In Budget Roundups, Money

July 2020: The Net Worth and Investments Roundup

Note: All the graphics you will see below, and charts, were made with TheBudgetingTool.com.

https://www.thebudgetingtool.com

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

Sherry’s July 2020 Net Worth

I am finally getting back to where I was at the start of this all….

$1,052,735.31
Or an increase of…
+$25,696.89 or +2.44%

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.)

I am just in limbo

I really feel like … my investments are on a rollercoaster, I am in limbo mentally, I can’t go outside, and I am tired, yet anxious and bored all the time. This is messing with me mentally.

I’m also still mourning the loss of my amazing contract because man.. I will never get something like that, as good again. Part time, double the rate. It was a unicorn and 2020 fked it all.

The Net Worth Breakdown in Detail

This is good, seeing green… but it is nothing like what I had at the start of the year, and considering I made over $120K this year. It just feels like I’ve made all the wrong decisions this year, and everything just hasn’t lined up for me in a sense of taking advantage of the market and proper decisions.

I feel like a failure, to be honest.

July 2020 Savings Rate = 57.95%

Still over 50% but not as good as previous months. This will get better next month.

Goal: $1M in invested liquid assets

My new goal is to remove fixed assets (mentally) from my net worth, and reach $1M in invested assets, basically my cash, investments and so on. As long as the trend is up.

I am tired.

My savings rate is pretty good still…

Money is money is money.

 

Future goal: 5-digits in savings without my day job

It is easy to save when you make lots of money. I am going to work on increasing my side income past $10K so that I can save 5-digits.

..but so are my donations this month:

July 2020 = Donated $819.01 total

I donated out of my personal income earned: $730.74 to the World Wildlife Canada and the 100% of the net earnings from sales of TheBudgetingTool.com was $88.27 this month, and went to them as well.

https://www.thebudgetingtool.com

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

Thank you to ALL who purchased the tool, and I would appreciate any feedback/reviews because it helps others know that I have this for sale & I can write a bigger cheque next month.

Next month – August – I chose Doctors Without Borders. In light of everything that has been going on, this is where my money will have the biggest impact. I use Charity Intelligence to see where my money goes and how much impact of it actually goes to these causes, and they do pretty well at DWB – you can read their report here.

The communities that need their help the most, like indigenous communities, especially in the fight against COVID, are underserved and should be recognized.

If you are interested, my money is parked here:

  • EQ Bank: 2% now.
  • Tangerine: Use my Orange key { 32726976S1 } for free money ($50 once you deposit $100; and I get $50 too) — At 2.74% until June!

…cashback sites and cash-earning sites for surveys:

It is invested here:

Little Bun’s May 2020 Net Worth
$31,368.68
Or a decrease of…
-$49.96 or -0.16%

HE WAS SO CLOSE THIS MONTH. It was going so well, things were fine, and then everything tanked. We also now make too much money as a household income, so his benefits have been cut back significantly.

I invest for Little Bun and this is how I invest his money in the stock market and I stay true to it, but times are rough. Here is a list of personal finance books you might want to get started with, and about the same set for us Canadians.

Little Bun’s investments are located here:

THE INVESTMENTS ROUNDUP

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 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.

Moving into buying U.S. stocks

Like I mentioned last month I will be redirecting all of my Side Incomes into buying U.S. stocks with USD from Paypal.

I will still be reporting the CAD amounts on all of my documents and for taxes, but I will now be slowly draining my emergency fund for the next 3 years to live, and to invest all of my money instead.

Sold off:

  • CP
  • ATD.B
  • BEP.UN
  • INE
  • STN
  • PLC
  • TIH
  • CNR
  • ITP
  • WCN
  • RBA
  • OTEX
  • RNW
  • SIS

Yes this means my dividends will drop, but my original goal was $12K, so I may just go back to that.

New stock:

  • RSI

I finished research on a stock, and pick Rogers Sugar Inc. up for a cheaper price. I normally wouldn’t buy a stock with a yield of 7% or higher but it is because it got slammed with a crop yield being an issue due to weather, and then the virus, which is what made its stock price drop. I remember it being $3 years ago when I bought into it. I plan on selling it when it goes back up to $5-ish dollars, seeing as sugar is kind of a staple. Everywhere. And they’re the biggest sugar distributor in Canada.

Selling off to sit on cash

It was a bloodbath this month. I locked in gains in all of these stocks. I am not very convinced that this market rally will last.

I think we are all being all too optimistic, and the real effects of what the end of July / August will mean, will only show up in September / October, so I locked in the gains and will wait with a cash position. Not a crazy big one, only about $50K.

The rest of my money is fully invested.

I had this same feeling before at the end of 2019 / January 2020, and I ignored my feelings. That was dumb. I am likely betting now on these feelings, again, and it MAY not work out, but I am willing to risk $50K in cash, not earning anything for the next 2 months to see if my hunch works out.

I don’t know if everyone realizes that September is not a magical month when the virus says: Oh? Children have to go back to school? Okay, I will calm down now and stop infecting or spreading in closed indoor spaces.

It is going to get worse – my anecdotal thoughts

And maybe we will be able to handle it because we just re-open everything, but it doesn’t mean people like me, though you say things are open, will go and eat in a restaurant or go out and be normal like before.

