Welcome to my tenth net-worth update for the year 2018.
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 was down by 1.75% in October 2018.
No surprise!
High flying tech stocks, energy producers and emerging weed sectors took hard hit; luckily, I don’t have big exposures in any of those sectors.
As results, my portfolio damages were very minimal compared to the overall market; however, some of my holdings came down along with the market, but most of them have recovered later.
As I mentioned in my last post, when you have a market correction, it will bring down everything, whether you have good stocks or not.
Again, market corrections and stock price fluctuations are pretty much normal part of any investment. If you can’t live with it, then you shouldn’t be in the market.
Important to remember that we all are human, and we filled with hopes and dream about getting rich by investing our hard earned money into stocks.
We also filled with fear and confusion.
And also we have a hope that the stocks we purchased constantly rising high forever.
But, in real life, it doesn’t happen all the time.
As results, our fear and confusion start to overtake our hopes and dreams and trigger a massive sell-off in the market.
I am a long-term investor and a net buyer of asserts over my lifetime. I actually like lower price because returns are higher when prices go lower.
I am not saying I am a perfect guy. I made a couple of mistakes in my investment journey and some of my stocks took hard hit and didn’t recover.
But my overall returns are quite good. I would say I am a lifetime learner and will learn from the mistakes and continue improving my results.
If you have a sound investment strategy and own fundamentally sounds companies, then doing nothing during this type of market corrections would be the best decision you can make.
“You will not succeed if you trade a lot. You can only win the investment game by actually being an investor” says Lowell Miller, author of my one of the favorite investment book titled Creating Wealth with Dividend Growth.
Disclosure: This post contains affiliate links. Therefore, I will earn a commission when you use the links to purchase products or services from Amazon (at no additional cost to you).
Let’s see all the details in numbers
Net worth update as of October 31, 2018 ()
Assets: $527 800 ( )
- Cash: $900 ()
- Home: $280 500 (no change) – Yearly adjustment with average inflation rate of 2%
- Canadian Stocks: : $182 400 ( )
- U.S. Stocks: $42 400 ( )
- Employer’s Pension Plan: $21 600( )
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: $320 000 ( )
- Mortgage : $172 700 ( )
- Student loan: $18 800 ( )
- Margin loan: $65 400 ()
- Credit card 1: $9000 () (low interest credit card – 1.99% special rate for 8 months – will be expired in January 2019)
- Credit card 2: $0 ( – paid-off) (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2019)
- Credit card 3: $5200 ( ) (low interest credit card – 0.99% special rate for 12 months – will be expired in December 2018)
- Credit card 4: $13 900 ( – a promotional offer at 0.99% special rate – will expire in February 2019)
- Credit card 5: $3300 ( ) – (low interest credit card – 1.99% special rate for 10 months – will be expired in October 2018)
- Credit card 6: $11 300 ( ) – (low interest credit card – 0.99% special rate for 12 months – will be expired in September 2019)
- Credit card 7:$500 ( ) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 :$19900 ( ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in December 2018)
- HELOC: $0
Net worth : $207 800 ( ) as of October 31, 2018
My net worth was down 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 = 1.3132 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.
Hi FJ
You are on the good path and I hope you will achieve your goal.
Still your goal is really high and only relying on borrowing and investing you might not be able to get there.
With the existing increase in the rates and possible recession it will be challenging for you.
From my experience, if you want to get wealthy you need a few more income sources instead of relaying only on saving.
Here is what I applied in my situation:
-have an achievable goal
-buy an affordable house to live in
-invest in your carrier and get a good paying job… this is most important step
-or open a successful business
-invest in market
-invest in real estate
-invest in any other opportunities
-be wise with your money
-borrow to invest if the conditions are acceptable (be careful with the raise in the interest)
-be healthy and enjoy your life (second most important)
Good luck and I will follow your progress!
Hello Cris,
Thank you very much for your suggestions 🙂
I think I’m just missing only one thing from your suggestions, which is invest in real-estate. I was planning to purchase a rental property in Ottawa area last year, but after few back and forth trips, I decided to postpone the plan for a couple years due the financial availability and some other issues.
May be I will consider invest in real-estate after I reach complete my first stage of my journey 🙂
Thank you once again,
Best Regards,
Market sure has been volatile for the last couple of months. Luckily this little drop in net worth doesn’t affect the annual dividend income!
Hello Dividend Deluge,
Thank you for stopping by,
Market volatile doesn’t affect my dividend income. In rare cases, some companies decide to cut/eliminate their payouts; however, the damages greatly offset by dividend hikes from other companies.
Best regards,