Net Worth Update- May 2015 +$4,609 (+3.7%) 13

May 2015 was a crazy busy month due to my day job. I worked on average 10-12 hours during the weekdays and 7-8 hours during the weekend. Hopefully the hard work results in good bonus. Haha.

I restructured my portfolio to have less US stocks. The portfolio used to consist of 70% US stocks and 30% Canadian stocks but I re-balanced it as about 70% Canadian stocks and 30% US stocks. I sold some VTI and converted US dollars to Canadian dollars by using Reverse Norbert’s Gambit which I will introduce later when things are settled at work. By utilizing Norbert’s Gambit, I spent only $20 instead of $1,000 for the conversion. If you are a Canadian investor, you must want to know how to convert dollars cheaply. I had a great time with VTI for a while and I had to sell some of them to reduce foreign exchange risks. So long VTI. Hope you are not very well in the future which will make my feel better 🙂

I purchased so many depressed Canadian stocks and loved the moments when my orders were filled. Can’t be happier when I became owners of so many solid dividend paying companies. Also I bought some speculative energy stocks that had been beaten down badly for last 9 months at 70-80% discount just to add some spices on my meal. If oil price recovers, then that would be awesome if not, I invested only small portion of my entire portfolio so I won’t cry too much. I will let you know later what I purchased last couple of days to save the surprises.

This is my fifth 2015 net worth update. Net worth update is posted monthly to keep track of the progress of my journey to become a millionaire. I believe anyone can be a millionaire with good saving 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 64% so far from $79,352 to $130,334 which shows average monthly growth of $5,098. Keep it steady and slowly which is the key to become a millionaire.

May 2015 has been a good month for me. Total net worth increased by 3.7%. My portfolio grew by 1% here and there and converting US dollars to Canadian dollars when US dollar strengthened against Canadian dollar was a great decision.

Cash

My cash balance increased from $4,070 to $5,178 during the month. My credit card debt is at around $4,000 but I will get reimbursed some of it from my company as I had to use my credit card to pay for my annual membership dues and travels. I am close to debt free and I like it that way. I just love the feeling of keeping my credit card balance low as I feel empowered to be debt free.

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 mainly used for investment fund 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 cards and debit cards options we have in US and Canada.

 
TFSA& RRSP

Our TFSA has increased by 8.7% from $77,041 to $83,777. I added $4,500 to the increased TFSA contribution room and the rest is from combination of strengthened US dollar and investment growth. As I mentioned, I will post what I purchased by using the proceeds from disposition of VTI when things at my work are settled. Our RRSP was maintained at around $45,000. Checkout the following section for more investment tips- Investing

Credit card

We tried to minimize spending over last couple of months and it worked out pretty well. We use Capital one Costco credit card as it gives us 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.

We also have MBNA cash back card that we use mainly for grocery and gas for 2% cash back and everything else for 1% cash back (5% on first 6 months) without any annual fee. Unlike capital one cash back card and all other cash back cards out there, MBNA card is well beyond expectation. First of all, MBNA pays cold hard cash back (not points toward purchasing goods and services) and secondly, MBNA directly deposits the cash right away to your bank when it hits $50 mark. That’s great as I don’t have to wait until the end of the year to collect cash. Check out the following links if you are interested in getting awesome credit cards like MBNA and Capital one credit cards.

US residents

Canadian residents

Spending

We have been tightening up spending. We set up two major rules and following religiously so far.

1. My wife added some more healthy option after watching some documentary films about how chickens, milk cows etc… are raised so we have been purchasing quality organic ingredients, cook home meals most of time and go out and enjoy restaurant meal once a month together in a mutually agreed restaurant.
2. We shop at Costco once a month for majority of grocery (They are always fresh and love their AAA beef so much for very attractive prices) then for urgent needs, my wife goes grocery nearby our place for eggs, milks, vegetable and fruits as in need basis. Our monthly grocery budget is $500 per month. I know it is high for just two people but we love healthy and good quality food and I am a meateatarian.
3. We will keep being frugal on all other expenditures. See the following links for excellent ways to save money.
   • How to be Frugal in so many ways
   • What’s in my wallet
   • Needs vs Wants
   • How to save $1,000 annually from your TV cable bill

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.

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