5/27/2019

Asset Management: Putting your money to work!


Assets management is an important skill you must learn during your journey. You must develop the mindset of money as your workers, and you are their manager. Just like at any job, the manager gives tasks for workers to perform. Therefore you must do the same thing with your money.

5/23/2019

Why is car a horrible asset class?

If you've been following my monthly net worth updates, you'll know that I don't include my car as an asset. This is done on purpose to highlight my belief that car is not a wealth building assets. I've also talked in a previous post on what I consider good assets.

5/20/2019

Things to do during your journey to financial independence


Starting your journey to financial independence can be very exciting at first, tracking your monthly cash flow, seeing your net worth change, learning about investing, and even planning what to do with all your wealth once you've accumulated them. After the initial excitement, you'll probably start wondering what else is there to do? Today I am going to share things that I've been doing since I started this journey to keep the excitement alive.

5/13/2019

A money tree that gives you $1 a day.


As the saying goes, "What, Do you think money grows on trees?". Well, I am going to show you that money does grow on "trees" and how you can get your hands on such a tree. This idea came to me the other day when I was talking to my wife about the current materialistic culture that we lived in. She said people don't want to invest in stocks because they can't show off their investment. I started thinking, what if you can buy a tree that gives you $1 a day, how many people will buy such a tree and how much will it cost? I can't answer the first question, but I can roughly tell you how much it should cost.

5/09/2019

Why you actually make less than minimum wage!


So I've recently read a book called "Your
Money or Your Life" by Vicki Robin, it's a personal finance book about how to become FI (Financial Independent). It layout a 9 step program on how to achieve FI, which I am proud to say that I've been doing a lot of the steps already. One of them was tracking your net worth and your monthly cash flow. I use an app called Mint to track my cash flow, it can be linked to your bank account and credit card so you have a dashboard of all your finance. You can then login to their website and it gives you a history of your monthly cash flow, it is very cool especially if you love looking a past statistic of your finance like me.

Anyway, back to my topic today, in this book one of the steps was to find out your true hourly wage. The reason for the exercise was to make you realize what your time is truly worth and give you a different perspective about working.

5/01/2019

Neighbour Joe - May 2019 Net Worth

Time for another monthly Net Worth update.

Asset
Chequing: $2,685.62
Savings: $6,515.11
TFSA Investment: $91,285.85 (Market Value)
RESP: $2,039.45 (Market Value)
*Real Estate: $224,000 (Purchase Price of my house)
**Define Benefit Work Pension (Transfer Value): ~$153,000 (Last checked in Jul 2017,aprox $1000 a month of contribution)

*These have not been updated since the start of this blog.
**Automobile is not included (No monthly car payment)

Liabilities
Mortgage: $121,099.50

*Credit Card is paid in full every month

Last Net Worth Update: $347,353
Current Net Worth: $358,426.53(+3.2%)

Passive Income
Current Passive Income: $2,940.24/Year or $245/Month

Quite an increase this month for my net worth. A few factors contributed to this increase, a large tax return from CRA, investment performance, and aggressive savings. Also reached a small milestone this month, this is the first month since I started this journey that my liquid assets, which is all my assets minus real estate and pension, is over $100,000. My next milestone will be when my liquid assets become greater than my liabilities. These milestones are important for motivation and momentum purpose.