Feb 29, 2016 Net Worth Update: $147,511 (+$4,752, +3.3%) 5


Hi Everyone! Welcome to my end of February 2016 net worth update. Thank you so much for coming.


February 2016 was quite interesting month and again another volatile month. TSX fluctuated down from 12,737 to 12,000 about 6% then recovered by 7% to 12,831. The exactly same thing happened to Dow as well. It was down by 5% then up by 8%. What a roller coaster.

The question I have to ask myself is did I really care what happened? Actually… yes, I somewhat hoped that the market drops further and further so that I can buy quality assets at discount. Or I probably want to see 2008-2009 short and quick super major correction to happen which may be actually scary but that’s the time you can make the most money. As you know, luckily, I have constant cash flow from my day job with help of our family’s frugal habits to pour more money in the market every month.

I am fascinated to observe how human psychology work especially in stock market. Most of businesses that I invest are exactly the same businesses as usual making constantly solid cash flow. They may be facing a temporary business setback however a lot of times, the stocks of them are punished a lot harder than the actual problems and setbacks. Many people in the market think that this is the end of the world for many businesses but I think differently and that’s when the most money can be made.

Remember this… As long as business is solid, the stock price will eventually follow.

I have been building up cash position in my family’s TFSA and RRSP accounts lately not because I like to hoard cash but because, stocks are getting expensive. I need the next minor corrections dropping 6-10%. Or even further. Call me crazy but I probably want the major catastrophe to happen. Well I know it will temporarily hurt me seeing my portfolio cut in half but again that’s one of the best chances to grab great stocks at great prices.


Wait until rainstorm stops and sun rises which always does.


After every storm, the sun always shines


It is only a matter of time until you see more greens in all of the stocks in your portfolio if you are a long term investor. Just keep being invested in your quality stocks. If you are a lucky one who gets regular paycheque and have some money to invest after your monthly spending, then this is your time. Keep buying at lower prices every month. Keep it simple. Don’t think too hard. Just find good quality undervalued dividend stocks, buy them at low and weather the rainstorm until sun rises again. When the sun rises which it always do, it will be swift.

Ironically, people get more excited when market climbs up when they have to pay premium for the same stocks whereas when the market is headed downward, they tend to avoid buying the same stocks at discounted prices. I would worry more and look to restructure my portfolio when the market keeps climbing up. Time for me to say my favorite investor of all time, our legendary old man, Warren’s most famous quote.


“You want to be greedy when others are fearful. You want to be fearful when others are greedy. It’s that simple.”


Carl from ‘Up’ looks similar to Buffett (CNBC)


Remember 2008-2009 market crisis?

2008-2009 market turmoil made so many people richer and poorer. People who became poorer are the ones that sold their stocks at loss and never looked back. People who became richer are the ones that bought stocks at 30-80% off the original prices then they triple and quadruple their original investment within 2-3 years.

This turmoil in Canada isn’t as opportunistic (or bad) as 2008-2009 market crisis but still a good time to buy low. There are still some undervalued stocks. That simple concept will make us richer sooner or later. I have no way of knowing and an ability of forecasting the market but all my efforts will be dedicated to find undervalued stocks.


My net worth increased by $4,752 (3.3%) from $142,759 to $147,511 during February 2016.

This is my second 2016 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.

Compared to February last year, it grew by $25,590. That’s 21% of growth. It grew by $2,135 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 undervalued 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.

201602 GRAPH

Barely maintained $140K level January 2016 but I am getting close to $150K level now yay!



The cash balance has decreased from $8,189 to $4,764. I have moved about $5,000 to my wife’s TFSA accounts and haven’t purchased anything yet. The cash is ready to be deployed whenever it sees its chance to transform itself to something more useful. Cash isn’t investment. It actually lose its value everyday right?  Even after reduced annual TFSA contribution limit from $10,000 to $5,500 from a stupid political move by the new regime in Ottawa, (Yes I am talking to you Justin) 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.


201602 Table


February was an interesting month. My non registered and RRSP investments have decreased about $3,500 but my TFSA investments has done well and went up by $5,000 (excluding fresh contribution). Not good, Not bad… I am not selling them anyways until my purchases start to get overvalued. I would much prefer for better opportunities to pick up more shares at 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. Not the end of the world for me. Only problem I have right now is how to come up with more cash to take advantage of discounts in the market.

I am reserving cash to get ready for 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 as I said previously. See below for what I bought.

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.


As I said

In January 2016 we bought Dream office REIT and Orvana Group

Then Dream office went up by 16% as of today writing this. What a lucky guess.



Then Orvana Group went up by 72% as of today. Another lucky shot.


I did a poll last month to listen what you think whether to crystallize 63% of gain and majority of my readers believe I should hold the stock so I did. 🙂 and I will for a while.

My recently purchased gold stock Orvana is up by 63% (+$1,600). Should I sell it or hold it?

In February 2016 we bought about $5,500 worth of Corus Entertainment stocks.


I Could not resist its solid cash flow and I was confident that recent regulation of CRTC’s pick and pay will go a lot more smoothly for the company than many people expect. The stock was severely punished for last one year and of course that’s when I jump in. I bought at 593 shares at $9.32 total of $5,500 worth of stocks and now it is being traded at around $10.75 (15% up) bringing the value of the stocks to $6,400. Not bad but still a long way to go to be fairly valued.

corus graph


When the stocks start to exceed my target prices then I will seriously consider to sell and crystallize gains and not look back until the stocks get punished unfairly again. Until then, I will keep DRIP it.  I love their dividend commitment of increasing it year after year. They have increased it for 12-13 years now.

