Net worth update – May 2018

This is my fourth net-worth updates report for the year 2018. For those new to my finance journey, net worth update is a simple report I publish 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 by December 2024 (10 years plan). I have a strong believe that I can achieve this goal by saving and investing in high quality dividend paying blue-chip companies. I am a strong believer of ‘compounding’ power, and I believe if I can push myself now and build a decent net-worth, then the ‘compounding effect’ will give a heavy lifting in my later part of journey.

I am posting all my financial information on 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 knowledge.

Along the way, I make financial mistakes and will share my experience here with you. So, you could learn something, avoid those mistakes and save money.

Also, I like to track my progress publicly and get feedback from like-minded people.

After two straight months of declining, my net-worth increased a bit in April, thanks to last year tax return of over $2500.

I also cut some unnecessary expenses and reduced some debts.

Unfortunately, my investments didn’t make any significant contributions last month as they were almost flat.

The main reason was the expectation of the rates rise, which puts pressure on dividend stocks. I think it is a temporary and short-term issue. Majority of my holdings have gone through the high-interest rate environment in the past. So, I believe they will recover and perform well over the long-term.

My investment goal is to generate a decent dividend income from high-quality companies and replace my day-job salary for rest of my life. Therefore, as I am a long-term investor, short-term share price fluctuations are nothing to be concerned.

And, I am fine as long as I receive my dividends every quarter, and will be very happy if they increase by few percentages at least once a year. Eventually, share prices will follow once the clouds are cleared. I believe this concept.

Mean times, I will keep buying assets by reinvesting the dividends and using my saving. If necessary, I won’t hesitate to borrow money to buy stocks.

Many people might have disagreed with my leveraged approach, but I have no other choice to boost my cash-flow. As you might know, we are a middle-class family with a 3 years old son. We have a dream to become financial independence in few years. Thus, I will take some risks to make our dream to reality.

I am a financially responsible person. I use debts for assets purchases only, and I almost always avoid using them for luxury and unnecessary items. Actually, I don’t want to look like a millionaire, but I want to be a real millionaire.

Please note that my financial situations and risk tolerance will be much different than yours. We all are unique by nature. As I always say, please do your own research or discuss with a qualified financial advisor before making any financial decisions.

In April 2018, my net-worth was up by $3500 or 1.84% from the last month updates, thanks tax return of over $2500.

Net worth update as of April 30, 2018 (+1.84%)

Assets: $521 200 (+$400)

• Cash: $500 (-$400)


• Home: $280 500 (no changed) - Yearly adjustment with average inflation rate of 2%


• Canadian Stocks: : $182 900 ( +$100)


• U.S. Stocks: $39 300 (+$200)


• Employer's Pension Plan: $18 000(+$500)

Liabilities: $327 900 (-$3100)

• Mortgage : $175 800 (-$500)


• Student loan: $21 000 (-$300)


• Margin loan: $64 800 (no changed)


• Credit card 1: $4800 (-$1300) (low interest credit card – 1.99% special rate for 8 months - will be expired in July 2018)


• Credit card 2: $21 800 (-$100) (low interest credit card – 2.99% special rate for 12 months - will be expired in January 2019)


• Credit card 3: $6000 (-$100) (low interest credit card – 0.99% special rate for 12 months - will be expired in December 2018)


• Line of Credit 4: $4500 (no changed) (low interest credit card – 0% special rate for 12 months - will be expired in June 2018)


• Credit card 5: $4000 (-$1900) - (low interest credit card – 1.99% special rate for 10 months - will be expired in October 2018)


• Credit card 6: $6700 (-$100) - (low interest credit card – 2.99% special rate for 8 months - will be expired in August 2018)


• Credit card 7:$1000 (+$500) - (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 :$17 500 (+$700) - (low interest credit card – 2.99% special rate for 12 months - will be expired in December 2018)


• HELOC: $0

Net worth :$193 300 (+$3500) as of April 30, 2018

My net worth was down by +1.84% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.2821 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 wealthy.

Thank you so much for following my finance journey and for your support.

Please tell us how you investments perform last month?