New Milestone
It has been a surprisingly eventful month in the markets. Volatility was high during the last week of June but in the end North American stock markets ended relatively flat. The Dow Jones was up slightly, but the Nasdaq fell. The TSX Comp in Canada dropped by about 1%. However my mining stocks performed really well so they lifted up the rest of my portfolio and I managed to make a 2.65% positive return overall according to my brokerage statement. 🙂 This has pushed my net worth to over $500K for the first time ever!
Liquid’s Financial Update
*Side Incomes:
- Part-Time = $1200
- Freelance = $1500
- Dividends = $600
- Interest = $200
- Fun = $400
- Debt Interest = $1300
*Net Worth: (MoM)
- Assets: = $993,500 total (+8,800)
- Cash = $16,700 (+5200)
- Stocks CDN =$116,600 (+2500)
- Stocks US = $68,800 (-700)
- RRSP = $72,300 (+1800)
- Mortgage Funds = $23,100
- Home = $263,000
- Farms = $433,000
- Debts: = $483,900 total (-2,500)
- Mortgage = $188,300 (-400)
- Farm Loans = $194,900 (-500)
- Margin Loan CDN = $28,300
- Margin Loan US = $25,100 (-400)
- TD Line of Credit = $19,500 (-500)
- CIBC Line of Credit = $10,000 (-500)
- HELOC = $17,800 (-200)
*Total Net Worth = $509,600 (+$11,300 / +2.27%)
All numbers above are in $CDN. Conversion rate used: 1.00 CAD = 0.78 USD
A big help in June was the rise of commodity prices. The price of silver increased over 20%. My Silver Wheaton shares gradually went up from $18 to $30 per share over the course of the month. This change alone added about $2,000 of value to my net worth. Next month’s goal is to increase my gross assets to $1 million. 🙂
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Random Useless Fact:
Hey Liquid,
Really cool to see you keeping track of your net worth so regularly. I like how you separate assets and liabilities – a lot of other people don’t list assets and liabilities separately for things like margin accounts.
Congrats on passing $500,000 and keep up the good work!
FC
What I like about holding debt in margin accounts is nobody besides your broker knows you have that debt lol. Money owed in margin doesn’t show up on government records or Equifax (the credit bureau.)
It has been a surprisingly eventful month in the markets.
It sure has. :0)
Congrats for your $500K networth milestone. Keep it up.
Thanks. I can hardly believe we’re already half way through 2016.
Congratulations on hitting 0.5 million! That’s a great milestone to reach — keep up the good work!
Thanks. You know what they say; the first 0.5 million is the hardest. 🙂
Boom! 1/2 a mil! Congrats on the MILestone. And the random useless fact had me like :^0
There’s another version of the random useless fact but it’s for how Welsh people shower. In the last panel the person gets a sheep. 🙂
Silver has been on a real tear in recent days. No doubt the precious metals will continue to perform well as long as there is all this uncertainty from Europe. Nice job with your dividend income too. Thanks for sharing.
Hurray for silver. 🙂
What would your NW be without the leverage?
Without the stock leverage? Maybe my net worth would be $50K less today. Without any financial leverage? It’s hard to say.
Another $11,000 up. Amazing! Your prudent use of leverage is really paying off.
We just achieved $200K of milestone since we started financial independence journey 2 years ago. It wasn’t easy but I can see the growth getting faster and faster. I am very glad that we are doing it together.
Cheers.
BeSmartRich
Nice job hitting $200K. That’s like $100K a year, which is similar to the rate I’m experiencing.
Your number does not add up.
You previously said you earned $25/hour, so your monthly cash income should be:
Full time job (Estimate) = $3,000
Part-Time = $1200
Freelance = $1500
Dividends = $600
Interest = $200
Total = $6,500
Your expense are:
Fun = $400
Debt Interest = $1300
Assuming that you don’t have to pay utilities bill, or groceries, or phone, insurances…
Especially the cost of living in Vancouver is quite high.
Total = $1,700
Net cash flow = $6,500 – $1,700 = $4,800
So I don’t know where you got the cash to save $5,200 and paid off $2,500 in debt.
