharing your information. u have any plan to pay ur credit cards loans?
Hello Naani,
Thank you for stopping by,
Actually I don’t have any plan to pay-down my loans now, but I decided not to build more debts. I think I reached my peak 😀 .
Cheers,
Love your site. I don’t see where you are using the DRIP system in any of your stocks. If I just missed it, how do you account for the DRIP shares in calculating Dividend Income in your reports? Keep up the good work.
Hello Doug,
Thank you for stopping by,
Actually I don’t use any DRIP system for any of my holdings. I collect dividend as cash and invest in companies when they get hit hard by a bad economic news.
I know that DRIP is one of the best ways to build a portfolio without paying trading commission, but I like to receive cash dividends.
Best Regards,