Net worth update – August 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.

August 2020 Net-worth Update

In August 2020, my net-worth increased by $13 100 or 4.28%.

Finally, my net-worth passed my previous all-time high, which set in January. It took almost seven months to get back where I was (financially) in January 2020.

It felt like a long and pain full journey, but it does not end yet.

At one point in March 2020, I had to sell some of my stocks to protect my margin account; however, I was able to buy the majority of the stocks during the last couple of months at lower prices.

When it comes to stock investing, market crashes and recoveries are normal. It was the first significant crash I experienced in my investment journey, and I learned a lot from it.

I know it is not the last one or the big one. There will be more in the future, and even more significant than the one we had now.

If we don’t prepare, it will be a crash; otherwise, it will be an opportunity.

Honestly, I prepared for a market pullback, but I wasn’t prepared for this type of scenario. I guess no one was prepared to face it.

Now, I know how it will look like, and I experienced it and learned a lot from it.

Many stocks in my portfolio recovered well and hit an all-time high, and there are many others still trading at low, especially in the financial and real-estate sectors.

I have a sizable position in financial stocks. Mainly, the Canadian largest bank stocks. Thus, I am not interested in adding more at this level.

However, I have some rooms for real-estate. Thus, I have been buying some REITs stocks recently.

I believe real-estate (REITs) will recover and hit a new high once the health crises are over. Meanwhile, I will be collecting distributions and reinvesting them to buy more investment in other hard-hit sectors.

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.

August 2020 Net-worth Update

Net worth update as of August 31, 2020 (+4.28%)

Assets: $630 500 (+$19000)

• Cash: $500 (+$100)


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


• Canadian Stocks: : $242 400 ( +$17100 )


• U.S. Stocks: $52 300 ( +$1100 )


• International Stocks: $9900 ( +$200 )


• Employer’s Pension Plan: $33 500( +$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: $311 900 (+$5900 )

• Mortgage :$181 800 ( -$500 )


• Student loan: $5800 ( no changed )


• Margin loan: $67400 (+$6200)


• Credit card 1: $2000 (+$2000) (low interest credit card – 0% special rate for 10 months – expired in June 2021)


• Credit card 2: $9600 (-$100) (low interest credit card – 0.99% special rate for 12 months – will be expired in February 2021)


• Credit card 3: $0 (paid-off) (low interest credit card – 0.99% special rate for 12 months – expired in November 2019)


• Credit card 4: $0 (paid-off ) – a promotional offer at 1.99% special rate – expired in March 2020)


• Credit card 5: $18300 (-$400) (low interest credit card – 0.99% special rate for 12 months – expire in May 2021))


• Credit card 6: $13400 – (-$200 – a promotional offer at 0.99% special rate – expired in November 2020)


• Credit card 7: $900 (+$500) – (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 : $12 700 (-$100 ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2021)


• Line of Credit 2 (HELOC) : $0 (-$1500 ) – (Interest rate – 2.95% )

Net worth : $318 600 ( +$13 100) as of August 31, 2020

My net worth was up by +4.28% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.3038 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.