Fiscal Update – Nov 2013 – Assets Milestone

When I first started this blog in 2010, I only had about $300K of financial assets. I thought that was a lot of money back then, but as I learned more about personal finance I realized that it’s actually not that much. The average household net worth in Canada today is $400K. I looked at other people’s balance sheets and was really inspired by bloggers from Planting Our Pennies. They have multiple rental homes, multiple cars, and lots of stock investments 🙂 It’s because of the success of other people that has given me the motivation to work hard.

Today I still do not have a $400K net worth. But I have however broken $700K in assets for the first time ever 😀 I am now in the same boat as many of my online friends and acquaintances like the P.O.Ps. I feel like I fit in more now.

*Side Income:

  • Part-Time Work = $400
  • Dividends = $400
*Discretionary Spending:
  • Eating Out = $100
  • Others = $2,000 (closing costs on farm)

*Net Worth: (MoM)

  • Assets: = $738,800 total (+156,700)
  • Cash = $1200 (-5100)
  • Stocks CDN =$76,900 (800)
  • Stocks US = $45,000 (+1600)
  • RRSP = $38,700 (+5800)
  • Home = $252,000 (same)
  • Farms = $325,000 (Farm 1 old value of 152,500, plus Farm 2 purchase price of 172,500)
  • Debts: = $534,600 total (+155,500
  • Mortgage = $200,700 (-400)
  • Farm Loans = $209,300 (+99,800)
  • Margin Loan CDN = $26,100 (Same)
  • Margin Loan US = $23,600 (+100)
  • TD Line of Credit = $35,900  (+17,000) $9,000 of this account was used for investment purposes.
  • CIBC Line of Credit = $15,000 (new)
  • HELOC = $18,000 (new)
  • RRSP Loan = $6,000 (new)

*Total Net Worth = $204,200 (+0.6%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.05 CAD

Managed to squeeze in a small net worth increase despite some pretty big expenses in November. The legal fees were $1,700 to buy the farm, plus $300 for notarization so I didn’t have to be in Saskatchewan to sign the papers. Most of my debt is used to leverage against financial assets but I still have about $59,900 of consumer debt which I spent on living expenses and luxuries because #YOLO 😉

Cash – I used most of my reserve cash funds to complete the farm purchase. This would be the second farm I bought 🙂
RRSP – I borrowed $6,000 to invest in my retirement account. The borrowing cost is at 4% interest rate, not bad. I haven’t bought anything yet, but I’m looking at Cisco, Coke, Pepsi, Comcast, IBM, and Lockheed Martin 😀
Farms – In my previous Fiscal Update I listed my 1st farm with a value of $152,500, and a 10% deposit on my 2nd farm. From now on they will be combined.
Farm loans – I got a $100,000 loan from the bank to buy my 2nd farm. I’ve combined the value with my existing loan for the 1st farm.

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JC @ Passive-Income-Pursuit
12/01/2013 4:17 am

Congrats on crossing the $700k assets level! I’m kind of like you where I thought I was doing well and then I look at where some other people are at and it just motivates me to try and catch them.

12/01/2013 5:35 am

You are crushing it. I commend anyone able to wisely use historically low interest rates to buy appreciating assets for the long term. Delaying gratification and working hard in your first years out of school has always proven to be the winning strategy, great job (see financial samurai, MMM, etc).

12/01/2013 6:08 am

Congrats…could you post a P&L for the farm business in the future

12/01/2013 6:26 am

Nice job! Love the aggressive mentality you’re using to accelerate your pursuit of financial freedom. I think the two farms will prove to be huge assets for you down the road as the debt gets retired and the rental income and appreciation continues to grow.

12/01/2013 7:18 am

I don’t think one should ever stop saving! Even Bill Gates fought the tax assessment on his house!

12/01/2013 11:20 am

$700K in assets is no small feat. Congrats!

Investing Pursuits
12/01/2013 2:39 pm

Nice update. Nice to see the second farm included in this way instead of the farm deposit. I am curious what the farm loan payment will be combined for the two farms. Are you now cashflow positive in regards to the farms?

12/01/2013 5:10 pm

Wow! That is a big asset column!

12/01/2013 6:26 pm

The results are because you have dreams, and plan to achieve them. Good on ya my friend at yet another positive month! I will suggest a vacation to you at some point… maybe a camping trip to Saskatchewan on some land you own out there! All I have to say, is please, please keep a close eye on that debt ratio. when things work out there great, but I hope you have a plan should plan B need to be executed. You always, always must have a have a plan B in your pocket – Cheers.

Alex Yang (@yyangalex)
12/03/2013 6:49 am

congrats! i’ve been neglecting my blog as i’ve been busy. hehe
keep on truckin and you’ll see a mil in assets in no time 🙂

12/04/2013 12:35 pm

Climbing up the asset ladder fast! WHat will your next acquisition be?
Finally, I’m closing in on my condo purchase… hopefully I can rent it out soon after!! Passive income here I come.

Mark @ myownadvisor (@myownadvisor)
Mark @ myownadvisor (@myownadvisor)
12/04/2013 6:02 pm

Great work. How old are you again?


Laura / No More Spending
Laura / No More Spending
12/05/2013 10:04 am

Congratulations – you’re really doing it!

12/08/2013 9:05 pm

Congratulations on reaching a fiscal milestone. What is it like owning/selling a farm? I have friends in the farming industry and although it intrigues me I don’t think I have the fortitude for it. Best of luck as you continue to build your net worth.