This is my fifth 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.
In May 2016, my net worth increased by $6900 or 5.39%, thanks to the positive gain in stock market.
A few years ago (when I had a no real job and with a mountain of bad debts), I accidently saw an account balance of one of my cousin brother.
He had over $5000 in his bank account. Honestly, I didn’t want to see his account balance. He showed me something in his bank receipt, and I saw the remaining balance accidently.
I felt like wow! I felt like he is very rich. He could buy anything he wants.
I started to compare my account balance with his account. I had only few dollars left on my account.
I hate compare one person with other. I strongly believe that each person on this earth has a unique skill. So, comparing one person with other one is a fooling idea at least for me.
But for some reasons, I compared my financial situation with other person. I was little stressed. But, I knew I will be rich one day.
Fast forward five years, my total accounts balance is well over $100K, and I my net worth increased over $5000 in a single month.
I still have a mountain of debts, but I consider them as good debts because they generate cash for me.
I brought this story here because whenever I see $5000 number, I see a quick flashback of my cousin’s bank receipts with over $5000 balance.
Also, if you don’t have lot of money know, don’t give up your hope. Just think that you will be a rich one day.
Again, I am not in the rich status now, I will be rich one day.
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.
Financial freedom
Financial freedom doesn’t necessary mean investing in stock market and collect dividend income for a life. It means different things to different people.
Someone wants to travel the world without worrying about job or money and other one wants to work from home so he/she could be able to see their family more often.
Thus, find the meaning for your financial freedom and start doing something to achieve it. It could be anything such as work in your own business, create an online passive income, travel, etc.
I hope you get some values from here.
Now, let’s look at my net worth in numbers.
Last month, my net worth increased by $6900 or 5.39% from my last update.
Year-to-day gain is $26 500.
Net worth update as of May 31, 2016 ()
Assets:$469 600 )
- Cash: $500 (no change)
- Home: $270 000 (no change) – Yearly adjustment with inflation
- Canadian Stocks: :$156 900( )
- U.S. Stocks:$36900 ()
- Employer’s Pension Plan: $5300()
Liabilities:$334 800 ()
- Mortgage :$186 900 ()
- Student loan: $25 700 ()
- Margin loan:$48600 ()
- Credit card 1:$8500 () (low interest credit card – 0.99% special rate for 10 months – will be expired in September 2016)
- Credit card 2:$9800 () (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2017)
- Credit card 3: $24 300 (no change) (low interest credit card – 0.99% special rate for 10 months – will be expired in November 2016)
- Line of Credit 4: $9900 ()(low interest balance transfer – 2.99% special rate for 12 months – will be expired in May 2017)
- Credit card 5: $0 (no change)
- Credit card 6: $0 (no change) (paid-off)
- Credit card 7:$2000 () – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 : $12 000() – (low interest credit card – 2.99% special rate for 12 months – will be expired in April 2017)
- HELOC:$7100 () – (low interest of 3.35% – primte + 0.5%)
Net worth :$134 800 () as of May 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 = 1.28 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.
ADVERTISEMENT
Hey, I just started really actively investing in the last year and recently I’ve been thinking about using my Line of credit to invest too. I’m happy that you tried that strategy where you’re borrowing money to invest and it’s working for you. Please keep up the great work and I’m open to any advice. Like you, I plan to be a millionaire in the next ten years.
Hello Thao,
I am so glad that you like my strategy, but you have to understand that leverage investing is very risky.
Wish you best of luck in your million dollar journey!
That’s a pretty nice gain in net wroth for the month. Of course, stock values can rise and fall quickly and can affect your overall net worth picture. I prefer to look at the income my assets return rather than their value. It may be real estate, dividend stocks, etc. I find the income these assets produce more important than over value the asset has on its own. Thanks for sharing.
Hi DivHut,
You are absolutely correct DivHut. I always look how much dividend income I receive rather than think about how much my portfolio value increased.
Cheers,
i like your gut, i use those leverage tool myself but not at your
level . Take care of your nerve and focus on the big picture, you r
on the path of welf. Courage and tenacity and luck, you need luck.
I wish you luck and clear vision on what ahead.n
Hello Normand,
Thanks for stopping by,
Leverage investing is very risky. I totally understand it, but I love to take risk by adding spicy in my life. Actually, I invest in boring blue chip stocks, so doing some leverage approach is giving me a life in my adventure journey 😀 .
This risky approach is not suitable for everyone.
Cheers,