June 2016 Net Worth Update: $402,170 (+2.1%)

Yay! Finally broke the $400K barrier!

It feels nice when the markets do so well, who says sell in May go away? (Well, I am just waiting for the summer dip because it usually does happen).  Including my contributions towards my pension, I have over $450K, it will be nice to reach that halfway point.  This month compared to last, my investment portfolio went up by over 2%.  That's more than it was year to date haha.  This year until now has been in the dumps.  I will have a huge credit card bill next month (have to pay my car insurance) so hopefully the net worth will still be looking as rosy as it did this month.

My goal for the end of 2016 as one of my personal finance resolutions is to reach $420,000 in net worth.  Now I just have $17,800 towards my goal of $420,000 by the end of the year.  With seven more months to go (I go from January 2016 to January 2017), I am on track, I think.  That's a little over $2500 per month.  My long term goal is to have a net worth of one millllllion dollars by the time I reach 40.  We will see how that goes…with kids hopefully in the forecast, this plan might get derailed, but you never know!

Okay, so here’s the breakdown for June 2016: $402,170 (+$8300)

ASSETS:

CASH: $35,900 (+7.8%)

  • Once I deplete the cash in my non-registered account (yes, there is more cash in there) I will start moving this cash into investing accounts.  It is nice to keep it here for an emergency fund anyway.
  • I added up my chequing and savings accounts (High Interest Savings Account). I automatically deduct money from my chequing account and have it siphoned to the HISA account (paying yourself first)

Non-Registered: $81,620 (+1.4%)

  • I still have a lot of cash in my non-registered account hence the poor performance
  • These are stocks that capture the “moment in time”, including unrealized gains or losses in my BMO Investorline and Questrade accounts.

RRSP: $62,000 (+2.7%)

TFSA: $57,620 (+3.0%)

HOME: $272,000

  • My plan is to live in this for 1-2 year and then rent it out once I find my prince charming (found him!)

CAR: $16,665

  • I updated it for 2015-2016 with the Canadian Black Book price, will update it again next update with the depreciated price

LIABILITIES:

Credit Cards: $790

  • I signed up for the Chase Marriott Visa and also have an American Express Gold Rewards Card again, with the goal of travel hacking my way to trips.
  • I use Mint.com account but I only added my credit card (this is helping a bunch so that I can keep track of my spending)
  • I've redeemed $0 for 2016 so far with my MBNA World Points World mastercard
  • I pay off my full amount every month (and folks, it’s VERY important you do so otherwise you’re losing out on a 19% return!) but include it in my net worth update so I have an accurate picture of my actual net worth. I sort of think “If I were to sell everything right now, what would my net worth be?” I guess I shouldn’t put it in the liabilities column since i pay it off regularly, BUT in mint.com it’s under the liability column so I’ll do the same.

Mortgage: $122,800 (-0.9%)

  • I pay an extra mortgage payment a month
  • My intent is to rent it out in a little while (see above). In order to offset future rental income, I chose to acquire a mortgage instead of paying for the majority of the condo.

4 Comments

  1. KC on June 17, 2016 at 7:49 am

    Congratulations on breaking the barrier!

    $2,500 per month average will be tight but it’s certainly possible.

    Something that I’ve noticed over past few updates was you saying that you still have lots of cash in your non-registered investments. Surely you would have used most of it by now with the market being a buyer’s market as it has been for last few months. Why the delay if you don’t mind me asking?



  2. Will on June 20, 2016 at 9:21 am

    Hi Young, great article.
    One question if you don’t mind, I know you always maximize your RRSP contribution every year, but do you also always claim your contribution to reduce reported income every year accordingly ? Or It depends from year to year? Thanks.



  3. Young on June 22, 2016 at 7:48 am

    @Will- I save a little bit depending on how much I can deduct (or what my taxes might seem like). In the recent years I have deferred a portion my deduction for the following years etc.



  4. Young on June 22, 2016 at 7:50 am

    @KC- I’m still working on the cash within my investment portfolio! I’ve been contributing a regular amount per month instead of trying to time the market. It’s slowly but surely getting used up to buy 🙂



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