August 2022, Net Worth Update

August net worth...the bounce back

Continuing to buy

By MeTheMillennial

JULY & AUGUST, 2022 – Monthly Net Worth Update

For those readers in the Northern Hemisphere, the end of summer is fast approaching and what better way to close out the summer than with another net worth update….

….I’m kidding 

I know these updates aren’t going to make or break your summer, but at the very least I am hoping you are starting to get on top of your finances and starting the process of saving and investing (not trading!).

As you know through these net worth posts I provide an update on how much I am investing/saving, my favourite assets classes, the performance of my portfolio and an update on my journey to FIRE, financial freedom retire early, by the aggressive age of 35…

With a target goal of $1.5 million.

I’m now 31, but still feel 21…does anyone else feel this?

Personal finance and investing is not something that’s taught in most schools or college around the world, and my goal is to get more and more people ‘in the know’ about how the rich actually get rich…. learning about investing in college should be thought in every school across the world!

And, it’s not through a massive windfall, inheritance or being born into money as most people assume. A study by Fidelity actually found that nearly 90% of all millionaires are self made, i.e. they received no windfall or big inheritance.

I want to show that it’s possible from someone who started in debt in their 20’s, through smart long term investing. 

And also that it’s possible in a high cost of living city like the one I currently live in, Vancouver.

My salary isn’t anything mind-blowing either. Currently earning $130k CAD which is about $100k USD.

I know lots of people who earn more but are still living pay check to pay check, and on the flip side I know people who earn less and actually save more than me each month.

So, what are you waiting for?

Make sure to go back over my articles in my blog section, this gives you the fundamentals to get going on your journey. Particularly on how I manage to save over 70% of my income.

Read on to see how my portfolio is progressing 5 years into this financial freedom journey.

*As always, I am not an expert or financial advisor, so nothing on this website should be considered financial advice. These are just my opinions, everyone is different. Always do your own research and have your own independent thought process.

Life Update

The summer has been filled with adventure, exploring, singing and attempting to dance …very badly. 

Oh and my favourite past time .. ‘beach bumming’. That’s a term right? I try to get down to the water at least 4 or 5 times a week. I’m privileged to live within a 5 min walk of the beach in Vancouver and I made it my goal to learn to swim in 2022.

Looking back, I am so happy I got out of my high paid stressful job which I quit a year ago. 

The activities I’ve spent this summer doing, just were not possible then. My evenings used to be filled with catching up on client asks and my weekends spent worrying about what was waiting for me on Monday morning back in the rat race. 

Now they are spent down at the beach, swimming and barbecuing, hanging with friends and attempting to get a sun tan.

Having savings and investments gave me the confidence and security net to leave this high paid job behind and look for more in life. More freedom and time to enjoy my personal time.

It’s one of the best decisions I’ve made so far in life!

I’ve included some photos of some of the recent trips over the last month… which included endless bbq’s on the beach, a week in Kelowna and trips through the famous wineries of the Okanagan, in British Columbia.

Am I spending money that could be saved and invested? 

Yes, definitely. 

But money spent on experiences is the best way to spend it, in my opinion. Also life is about enjoyment and experiencing as much as you can as often as you can. There is a balance there somewhere to be found.

As I always say, make sure to reward yourself every now and again, this financial freedom journey is a marathon not a sprint.

So let’s dive into the numbers.

Lake Okanagan
Winery #346....

Net Worth Update (August, 2022)

My last net worth update was June.

I got crushed along with many others in the first half of this year. My net worth sank below $300k in June from a high of $347k December 2021.

Tough to take particularly as I contributed a lot (roughly $5k per month) in the interim months between December and June.

But this is part of the process with stock market investing. You should have a long term horizon, greater than 5 years.

As I noted in my last post, I recently moved into some pretty substantial single stock positions. I normally advocate for index fund investing, coupled with a buy and hold strategy over the long term.

But I saw an opportunity to buy the dip on some great stocks where I believe in the fundamentals..Paypal, META, JD, Shopify etc

So how are they performing?

Read on for a breakdown by category, and also what I spent for the period of July and most of August.

August 2022 NW Update

– Checking: $1.8k;  Cash is still trash as ….still. No real change.

– Brokerage: $269k (+23.5k); Increase of over $23k in August versus our last update in June, with contributions of $5k for those 2 months.

After my large contributions to single stocks over the last few months. Contributions this month went back into my normal index funds. I chose VCN this month, as I am a big believer in the Canadian stock market long term. 

Vanguards VCN fund is a great low cost option of gaining that exposure. Heavy on utilities, energy and banks. All of which I think will outperform over the next 5 years given the current gas/energy challenges and the recent and forecasted interest rate rises which banks will capitalize on in the form of increased revenues.

I also sold my REIT positions, given the recent rise in interest rates… my view on the US housing market is pretty pessimistic. At the very least I think it will underperform the stock market. I chose to exit and divert funds back into stocks.

My brokerage is now made up of the following (approximate % allocations):

  • Index Funds – 34%
  • Individual Stocks – 62%,
  • Gold – 4%

Regarding the above allocation, it constantly changes. But in 24-48 months time I want to reallocate my single stocks into Index Funds – my favourite Index/ETF funds are here.

You will notice I haven’t any exposure into Crypto’s. I have never been convinced and willing to take on that level of risk.

I 100% believe in the power of the blockchain and the benefits thereof..but investing in the multitude of different coins out there is not something I understand enough or want to get involved in.

Warren Buffett always advocates never investing in a business/opportunity you don’t fully understand, so I am following that advice.

– RRSP (Pension)  $58.1k (+$5k);  My pension bounced back this month, up $5k. As mentioned in previous updates I opted for a mutual fund that is 100% US equities. And I don’t plan on changing that anytime soon.

– Car loan (bank) $4k  (-$0.5k); Down to 4k already on the car loan. Should I include my car as an asset on my net worth? Let me know in the comments if you do.

– Rent, insurance and credit card $1.5k; No change here.

August 2022, I am now worth, financially at least ~$323k.

Which is an increase of approx $30k (10%) since June’s update.

We are back on track and above 300k.

My goal for the end of the year is to get above $400k by December 2022. I need to to stay on track for my goal of early retirement by age 35.

How was your summer and what changes, if any, have you made to your portfolio in 2022?

Let me know in the comments

If you haven’t already make sure to subscribe, and like and share this post below. This helps me out hugely, especially during times like this.

If you need to email me, use the contact form here – always happy to chat to you guys/gals.

Thanks and have a lovely week everyone! 🙂 

MeTheMillennial

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