This is my seventh net-worth updates report for the year 2017. 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 by December 2024 (10 year plan) 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 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 publickly track my progress and get valuable advice from like-minded people.
In July 2017, my net worth decreased by $900 (), the second consecutive month of decline.
It is widely expected decline in summer months as most of my investment dropped slightly due to seasonal trading and expectation of rate hikes.
I believe this will get improve by latter part of the year, but correction in U.S market may bring down other markets including Canadian.
Thus, stock market is unpredictable in short-term, so does my net-worth. In long-term, everything will be fine.
As I always do, I keep buying quality companies while they are on sale. I borrowed some money to fund new purchases, but planning to pay some debts in the coming months.
Now let’s talk about my net worth and finacial details in numbers
Last month, my net worth decreased by $900 or -0.5% from my last update.
Net worth update as of July 31, 2017 ()
Assets: $508 100 ()
- Cash: $2700 ()
- Home: $275 000 (no change) – Yearly adjustment with average inflation rate of 2%
- Canadian Stocks: :$178 000 ( )
- U.S. Stocks: $39 200 ()
- Employer’s Pension Plan: $13 200()
Liabilities: $333 100 ()
- Mortgage : $180 100 ()
- Student loan: $23 000 ()
- Margin loan: $67 800 ()
- Credit card 1:0 () (paid-off)
- Credit card 2:$18 800 () (low interest credit card – 1.99% special rate for 12 months – will be expired in March 2018)
- Credit card 2:$11 600 () (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2018)
- Line of Credit 3: $4700 () (low interest credit card – 0% special rate for 12 months – will be expired in June 2018)
- Credit card 5: $3000 (no changed) – (low interest credit card – 1.99% special rate for 10 months – will be expired in November 2017)
- Credit card 6:$400 ( ) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 :$12 600 () – (low interest credit card – 2.99% special rate for 12 months – will be expired in February 2018)
- HELOC: $11 100 (no-change) – (low interest of 3.45% – primte + 0.5%)
Net worth :$175 000 () as of July 31, 2017
My net worth down 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 = 1.2893 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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I read elsewhere that you’re planning on lowering your credit card debt because rates are increasing and the amount of leverage available will decrease. I think this is a good plan.
The problem with “low-interest credit card loans” is that the time of the “special offer” runs out and the credit becomes due at a much higher interest rate. Unless you can pay off the debt in full, you have to roll the balance to another credit card “special offer”, but at a cost of 3%-4%. That “eats up” all your dividend income earned…
Real estate offers better leveraging opportunities, in my view.
Take care and thanks for the update and sharing your journey!
Hello FerdiS,
Thank you for your suggestions,
Yes, I am planning to lower my debts as rates are increasing. When the ‘special offer’ runs-out, I could easily transfer the amount from another credit card or margin account.
Luckily, I am still receiving new ‘special offer’ from two credit cards with rate of 0% for 12 months and 0.99% for 18 months (with 1% transfer fee). I haven’t yet used them 🙂
I hope I will keep getting these type of offers as long as I have good credit history.
Best Regards,
Hi,
Do you mind sharing what credit cards you are using that offer the special rates? I’m interested in getting one of those cards but so far I didn’t find any good ones.
Thanks
Hi Taoo,
I use MBNA credit cards, RBC visa, TD visa and Scotia Visa & Scotia Amex. If you maintain a good credit history, then you will get a great rate.
Please understand that leverage investing is very risky and it is not suitable for all type of investors. Please do your own research or discuss with a qualified financial adviser before make any financial decision.
Hope this helps,
Best Regards,
I noticed that you still have the same USD/CAD exchange rate compared to last month, even though it has dropped to below 1.25 by now.
I believe that would change your net worth by 1000+ compared to the exchange rate you used in your net worth update.
For the sake of accuracy, it might be useful if you used some kind of monthly average that you update each month to reflect the current value of your US portfolio properly.
Looking forward to your updates every month. Best of luck!
Hello Andre,
Thank you for stopping by,
I use USD/CAD exchange rate by the time I calculate my net worth (mostly at the end of each month). I use the numbers provided by my brokerage banks, so I think they are accurate.
Cheers,
Thanks for the reply.
Maybe you just forgot to update the exchange rate at the end of your post then, because your last two net worth updates both show 1.2893 as the exchange rate.
Given that the CAD seems to continue to strengthen in comparison to the USD, your US portfolio might take a bit of a hit. Do you plan to use the stronger CAD to purchase more US stocks going forward?
Hello Andre,
May be you are correct. I forgot to update the exchange rate, but the dollar numbers are accurate (just copy & paste from my brokerage accounts).
Yes, I am planning to purchase more US stocks if CAD gets strong 🙂
Cheers,