June 2016 Fiscal Update

 New Milestone 

It has been a surprisingly eventful month in the markets. Volatility was high during the last week of June but in the end North American stock markets ended relatively flat. The Dow Jones was up slightly, but the Nasdaq fell. The TSX Comp in Canada dropped by about 1%. However my mining stocks performed really well so they lifted up the rest of my portfolio and I managed to make a 2.65% positive return overall according to my brokerage statement. 🙂 This has pushed my net worth to over $500K for the first time ever!

16-06-june-return-td-bank-monthly

Liquid’s Financial Update

*Side Incomes:

  • Part-Time = $1200
  • Freelance = $1500
  • Dividends = $600
  • Interest = $200
*Discretionary Spending:
  • Fun = $400
  • Debt Interest = $1300

*Net Worth: (MoM)

  • Assets: = $993,500 total (+8,800)
  • Cash = $16,700 (+5200)
  • Stocks CDN =$116,600 (+2500)
  • Stocks US = $68,800 (-700)
  • RRSP = $72,300 (+1800)
  • Mortgage Funds = $23,100
  • Home = $263,000
  • Farms = $433,000
  • Debts: = $483,900 total (-2,500)
  • Mortgage = $188,300 (-400)
  • Farm Loans = $194,900 (-500)
  • Margin Loan CDN = $28,300
  • Margin Loan US = $25,100 (-400)
  • TD Line of Credit = $19,500  (-500)
  • CIBC Line of Credit = $10,000 (-500)
  • HELOC = $17,800 (-200)

*Total Net Worth = $509,600 (+$11,300 / +2.27%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.78 USD

A big help in June was the rise of commodity prices. The price of silver increased over 20%. My Silver Wheaton shares gradually went up from $18 to $30 per share over the course of the month. This change alone added about $2,000 of value to my net worth. Next month’s goal is to increase my gross assets to $1 million. 🙂

__________________________________
Random Useless Fact:

16-06-how-british-people-shower

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Financial Canadian
07/04/2016 8:56 am

Hey Liquid,

Really cool to see you keeping track of your net worth so regularly. I like how you separate assets and liabilities – a lot of other people don’t list assets and liabilities separately for things like margin accounts.

Congrats on passing $500,000 and keep up the good work!

FC

Stone sample case
Stone sample case
07/05/2016 12:43 am

It has been a surprisingly eventful month in the markets.

Finance Journey
07/05/2016 4:36 am

Congrats for your $500K networth milestone. Keep it up.

FerdiS
07/05/2016 7:02 am

Congratulations on hitting 0.5 million! That’s a great milestone to reach — keep up the good work!

Brian Lund at Measured Money
07/05/2016 10:39 pm

Boom! 1/2 a mil! Congrats on the MILestone. And the random useless fact had me like :^0

DivHut
07/05/2016 11:56 pm

Silver has been on a real tear in recent days. No doubt the precious metals will continue to perform well as long as there is all this uncertainty from Europe. Nice job with your dividend income too. Thanks for sharing.

Anon
Anon
07/06/2016 4:42 am

What would your NW be without the leverage?

BeSmartRich
07/06/2016 6:07 am

Another $11,000 up. Amazing! Your prudent use of leverage is really paying off.

We just achieved $200K of milestone since we started financial independence journey 2 years ago. It wasn’t easy but I can see the growth getting faster and faster. I am very glad that we are doing it together.

Cheers.

BeSmartRich

Guedy
Guedy
07/06/2016 6:45 am

Your number does not add up.

You previously said you earned $25/hour, so your monthly cash income should be:

Full time job (Estimate) = $3,000
Part-Time = $1200
Freelance = $1500
Dividends = $600
Interest = $200
Total = $6,500

Your expense are:

Fun = $400
Debt Interest = $1300
Assuming that you don’t have to pay utilities bill, or groceries, or phone, insurances…
Especially the cost of living in Vancouver is quite high.
Total = $1,700

Net cash flow = $6,500 – $1,700 = $4,800

So I don’t know where you got the cash to save $5,200 and paid off $2,500 in debt.
As you said:

Cash = $16,700 (+5200)
Debts: = $483,900 total (-2,500)

Anon
Anon
07/06/2016 9:50 am

Why do you include “home” in your NW calculations?

