In Budget Roundups, Money

April 2021: The Net Worth and Investments Roundup

All of the images below have been created with The Wealth Tracking & Budgeting Tool available for sale on Etsy, or at TheBudgetingTool.com where all proceeds go to charity

This is a sheet you buy ONCE and you can re-use for future years, plus it lets you store all of your historical data from previous years (super handy).

All net proceeds go to charity! (Always and forever.)

Sherry’s April 2021 Net Worth

$1,158,998.95
Or a increase of…
+$23,268.29 or +2.01%

This is how I invest half of money in the stock market and the other half is split between alternate lending (Lending Loop review here), and mostly in dividends (here is my dividend short list of stocks I was looking at to buy for Canada and the U.S.)

Markets are stabilizing?

I take my numbers the day after the end of the month (on the first of the next) and it seems like markets are correcting a little.

The whole thing though is to play the long game. Even if markets are going up/down now, in the long run (10+ years), if you’re investing in the general stock market with index funds, you’ll be fine.

The Net Worth Breakdown in Detail

All numbers. What’s important is the income being made, and the money being saved. My savings rate was not so killer this month which goes against what I JUST SAID.. but there you have it.

April 2021 Savings Rate = 84.98%

Over 75% was my goal for 2021, so I am happy. I am still well above that.

Note on Savings

I save a lot, but out of that savings comes donations, gifts to family, etc.

So it looks like a lot that was net saved so far, but my net worth doesn’t go up by that amount as I give a lot away.

At the start of this year I have given $21K to charity (calculated on my last year’s income), and another $50K to family, so it’s really not as impressive as net savings if you consider how much I give away out of that “savings” as well.

Goal: $1M in invested liquid assets

Moving towards my goal of $1M in invested liquid assets, I have done the following and only kept my home at $400K (market value) on my balance sheet.

It’ll make it easier to track my investments, it’s just whatever I have as a net worth minus $400K.

Our property values went up again this year for various reasons, but I am keeping it at $400K because it seems reasonable.

Net Worth Year in Review

So far, so good I say. Yes my savings rate dropped below 90%, but my overall (goal with grace) was 75% for the year.

2021 goals:

Long-Term Goals

And here are my extra long-term goals. No real change I will update this every quarter or 6 months as these are longer-term things.

$1M in liquid investments

I don’t think I feel like a millionaire because I can’t see it in my accounts. Sounds silly but true. I’d like to log in and see “$1M” in my investment balances. That’d be nice.

Then obviously because I am crazy, I’d want to have $1M in EACH account.

As I have 3… that would be $3M. I am more likely to hit this in my Margin (unregistered) accounts though. My registered ones may never hit $1M in my lifetime as I don’t contribute to them as often as I do margin ones (due to the government limits/caps).

$2M net worth

This includes just my house as an asset, plus my investment portfolio and cash. I won’t be adding any other fixed assets in there. I’d like to even move my house off this balance sheet but honestly, it is an asset (paid in cash no less).. why wouldn’t I count it as my net worth?

The only reason I’d remove it from my net worth completely is on the basis that well.. I need somewhere to live. So I can’t really sell the place now can I?

$50K passive income

It includes dividends, private lending, bank interest. Right now I am around $23K and I don’t know when I’ll hit $50K. So I set it at some arbitrary year. Can I hit $5M by 2040? I’ll be 57 by then. Who knows? It’s a great goal.

In the meantime, this is projected for this year to be around $24K because I made about $6K in passive income in the past 3 months, so times 4 it’s about $24,000 for this year.

$50K dividend income

This is a super.. aggressive goal to have just one stream of income coming in as $50K and no other incomes. I could just live off this luxurious salary and not touch a penny of capital.

For $50K at 1% return, it would mean $5M in invested capital.

I’d like to hit it at 65? Again, this is all made up.

Future FUTURE goal: 5-digits in monthly savings (e.g. $10K/month)

It is easy to save when you make lots of money. I know this sounds like nonsense (DUH) but .. it’s true. I am going to work on increasing my side income past $10K so that I can save 5-digits a month.

But not this year. I am working this year, I don’t have the energy for that. Later.

If you are interested, my money is parked here:

  • EQ Bank: 1.5% now.
  • Tangerine: Use my Orange key { 32726976S1 } for free money ($50 once you deposit $100; and I get $50 too) — At 2.74% until February.

…cashback sites and cash-earning sites for surveys:

It is invested here:

THE INVESTMENTS ROUNDUP

Some stocks on my radar

  • WCN
  • TD
  • BMO

Waste Connections (literally waste), doesn’t pay dividends but is a solid stock. I also have TD and BMO (both banks) on the list for dividends. I already own them, but I want more.

The problem is I want all of them now, and it takes capital.

General Investment Strategy

My strategy is to have 50/50 as in:

50% of my portfolio in index mutual funds
50% of my portfolio in dividend-paying stocks

The ultimate goal is that my portfolio for dividend paying stocks will yield $12,000 at a minimum in dividend income (I hit that this year) each year, up to $50,000.

I am also playing the other side by having money invested in index mutual funds, and letting them grow slowly and appreciate. They too, pay out dividends at about 1.24% so it isn’t zero, just not as fast.

As my dividend stocks go up, I do sell for capital gains, and then I take that money and plow it into index funds, which drops my dividend payout rate, but it makes it ‘safer’ in the sense that it diversifies it more.

Small business lending is way down…

Still no loans being made. I am basically withdrawing cash and draining it. Until the economy recovers, I won’t be able to invest any money back into lending out to small businesses.

Will take a mortgage in the future

I will take a mortgage in the future instead of trying to pay for my future home build in cash, as it’s an interim loan, interest rates right now are quite low and depressed, and if I have to pay it off early and pay a penalty, so be it – it’ll be cheaper than draining funds and selling investments, paying taxes, etc.

FYI my investments are all here:

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Sherry of Save. Spend. Splurge.

Am my own Sugar Daddy. Am a millionaire at 36 after getting out of $60K of student debt in 18 months, a little over a decade earlier, using TheBudgetingTool.com. I have worked 50% of my career (taking 1-2 year breaks), and quadrupled my income within 2 years of graduating, going from $65K to $260K with an average lifetime savings rate of 50%. I have 11 side incomes that are on track in 2020 to make me $50K - $75K. I could retire today if I wanted, but love my work-life balance as a freelancing consultant in STEM (Science, Technology, Engineering, Math). I am all about balance - between time and money, and also enjoying my money. I also post daily on Instagram @saverspender.

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