Net worth update – March 2018

This is my second net-worth updates report for the year 2018. 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 by December 2024 (10 years plan). I have a strong believe that I can achieve this goal by saving and investing in high quality dividend paying blue-chip companies. I am 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 later part of my journey.

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 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 publickly track my progress and get valuable advice from like-minded people.

In February 2018, my net-worth was down by $5200 or 2.65% from the last month updates, admid the recent upward trends in interest rates.

It is an expected result for me as the majority of our asset values are tide with the stock market, so my net-worth is depending on the markets performance.

A few years ago, I had only few bucks in stocks and also my wife was working. Thus, falling stock prices weren’t a big deal as our saving rate can make up for it and our net-worth went up each month.

Now my financial situation has been changed. I have over $220 K worth of assets in the stock market, and we are a single income family with a small kid. A few percentage ups/falls in the market would give a significant change in our net-worth. Our saving rate won’t help to make up for it.

And, it is not a first time I am experiencing a market correction. I have gone through stock market corrections before and I think I handled them pretty well too, buying good companies at discount.

I am doing exactly what I did before. I have been adding few high quality stocks from the depressed sectors. It helps boost my estimated yearly passive income to record high.

It is an unrealistic expectation to see our stocks go up in straight line forever. In reality stocks go up and down. It is a nature and we can’t control it.

If you have setbacks due to the recent sell-off, just relax. You are not alone. Take a time to review your holdings, and ensure that they can go through any economic cycles and continue make revenue for long-term. If you are unsure what to do, then seek advice from qualified financial professional.

Making any decisions in panic period may not help you for long-term wealth building.

Please note that my financial situations and risk tolerance will be much different than yours. We all are unique in nature. As I always say, do your own research or discuss with a qualified professional before make any decisions.

Net worth update as of February 28, 2018 (-2.65%)

Assets: $519 600 (-$2700)

• Cash: $700 (+$200)


• Home: $280 500 (no changed) – Yearly adjustment with average inflation rate of 2%


• Canadian Stocks: : $182 000 ( -$2300)


• U.S. Stocks: $39400 (-$1100)


• Employer’s Pension Plan: $17 000(+$500)

Liabilities: $328 800 (+$2500)

• Mortgage : $176 800 (-$400)


• Student loan: $21 600 (-$200)


• Margin loan: $69 300 (-$6600)


• Credit card 1:$6100 (-$100) (low interest credit card – 1.99% special rate for 8 months – will be expired in July 2018)


• Credit card 2:$10 000 (+$10 000) (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2019)


• Credit card 3:$10 500 (-$200) (low interest credit card – 0.99% special rate for 12 months – will be expired in March 2018)


• Line of Credit 4: $4600 (no change) (low interest credit card – 0% special rate for 12 months – will be expired in June 2018)


• Credit card 5: $6000 (no change) – (low interest credit card – 1.99% special rate for 10 months – will be expired in October 2018)


• Credit card 6: $8600 (no change) – (low interest credit card – 2.99% special rate for 8 months – will be expired in August 2018)


• Credit card 7:$500 (no change) – (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 :$14 800 (no change) – (low interest credit card – 2.99% special rate for 12 months – will be expired in December 2018)


• HELOC: $0

Net worth :$190 800 (-$5200) as of February 28, 2018

My net worth was down by -2.65% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.2806 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.

Please share how are you managing the recent market sell-offs?