We will buy more stocks probably soon if the market keeps giving away discounts but it seems that stocks are moving up quickly last 2 weeks. That puts me in a difficult spot because everything just got 5-10% more expensive. As I mentioned, I have built up about 9% of cash position. Some in saving, some in TFSA and some in RRSP. 9% of cash position is the highest ever for me since I started investing and if the market keeps going up then my cash reserve will only get higher.


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

Do you remember my credit card debt was at $2,500 last month?

My credit card debt soared from $669 to $2,547. What the heck happened?? BeSmartRich having $2,500 of credit card debt? Unbelievable. Right? Well… My wife and I found one of the most lucrative investments that pays you guaranteed returns- Education.

My wife is back to school. I don’t know whether you will remember this but my wife is a mad artist (I will show you some of her artworks later if she allows) and have spent several years to do her soul searching. Well guess what? She wants to be a nurse in Canada then combine her artistic talents with the nursing degree to be an art therapist eventually. She is from South Korea and recently immigrated to Canada. I have emphasized this to you before, if you are a foreign immigrant, getting right education is one of the most important things that you will have to do to be treated equally (not to mention your language skills but you will pick up while you go through your degree programs) and self-sustaining. Let me tell you, it is not going to be easy. I have been through it but very well worth it.

Well,,, you can get a job without educations from where you immigrated but you will find hard time finding your career. Job and career are two different things just as Chris Rock says.

While I love to see my wife showing off her artworks and helping me out with this blog (She designed this BeSmartRich blog. She also helps me with maintenance, research, promotion, advertising etc…), I am extremely pleased with her decision to going for her dream which is a great cause for the community we reside in.


Today’s mad artist will be a future art therapist. Good luck! You can do it!


I see it impacting our net worth as one step back and ten steps forward. We may be spending $2-3K per semester which will temporarily and negatively impacting our net worth but that will give back hundred times guaranteed returns during our lifetime. That’s the power of education. Only sky is the limit. Not to mention we can recoup some tuition costs through tax credits, courtesy of Canadian Government. Thank you Canada. I love you so much!

I paid off the credit card debt and have only our usual $550 balance left by the end of February. I am still close to debt free and I like it that way. I just love the feeling of keeping my debt 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


Cashback rebates

I started using Ebates not so long ago just to give a shot and this month, my first sweet cheque from Ebates came in!!! Yay!!! 🙂 🙂

I am all about sharing my getting richer everyday tips with you so sign up through the following link (for Canadians only)


and start collecting cash from Ebates. For limited time, if you sign up and spend $25, then you get $10 cash back.

Here is how you do it.

  1. Sign up
  2. Visit, let’s say, Amazon.
  3. Shop as you typically would from Amazon
  4. Ebates credit your account with cash back earnings based on qualifying purchases.

For example, I shop at Amazon very often buying many necessities from facial lotions to electronics. I always visit Ebates and type Amazon then make purchases from Amazon.ca. I get 2% cash back from my credit card company and another 4% cash back from Ebates. That’s a total of 6% cash back. I spend about $150 from Amazon monthly which gives me $10 cash back which is equal to $120 per year from Amazon alone. 🙂 Better than $0 back right?

Ebates gets referral fee from Amazon directly and instead of keeping the money, Ebates shares it with me. So whenever I need to make online purchases, I always use Ebates. This is a smart habit to make you richer. I use the following website most often to get some cash back.

4% cash back from Amazon

6% cash back from Expedia

2% cash back from Walmart

5% cash back from Chapters-indigo

3% cash back from Staples

1% cash back from Ebay

3.5% cash back from Starbucks



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.

EFFORTHope 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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5 thoughts on “Feb 29, 2016 Net Worth Update: $147,511 (+$4,752, +3.3%)

  • DivHut

    Thanks for sharing your recent net worth update with us. You definitely are buying a lot of speculative names that have worked out for you. Congrats on those buys. I’ll just stick with my boring dividend growth stocks 🙂 It’s amazing how sentiment can change in the market in such a short period of time. The financial headlines are all such crap. Just sensationalism at its finest. Everything looked so bad in early/mid Feb. only to start looking like roses today. Stay calm, and buy quality names at discount. Simple enough.

    • Be Smart Rich Post author

      Yup. Simple approach seems to work for me. I bought some heavily discounted companies in January and February and they are all up by like 20-70%. Crazy volatility on sentiments. What a fun time to invest right?

  • Dividend Hustler

    Keep it up BSR. You’re doing awesome! Net worth is trending upwards and upwards. It’s life changing. You 2 don’t ever stop and before you know it, you’re gonna hit the 500 k in no time. Give it a couple more years, the snowballing is gonna help soo much.
    Cheers and enjoy the ride bud.

    • Be Smart Rich Post author

      I can’t wait to reach $500K. I am glad to see my networth finally moving upward. Compounding isn’t at its best yet but it will eventually exceed what I contribute on a monthly basis. Cheers Dividend Hustler!

  • MoneyGrasshopper

    Love reading your blog posts. Interested in Corus as well, you mentioned you’d sell when it exceeds your target price, just wondering what that is, and what method do you follow to come to such target price? Thanks in advance.