Fiscal Update – May 2013 – Rental Boost

Lady luck has blessed me with a bunch of serendipity again this month \(^_^)/  The financial markets did relatively well (appears we didn’t have a “Sell in May” year,) the US dollar increased, and I was able to bring home $1000 from extra income sources like dividends and a side job. It was also a great first quarter for the North American economy. Canada’s GDP grew at a rate of 2.5% annualized, and the US performed similarly at 2.4%. Here’s the fiscal update.

Capital Readily Available to deploy for the Farmland Fund: $15,000 out of $25,000 needed 😀 This is mainly thanks to savings, selling stocks, and rental income so far.

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*Side Income:
  • Part-Time Work = $600
  • Dividends = $400
  • Farm Rent = $2,600

*Discretionary Spending:

  • Eating Out = $100
  • Others = $100

*Net Worth: (MoM)

  • Assets: = $569,900 total (-$7300)
  • Cash = $3,200 (+1700)
  • Stocks CDN =$74,500 (-$6300)
  • Stocks US = $38,800 ($1700)
  • RRSP = $31,600 ($1000)
  • Home = $252,000 (same)
  • Farm 1 = $152,500 (same)
  • Farm 2 deposit = $17,300 (same)
  • Liabilities: = $396,800 total (-14,300)
  • Mortgage = $202,800 (-$400)
  • Farm 1 Loan = $110,700 (-$200)
  • Margin Loan CDN = $26,200 (same)
  • Margin Loan US = $22,100 (-$800)
  • TD Line of Credit = $22,000  (-11,900)
  • CIBC Line of Credit = $13,000 (-1000)

*Total Net Worth = $173,100 (+4.2%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.04 CAD

Earlier this month I wrote about how I received my first cheque for $2,657 from my tenant 😀 Good thing I traveled to Saskatchewan last year to do some research and bought a farm with just $20,000 of my own money in cash (and borrowed the rest.) And now I’m collecting rent twice a year (over $5000 annually) in perpetuity 😀 Go passive income! The US dollar also strengthened in the month of May (up 3%) compared to $CAD. This means all my stocks is USD (about $39,000) is worth over $1,000 more when I consolidate the currencies to calculate my wealth 😀 Good thing I invested in Disney, Target, Starbucks, and other US companies earlier this year in a USD account :0) Go US dollar!  Stocks did well overall, but I sold about $8,000 near the end of the month (GCL, RET, HAL, TEVA) to pay down my line of credit and some other debts. However I will be re-borrowing the $8,000 again later this summer when my property transaction completes. Go debt!

Overall, that’s a $7,000 net worth increase in one month so I’m certainly not complaining since that’s more than twice what I make from my 9 to 5 job.  I almost feel guilty because most of those good things just happened automatically without me even doing anything special 🙂 Good thing I usually post about what investments I buy so others can do the same if they wish or at least be inspired to reach their own financial goals 😀

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Random Useless Fact: Health tip:13_05_healthyeating

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Michelle
06/01/2013 7:02 am

Great job on your net worth! 🙂

Gareth @ Investment Road to Freedom
Gareth @ Investment Road to Freedom
06/01/2013 8:10 am

Great month for you. Your investment train is gaining momentum every month!

RetireInNiagara
06/02/2013 3:16 pm

Gotta LOVE that rental income, good going Liquid !!! Your blog is always a great read

RetireInNiagara
06/02/2013 3:17 pm

I somehow think most of your readers didn’t even notice the Carls Jr burgers 🙂

Investing Pursuits
06/02/2013 4:10 pm

In regards to your second farm, is the rent going to be paid once twice a year also? If so, what months?

myownadvisor (@myownadvisor)
myownadvisor (@myownadvisor)
06/02/2013 4:40 pm

Great work!!
Mark

SuburbanFinance
SuburbanFinance
06/03/2013 5:40 am

Your net worth is doing awesome! I love your farm income. We dont’ have the capital to do something like that right now having purchased our house a couple of months ago but I love the concept.

studentdebtsurvivor
06/03/2013 5:54 pm

$1000 is pretty great extra income if you ask me. Well done! Looking forward to watching your numbers go up each month.

seapotato
seapotato
06/03/2013 9:16 pm

Ugh, I was definitely not happy about the no “sell in May” thing. I was waiting for the prices to drop a bit so I can buy more. *grumble* I had to just jump right in and just get some stocks at near market because time is money, and I want those dividends! Great job on your income!

Jon
Jon
06/08/2013 5:59 am

Awesome one month increase! I am very interested in your farm rental. I will do some digging on your site to find out more but if you have a few key posts talking about it let me know!

Financial Independence
06/09/2013 4:16 am

I am positively impressed! Are you getting $2,500 a months or $30,000 a year as rent on the farm land which cost $150,000? This is 20% a year! Congrats!

Financial Independence
06/09/2013 4:18 am

Ahh, it is only 5,000..keep on reading 🙂

The add is quite appealing. We do not have the twins in my area.