Dec 31, 2015 Net Worth Update: $141,839 (+$3,302, +2.4%) 7

Hi Everyone! Welcome to my end of 2015 net worth update. Thank you so much for coming.

December was another crazy month. My investments have decreased about $4,500 which is at 3.3%. Well. That’s alright. I am not selling them anyways and I would love for better opportunities to pick up more shares at even more favorable prices. Tides will eventually turn. Buy low and sell high right? As long as fundamentals are there, I am not too concerned about the noises. Although it hurts to see my portfolio decreasing its value but I have a coping mechanism built in me which is hiding somewhere where no one can see me and do a man-cry. Haha. Hey don’t judge me. Whatever works. 🙂 Regardless of how my investment did, December is a lucky month for me, you know why? Because December was 3 bi-weekly payroll month. Hooray!  How can you say no to that? That’s only reason why December showed progress. I reserved the cash to get ready for 2016’s $11,000 TFSA room for me and my wife and also some RRSP (For US Citizens,  401K, IRA, ROTH IRA…).

If you recall my November net worth update, I kinda hoped that the market stays like this or even drop further temporarily so that when January 1 2016 hits, I can afford to buy more stocks at good discounts, I pulled my triggers already. I will show you what I bought when I catch a moment to write about the recent buys.

When you invest, you should always look at long term investing horizon, not tomorrow, next month, next year etc…. If you foresee that you would need cash in a near future then investing in stocks isn’t for you. However when you start to focus on longer term view, then you will do quite well as long as you buy good stocks with great fundamentals at attractive price.

This is my twelfth and last 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 follow me through my Facebook and twitter pages and subscribe your email for free updates.

Guess what? My net worth increased by $45,075 (47%) from $96,764 to $141,839 during 2015.

That’s 47% of growth. It grew $3,756 every month. Not bad huh? I am quite pleased with the result but it could have been better. Well… the downturn of the economy will eventually turn up and I will be a very happy man when that happens. Until then, I will keep buying cheap stocks and see where this takes me. If you are afraid of losing 20-30% of your portfolio value then investing in stock market isn’t for you. Risk and rewards always follows. Always perform your due diligence researching the fundamental of the stocks before you buy or just buy amazingly reasonable Vanguard ETFs. That’s called indexing.

Cash

The cash balance has increased from $3,039 to $10,435 as I mentioned, December was 3 bi-weekly payroll month. I saved up for 2016 TFSA room. Even after reduced annual TFSA contribution limit from $10,000 to $5,500 from a stupid political move by the new regime in Ottawa, TFSA is still an amazing instrument to invest so for someone who do not take advantage of TFSA and RRSP (for US citizens, 401K, IRA, ROTH IRA…) please use them for your future. They are wonderful instruments that will make your future brighter.

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 and cheques are free. Major banks typically charge $50-100 for 50 cheques but I pay nothing for that. 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.

Investment

Finally, after more than 2 months of break, we purchased Potash Corp and Black Diamond Group in November 2015. As I briefly mentioned, we bought more in the new year by using the replenished TFSA room.

My portfolio didn’t do very well this month. Total value went down by $4,500. Who really cares, I am not selling them anyways. I will try to buy more at even more discounts. Only problem I have right now is how to come up with more cash to take advantage of discounts in the market. 🙂

Check out my portfolio page to see what stocks I own and the following article for more investment tips-How to Simply Invest and Get Richer for Dummies in 8 Easy Steps.

Did I mention you can be a millionaire in about 30 years if you can save $10 a day?

Have you heard about Peter Lynch, a wallstreet legend? Check out Peter Lynch’s top 13 best stock picking tips. You won’t regret it.

If you are also a dividend investor like me, then you should check out the following page to see how other dividend investors are doing. You won’t regret a moment of reading their valuable and inspirational articles. Blogroll

Credit card

My credit card debt is at around $ 700 which is a normal level because I had to purchase 2 tickets to my second hometown,

I am always 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.

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). 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. Remember. Everything adds up.

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.
   • 7 extremely easy tips to save 20-50% on flight tickets
   • 30 most important tips to be a millionaire no matter how much you make.
   • Renting vs Buying
   • 16 most important tips to save on car insurance by 40-60%
   • Norbert’s Gambit- Save thousands of dollar from foreign exchange conversion fees
   • What’s in my wallet
   • Needs vs Wants
   • 20 smart moving tips that will save you time and money
   • 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 in there. I will be on the journey with you.

 

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