Welcome to my seventh net-worth update for the year 2018.
A short intro for new readers
If you are not new here, then you can simply skip to the next section.
For those new to my finance journey, this net-worth update is a simple report I publish every month, which tracks the progress of my journey to reach my financial goals.
My ultimate financial goal is to become a self-made millionaire by December 2024 (10 years plan). I have a strong belief that I can achieve this goal by saving and investing in high-quality dividend-paying blue-chip companies. I am also a strong believer of ‘compounding’ power, and I believe if I can push myself now and build a decent net-worth, then the ‘ compounding effect’ will give a heavy lifting in my later part of this journey.
I am posting all my financial information on this website because I love to inspire and motivate people to start their own journey to reach their financial freedom. You could learn from my successes and failures (experience) and improve your financial knowledge.
Along the way, I make financial mistakes and will share my experience here with you. So, you could learn something, avoid those mistakes and save money.
Also, I like to publicly track my progress and get feedback from like-minded people.
My net-worth
My net-worth continues to moving higher month after month, thanks to the recent performance of my dividend portfolio.
At beginning of the year, my portfolio was struggling due to the rising bond yield. The bad start brought me an opportunity to build my assets at a lower cost.
A couple of my favorite stocks were trading at attractive prices, especially in rate sensitive sectors. I took the opportunity and purchased some stocks using dividends, my saving and also using some loans.
Now, things are getting improved, and the stocks I purchased started to move higher. My strategy works once again.
My investment strategy is very simple. Buy good dividend growth companies at an attractive price, hold them for a longer time, and collect growing dividend.
Based on the past history, high-quality companies take hit along with the market, but they eventually come back and move higher once the storm is over.
I noticed again this year. Some of my top holdings took a hit early this year, now they are trading at record high prices.
I don’t them buy at a high valuation. So, I stopped adding new capitals and started to focus on improving my buying power.
In this way, I can buy more stocks at a cheaper price if the market turns south for the “End of the world” events.
There will be no shortages of bad news, and investors sentiments change from time to time.
Therefore, we always get some opportunities to buy our favorite stocks at discounted prices.
From my experience, patience and long-term approach are the keys to building wealth.
Let’s see all the details in numbers
Net worth update as of July 31, 2018 ()
Assets: $535 600 ( )
- Cash: $800 (no changed)
- Home: $280 500 (no changed) – Yearly adjustment with average inflation rate of 2%
- Canadian Stocks: : $193 000 ( )
- U.S. Stocks: $41 500 ( )
- Employer’s Pension Plan: $19 800( )
Please note that my financial situations and risk tolerance will be much different than yours. We all are unique by nature. As I always say, please do your own research or discuss with a qualified financial advisors before make any financial decisions.
Liabilities: $326 300 ( )
- Mortgage : $174 200 ( )
- Student loan: $20 100 ( )
- Margin loan: $65 500 ( )
- Credit card 1: $9200 ( ) (low interest credit card – 1.99% special rate for 8 months – will be expired in January 2019)
- Credit card 2: $21 700 (no changed) (low interest credit card – 2.99% special rate for 12 months – will be expired in January 2019)
- Credit card 3: $5700 ( ) (low interest credit card – 0.99% special rate for 12 months – will be expired in December 2018)
- Line of Credit 4: $0 (paid-off)
- Credit card 5: $3800 ( ) – (low interest credit card – 1.99% special rate for 10 months – will be expired in October 2018)
- Credit card 6: $5900 ( ) – (low interest credit card – 2.99% special rate for 8 months – will be expired in August 2018)
- Credit card 7:$900 ( ) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 :$19 300 ( ) – (low interest credit card – 2.99% special rate for 12 months – will be expired in December 2018)
- HELOC: $0
Net worth :$209 300 ( ) as of July 31, 2018
My net worth was up by since my last update.
Note
- all amounts are rounded to the nearest $100;
- all numbers are in CAD; and
- Conversion rate 1.00 USD = 1.3019 CAD
I have a huge credit card debts because I take advantage of low balance transfer promotion rate and invest in high quality dividend stocks. Learn, earn, save,invest and leverage your skills are the keys to become wealth.
Thank you so much for following my finance journey and for your great support.
- Keep eye on dividends and ignore share prices
- Building Wealth – The Goose that laid the golden eggs
- How I receive low-interest loans?
- I borrow money to invest in stocks (leverage investing)
The post Net worth update – August 2018 appeared first on Finance Journey.