The owner of the company showed up to the office one day in a fancy new sports car. One of his employees complimented him on the new vehicle. “Well,” replied the business owner, “if you set goals, show determination, work really hard and put in the long hours, I can get an even better one next year.” 😀
The moral of this short story is simple. If we want to drive nice cars we have to own companies. But not everyone is suitable to become an entrepreneur. Well thankfully the securities exchange commission requests any corporation with over 500 shareholders to become a publicly traded company. This means anyone can own a piece of the company and be entitled to its future profits and dividends. 🙂
Owners of companies in major stock markets around the world rejoiced as stocks gain in February. Dividend stocks have been particularly strong in South East Asia recently. The Indonesia stock market hit an all-time high. U.S. stock market indexes are up 5% month over month. Earlier this week the Nasdaq went over 5000 points for the first time in 15 years! This is why I’m heavily invested in stocks (company ownership) and don’t keep a lot of cash sitting in the bank. When the Canadian stock market gained 3% in February, my portfolio gained thousands of dollars!
- Part-Time Work = $700
- Dividends = $500
- Fun = $200
- Debt Interest = $1500
*Net Worth: (MoM)
- Assets: = $854,600 total (+7,300)
- Cash = $4,000 (+800)
- Stocks CDN =$90,900 (+2500)
- Stocks US = $59,100 (+3000)
- RRSP = $53,600 (+1000)
- MICs = $15,000
- Home = $259,000
- Farms = $373,000
- Debts: = $514,600 total (-2,100)
- Mortgage = $195,000 (-400)
- Farm Loans = $202,600 (-400)
- Margin Loan CDN = $26,800
- Margin Loan US = $25,800 (-500)
- TD Line of Credit = $29,500 (-300)
- CIBC Line of Credit = $10,000
- HELOC = $18,200
- RRSP Loans = $6,700 (-500)
*Total Net Worth = $340,000 (+$9,400 / +2.8%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.79 USD
“Over the last decade,” says automotive economist Dennis DesRosiers, “the luxury market for new vehicles has increased by about 50%” in Canada. And if we look at the chart of the Canadian stock market index (TSX Composite) over the same 10 year period, we’ll see that it has gained by about 50% as well. In 2005 the index was at 10,000 points. Today it’s around 15,000 points. So there we are; a direct correlation between business ownership and luxury car sales. 🙂 It wont be long before I can afford to buy a new sports car myself. 😀
Random Useless Fact:
Both versions exist
$9400 increase in a month is amazing. It is more than 3 month day job salary for many of us. You are very close to 1 million dollar asserts value. Keep forward!!
Thanks. It’s been a long process but I’m slowly getting there. 🙂
Great job on increasing the NW by nearly 10k. I think the February stock market performance helped us all get a little boost!
I have seen similar gains from other finance bloggers for the month of February. Rising water in a bathtub raises all rubber duckies. 🙂
Nice job making forward progress on both sides of the balance sheet 🙂
Increasing assets and decreasing liabilities simultaneously will get me to financial freedom twice as fast as just doing one or the other. 🙂
Very good looking numbers there Liquid.
Thanks pal. 🙂 The stock market has really been a blessing so far this year despite some poor performance with some oil companies.
u get up at 6AM to write all this?
Not quite. I actually wrote this last night and scheduled my blog to publish this post early this morning. When I went on vacation last year I scheduled multiple posts across a span of a week so the site would get some new content even when I’m not available to write. 🙂
Farmland has paid off well for me. And not bad yourself with almost $200K to your name. 🙂
Haha – I love that little story! Certainly the case with the partnership that I work for, working hard to put extra money in their already very deep pockets.
That net worth chart is awesome, nice work in Feb!
It’s tough for the average bloke to make a quid these days. 🙂 I hope you had a great month as well.
Trust me, by the time you get to the point where you think you can afford the sport car, you don’t want to own one. It’s low to the ground, uncomfortable, unsafe to drive … You’ll probably settle for something more luxurious 😛 and wife and kids will scream for more space hahaha…
Feb is definitely a better month if you watch the networth closely. 😛 but march should be better 😛
Sounds like someone who speaks from experience. 😉
Solid numbers. Congratulations! $500 dividends are very impressive. Thanks for sharing.
I wish every month was like this. But at this point I have so much invested I’m really at the mercy of the markets. 🙂
Nice jump Mr Liquid! I can’t keep up with you anymore
What.. I wrote a bunch of stuff. It cut me off with a emoticon. Anyways. You worked hard to learn the best return for your investments and looking for new opportunities. They are starting to pump out the results! You have grown so much!!
Sorry. I’m not sure why it would do that. 🙁 Maybe just a glitch or something. I hope the markets go up higher, but I also would like to diversify my holdings more.
Thanks. 🙂 I’m slowly getting desensitized to these large market movements. I used to think $5K is a lot of money. Now my net worth seem to go up by at least $5K each month. Crazy times we live in compared to previous generations when the minimum wage was $2/hr and it was really hard for average folks to buy stocks and invest.
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