The trailer for the new X-Men movie came out earlier this week 🙂 I like how Marvel is using existing brands and characters to create fresh and interesting blockbuster films like with the latest X-Men and Avengers series. It’s part of the reason why I invested in Marvel’s parent company Disney in the first quarter of this year 🙂 Anyone else own DIS? The stock is up over 30% year to date beating the market 😀 I certainly got lucky with this stock. Or maybe I’m just psychic and have a fifth sense. It’s like I have ESPN or something 😕 In November I plan to buy some new stocks like maybe IBM, CSCO, QCOM, or perhaps even TWTR??? (゜o゜) #YOLO
October has been amazing for my finances, mostly due to dumb luck like the stock market rally. Both the S&P/TSX Composite and the S&P 500 increased over 4% this month, and my non-registered portfolio which holds roughly $120K of stocks went along for the ride and increased by more than $5,000!
If that wasn’t awesome enough I also received rent this month from my farm tenant. I used most of this rent money to finally pay off my $4,000+ of credit card debt, Yarrr!
With over $5,000 of rental income, plus another $5,000 gain from stocks, my investments alone have contributed over $10,000 to my net worth this month. Ooh la la 😯 Where’s the fire extinguisher because my net worth is on fire 😎
Even if I had spent 100% of my work income, and effectively lived paycheck-to-paycheck, I would still be $10,000 richer this month. I began my career in 2008 and I’m completely flabbergasted at what consistently investing in a diversified portfolio can accomplish in just 5 short years. This is what happens when we go into debt in the short term to build a more prosperous future for the long term 😀
*Side Income:
- Part-Time Work = $500
- Dividends = $500
- Eating Out = $0
- Others = $1800 (Includes expensive gifts for myself)
*Net Worth: (MoM)
- Assets: = $574,800 total (+7300)
- Cash = $6300 (+700)
- Stocks CDN =$77,700 (+2600)
- Stocks US = $43,400 (+2600)
- RRSP = $32,900 (+1400)
- Home = $252,000 (same)
- Farm 1 = $152,500 (same)
- Farm 2 deposit = $17,300 (same)
- Debts: = $379,100 total (-4300)
- Mortgage = $201,100 (-300)
- Farm 1 Loan = $109,500 (-200)
- Margin Loan CDN = $26,100 (Same)
- Margin Loan US = $23,500 (+500)
- TD Line of Credit = $18,900 (-100)
- Credit Card = $0 (-$4200)
*Total Net Worth = $203,000 (+6.1%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.04 CAD
The bulk of my savings and capital now come from investment earnings like rent and stock appreciation, and not from my job anymore. If there’s such a thing as the “investor class” I believe I’m now in it (^_^)
This is starting to get ri-doo-doo-diculous (>.<) I feel kind of guilty because I work with brilliant people who are smarter, more responsible, more experienced, and make a higher income than I do, which they should. I think they deserve the high investment returns more than me, but I don’t think all of them received a windfall like I did this month due to their past circumstances and financial decisions 🙁 I wish everyone was more financially literate.
Going from $0 to my first $100K in net worth took 3 years to accomplish. But getting from $100K to breaking the $200K barrier today took only 2 years roughly （●＾o＾●）Maybe I can get to $300,000 in just another 1.5 years! The more we already have invested, the more profits we should make. I have 75% more assets today than 2 years ago. So it’s easy to understand why my wealth is growing exponentially, especially in this current bull market 🙂 By making smart investment decisions we don’t have to rely on some miracle wage increase at work to still achieve our financial goals. There are always ways to accumulate assets despite the circumstances. The graph below was first introduced earlier this year.
My Ontario friend, Mandy, just reached $300K in net worth for the first time this month and she’s not that much older than me. Congrats to her! Let’s all continue to make great investments folks! :0)
I like your income graph, think ill start one for myself 🙂
Yes you should 😀 You’ll probably get some interesting results over time because of your games business and Bitcoin mining operation. If your income graph turns out to be anything like your dividends graph then you could be closer to financial freedom than you think 🙂 Gail Vaz-Oxlade said keeping a record of our financial situation is one of the best things we can do.
100% AWESOME on reaching $200,000+
Woohoo! Thanks 😀 I almost have as much money as the average Canadian now lol. If the stock market did this well every month going forward I’d be financially independent today haha. Alas, it would be impossible to sustain this rate of growth. In the meantime though I will sit back and enjoy the stock market performance, which is up 24% year over year for the S&P 500 🙂 And not worry about my debts because I believe lower than historical average interest rates are here to stay for another 5 to 10 years! I don’t expect the first interest rate hike by the Bank of Canada until 2015 at the earliest. Plenty of time to make profits in the markets before the need to de-lever :0)
Congratulations on your epic net worth increase! Mine went up this month courtesy of my investments as well, but not nearly as much as yours did. One day 🙂
If we hypothetically combined our finances together right now we would have almost a million dollars in financial assets 😉 #ballin
Awesome work, or should I say not working, this month! Really cool to see that passive income roll in and keep turning over into bigger and better things. When you do need to start unwinding your debt, what is your plan? I think your farms should hold up their end, but your margin loans and other debt will probably need to be eliminated somehow.
