Net worth update – October 2018

Welcome to my eighth 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 up just by 0.33% last month. It was another tiny change in the positive direction.

My assets value reached its highest level in mid-August and then slipped down a bit. Thanks to my dividend income for saving me from a major setback.

A couple of my major holdings, such as CNR, BIP.UN, ENB, etc, are currently trading well below from their all-time high; however, the damages are not significant for two reasons.

First, I bought them a while ago for a much lower price than now. Second, the current downside was covered up well by the dividend income generated from my investment assets.

Therefore, the total return of my investments is quite good.

But, it could be much better if I had diversified my portfolio properly with U.S stocks in my early stage, rather having more in Canadian equities.

As of this writing, TSX is up around 2% (may be less than that) from its pre-financial crisis (without dividends).

Over the same period, the total return (with dividend) of the index is around 40%. That still translates into annual returns of around 3.2% to 3.5%. Real return after the inflation & tax is almost nothing.

Obviously, it is a decade of lost returns for ‘home bias’ Canadian index investors.

Hopefully, things might get improved and TSX may move higher from here. And, Canadian investors will cheer up one day.

Maybe it is a great time for those in the accumulating stage as we can buy stocks for lower price.

Regardless, I am a dividend investor. I buy stocks that pay dividend and majority of them increase their dividend at least once a year. That is to say, I get paid no matter what market does.

My net-worthy may experience ups & downs, but my dividend income will be steady, and grow over time.

And, history shows that dividend-paying stocks are both less risky and more profitable than most stocks. Also, during the broader market declines, they hold up better than non-dividend-paying stocks.

The reason is obvious: the majority of the investors buy dividend stocks for income purpose.

They don’t want to cut their pay during the market declines by selling their assets at a lower price.

Let’s see all the details in numbers

Net worth update as of September 30, 2018 (+0.33%)

Assets: $534 700 (-$1300 )

• Cash: $1200 (+$400)


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


• Canadian Stocks: : $189 500 ( -$2000 )


• U.S. Stocks: $42 700 ( -$200 )


• Employer’s Pension Plan: $20 800( +$500 )

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

Liabilities: $323 200 ( -$2000 )

• Mortgage : $173 400 ( -$400 )


• Student loan: $19 300 ( -$500 )


• Margin loan: $65 800 (no changed)


• Credit card 1: $9100 (no changed ) (low interest credit card – 1.99% special rate for 8 months – will be expired in January 2019)


• Credit card 2: $700 (-$13000) (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2019)


• Credit card 3: $5300 ( -$100 ) (low interest credit card – 0.99% special rate for 12 months – will be expired in December 2018)


• Credit card 4: $14 000 (-$100 – a new offer at 0.99% special rate – will expire in February 2019)


• Credit card 5: $3400 ( -$100 ) – (low interest credit card – 1.99% special rate for 10 months – will be expired in October 2018)


• Credit card 6: $11 600 ( +$11 600 ) – (low interest credit card – 0.99% special rate for 12 months – will be expired in September 2019)


• Credit card 7:$600 ( +$400 ) – (regular expenses)- high interest rate of 19.99%.


• Line of Credit 1 :$20000 ( +$200 ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in December 2018)


• HELOC: $0

Net worth : $211 500 ( +$700 ) as of September 30, 2018

My net worth was up by +0.33% since my last update.

Note

• all amounts are rounded to the nearest $100;
• all numbers are in CAD; and
• Conversion rate 1.00 USD = 1.2927 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.