February 2018 Net Worth ( -$1,387.78)

February

Hey folks how are you? Today I get to share with you my net worth for February. I saw another down month my second straight to start the year. I’m not to concerned with this I know it’s short term pain for long term gain. In fact I’m surprised my net worth wasn’t lower. Why do I say this?? Well my net worth is overwhelming tied to the stock market. In February we saw some volatility with the markets. I believe I took advantage of the situation as I bought stocks 8 times during the month.

With this post three numbers will stand out to you as you read it. They are my cash, investments and liabilities. As I mentioned above about all the purchases I made I needed cash to make it happen. Also last month on Twitter I put up a poll mentioning that I was seriously thinking about taking out a loan from a bank to put towards investing. The poll was my most popular to date and 85% of you voted that I shouldn’t borrow to invest. I received lots of advice on the poll as well. I will you now before you read it that I did borrow money I went against your advice. Why did I do it? Well you see someday I would like to retire and at the moment I don’t have a pension so I need to get my money working for me for as long as possible. I don’t mind paying the money back, especially the amount I borrowed. I borrowed a total of $3,000, instead of borrowing from a bank I asked my family if they had any cash lying around that they weren’t using. They gave me the money interest free and I pay them back every couple of weeks.

Let’s get to the numbers shall we.

All of the numbers below are as us February 28th, 2018

February January Change
Cash & Savings $4,322.29 $10,738.13 -$6,415.84
Investments $119,722.94 $112,588.89 $7,134.35
Car $14,969.00 $14,969.00 $14,969.00
Liabilities $14,862.54 $12,756.58 $2,105.96

Cash & Savings ( -$6,415.84)

February January Change
Car Account $909.53 $565.90 $343.63
Savings $412.76 $2,803.58 -$2,390.82
Emergency Fund $3,000.00 $7,368.65 -$4,368.05

Reducing my cash just over $6,000 in one month is not a decision I made lightly, I believe my decision was the right one and I will see the results later down the road. At the time of the decision my cash was earning me between $4.00 and $4.50 in interest per month. By putting that money to work for me in the stock market I will be earning over $300 annually in dividends.

I will be easing up on my investing and will start to rebuild my cash pile in the future. The car account is close to $1,000 and once it hits that mark I will withdraw the money and make an extra payment on my car.

Investments ( +$7,134.35)

February January Change
Locked in RRSP $3,818.94 $3,995.89 -$176.95
TFSA $28,364.18 $26,225.00 $2,139.18
RRSP $87,539.79 $82,368.00 $5,171.79

Locked In RRSP

A slight decrease to the value of this account, during the month I took over full control and moved my money out of a mutual fund and invested in Enbridge Income Fund Holdings. I expect the value of this account to rise over time.

TFSA

This account saw growth from the cash I put into it and through the buys I made.

RRSP 

This account grew the most as this is where I hold most of my blue chip stocks and a few of them came on sale in February 🙂

Car ($14,969.00)

I currently own a 2015 Hyundai Elantra GLS, I check the value every three months. I will update this figure in my April update.

Liabilities

February January Change
Credit Card $78.19 $0.00 $78.19
Car $12,459.68 $12,756.58 $296.90
Family Loan $2,324.67 $0.00 $2,324.67

Credit Card

I owed $78.19 on my credit card at the end of the month.

Car

I made two payments in the month of February reducing what I owe to $12,756.58.

Family Loan

As I mentioned above I borrowed $3,000 to invest with, I have been able to pay back $675.33.

Total Net Worth

Well as you can see I had another down month but I’m not worried, hopefully I will see a rebound in March.

Well folks that wraps up my February net worth report. How was your month? Did your net worth go up?

Thanks for reading

Matthew

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8 thoughts on “February 2018 Net Worth ( -$1,387.78)

  1. Not sure I like the “loan money to invest”, or even “loan money from the family”, both can be pretty dangerous to be brutally honest. But the values are low compared to your wealth, so you probably can get away with it. Be very careful though! Seen bad things happen with such situations!

    That being said, nice gain in invested assets!

    Liked by 2 people

    1. Thanks Team CF borrowing to invest is not a popular idea with people in the personal finance community and I understand that. My family know that I will pay them back as I’ve done this before without any issues. Thanks for reading my post and commenting.

      Like

  2. Also not a huge fan of the borrowing to invest – especially right now as interest rates are rising and stock market is over valued. That said – at least you don’t have to worry about the interest rates with the loan 🙂

    Best of luck though – hope it works out 🙂

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  3. I was thinking of using my HELOC if push comes to shove and I don’t have enough when the crash comes. But the HELOC rate isn’t so good anymore- almost 4% (or maybe 5- I forget).

    $3K is a small amount and that’s good your family lent you the money interest free!

    Liked by 1 person

    1. I first looked at borrowing from my line of credit but the interest rate was 6% I decided against that. My family thankfully knows that my finances are good and if I borrowing anything I always repay. Also soon I will be getting a tax return that will take care of the loan.

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  4. Nice progress Matt. Im sure it will pop back up in due time. Seems like you paid a nice chunk of that loan off already which is nice. Loans from family is always risky though. Why would they want to lend it to you to invest at 0% interest.

    Have you told them what your doing and tried showing them the ropes?

    Nothing wrong but clearly they would benefit from your knowledge. Ie earning 4% in dividends vs cash making nothing.

    Anyways keep it up, your doing great.
    Cheers

    Like

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