I am going to just do what I am doing, and stay at home. Until there is a vaccine or we all get herd immunity and it is safe because we have zero cases for a month or two and it’s truly GONE. I mean, I am not even sending Little Bun to school this year, and we will homeschool him. Am I being overly cautious? Maybe, but maybe not. I am seeing cases rise because of summer day camps happening, and realistically speaking — HOW DO YOU EXPECT KIDS TO SOCIALLY DISTANCE?

Little Bun is at a good age where I can teach him and still be able to explain things properly. If he was older or studying for higher grades, I’d be completely unable to help him. I can handle homeschooling for at least 2-3 years, no problem. It’s what I am willing to do versus take the risk of sending him back, to bring it back and kill me. I am a very high risk candidate for this disease in particular because of my very weak lungs (asthma and chronic bronchitis), and I will likely not survive as it is a respiratory virus. I can’t take that chance. And even if I do make it through, my lungs will likely be damaged pretty heavily amongst other effects we don’t even know of yet.

I am willing to wait

In the U.S., it’s a different story than from here. I also think the ripple effect of people getting shifted off CERB to EI in Canada, will mean that people are now homeless (not everyone has parents or grandparents to run home to and hide out to not pay rent), and I don’t know what the numbers are for them, but it means landlords aren’t filling their apartments, which means if they didn’t have a solid EF to cover at least 3 years of no-tenants, they have to raise their prices if someone does want to rent something, or run the risk of having to sell / lose it.

I also think 30% of small businesses, even re-opened, will not survive. Already I have been hearing of small business owner friends who went bankrupt. Their livelihoods are gone. I am being optimistic with 30%, I think it is more 50% will not survive. There are just things that are not ‘essential’, and consumers are guarding their money fiercely because they’re realizing they may not be able to rely on their jobs as well.

The governments are also all trying to shoulder the burden to help the economy but …. you can only help so much. We simply don’t have the money at the government level to sustain all the businesses for 3 years. We’re also borrowing like crazy.

We are too optimistic

Aside from the actual gig industries being hit for restaurant workers and the like, we aren’t even looking at full on industries that are not selling – oil & gas in particular, with massive layoffs, or other companies that sell or provide recreational services that no one is using, or they have to open at a very low rate.

Example: Maid of the Mist, a Niagara falls tourist attraction. In the U.S., they’re filling the boats like before at a 50% fill rate of 350 people (?) (and spreading COVID). In the Canadian boat, it is a far lower occupancy rate of 4 PEOPLE out of 700.

If you see 350 people on the U.S. boat versus 4 people on the Canadian, how the hell is this attraction going to make money on the Canadian side? That’s just one example. Other attractions are opening with masks, but there are simply people who won’t go to these things at all, stay at home, save their money and wait, and these attractions will be unable to stay open (e.g. Cirque du Soleil).

Most businesses can’t go past even 1-3 months of not having any revenue coming in, lots of margins are razor thin. To ask them to survive 1-3 years, even with minimal government help? No way. It’s just not going to happen. And they’re what, going to take on debt that they can’t afford to pay back? Governments can’t save everybody.

You’re also looking at oil & gas as an example taking a hit with people working remotely and not using their cars, or going out at all. Maybe it offsets with longer road trips domestically because U.S. is banned from entering almost every country in the world now because they have no idea how to handle the virus properly and just wear a damn mask.

Out of oil & gas taking a hit, it means industries reliant on them, are also taking a hit. It also means that industries that manufacture items like vehicles, or supply raw materials like metal to these auto manufacturers, are taking a hit. They’re simply not making things because the demand has dried up / is temporarily on hold.

Then, let’s not even talk about all the other industries affected by transportation – cruises, airplanes, tourism, consulting and other businesses no longer doing weekly fly-ins and outs to client sites (that was a seriously crazy amount of travel for nothing). All of these industries are getting HAMMERED.

Lastly, food. Restaurants again, are all taking a hit plus their employees, but also the price of food is going up as there aren’t enough people to work to pick the food and then transport it to grocery stores. All of the food has gone up 30% in our area of what we buy, and all the exotic stuff (cheeses, foie gras) have more or less disappeared.

How long more will this last? 2 years is an optimistic estimate that by 2022, things COULD be back to semi-normal with a vaccine. But what if it isn’t? What if it is 2023? By that time, we will either all gain herd immunity I suspect, or we will have a vaccine. Either way, we will all be staying at home until either option happens.

Anyway. This all has been germinating in my brain for the past month or so.

On the positive side..

I have been spending less, relatively speaking. And I have had more time to reflect (obviously… as evidenced above). I am going to try and use this time to force myself back into reading which I love (but then I get so anxious for no reason because reading is now no longer pleasurable in a sense).

Strongly thinking of taking the currency hit from CAD to USD

I really wish I had more USD, and I am now starting to consider just converting my $CAD into $USD and buying U.S. stocks because Canadian ones are so limited. This is my issue that I am struggling with.

It has what has held me back in the past from buying U.S. stocks and I am currently wallowing in a self pity party that I didn’t convert my money at the time when I thought the stocks was a good deal, and decided to just ignore it.

Anyway.

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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