What an exciting January 2015. Well, the market and most of my investment showed some short term volatility significantly this month which provided me a great opportunity to add my initial position to Bank of Nova Scotia stocks.
My local currency Canadian Dollar has dropped another 10% this month Closing at $1CDN=$0.78US. It was $1CDN=$0.94 in the beginning of 2014 so 17% drop over the year. Many indicators suggest the Canadian dollar to be weaken further as it s very much tied to the price of oil which is extremely volatile lately. Is it a good news for Canadian? Well… It should be great news to people with US dollar investments and US exporters but bad news to people and business that import goods from US such as food, clothing and cars. So for Canadians, if you are planning to travel down to US then delay it. Americans? Come visit us as you would be able to afford upgraded suite and a little bit more expensive Niagara Falls winery wines.
This is my first 2015 net worth update. Net worth update is posted monthly to keep track the progress of my journey to become a millionaire. I believe anyone can be a millionaire with right habits and smart investing plans. If you would like to join the journey, please like my Facebook page and subscribe your email for free updates. I started this blog in August 2014 and my net worth has been grown by 28% so far from $86,352 to $110,563 which shows average monthly growth of $4,035. Keep it steady and slowly which is key to become millionaire. January 2015 has been another good month for me. Total net worth went up by 7.1%. I broke $100,000 net worth from November 2014 update and I broke $110,000 level this month even though my stocks weren’t performing very well. My main investments are comprised of VTI and VCE and VTI went down by 2.7% over the month however stronger US dollar kept my investment value up by 8%. Well… Lucky me as 80% of my investment is tied to US investments.
It went down quite a bit as I paid off my credit card bills for December 2014.
My majority of cash is sitting in President choice Debit account. I use it for the most of the money transfer, bill payments, cheques etc… as there is no transaction fee in this amazing card. Due to its partnership with CIBC bank, I can use their extensive CIBC ATMs network which is awesome. Their customer service is great as well.
I use TD bank card as well which is used for only investment transfer purpose as it is connected to TD warehouse brokerage account which gives me some convenience of transferring fund and invest. Check out the following section to see what credit card and debit options we have in US and Canada.
VTI has dropped by 2.7% but VCE kept pretty well considering significant uncertainty over oil price fluctuation, I think the market held pretty steady. I don’t know how high they are going to end up in 2015 but I am very confident that the economy will always improve in the long run and so will the index funds.
As I mentioned, I have been looking into several oil& gas stocks for a while and decided to jump in Penn West Exploration in November 2014 as I believe that they had gone through several ordeals for last couple of years and finally they are in good hands. I purchased about 750 stocks at $4.84 but now they are down even further at 1.92 as of January 31 2014. I put about 3.0% of net worth in the stock to test the water and I still believe PWT will do great for many reasons. 1. The company is now on good hands 2. Their Price to Book ratio around 0.14-0.16 which means even if it declares bankruptcy today I would be able to recover all my money and make some profit if all the assets that PWT holds are valued correctly. 3. Some insiders of PWT started to purchase PWT stocks. The company’s CEO, David Roberts purchased 5,000 shares and CFO, David Dyck exercised 250,000 shares worth of options and purchased 53,000 shares. One of the director John Syrdson purchased 300,000 shares. 4. The price of oil won’t stay much longer at $40-$60. It will eventually go up within a couple of years or so. It would take no time for oil companies to start making money once the price of oil goes up. As I mentioned I have added some BNS stocks to my portfolio and they are holding pretty well so far.
Checkout the following section for useful investment tips- Investing
I use Capital one Costco credit card as it gives me 3% cash back on restaurants (6% on first 3 months) I spend about $500 per month on my team meals at work so that would be $15 ($30 for first 3 months) cash back per month. Remember. Everything adds up.
I also have MBNA cash back card that I use mainly for grocery and gas for 2% cash back and everything else for 1% cash back (5% on first 6 months) I have Visa card that I don’t use but kept for places that do not accept master card. Checkout the following links to see what credit card is best for you.
We have been tightening up spending. We set up two major rules this month.
- My wife added some more healthy option after watching some documentary films about how chickens, milk cows etc… are raised so we will buy quality organic ingredients, cook home meals most of time and will go out and enjoy restaurant meal once a month together in a mutually agreed restaurant.
- We will shop at Costco once a month for majority of grocery then for urgent needs, my wife will go grocery nearby our place for eggs, milks, vegetable and fruits as need basis. Our monthly grocery budget is $500 per month.
We will keep being frugal on all other expenditures.
Hope you enjoyed this month’s net worth update. Remember, if you haven’t, set your saving & investing plans up and try to see how much net worth you have reached as of now and how much it has fluctuated in the past. Knowing where you are and where you will be headed will be a great starting point to be a millionaire and retire comfortably. Hang on there. I will be on the journey with you. Have you enjoyed the post? Then share the post with your Facebook friends, like my Facebook page and subscribe your emails below.
Great job. BeSmartRich. Your monthly growth always impresses me.
Thanks Tom. I wish I could save and invest more however rent is one of the biggest expense that I cannot do much with.
Nice increase. Ours dropped about 7K but it is what it is. We have have experienced some wild swings lately. Looks like you have had some nice returns in your TFSA.
Thanks for coming May. Mine was supposed to drop however holding american ETFs helped me to boost my net worth this month due to weakness of Canadian dollar against American dollar so I should not be too happy about it as I am not selling that US ETFs anytime soon.
Looks like you’re making some great progress on your net worth. That is a very impressive growth you have. Markets will continue to be volatile over the next while, I wouldn’t worry about the ups and downs, just keep focusing on investing more capital.
You are totally right. The market will be volatile and I really don’t care much as I will keep adding solid dividend stocks to my portfolio. Ironically, I wait for bad news to negatively impact stocks the most of time. Hahaha
Awesome one month growth in your net worth! It’s amazing how debt reduction can make such a difference.
Net worth growth has two triggers – add more revenue/assets or reduce debt!
Thanks for stopping by Mr Ikonz. Exactly. By reducing spending in January, I was able to reduce debt and then with the additional cash that was available, I was able to purchase BNS stocks which bumped up my net worth. The beauty of saving and investing.
Good job man. Things are going good.
Thanks JMH. Things are going better than I deserve! Haha
That is a very impressive increase to your Net Worth.
Keep up the good work!
Thanks Gen Y Finance Guy. I was kinda lucky as Canadian dollar weakened against US dollar and most of my portfolio is tied to US stocks. I purchased some BNS stocks with the saving for the month that contributed to it as well! Thanks for stopping by.
Congratulation on a 7.1% monthly increase ! I would be happy to see that type of increase on a yearly basis,
Awsome blog you have here. Top quality design.
Thanks for stopping by TheEighthDigit and thanks for the compliment on the blog design Haha. 7.1% increase is great and hope this continues!
Good job increasing your net worth by 7%.
Thanks for coming. Cheers!