Rich vs Wealthy

Hi, haven't been able to post much lately due to the birth of my son. Today I just want to quickly share something that I've read a while back. The difference between rich and wealthy.

Rich - Someone that has alot of money.

Wealthy - Someone that never have to worry about money.

I enjoy this simple definition of the two, because it highlights that you don't neccessary have to be rich to become wealthy. I personally think that being wealthy is a better goal to strive towards to rather then being rich. At the end of the day both definition are hard to create tangible goals out of, so it's important to translate your long term goals into something measurable.

Happy mother's day!


Monthly Net Worth Update - May 2017

Nothing much happened in the month of April as I am still accustoming myself to the new expense lifestyle. Writing this blog made me focus on my finance more and this time, I do more planning with my money before randomly investing my money into what is currently hot.

Cash: $8950
Saving: $8050
Investment: $14450

Net Worth: $31450 (increase by 16.5%)

About one-third of my current investment is in the oil and gas industry. As a result, their market value is lower than their book value. I currently have about $16,000 in cash and saving which I am planning to put them into an investment this month.

In my next post, once I do my research and planning, I’ll write about what I decided to invest into and hope it is going to be a good decision.


Neighbour Joe - May 2017 Net Worth

Something I bought for my son. :)

Here is my net worth at the beginning of the month.

A month into my journey, this is my first monthly update. This month I changed my TD Comfort Growth Fund and split it into two TD E-series Index Fund. It is now invested into both the Canada and the US equity TD E-series Index Fund. This lowered my MER from 1.6% to aprox 0.4%. Now I just have to setup my regular monthly contribution again. I also called my investment broker and have (Dividend Reinvestment Plan) DRIP setup on my investment account. However, I realized that I don't own enough share in any of my holdings to have it start working. Basically the dividend I am receiving isn't enough to buy one whole share of that stock.

Cash: $165
Savings: $5
TFSA Investment: $26,597.26
TFSA Mutual Fund: $3,657.77
Real Estate: $250,000

Mortgage: $163,520
LOC: $12,561.79

Net Worth
: $104,343.24 (-8%)

As you can see my net worth went down this month. It's because last month a lot of my calculation were an approximate value. This month I was more precise with my calculation. Another reason why my net worth dropped is because of the decrease in valuation of my house based on local market activities. I think I will continue to adjust the valuation of my house going forward, until someone shows me a better way. However, if you look my investment, they actually all went up compared to last month despite not making any contributions this month. During this coming month I am going to figure out the current value of my work pension and will add it into my assets. Remember to come check back next month to see my progress.