Net worth update – October 2020

A short intro for new readers

If you are not new here, then you can simply skip to the next section.

For those new to my finance journey, this 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 belief that I can achieve this goal by saving and investing in high-quality dividend-paying blue-chip companies. I am also 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 this 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 publicly track my progress and get feedback from like-minded people.

October 2020 Net-worth Update

In October 2020, my net-worth down by $4500 or 1.39% from my previous update.

It was a minor pull in my net-worth after a big comeback from the March low.

My assets value increased due to the stock purchases I made using debts.

As a result, my liabilities hit my all-time high of $338 700.

My debt was this high back in August 2016, but later I reduced and maintained near the $310K level.

However, financially, I am now in a much better position than in 2016.

My debt-to-asset ratio was around 70$ back in August 2016.

I slowly cut down my debt, while increased my assets’ value over the last couple of years.

Almost four years later, my debt-to-asset ratio is around 51%. I think it is still too high for my income level. If I have a good income, I won’t mind maintaining at this level. But, it is not the case now.

I learned the lesson in hard during the March crash.

Therefore, I will consider bringing down the ratio to below 40% in the coming months or years.

I always like to keep my debts below $300K. I tried to do this for many years without success.

It is still one of my 2020 (short-term) financial goals, but I don’t think I can achieve this in less than a month.

I will set this goal again in 2021 and keep trying. In this way, I can keep controlling my debt growth.

November 2020

My overall portfolios have been up significantly higher since November 09, 2020, right after the positive vaccine news.

I made some new stock purchases in early November, but I stopped adding new positions after November 09 and just letting my portfolios run themselves.

My portfolios were up by over $20K on November 09 alone, and they have been kept moving high since then.

I haven’t yet done the calculations, but I believe my November net worth gain will be significantly higher than ever before.

Let’s see my net-worth in numbers.

As I always say, I am here to share my financial freedom journey with this site’s readers. My financial goals, financial situations, and risk tolerances are much different than yours and blindly copy my ideas may not benefit for your life. Please do your own research or discuss with qualified financial advisors before may any decisions.

October 2020 Net-worth Update

Net worth update as of October 31, 2020 (-1.39%)

Assets: $658 900 (+$3700)

• Cash: $900 (-$300)


• Home: $291 900 (no changed) – Yearly adjustment with average inflation rate of 2% in every January


• Canadian Stocks: : $270 300 ( +$3900 )


• U.S. Stocks: $51 200 ( -$600 )


• International Stocks: $9800 ( +$200 )


• Employer’s Pension Plan: $34 800( +$500 )

Disclaimer..

Please note the information posted on this website is the opinion of my own and should not be considered as professional financial advice. I am not a financial professional, and I can buy, sell, or hold any investment at any time.

Any transactions I publish on this website are not recommendations to buy or sell any securities or investments.

My financial situations, goals and risk tolerances will be much different than you. Therefore, please do your own research or consult with a qualified financial professional before even considering using the information obtained from this website.

Liabilities: $338 700 (+$8200 )

• Mortgage :$180 600 ( -$500 )


• Student loan: $5800 ( no changed )


• Margin loan: $88 800 (+$10600)


• Credit card 1: $1900 (no changed) (low interest credit card – 0% special rate for 10 months – expired in June 2021)


• Credit card 2: $9400 (-$100) (low interest credit card – 0.99% special rate for 12 months – will be expired in February 2021)


• Credit card 3: $0 (no changed) (low interest credit card – 0.99% special rate for 12 months – expired in November 2019)


• Credit card 4: $0 (no changed ) – a promotional offer at 1.99% special rate – expired in March 2020)


• Credit card 5: $17900 (-$200) (low interest credit card – 0.99% special rate for 12 months – expire in May 2021)


• Credit card 6: $0 – (Paid-off -$13200 – a promotional offer at 0.99% special rate – expired in November 2020)


• Credit card 7: $300 (+$100) – (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 : $12 500 (-$100 ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2021)



• Line of Credit 2 : $9700 (-$200 ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2021)


• Line of Credit 2 (HELOC) : $11 800 (+$11800 ) – (Interest rate – 2.95% )

Net worth : $320 200 (-$4500) as of October 31, 2020

My net worth was down by -1.39% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.3337 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.

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