This is my seventh 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 knowledge.
In July 2016, my net worth increased by $4400 or 3.19%, and my dividend portfolio hit to the new milestone of $200 000.
The growth in last few months was pure organic as I didn’t pump new money into my portfolio, in fact, I sold few shares and also took the dividends to pay down some debts. But still my portfolio grew sharply up.
It is absolutely a great achievement for me. It shows that doesn’t matter how much money you make, rather how much you save in a smart way.
If you have right mindset, you can reach whatever goals you decide to reach.
I think I set a small target (goal) of one million dollar net-worth in 10 years. If you set a big goal, you could hit the biggest success.
“Your Mindset Determines Your Success!”
When you get a chance, read the book called “Mindset: The New Psychology of Success” by Carol Dweck, PhD
It is one of the best-selling book on Amazon, talking about fixed vs growth mindset
.Most recommended book for those looking to change their poor mindset to rich. Have a look at it.
Now let’s talk about my net worth and finacial numbers in July
Last month, we spent little extra money for summer activities such as travels and entertainments. Also, purchased a higher quality king mattress from Leon’s for $1000.
Last month, my net worth increased by $4400 or 3.19% from my last update.
Year-to-day gain is $34 000 (31.39%).
Net worth update as of July 31, 2016 ()
Assets:$477 800 ()
- Cash: $600 ()
- Home: $270 000 (no change) – Yearly adjustment with inflation
- Canadian Stocks: :$162000 ( )
- U.S. Stocks:$38600 ()
- Employer’s Pension Plan: $6600()
Liabilities:$335 500 ()
- Mortgage :$185 800 ()
- Student loan: $25 300 ()
- Margin loan:$49400 ()
- Credit card 1:$8200 () (low interest credit card – 0.99% special rate for 10 months – will be expired in October 2016)
- Credit card 2:$9600 () (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: $9600 ()(low interest balance transfer – 2.99% special rate for 12 months – will be expired in May 2017)
- Credit card 5: $4800 () (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:$0 () – (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:$8300 (no change) – (low interest of 3.30% – primte + 0.5%)
Net worth :$142 300 () as of July 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 = 1.30 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.
Disclosure: This post contains affiliate links, which means I will earn a commission if you decide to make a purchase (at no additional cost to you).
Thank you so much for being in my finance journey and for your support.
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I understand you borrow to invest plan and it seems to be working quite well and I like it a lot. However, I would advise you to have the least amount of credit cards possible because your credit card to Chequing Account ratio affects your credit rating in Canada. You could replace all those credit cards by borrowing against the house itself at a much lower rate per year in total. And once your credit rate goes up it is easier to borrow at better rates to invest a much larger sum to speed up your goal of getting to $1 Million. I have only one credit card and it works fine.
Besides that I think your book keeping of the entire process is absolutely fantastic. I am trying to be more disciplined and do the same. I wish I could see a template of your expense tracker and investment tracker as well.
Good job.
Thank you Robizio for your comments,
I checked my credit score late 2014 when I was shopping for mortgage, it was quite good even though I had lot of credit card debts. Most of them I used to purchase investments. I have been transferring balance from credit cards to bank accounts for long time, but I didn’t notice any impact in my credit rating as I didn’t miss any minimum payments. Even now, I received new promotion offer for one year at 0.99% interest rate.
Honestly, I didn’t track my expenses. I will try to post my expenses in the future.
Best Regards,
I didn’t check my credit rating for last two years.
So you borrow money on CC and LOC to invest.
You mortgage total is as same as mine. I like your style but I am not ready to borrow to invest. Please advise.
Hello eBAD,
Thank you for stopping by,
Please do understand borrow money to invest is very risky.
My only advise is educate yourself and learn as much as you can by reading good books and other materials.
Best of luck!
Thanks for taking the time to share your experience… I have looking at your dividend list and trying to make a smaller list for myself to start investing…
When you receive the dividend does it automatically buy more of the same stock? Or does it get deposited into your bank account…
Do you have to pay taxes on the dividends this way?
Hello Mat,
Thank you for stopping by, please note I purchased most of the stocks at very low price than now. I would strongly suggest you to do enough research before invest in any investments. You shouldn’t blindly follow some anonymous bloggers like me.
It is up to you where receive dividend as more stocks or deposit in your account as cash. For me, I’ve selected to receive cash dividend.
Yes, we have to pay taxes for dividend. Please let me know if you like to get more information about the tax treatment on the dividends.
