This is my last 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 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.
In December 2016, my net worth increased by $5100 (+3.38%), thanks to the positive momentum in stocks market around the world.
Even though I didn’t make any major investments, my debts increased by $600 during the period. Therefore, I have spent around $600 more than what I earned from my day-job and dividend income. I should watch this habit carefully.
I wouldn’t mind if I use the debts to purchase assets or to get great experiences (vacation, travel, etc). Long-term readers know that I purchase stocks using margin loans and ultra-low interest credit card debts. But, this is not that case; most of the debts are due to the discretionary holiday related spending.
Hopefully, I will try my best avoid these types of expenses in the coming months. But, sometimes it is little hard if you have a little kid at your home.
Anyways, my dividend portfolio along with high dividend income during the period gave me a big release and helped me to post positive net worth for the month.
Now let’s talk about my net worth and financial numbers in December
Last month, my net worth increased by $5100 or 3.38 from my last update.
Year-to-day gain is $47 600 ().
The good news is that my overall net worth gain in 2016 is much higher than my post-tax income from my day-job.
Net worth update as of December 31, 2016 ()
Assets:$479 300 ()
- Cash: $1000 ()
- Home: $270 000 (no changed) – Yearly adjustment with inflation
- Canadian Stocks: : $159 400 ( )
- U.S. Stocks:$39 500 ()
- Employer’s Pension Plan: $9400()
Liabilities: $323 400 ()
- Mortgage :$183 400 ()
- Student loan: $24 400 ()
- Margin loan:$69 400 ()
- Credit card 1:$8500 () (low interest credit card – 0.99% special rate for 10 months – will be expired in September 2017)
- Credit card 2:$9100 () (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2017)
- Credit card 3:$0 (paid-off)
- Line of Credit 4: $9100 ()(low interest balance transfer – 2.99% special rate for 12 months – will be expired in May 2017)
- Credit card 5: $0 (paid-off)
- Credit card 6: $0 (paid-off)
- Credit card 7:$700 () – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 : $10 600 () – (low interest credit card – 2.99% special rate for 12 months – will be expired in April 2017)
- HELOC:$8200 () – (low interest of 3.30% – primte + 0.5%)
Net worth :$155 900 () as of December 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 = 1.33 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.
Missed my 2016 Financial Goal: As expected, I wasn’t able to achieve my financial goal for the 2016. I was aiming for $175 000 net worth by end of 2016, but I could reach up to $155 900. I missed my short-term goal by around $19K. But, it was a good try.
Thank you so much for being in my finance journey and for your support.
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Good job and happy to come across your blog or website.
Thank you once again BetChay!
Hi there, nice blog!Thanks for this. I am a stay-at-home mom caring for my active boys. I have been trying to educate myself financially with lots of books, newpapers and websites. Fortunately I came across your blog. This is really interesting and more detailed. Thank you and more power! Opening my direct investing account soon. I have been putting this off and I will do it and I can do this.
Thx.
Hello Betchay,
Thank you for stopping by,
Always great have a financial education. Learn as much as you can about investing and finance. Best of luck in your success.
Cheers,
Hi. I’m not sure what your name is but I am curious to know what trading platform you use? (I currently use CIBC investors edge) Also which news channels, websites or assessment companies (like the motley fool) do you use to make an informed decision on which stocks to invest into?
You can reply to my email if you like.
I also am a family man similar to your situations and make similar income annually to yours and it is nice to know that someone in a similar situation to mine is working at building wealth. I just recently started.
Hello Vince,
I use both TD direct investing and Questrade. For all major purchases (anything above $1000), I use TD direct investing. For ETFs and small purchases, I use Questrade. Also, I use RBC direct investing for my son RESP. I haven’t tried other online brokerages, but I think all them a good in some ways.
To be honest, I read a lot. I love reading about finance news, investing, personal finance. I visit the following site very frequent to check news:
When I find an interesting company, then I usually go into the company website (investor relation section) and read their annual & auarterly reports to get more details about a company. Most of the stocks I own are very well known and I use & see them very often in my life. So, I could easily understand their business.
Wish you all the best for your success. I would recommend you to read good books related to investing and finance, and get good understand about the companies by doing your own research before invest your hard earned money. Keep read and learn good books. Every time you read, you will some ideas to improve.
You can proof to your friends and family that anybody can build wealth regardless of their income and responsibilities.
Best Regards,
Thank you! I really appreciate your input.
I was also curious to know if you have thought of or would consider putting together a work group with a small number of investors that could put our minds together and learn from each other ways to better our investment strategies and company research?
Hello Vince,
I really like your idea about creating small group with like-minded people, and share ideas and learning from each others. So, how we could move forward this? You mean through the online or offline?
Best Regards,
It could be both, online and offline, I prefer offline because it makes it more real. It could be held once a month. (for example). I currently live in Hamilton, ON.
Hello Vince,
Thank you for your recommendation,
I will try to do something online first, so we could create few virtual discussion groups. If people find useful, then we could make an arrangement to meet their group members in their areas.
Best Regards,
FJ –
Nice Job! Great/solid month overall. Are you gearing towards $200K then for 2017??? You can do it, push hard and go harder. Nice work.
-Lanny
Hello Lanny,
Thank you for stopping by,
I really hope that I could reach $200K net work in 2017. All depend on the market performance 😀
Cheers,
I have a few questions. Namely;
How are you purchasing stocks using a credit card?
And what do you do for a living?
Do you use google sheets for all the calculations, if so can we see a sample page of the formulas and the layout?
Your avid fan,
Paul J.
Hello Paul,
Thank you for stopping by,
How I use credit card to purchase stocks – I have few credit cards from 4 different banks, they regularly send me promotion rate for certain period (most likely 6-12 months) for balance transfer. So, I transfer the money to my checking accounts, then transfer to my brokerage accounts and purchase stocks.
What I am doing for living – I have a full-time job where I do IT + system administration job. I love my job 🙂
Yes, I use Google Sheets for all the calculations. It is very much similar to Excel sheets, so you could use to calculate total assets value, estimated dividend income, asset allocations, etc.
Only special formula (outside of excel) is use is =GoogleFinance(“TD.TO”, “price”) to get current share price.
Please let me if you would to get more details about it.
Best Regards,
Fantastic write up overall. Looks like a good year for you looking back at it. You would have to be happy with that. Those credit cards are looking a little scary coming closer to their low interest rate expiry soon. All the best.
Hello BHL,
Thank you for stopping by,
I am not worrying about the credit cards expire dates. I can easily renew them for another few months or year with the low rate as the banks have already sent me new promotions rate 😀 .
Cheers,