Anon
Anon
07/06/2016 9:12 pm

Oh.
Just like all those “home”made millionaires livin’ in Vancouver….with not a dime to spend. Weird that.

Anon
Anon
07/06/2016 9:41 pm

you should goog ‘oecd lws’ — 35 of the wealthiest nations agree to define ‘primary residence’ as a non-financial asset.

but whatevs. creative accounting. 🙂

anonymousengineer
anonymousengineer
07/07/2016 6:10 am
Reply to  Anon

hardly justifies the term ‘creative accounting’

Anon
Anon
07/07/2016 10:01 am

If a component is defined by 35 governments — Canada included — as X, but your personal belief utilizes that component as Y, then you have just created accounting.

Truth and facts…bah! Who needs ’em!

I guess it’s true — we are richer than we think!

Timmy&TheLordsOfThe Underworld
Timmy&TheLordsOfThe Underworld
07/07/2016 10:26 am
Reply to  Anon

There’s confusion between “net worth” and “financial assets”. “Net worth” is simply the sum of an individual’s assets, less liabilities, regardless of how those assets are allocated. “Financial assets” refers to assets that are cash, contractual rights to cash (such as a bond) or equity instruments (such as stocks). Anon – according to the study you referenced (http://www.oecd.org/statistics/OECD-Guidelines-for-Micro-Statistics-on-Household-Wealth-AnnexB.pdf – page 2), a principal residence is clearly including in the calculation of net worth (see the table), but is not part of financial assets. If we examine the component’s of LI’s net worth ($510K), we see that he has $197K in financial assets (net of financial liabilities), $75K equity in his principal residence, and $238K equity in other (income generating) real estate. Therefore each of these statements is correct: – LI has a net worth of $510K. – LI has $435K of assets (both financial and non-financial, net of the corresponding liabilities) generating passive income. – LI has financial assets $298K and financial liabilities of $101K. Finally, let’s not confuse net worth with liquidity. Someone could have a $1.5M home and a $500K mortgage, with no other assets or liabilities. They would have a high net worth, but would face a… Read more »

Anon
Anon
07/07/2016 3:51 pm

“I consider my home to be a financial asset.” — LI

Is that a correct statement?

I think many people confuse net worth/wealth/liquidity, as demonstrated by the use of incorrect definitions.

(Not sure why I care….)

Timmy&TheLordsOfThe Underworld
Timmy&TheLordsOfThe Underworld
07/08/2016 4:22 am
Reply to  Anon

I missed that comment. I agree with you – LI is incorrect to categorize his home as a financial asset. It’s part of his net worth, but not part of his financial assets.

vivianne
vivianne
07/13/2016 5:18 pm

I also consider my home in my networth calculation, as it is also a rental property. I live in 1 of the 3 units. The reason being, one day I might just sell everything, and live a nomad life in SouthEast Asia or anywhere else I please, I’d still able to cash out on my house, just rent a nice place for less than $500/mo, living the dream, so why not?!!

Well, for the super wealthy, some of them don’t consider the primary residence in their networth as it is not liquid. That’s just their choice and opinion, as we all have our own.

Great job on using leverage to build a massive amount of networth at such a young age. I admire you, I wish my younger self was as smart as you!

Anon
Anon
07/17/2016 7:08 am
Reply to  vivianne

“I also consider my home in my networth calculation, as it is also a rental property. I live in 1 of the 3 units.”

For this reason you no longer have full utilization of your asset. In reality you should only include 2/3rds of the property value in your calculations.

“The reason being, one day I might just sell everything, and live a nomad life in SouthEast Asia or anywhere else I please, I’d still able to cash out on my house, just rent a nice place for less than $500/mo, living the dream, so why not?!!”

Not even logical.
I own a lottery ticket for the $50+ million jackpot. One day I MIGHT win that jackpot, so this week I’m going to add those millions to my net worth. Why not?!! In fact, I’m going to be buying lotto tix every single week…and every single week I MIGHT win…so every single week I’m going to be a millionaire.

No wonder so few people are actually wealthy.

Investing Pursuits
07/06/2016 5:47 pm

Liquid,

Congrats in surpassing the $500000 mark for networth.

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