Not working is exactly right! Once the investments are set up they can go into autopilot and everything becomes passive 🙂 I predict the first interest rate hike is about 2 years away. By that time my line of credit should be paid off just from regular monthly payments alone. My farm loans should be fine like you said, and the mortgage on my home can stand to have a higher rate too – it’s only 2.6% today so even a 1% hike to 3.6% is still a pretty low rate historically speaking. That leaves just my margin loans left that may give cause for concern. On my roughly $50,000 of margin loan the current interest rate I’m paying on average is 4.35%. Right now I don’t have to regularly put new money into my margin accounts because the dividends in those accounts can cover the interest charges. The loan amount (or negative cash value) stays more or less consistent over time. The only reason my US margin loan might fluctuate from month to month, as you can see above, is due to the currency exchange rate. I calculate my final net worth in $CAD. Just as an example, if… Read more »
That is quite the increase…. From the post, I get the transfer of the second farm to your own name not going well?
You would not be wrong my observant friend. There were some hick-ups with the subdivision process and the completion date was pushed to November. But we should see the second farm added to my net worth update next month if all goes well. Fingers crossed 🙂
You are certainly increasing your net worth at an accelerated rate! Very well done. I salute you!
Thanks 😀 It’s not every month we see a 4.5% gain for the TSX lol. I wonder if this means we’ll see some kind of small correction next month.
I’m always in awe of your investment income, F35. This is definitely our plan once we rid ourselves of at least a good chunk of our massive debt. I think it’s great that you’ve done so well, so quickly! Congrats!
Good luck with our plan 🙂 The less debt we have the more free we’ll be.
Kudos my friend to yet another additional point to the exponential graph you are tracking! With all these pats on the back above, soak it up, enjoy the win, but never let your guard down. Never let the emotion get the better of you. The market loves to destroy the feeling of euphoria. Because we leverage very little (~2% currently borrowed) our net worth is tracking +10.3% ytd. Investment wise though we’re running +19% which ain’t too shabby. I think it is time to start planning for the next market shift though, probably near the end of January or mid February as the US still have some major issues to rectify – Cheers.
10.3% is like 1% a month. Which is better than most people I think, especially for those in retirement since they usually experience shrinking net worth 🙂 I’m a little concerned for the US in 2014 too. They just keep pushing the real fiscal problem into the future and never really address it. Sooner or later we’re going to see that market shift you mentioned. I better get myself prepared ;0)
Yay for being credit card debt-free! 🙂 “Where’s the fire extinguisher because my net worth is on fire?” It certainly is Liquid, Congrats!
Feels good to not carry a balance on my credit card anymore 😀
Awesome Liquid congrats! I learn lots from your posts and find them very insightful 🙂
Great stuff Steve, thanks for the feedback :0)
Very nice! What rent per acreage are you getting for the farmland? Going rents here are $150 on the low end to $225-250 on the very high end for land that is well-drained and can support sugar beets. I think having a stream of farm income is the smartest way to diversify. The margin accounts scare me but they don’t seem to worry you.
Rents up here aren’t nearly that lucrative unfortunately. I’m currently getting $40/acre and $37.5/acre lol. That’s about $10K of income a year on 270 c/acres. I only wish we had the same kind of rental rates as the U.S. like around the corn belt for example. But it’s too cold up here to grow sugar beets so it’s mostly grains for Canadian farmers. However farmland closer to the Pacific ocean where it’s warmer can be rented out for over $200/acre like in BC where I live 🙂 Farms in Ontario can also fetch high prices because you can grow wine grapes there 🙂
You are on fire!!!!
Hot hot hot! 🙂
I love that the second $100k took less time! Very inspiring!
The first $100K is always the hardest, but it gets easier and easier after that :0)
I really enjoy reading your blog. I like how positive you are. It’s a breath of fresh air!
Just wondering, does your average net earnings per month include interest expense? Just curious. Thanks!
Thanks JR 🙂 The income graph above does not factor in interest expense 😉 There’s another graph on my progress page that shows the relationship between my income and expenses, including interest expenses. https://www.freedomthirtyfiveblog.com/progress
There hasn’t been a lot of lifestyle inflation in my life so far, so most of the increase in spending over the last several years is due to interest on investment loans 😕