Happy Canada Day! Since the beginning of the year my net worth has climbed by $172,000. 🙂 I have read many books and online articles on how to get rich. But I didn’t expect implementing those strategies I learned would be so effective. The whole idea of buying undervalued assets and holding them for many years really does work!
Speaking of buying assets, last month I purchased 2 new U.S. based stocks in my RRSP. I bought 50 shares of Advanced Micro Devices (AMD) for $29.20 US per share. I think this makes an excellent holding along with my existing Intel (INTC) shares which was purchased years ago. I also picked up 15 shares of Alibaba Group (BABA) at $154.59 US each. This is known as the Amazon.com of China, but it does a lot more than e-commerce. Alibaba also operates subsidiaries such as TaoBao, Alipay, TMall, Ant Financial, Alibaba Pictures, and others.
These 2 stocks have increased my foreign equities holding. My asset allocation now looks like this.
Eventually I would like my Foreign stocks to expand to 15% of my portfolio. I want to also reduce my farmland exposure to just 25% or less.
Liquid’s Financial Update
*Side Incomes: = $2,900
- Part time job =$800
- Freelance = $500
- Dividends =$900
- Interest = $700
*Discretionary Spending: = $2,200
- Food = $400
- Miscellaneous = $400
- Interest expense = $1300
*Net Worth: (ΔMoM)
- Total Assets: = $1,353,000 (+17,800)
- Cash = $7,500 (+4900)
- Canadian stocks = $176,600 (+5500)
- U.S. stocks = $130,800 (+5400)
- U.K. stocks = $21,700 (-100)
- Retirement = $133,000 (+1700)
- Mortgage Funds = $36,000 (+100)
- P2P Lending = $35,400 (+300)
- Home = $367,000 (assessed land value)
- Farms = $445,000
- Total Debts: = $388,400 (-4,000)
- Mortgage = $187,700 (-300)
- Farm Loans = $164,200 (-1500)
- Margin Loans = $36,500 (-2200)
*Total Net Worth = $964,600 (+$21,800 / +2.3%)
All numbers are in $CDN at 0.76/USD
After a stalled month in may, my net worth continued to climb in June thanks to strong stock market gains and higher precious metals prices. I also got a large bonus from work so that’s always nice. 🙂 My goal is to hit $1,000,000 net worth by the end of August. 🙂
Random Useless Fact:
Good work liquid! Was just checking mine out on the weekend I’m at $1,457,664. A 33% increase from midway in 2018 (+ $365,267). I think I’ve got to hit $3-4M to retire, so it looks like at least another 5-8 years of working!
So on average your net worth grew $1,000 per day over the last year. That’s a lot of progress. 🙂 It shows how effective owning the right investments can be for building wealth.
Awesome stuff Liquid! Quickly approaching that $1 M mark. We’re still a good ways away from it, but we’re steadily making progress and passed $600k net worth for the first time in June and depending on how the markets behave in July we might be able to crack $800 in assets. So the plan is working!
Progress is the important thing. Keep up the great work. Those dividends are working wonders. 🙂
Could you recommend some of the books you thought were most helpful? Thanks
For beginners, The Richest Man in Babylon by George Samuel Clason is a great introduction to financial planning, and how to earn and save money. The Millionaire Next Door by Thomas J. Stanley and William D. Danko is also one of my favorites. It’s about how rich people actually behave in real life. And it explains a lot why they are rich. For example, most of them don’t drive fancy cars, which means they can save a lot of money, which helps them become rich over time. 🙂
More recommendations here: https://www.freedomthirtyfiveblog.com/book-recommendations
Hey liquid! I’ve been following you’re progress for years. I particularly enjoy your income/spending and you net worth graphs.
Question! Toward the beginning of your blog you got a lot of flak for your debt levels compared to your assets but it’s seems like you been more conservative on that front the last few years where before you had about 3/4 debt to you assets not it seems you have less than a 1/3. At what point will you begin to seek out cheap fixed debt like in rental properties for example? Or are you trying to get to zero debt and grow on your own back on a cash basis?
Hi Edwin. I will begin to seek out new leverage opportunities when interest rates for borrowing decrease. 🙂 The reason my debt/asset ratio declined so much over the last few years is mainly due to my farmland loan and mortgage rates become more expensive by about 1.25%. If rates drop then I may buy another rental property, especially since I’m earning more income now so I can support higher levels of debt financing.
Back in 2010 I could borrow for about 2.5%, and expect to make 6.5% in the financial markets (such as a diversified basket of stocks and bonds.) That gave me a margin of safety of 4%. But today, stocks are at all time highs. The S&P500 just hit 3,000 points today for the first time ever. With higher borrowing costs and lower expected rates of return on investments, borrowing money to invest now is not as attractive to me as before.
I probably wouldn’t aim for zero debt, unless the economy went completely bonkers and real interest rates go over 10%, lol.
[…] recent stock I purchased was Alibaba Group (BABA) which is already 13% higher since I bought it a couple of months ago. 😀 I guess I’m an example of your typical millennial investor. 🙂 The only stocks I […]