As you said:
Cash = $16,700 (+5200)
Debts: = $483,900 total (-2,500)
Good question Guedy. Regarding the cash balance – I’ve decided to include the balance of my Paypal account to my cash total, which I haven’t done before. I use Paypal mostly to buy and sell stuff online. I left it out when calculating my assets before out of laziness, 🙂 but now that I have built up about 2 thousand dollars in there I don’t think I should ignore it anymore. Regarding the debts balance – the change in this number month to month will often be a mixed bag due to currency fluctuations. I have US dollar debt, but to keep things simple I consolidate my net worth in $CAD. At the end of June the $US lost value against the $CAD compared to the previous month so a cheaper US dollar automatically leads to a decrease of the US denominated debt balance when converted into $CAD, even though I may not have actually paid down said debt.
Why do you include “home” in your NW calculations?
Because I consider my home to be a financial asset. 🙂
Oh.
Just like all those “home”made millionaires livin’ in Vancouver….with not a dime to spend. Weird that.
you should goog ‘oecd lws’ — 35 of the wealthiest nations agree to define ‘primary residence’ as a non-financial asset.
but whatevs. creative accounting. 🙂
hardly justifies the term ‘creative accounting’
If a component is defined by 35 governments — Canada included — as X, but your personal belief utilizes that component as Y, then you have just created accounting.
Truth and facts…bah! Who needs ’em!
I guess it’s true — we are richer than we think!
There’s confusion between “net worth” and “financial assets”. “Net worth” is simply the sum of an individual’s assets, less liabilities, regardless of how those assets are allocated. “Financial assets” refers to assets that are cash, contractual rights to cash (such as a bond) or equity instruments (such as stocks). Anon – according to the study you referenced (http://www.oecd.org/statistics/OECD-Guidelines-for-Micro-Statistics-on-Household-Wealth-AnnexB.pdf – page 2), a principal residence is clearly including in the calculation of net worth (see the table), but is not part of financial assets. If we examine the component’s of LI’s net worth ($510K), we see that he has $197K in financial assets (net of financial liabilities), $75K equity in his principal residence, and $238K equity in other (income generating) real estate. Therefore each of these statements is correct: – LI has a net worth of $510K. – LI has $435K of assets (both financial and non-financial, net of the corresponding liabilities) generating passive income. – LI has financial assets $298K and financial liabilities of $101K. Finally, let’s not confuse net worth with liquidity. Someone could have a $1.5M home and a $500K mortgage, with no other assets or liabilities. They would have a high net worth, but would face a… Read more »
“I consider my home to be a financial asset.” — LI
Is that a correct statement?
I think many people confuse net worth/wealth/liquidity, as demonstrated by the use of incorrect definitions.
(Not sure why I care….)
I missed that comment. I agree with you – LI is incorrect to categorize his home as a financial asset. It’s part of his net worth, but not part of his financial assets.
I also consider my home in my networth calculation, as it is also a rental property. I live in 1 of the 3 units. The reason being, one day I might just sell everything, and live a nomad life in SouthEast Asia or anywhere else I please, I’d still able to cash out on my house, just rent a nice place for less than $500/mo, living the dream, so why not?!!
Well, for the super wealthy, some of them don’t consider the primary residence in their networth as it is not liquid. That’s just their choice and opinion, as we all have our own.
Great job on using leverage to build a massive amount of networth at such a young age. I admire you, I wish my younger self was as smart as you!
“I also consider my home in my networth calculation, as it is also a rental property. I live in 1 of the 3 units.”
For this reason you no longer have full utilization of your asset. In reality you should only include 2/3rds of the property value in your calculations.
“The reason being, one day I might just sell everything, and live a nomad life in SouthEast Asia or anywhere else I please, I’d still able to cash out on my house, just rent a nice place for less than $500/mo, living the dream, so why not?!!”
Not even logical.
I own a lottery ticket for the $50+ million jackpot. One day I MIGHT win that jackpot, so this week I’m going to add those millions to my net worth. Why not?!! In fact, I’m going to be buying lotto tix every single week…and every single week I MIGHT win…so every single week I’m going to be a millionaire.
No wonder so few people are actually wealthy.
Liquid,
Congrats in surpassing the $500000 mark for networth.
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