Net worth update – February 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.

My net-worth

My net worth increased by $18400 or 6.18% in January, thanks to the stock market performance.

Remember, this net-worth update is for the last month – date as of January 31. The next one will be a little bad because of the recent market volatility.

I have been a little busy with a new position at work as I am taking some training and learning new things at my workplace.

It is a temporary opportunity, but I think it will be a pleasant experience.

It was the reason I was unable to update this site on schedule.

Now let’s look at my net-worth changes last month.

My net-worth changes – January 2020

Assets

My overall assets value increased by $24300 last month. Over half of the gain was due to the performance of my Canadian dividend portfolio.

Besides, I was planning to contribute around $6000 to my RRSP for the 2019 tax year. Thus, I moved some cash balance from my HELOC account to the chequing account.

Plus, I adjust my home value by 2% every January to much the average inflation rate. My home value is much higher than the posted amount here, but I need to be very conservative.

Liabilities

My debt increased by $5900, mainly due to the contribution of my RRSP. Also, I purchased some investments using a margin loan last month.

If I have waited for a month, then I would have purchased the stocks for much lower prices than before. But I don’t know how to predict the short term market movements.

Overall, my net-worth increased by $18400 to $316 000 January 2020, and hit new milestone of $300K for the first time in my journey.

I hit my first $50K in May 2014. By the time, the value of my investment assets was $92 000 and debts was $58 200.

Then, I hit my second $50K in May 2015– exactly in 12 months after the first one, with the investment assets value of $149 400 and debts was at $308 800. Debt increased dramatically high due to the mortgage of my house purchases.

And, I reached my third $50K in October 2016, with investment assets value of $205 900 and debts of $333 800.

In June 2018, I hit my fourth $50K, with the investment assets value of $229 100 and with debts of $326 700.

And in April 2019, I hit my fifth $50K (a quarter million dollar), with the investment assets value of $264 400 and with debts of $322 600.

Now, in January 2020, I hit my sixth $50K, with the investment assets value of $303 900 and with debts of $315 300

My $50K milestones

Recent market volatility

The market sentiments changed upside down in February.

As a result, my net worth has been taking the hit. My net-worth is heavily dependent on my portfolio’s performance.

And, my portfolios are not immunized to handle the downside. The recent sell-off due to the virus fears has been causing notable damage in my net-worth. I will discuss more in my next update.

Based on history, these types of volatility is standard in stock investments. The stocks market took a hit in 2018 and had a massive run in 2019.

As expected, it was due for a correction and has been taking the hit now. I believe the markets may rebound once the issues are under control.

Over the last 10 years, S&P 500 had entered into 5% – 10% corrections 17 times, 10% – 20% corrections 7 times and 20% plus corrections 2 times.

In all the cases, it rebounded sharply and hit new high later. If history repeats, then we may see a new record in the coming weeks or months. Maybe it may take a year or two.

All the actions in the markets depend on human psychology and nature. When markets move higher, investors get fear of missing out and rush to buy investments at a higher price.

Likewise, when markets take hit, then they rush to sell their investments for any price and try to get out of the markets as early as possible.

We tend to forget everything. In the next few years, the current issue will be a history, and we will be dealing with a new problem.

I usually buy stocks when markets take hit like this. Therefore, I have been buying dividend stocks up until today. Luckily, I had some cash in my RRSP account because of my recent contribution.

But I ran out of money because I started buying them a bit early. I would have purchased even cheaper if I had waited a bit longer.

I have some money in my margin accounts, but I am not comfortable using them without knowing the seriousness of the virus issue.

That’s it for now and see you in my next post.

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.

Let’s see the details in numbers:

Net worth update as of Janaury 31, 2020 (+6.18%)

Assets: $631 300 (+$24300)

• Cash: $5800 (+$4900)


• Home: $291 900 (+$5800) – Yearly adjustment with average inflation rate of 2% in every January


• Canadian Stocks: : $247 800 ( +$12800 )


• U.S. Stocks: $44 600 ( +$300 )


• International Stocks: $11 500 ( no changed )


• Employer’s Pension Plan: $29 700( +$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: $315 300 (-$5900 )

• Mortgage : $185 400 ( -$500 )


• Student loan: $5900 ( -$100 )


• Margin loan: $78 800 (+$2100)


• Credit card 1: $0 (paid-off - -$500) (low interest credit card – 0.99% special rate for 12 months - expired in January 2020)


• Credit card 2: $0 (paid-off - -$4200) (low interest credit card – 0.99% special rate for 12 months - will be expired in February 2020)


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


• Credit card 4: $7500 (no changed) - a promotional offer at 1.99% special rate - expired in March 2020)


• Credit card 5: $0 (paid-off) (low interest credit card – 0.99% special rate for 12 months - expired in October 2019))


• Credit card 6: $14600 - (-$200 - a new promotional offer at 0.99% special rate - expired in November 2020)


• Credit card 7: $700 (+$400) - (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 : $13 400 (-$100 ) - (low interest credit card – 2.99% special rate for 12 months - will be expired in January 2021)


• Line of Credit 2 (HELOC) : $9000 (NEW +$9000 ) - (Interest rate – 4.45% )

Net worth : $316 000 ( +$18400) as of January 31, 2020

My net worth was up by +6.18% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.323 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 following my finance journey and for your great support.