Welcome to the FindependenceCanada August 2019 Net Worth Update. This is where we track our monthly updates on our quest to a One Million dollar net worth and beyond. We have worked diligently over the last few years to go from having a negative net worth to the position we are in here today, and we hope that we are able to motivate others to join us on our quest to financial independence!
When it comes to our net worth we try not to make any goals that are too concrete as we are aware that there are so many variables that may work for, and against you, especially in short time periods, so flexibility is key! Instead, we focus on our savings rate (currently at approx. 50% take home pay) and investing in companies we believe to be stable and truly blue chip in their respective industries. We feel as long as we take care of what’s in our control: earning, saving and investing diligently, the rest will take care of itself and the results will come over the long haul.
Well- right on time for our Net worth August update, the stock market has decided to have itself a little pullback. Recession talk everywhere, trade deals dominating headlines, seemingly every sneeze is having an impact on what the markets are doing.
This has been no help to our net worth.
That being said, we have seen an increase yet again month over month and this time it was by about $6,700 give or take. So if the market isn’t helping us what is? It’s months like this where we really see the value of 2 things:
1) Our tremendous saving habits – Still putting away roughly 50% of our pay checks regardless of how the markets are doing or any other outside forces.
2) The fact that we are able to rent out our unused basement and cover approximately 63% of our mortgage from those funds. This is one of the biggest factors that allows us to save as much money as we currently do. And we’re definitely grateful for it as we aren’t sure if once we have kids etc. that this income will be there for us.
Let’s take a look at our assets, this months total was $750,372 – This is gain of just under $5k month over month.
Now on to the liabilities, again this is our home mortgage as well as Mrs.FIC’s student loan with essentially a 1% interest rate on it, so it can hang around… for now. We’ve brought the liabilities down to $518,763 this month which is down about $1,500 from last month.
Assets trended up and liabilities trended downward, not a lot more we could ask for. To us a boring month is a good month, we’re not out to hit it rich with a jackpot or take any unnecessary risks to try and beat the market.
Slow and steady wins the race.
We’re actually looking forward to getting what we hope will be a lengthy downturn and buying opportunity as we firmly believe that fortunes are made during recessions and will be looking to continue to put our dollar army to use. Our intention is to continue to plow just as much money per month into our accounts and have that money purchase us even more shares in our favourite companies! exciting stuff really, especially since we are currently 30 years old and quite some time away from having to rely on our portfolio.
Where were we? Ah right, total net worth. As mentioned above our total net worth trended up roughly $6,700 and brought our Net Worth to a whopping (for us) $231,609!
$20,000 to go until we can call ourselves quarter-millionaires. Hopefully we can achieve this by years end regardless of what the stock market does. This is a great reminder of why it’s important to track these sorts of things, even though this month hasn’t felt productive and we haven’t done anything special to boost our numbers – still seeing the bottom line increase is a reminder to remain focused and keep doing what we’re doing and the results will come in time.
Thanks for taking the time to read this net worth update, as always if you’ve got any comments or questions leave them below or feel free to stop by our Instagram page at FindependenceCanada and drop your comments there.
Thanks,
FIC.