Best Regards,
Hi
Thanks for your guidance. One more question is I read somewhere in your comment that you transfer money from TFSA to RRSP.
But when you transfer from TFSA , you can not put again in same year in TFSA account , for example you transfer 5500 in Jan 2016 to RRSP to get tax credit but you can not use that tax credit to put again in TFSA unless you have contribution room available from prior years. AM I right ? or I am missing something?
Hi Keith,
You are absolutely correct. If you withdraw money from TFSA and if you don’t have contribution room, then you shouldn’t put the money back into the TFSA in same year.
In my situation, I still have lot of room to contribute in my & wife’s TFSA accounts. But I stopped contributing to RRSP after my wife quit her job to take care our little son because the tax credit is relatively very low after the big changes in our family income.
I would strongly recommend you to discuss with a qualified financial advisor before make any investment decision.
Best Regards,
Quick question:
When contributing to your RRSP/TFSA, when do you actually invest that money into more equities? For example, if you contributed $400/month into your RRSP, do you purchase more stocks/ETFs every month as well? I would think trading fees would eat away at your profits, but if you waited until the end of the year and bought the stocks/ETFs with your entire yearly contribution you’d be missing out on potential gains for the year.
How do you go about this?
Thanks!
Hello Jason,
Good question, I use Questrade online broker for most of the small stocks & ETF purchases. I am OK to pay 1% commission for a purchase, in other word, when I buy stocks for $500, I OK to pay $5 trading fee. And, there are NO commission fee for ETFs purchases at Questrade.
Hope this helps,
Best Regards,
Hi
I read your blog regularly, I have a question about your dividend funds. Most of the funds are giving quarterly dividend then how you show it monthly ?
Do you project and divide the amount by 4 and publish or there is some other calculation/way?
Thanks
Hello Keith,
As you said, most of the funds pay quarterly dividends, but it doesn’t mean they all pay in a certain month. Some companies pay in January, April, July and October, few other companies pay in February, May, August and November, and rest of the companies pay in March, June, September and December.
So I record my monthly dividend income based on the dividends I receive for the month.
I hope I answered your question. Please let me know if it is not clear. I am very glad to guide you.
Best Regards,
Hi
So when you get low interest credit card , you still need to do monthly payment , right ?
Plus how to manage the exit after completing 12 months ?
Hi Keith,
Yes, we have to pay the monthly minimum payment.
How to manage? – I keep paying monthly minimum payments until I get close to the end of low rate promotion date, and use other credit card promotions or margin loan to pay-off completely. May be I have a good credit history OR luck-on-my-side, I get new promotion from the same card. So I take advantage of it and pay-down any other high interest loans (ex margin loan with rate of 4.25%) I have.
Cheers,
Hey love the site! Is there a reason why you have all your US stocks in an RRSP and the Canadian ones in the TFSA? Is there an advantage to the US in the RRSP or could these be switched? (ie. Canadian in RRSP, US in TFSA) Thanks!
Hello Joe,
Thank you for your comments,
I keep almost 85% of my US stocks in my RRSP account (as of Aug 2016). There is very valid reason. There will be no withholding taxes for the dividends you receive if you (Canadian) keep your keep your US based stocks in your RRSP, and of-course no need to pay tax until you withdraw money from your RRSP accounts. I would like to hold 100% of my US stocks, but there are not enough room available for me.
Also, I keep REITs, MIC, BIP.UN, BEP.UN in my TFSA accounts to avoid unnecessary tax.
Hope this help you, if you need further details, please post here.
Best Regards,
keep U.S. stocks inside an RRSP to avoid paying any withholding taxes
When the promotional rate expires on a credit card, and the Interest rates skyrockets, do you close the account? Leave it open and wait for them to make another offer? Call them and ask for another promotion? This is working so well for me so far…this is just great. Thanks so much.
Hello Justin,
Thank you for stopping by,
Actually I don’t close any accounts. May be I have a good credit history, so I usually receive special offer from banks once their old offer about to expire. I’ve been getting special offers from 4 different banks for more than 5 years. I hope I will continue getting these offers, otherwise, I will use my margin loans to pay-down the the debts.
Please note leverage investing is very risky. Please do your own research before make any investment decision.
Best Regards,
I just want to wish you well in your endeavour, and thank you for sharing your journey.
Thank you Bob for stopping by, I am happy to share and inspire people like you..
Best Regards,