Dow Jones trading over 21,000 points
It’s only the beginning of March and the stock market indexes are already up 6% to 9% year to date in the United States. The Dow closed over 21,000 points last Friday. Of course hitting new highs is nothing special for the stock markets. But who knows how long this momentum will last. We have confirmation from the Federal Reserve that interest rates in the United States will increase next week by a small amount. I expect this will cool the financial markets. Afterall, since World War II, 77% of Fed tightening cycles had ended in recession.
It has been a fairly predictable month for myself. I’m slowly collecting passive income while paying down my debts.
Liquid’s Financial Update
*Side Incomes:
- Part-Time = $800
- Freelance = $700
- Dividends = $800
- Interest = $200
- Fun = $500
- Debt Interest = $1200
*Net Worth: (MoM)
- Assets: = $1,088,400 total (+5,200)
- Cash = $1,500 (+400)
- Canadian stocks = $138,200 (-1000)
- U.S. stocks = $90,800 (+4900)
- U.K. stocks = $19,300 (+700)
- RRSP = $74,900 (-100)
- Mortgage Funds = $30,600 (+200)
- Peer-to-Peer Lending = $20,100 (+100)
- SolarShare Bonds = $10,000
- Home = $270,000
- Farms = $433,000
- Debts: = $494,400 total (-1,800)
- Mortgage = $184,800 (-400)
- Farm Loans = $190,900 (-500)
- Margin Loans = $59,600 (+300)
- TD Line of Credit = $15,400 (-600)
- CIBC Line of Credit = $27,000 (-500)
- HELOC = $16,700 (-100)
*December Total Net Worth = $594,000 (+$7,000 / +1.2%)
All numbers above are in $CDN.
Lucky me. It was another positive month in general for the markets. I’m very close to $600,000 now. 🙂
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Random Useless Fact:
Our brains tend to find creative ways to be entertained when we’re bored.
At 10% growth rat, you’ll double your net worth in 7 years, with added income, you can double it in 4 years, even shorter. I followed your blog when you have the close to $300k, 2 years later you’re at $600k. Dang!
Thanks Viv. It helped a lot that I was using a 2.5x leverage strategy 2 years ago. Although I had $300K net worth, my investments were worth over $800K. As luck would have it the markets performed exceptionally well over the past 2 years so I didn’t have to save too much additional money to grow my bottom line by $300K. 🙂 Since earnings yield in 2017 appears to be slightly lower than in 2015 I’m pulling back my leverage a bit to 2.0x now to adjust to the new environment. In general borrowing to invest still makes sense to me because my expected average return is 3% to 4% higher than my cost to borrow.
Great job on that side income and net worth. 🙂 Our net worth is quite in the red since we’re still in the getting-out-of-debt phase of our FIRE journey, but it feels AWESOME to have our net worth steadily grow each day. Ahhh.
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man nice increase over the last 8 years. That’s fantastic. where are you freelancing to make that kind of income?
I do freelance graphic design as well as do editor work for a prominent financial news website in my spare time. 🙂
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