In Budget Roundups, Money

November 2020: Net Worth & Investments Budget 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 November 2020 Net Worth

$1,119,495.99
Or an increase of…
+$62,777.51 or +5.61%

Thoughts from this month

Oh. I cracked $1.1 .. that was nice. I didn’t think it would happen this year, but who knows these days?

Now that I have a contract coming up, I have to start planning and thinking about what goals to set for 2021. I am always looking ahead because I want to make sure I keep myself focused and on track as I tend to go off the rails when I work (in terms of spending I mean).

At the very least, I will not be in the office, so eating out will not even be a whisper of an issue (my Achille’s heel when I go to work because I like variety and hate bringing my lunch, but I understand that $25/day adds up to big bucks and I’d rather spend that money on a massage or something..)

I also know that in January, I will transfer $6000 immediately to max out my TFSA contribution for 2021.

Next month, will give another slow boost to my net worth if I can keep my spending cool.

NOTES

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.)

The Net Worth Breakdown in Detail

September 2020 Savings Rate = 72.52%

Oops. A little below 80% but that’s to be expected. Gifts, an app for Little Bun, books, a fancy coat… things cost money and I am close enough, right?

My overall savings rate for the year is at 72%. I call that a win because I think I saved less than that last year.

Net Worth Year in Review

My savings is at around 72% this year..

On average, it’s going good. I am not back up to that March of 93% but maybe I can get there in 2021.

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 WAY past $10K so that I can save 5-digits. It’s just in recent months I haven’t been as excited about the whole situation.

I’d also really like to push my passive income past $10K so that I really have zero to worry about, but dividends, lending and all that past $10,000 means a serious amount of invested capital.

If I assume 1% of my invested capital is my income, I need a cool $1M invested to achieve this goal.

Long-Term Goals Progress thus far:

I will be doing an update on my long-term goals every month. It’s nice and satisfying to see the bar fill up. I am setting vague years/dates based on my past performance.

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:

THE INVESTMENTS ROUNDUP

My lending account is slow-going

Small business lending that is. I have about $900 just sitting in cash, not being reinvested back because there aren’t that many small business loans due to COVID.

Two loans ($50 and $75) were written off last month. I will do a recap of my year in private lending as a good summary, but I have to do thousands of transactions so that might take a while.

Focusing on index funds now

I sold off chunks of my individual stocks, and am redirecting the money into index funds now to stick to my strategy to keep it balanced. I threw in about $8K this month here:

  • QQQ
  • VFV

2021: $6000 into my TFSA

My TFSA limit pops up again at $6000, so I will throw in $6000, come January, and throw it into index funds above.

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.

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, even if it drops my rate down to 1.24% from 5%.

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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