Lake Lillooet

June 2022, Net Worth Update

jUNE net worth... holding your nerve

Testing your Investing Resolve

By MeTheMillennial

June, 2022 – Monthly Net Worth Update

Finally, here is another net worth update.

I took a break for April and May. Why? 

Because frankly losing so much money, at least on paper, got to me, it tested my investing resolve. 

I’ll break down exactly how much later in this post.

I found myself asking, what is the point of all of this?

Should I really be putting all my eggs into the stock market. 

Every pay-check that I’ve worked hard for. Instead of saving/investing – why don’t I just go out and splurge with luxurious trips, a nicer car and the newest model of the IPhone…whatever that number is now.

But that’s the easy way out. That’s how you stay on that hamster wheel working pay-check to pay-check and never gaining financial freedom. 

The requirement to work until you’re 65 where retirement is a necessity rather than an option.

I read over a previous post I had published back in December, 2021… oh the good times! When valuations where at all time highs, and you literally couldn’t loose money in the stock market.

That post was titled “How to Cope with Losing Money in the Stock Market”, and I realised now more than ever was the time to practice what I preached.

So I have been knuckling down, resetting my focus and expectations.

Changing my mindset to see this as one of those golden opportunities in every investors journey to build wealth for the long term with stock market asset valuations currently being so low.

Using the Buffett Indicator, which is the ratio of total US stock market valuation to GDP. As of time of writing this post, the Buffett Indicator is currently at 35% or about 0.9 standard deviations above the historical mean. In simple terms the stock market is now fairly valued.

The complete hysteria that gripped the stock market over the last 12 months has dissipated and now expectations and valuations have come back to reality with a bang.

According to Business Insider the average retail investor has lost 32% of their portfolio in this years sell off.

That’s a third of their net worth!!

Any my portfolio is, unfortunately, no different. Read on to see how I performed versus the average retail investor.

*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.J

Life Update: June 2022

So its been a while since March’s net worth update. Over April, May, and June, I have really prioritized my social life, my family and friendships over frugality and the constant need to invest all surplus cash from my bank account. 

Long term there has to be a balance…and for me that sweet spot is to save between 50-60% of my income each month.

For reference my previous goal was to save at least 70% of my income, here is how I did it.

I took that extra disposable income and used it to fuel experiences and reconnecting with family friends.

This included:

– A 3 week trip to Spain for my brothers wedding, expensive but worth every penny.

Again I was smart about how I spent my money, got a good deal on an Air BnB bnb just outside of Barcelona, and used my credit card points to cover some of the flights costs.

– 2 weekend camping trips to Chilliwack Lake Provincial park and Lake Lillooet both in British Columbia.

Camping out in the open is such an amazing experience and actually can be a very cheap trip away. Other than food, propane and gas there are very little other costs. Getting to explore British Columbia was one of my main reasons for buying a car and we are making the most of it.

Check out some photos below, and reach out to me if you want to hear more about these camping spots or tips and tricks to make the most of your experience….and share with me your recommendations!

Splurging a little bit on these trips was so worth it.

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

If you like hearing more about my life/these topics – let me know in the comments. 

So let’s dive into the numbers.

Lake Lillooet
Lake Lillooet
Chilliwack Lake Provincial Park
Finally getting the hang of camping 🙂

Net Worth Update (June, 2022)

My last net worth update was for March where there was a bit of a rebound in the markets and my net worth sat around $347k.

Well, April, May and June have been a bit of a disaster on paper.

Again let me emphasize that this is all on paper and I have not sold any positions since then.

So as you may be aware, or not…I took up a number of single stock positions – contrary to my investing thesis of always sticking with index funds like Vanguards VTI, or VOO.

But personally and from the actual research I have done, I believe there is a once in a generation opportunity to get into the best tech firms out there at hugely discounted valuations

The likes of,

– Paypal (PYPL), 

– JD.com (JD), 

– Shopify (SHOP), 

– Unity Software (U) and why I bought the dip on META (Facebook).

I knew going in to single stocks there would be huge volatility and there would be risk, but my time horizon is the next 3-5 years for these single stocks and I have every indication they are going to rebound in a major way. 

I have the risk appetite for these large swings up to 30%. My position in life right now, and my decisions not to buy a large mortgage have given me that flexibility. So if you are thinking of a similar course of action make sure to consider these.

But that doesn’t mean there won’t be further short term pain.

And by pain, just look at my portfolio % decrease over the last 3 months.

Am I affected by this mentally? I would be lieing if I said no…

I have some down days but I have gotten so much better at this, I’m at a stage now where it really doesn’t impact me, I only check in on my portfolio once or twice a week rather than ten times a day previously.

Read on for a breakdown by category, and also what I spent for the month of June.

– Checking: $2.1k;  Cash is still trash as ….still.

– Brokerage: $293.5k (-$48); Decrease of  of over $48k in July versus March 2022, with contributions of $9k for those 3 months.

I added to my single tech stocks positions, along with nibbling at other industries like the airline industry. 

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

  • Index Funds – 23%
  • REITS – 8% 
  • Individual Stocks – 62%,
  • Gold Stocks – 7%

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.

– RRSP (Pension)  $53.1k (-$5k);  My pension didn’t have as much of a decrease and my % of contributions given the initial balance is not that large. As mentioned last month given my age I opted for a mutual fund that is 100% US equities. And I don’t plan on changing that anytime soon.

– Car loan (bank) $4.5k  (-$0.5k); As mentioned in March, I recently bought a brand new car – this represents the financing portion left. I don’t record my car as an asset in my net worth, even though I probably should.  

– Rent, insurance and credit card $1.5k;

June 2022, I am now worth, financially at least ~$294k.

Which is a decrease of of approx $53k (15%) since March’s update.

Disheartening to dip back under $300k, but as I said this is a marathon not a sprint.

Now is when people stray from the financial freedom path. So don’t be one of those people, turn your mindset around…this is an opportunity to build lasting wealth and leave the rat race behind …forever!

How is your summer going and how are you coping with the continued pain in the markets?

Let me know in the comments one word, that sums up your feelings towards the stock market and investing at the moment.

I will start with ‘Opportunity‘.

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.

Thanks and have a lovely week everyone! 🙂 

MeTheMillennial

6 thoughts on “June 2022, Net Worth Update”

  1. Perseverance. Now, much more so than during bull market times, is when it becomes vital to put one’s head down, keep investing to one’s plan, and just stay the course.

  2. Wistful. I cashed out savings last year to put down on a condo. Now, I hate owning a condo and recent rate increases have all but wiped out my remaining cashflow after expenses. So, wistful it is. Longing for the days of old when I actually had money to invest. Feeling sad that I don’t have the surplus to invest now that everything is on sale.

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