Jul 032012
 
After a few months of stagnation my net worth is finally starting to climb up again. This is largely thanks to a bonus check I got in June.  We don’t get bonuses every year so we were lucky this time. I almost feel bad accepting it though because Italy (the world’s 8th largest economy, which is even larger than Canada’s) has an unemployment rate over 10%.  Not to mention the millions of people in eastern US without electricity. And yet I work in an air conditioned building and get paid (O_o). Can you imagine living in a world without electricity/internet? You can’t even tweet about how frustrated you are. Good news is Canada has sent a team of professionals to help. I don’t know how long it’ll take their canoes and dog-sleds to get down there though ;). Anyway, I hope they can get the power back soon.
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*Side Income:
  • Part-Time Work = $1100
  • Dividends = $300

*Discretionary Spending:

  • Eating Out = $100
  • Others = $100

*Net Worth: (MoM)

  • Assets:
  • Cash = $3,000 (+$1000)
  • Stocks = $74,600 (+$6,200)
  • RRSP = $31,100 (+$10,400)
  • Home  = $248,000
  • Liabilities:
  • Mortgage = $206,500 (-$300)
  • Margin Loan = $18,900 (+$1,500)
  • RRSP Loan = $10,000 (+$10,000) <– New Debt
  • Bank Line of Credit. = $1000 (+$1,000)

*Total Net Worth = $120,300 (+4.7%

For the first time in my life I am holding over $100,000 worth of stocks. The process to get here was pretty straight forward. In 2009 I saved about $10K, the following year $20K, and last year I saved about $30K. The main catalyst fueling this growth in savings is increased earnings with controlled spending. For example I used 100% of my bonus this year to buy stocks which distributes about $15 per month in dividends. This means I just increased my income by $15 a month instantly!  And from now on this new found income ($15/month) will go directly into purchasing more stocks to make me even more money (DRIP.)  At no point during this entire process does my expenses ever increase. And why should it? It’s not like my car needs repairs or I have the sudden urge to go traveling or anything ( ・_・) Other ways I increase my earnings are: getting a raise at work, increasing my tutoring fee, dividend increases on stocks I own, etc. It’s true, that the more money you make the more you can spend. But stay wise my friends, “can spend” should never be confused with “should spend.”  I’m also using leverage to get my assets over $100K :D. In fact just recently I borrowed $10,000 from the bank to fund my retirement account (RRSP.) Without leverage I would probably have only around $70,000 today.

* Numbers are rounded to the nearest $100.

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16 Comments on "Fiscal Update – Jun 2012 – $100,000 Milestone"

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Modest Money
Guest

Nice work man. You’re kicking some ass on that aggressive investing. So many people would be envious of that kind of portfolio and net worth at such a young age. You’re really setting yourself up for the future with the sacrifices and smart moves you’re making today. I should take a cue from you.

Liquid
Admin

Thanks, I do what I can. I just hope the stock market doesn’t crash when it’s time to finally start taking my money out to spend on the future wife, kids, and my own retirement. One of my personal life goals is to travel into space, for real :D. All investments carry risk, I think the biggest risk to me right now is becoming over confident in my ability to continue doing well lol.

Phil
Guest
Phil

Be patieant and time will reward you… It always rewards those who are pateint and have a plan 🙂

Liquid
Admin

Couldn’t have said it better meself.

Not Working
Guest
Not Working

Congrats ! I can’t wait to have to much invested into the market 🙂 Fund update coming soon ?

Liquid
Admin

I guess it’s time to update my hedge fund again. Well post about some new stocks soon.

Vicky
Guest

I think that it is great that you appreciate how lucky we are to live where we live! 🙂

Congrats on hitting the $100K in stocks mark! Although, its kind of cheating if the money isn’t really yours. 😛 j/k. What kind of rate did you get on the loan? What kind of tutoring do you do, btw? Not sure if I have asked you before.

Liquid
Admin

4% on the loan. Not too high, not too low. I tutor desktop publishing and graphic design. Haha, yeah owning something while I owe someone else the same amount of money doesn’t do anything for my net worth presently.

agentfang
Guest

Congrats on hitting your $100k mark in your stock portfolio! You got an excellent knack for creating wealth for a young guy, kinda jealous haha in a good way of course. All the side income really does add up nicely. Ever consider paying off your mortgage faster and just be done with it?? Unless you got a wonderful rate.

Liquid
Admin

My mortgage rate is 3.4% fixed. I got it back in 2009, but you can probably find a 4 year fixed for cheaper today (^_^). I don’t have any immediate plans to pay off my mortgage sooner. Regardless of how much extra I pay back the bank it doesn’t have any effect on the future value of my home. But putting off investing now has a big impact on the value of my retirement fund when I’m older especially if I lose the advantage of compounding. Real estate and stocks tend to appreciate over time. But debt (such as a mortgage) depreciates due to inflation. That’s why I see greater value to chase inflation protected assets like land and companies that sell products with growing earnings and dividends, than paying down a cash balance that’s only going to get cheaper to pay off anyway in the future :D. I don’t know, maybe that’s just my thinking lol.

MyMoneyDesign.com
Guest
MyMoneyDesign.com

You’ve got the right idea my friend. Keep increasing your income, but don’t change your expenses. That way you can just bank your bonuses and really accelerate your savings. I also have a goal next year of 100% investing my whole bonus check!

Liquid
Admin

Excellent goal, your future self will thank you for sure :0)

theoutliermodelan
Guest

Great to see some real numbers – We’re still in the phase of saving ~10K per year while we divert other funds to buy a second property. This is great motivation to kick the retirement saving up another notch once the next condo is bought!

Liquid
Admin

I want to buy a second property too. Not as easy as it sounds in our city though haha. But I have a feeling prices are about to cool off as we head into the second half of this year.

RetireInNiagara
Guest

“It’s true, that the more money you make the more you can spend. But stay wise my friends, “can spend” should never be confused with “should spend.”

Well said !!!

I’m guessing www dot ItstruethatthemoremoneyyoumakethemoreyoucanspendButstaywisemyfriendscanspendshouldneverbeconfusedwithshouldspend dot com is too long of a name for a website ? lol

Liquid
Admin

Lol thanks. You can register that domain name for yourself if you want.

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