Last month my net-worth hit to another new milestone of $250000 (a quarter million dollar).
It took around 10 months to increase from $200K to $250K.
The path was volatile and tough, but I made it. We will discuss more in this post.
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
In April 2019, my net-worth increased by or and hit a new milestone of $250 000, thanks to the performance of my dividend portfolios.
The fourth straight month with a decent gain.
My investment asset is the main dominate factor to my net-worth gains, and it is getting bigger month-after-month due to the compounding effect.
I hit my first $50K in May 2014. By the time, the value of my investment assets was $92 000 and debts was $58 200.
Then, I hit my second $50K in May 2015– exactly in 12 months after the first one, with the investment assets value of $149 400 and debts was at $308 800. Debt increased dramatically high due to the mortgage of my house purchases.
And, I reached my third $50K in October 2016, with investment assets value of $205 900 and debts of $333 800.
In June 2018, I hit my fourth $50K, with the investment assets value of $229 100 and with debts of $326 700.
Now, in April 2019, I hit my fifth $50K (a quarter million dollar), with the investment assets value of $264 400 and with debts of $322 600.
As you can notice above, the value of my assets has been moving high with new funds, dividend reinvestment and capital gains, while my debts stay the same or down a bit.
Plus, the last $50K increment was a little faster than my previous milestones, as it took around 10 months, but the volatility was extremely high during the period due to the size of my investment assets.
Last December, the value of my portfolios dropped a couple of thousands until Christmas Eve and recovered quickly in the next few days.
Due to the size of my portfolio value, a small percentage of gain or loss will give a significant impact on my net-wroth.
For example, 1% drop or gain in a day in the stock market is a usual thing. But, it will cost or add $2650 to my net-worth. This amount (1 percentage movement) is much bigger than my bi-weekly paycheque.
Thus, I have to prepare myself to handle high volatility. I understand that volatility is a normal characteristic of the stock market. I have seen a lot in the past. Still, I need to learn to live with it.
In fact, the last 4 months (January to April) were the unusual month as the volatility was low, but it returns in May.
Markets started to swing up and down this months, but my portfolios have been doing pretty well so far, thanks to my defensive holdings of utilities, REITs and telecoms sectors.
Less than a year ago, these defensive sectors were vulnerable and took hard hit during the rising rate environment. Investors were freaked-out and started selling these assets and moving money to growth areas.
As a result, these assets were on sale and trading at a discounted price. I took the opportunity and built the positions at cheaper prices.
Now, the rate hike is off the table on central banks agenda – at least for a year (I guess) due to the trade tensions and uncertainty surrounding the global economy.
Therefore, these stocks become favorable holding again for investors, especially those seeking income.
As a result, these sectors are gaining value.
As of this writing, some of my largest holdings – FTS, BIP.UN, Telus, TRP, etc have been trading near 52 weeks high or all-time high.
Thus, my portfolio is doing just fine so far. If market sell-off goes wild as it did in December, then it will bring down everything along with it – whether high quality or low quality, it does not care.
What is next?
My net worth reached $250K. It took almost 10 months to get here from $200K.
From here, I will continue my journey toward the next milestone of $300K net-worth, and I hope to get there within the next 12 months.
However, it is impossible to predict the future. But, I will try my best t to get their sooner – by saving and investing in high-quality dividend growth stocks.
Let’s see the details in numbers:
Net worth update as of April, 2019 ()
Assets: $575 800 ( )
- Cash: $700 ()
- Home: $286 100 (no changed) – Yearly adjustment with average inflation rate of 2% in every January
- Canadian Stocks: : $213 600 ( )
- U.S. Stocks: $40000 ( )
- International Stocks: $10800 ( )
- Employer’s Pension Plan: $24 600( )
Disclaimer..
Please note the information posted on this website is the opinion of my own and should not be considered as professional financial advice. I am not a financial professional, and I can buy, sell, or hold any investment at any time.
Any transactions I publish on this website are not recommendations to buy or sell any securities or investments.
My financial situations, goals and risk tolerances will be much different than you. Therefore, please do your own research or consult with a qualified financial professional before even considering using the information obtained from this website.
Liabilities: $322 600 ( )
- Mortgage : $169 900 ( )
- Student loan: $15 000 ( )
- Margin loan: $70 100 ()
- Credit card 1: $13400 (no change) (low interest credit card – 0.99% special rate for 12 months – will be expired in January 2020)
- Credit card 2: $4600 ( ) (low interest credit card – 0.99% special rate for 12 months – will be expired in February 2020)
- Credit card 3: $17 500 ( ) (low interest credit card – 0.99% special rate for 12 months – will be expired in November 2019)
- Credit card 4: $0 (paid-off) – a promotional offer at 0.99% special rate – expired in February 2019)
- Credit card 5: $2200 ( ) – (low interest credit card – 1.99% special rate for 12 months – will be expired in October 2019)
- Credit card 6: $9500 ( ) – (low interest credit card – 0.99% special rate for 12 months – will be expired in September 2019)
- Credit card 7: $1100 ( ) – (regular expenses)- high interest rate of 19.99%.
- Line of Credit 1 :$19300 ( ) – (low interest credit card – 3.00% special rate for 12 months – will be expired in December 2019 – renewed recently for another 12 months)
Net worth : $253 200 ( ) as of April 30, 2019
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 = 1.3434 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.
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