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.
January Net-worth Update
Without the recent home price adjustment, my net worth increased by $7500 or 2.04% in January 2021.
With the new estimated home price adjustment, my net-worth increased to $477 800.
I hate to increase my home value this much in a month, but I secured a second mortgage segment with my bank, and my total mortgage value is now at $315 000.
(New mortgage segment was created in early February, and tt will reflect in my February net-worth update report).
Therefore, if I don’t adjust my home price, I can’t report a $315 000 mortgage for $291 900 home value.
It is mathematically wrong. Mortgage value can’t be greater than the home value.
Plus, we can’t find a single property in our area for less than $500K in our areas, and I can easily sell my home for more than $550K.
Thus, $395 000 is a conservative estimate, and it is an actual amount I used to secure my mortgage segments.
Even though total debts remain almost the same, my debt situation now looks much better because I have fewer credit card debts.
I am quite happy that I was able to secure a fixed longer-term mortgage at 1.74%. It seems like the interest rate starts to rise. But I don’t need to worry about it anytime soon.
Rising rates may add pressure on the markets, and it creates buying opportunities.
And, my cash flow and purchasing power have improved significantly high. Therefore, I would be quite happy if there are any market corrections.
I have been making some changes in my portfolio by selling a few of my long-term holdings and initiating some new investments. I will discuss it in my next portfolio update post.
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.
January 2021 Net-worth Update
Net worth update as of January 2021 ()
Assets: $840 300 ()
- Cash: $400 ()
- Home: $395 000 () –new conservative estimated value
- Canadian Stocks: : $341 300 ( )
- U.S. Stocks: $55 900 ( )
- International Stocks: $11 400 ( )
- Employer’s Pension Plan: $36 300 ( )
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: $362 500 ( )
- Mortgage -1:$179 100 ( )
- Mortgage -2:$0 ( A new mortgage segment created in Feb 2021)
- Student loan: $5500 ( )
- Margin loan: $111 000 ()
- Credit card 1: $0 ( ) (Paid-off using HELOC)
- Credit card 2: $0 () (Paid-off using HELOC )
- Credit card 3: $15100 (no change) (low interest credit card – 0.99% special rate for 12 months – expires in November 2021)
- Credit card 4: $0 (no changed ) – a promotional offer at 1.99% special rate – expired in March 2020)
- Credit card 5: $0 () (Paid-off using HELOC)
- Credit card 6: $0 – (no changed)
- Credit card 7: $600 (no changed) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 : $12 200 ( ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2021)
- Line of Credit 2 : $0 () – (Paid-off using HELOC)
- Line of Credit 2 (HELOC) : $39000 ( ) – (Interest rate – 2.95% ) I have moved this amount into a new mortgage segment in February 2021. It will reflect in my February net-worth update report.
Net worth : $477 800 ( ) as of January 31, 2021
My net worth was 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 = 1.2738 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.
I’ve also ended up using my House Value in my Networth after I started borrowing from the house to make investments..
However, I have two numbers, Networth (with house) and Networth (without the house).
In addition, I use a VERY LOW value for my home, and increase this by about 1/2 the value that Teranet reports reports as the average house increase.
I do this calculation “every other month” so as to smooth out the numbers.
Hello MaxB,
Thank you for stopping by,
I increase my house value by 2% annually. Always a good idea to calculate our net-worth monthly and see how much we improve from the previous month. Wishing you all the best for your success!
Cheers,