# 23 years old, and trying to make the best of a 6 figure income!



## ashin1

Hey everyone, 
In December 2012 I was given an opportunity to get a career in the health care field that is very lucrative. I didn't know what to expect when i took the offer, but after a year of working, i grossed 130k. This year I got a dollar raise so I'm sure reaching 130k again will be realistic for 2014. 
Rewind to 2010 i graduated tech school when i was 19 and working and living rent free so i was able to pay off all my debt by 2012(student loans and car payments). 
fast forward to august 2013 i traded my car in and bought a truck(not a smart move which hindered my saving goals) however it was able to pay it off by the following November. Being debt free i started my journey of saving 5 months ago.
The only book as far as investing i have read was "the lazy investor" by Derek Foster which got me started towards the path to financial freedom. 

Current Assets:
TFSA: 27K
RRSP: 7k
Cash: 1.5k
SAVING: 1.5k

Total Assets: 37k

Liabilities:
MASTERCARD: 300$

Yearly Expenses (estimated for 2014)
Rent: 5k
phone/internet: 1.8k
gas for truck:3.5K
food: 4K
misc: 10K
professional fees: 1.2k
truck insurance: 2.2k

Total Expenses: 27.7k

Im in the 36% tax bracket, so i should be taking home 83k from a 130k income.

after expenses i should be able to save aprox(83-27.7) 55.5K left over to save per year!

So hopefully ill try to put away 4.6k away per month.

So first thing is first I'm going to max out my TFSA. 
My TFSA is put into a self directed broker account, every dollar in it is invested companies which pay out dividends which I have enrolled in the DRIP plan
current holdings:

BMO: 104 shares
REI.UN: 15 shares
HR.UN: 209 Shares
NA: 200 Shares
RCI.B: 122 Shares

My annual dividend yield should be around 1.7k

My RRSP is currently being transferred to another self directed account and being taken out of mutual funds,
going to invest in more canadian companies with it until our dollar is up to par with the Americans.

I have a lot of Room to contribute to my RRSP over the years that i never contributed when i should have. so most of my saved money will be put into that account. 
once my RRSP account is maxed out I will then set up a cash account to do more further investing.

My goal this year is to have as close to 100k in assets! hope this goal becomes a reality by 2015!

Im still very new to the idea of aggressive saving so any input would be great! Thanks for your time everyone!

HAPPY SAVINGS EVERYONE!


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## hboy43

Hi:

If you are making $130K you are either not in the combined 26% tax bracket, or you do not live in Canada. That might be the federal tax only number.


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## ashin1

hboy43 said:


> Hi:
> 
> If you are making $130K you are either not in the combined 26% tax bracket, or you do not live in Canada. That might be the federal tax only number.


whoops! you are correct! 

Ill definately have to go back to the drawing board!! thanks!



****fixed OP


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## Spudd

You can figure it out with this calculator:
http://www.taxtips.ca/calculators/basic/basic-tax-calculator.htm


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## ashin1

Spudd said:


> You can figure it out with this calculator:
> http://www.taxtips.ca/calculators/basic/basic-tax-calculator.htm


hmm so that would put me at a 28.3% tax bracket

leaving me to net 93k to after taxes. hmm well ill find out next week when i do my taxes haha....hope i get some money back hehe


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## Mortgage u/w

Where you from? Cause if you're anywhere near ON or QC, you tax bracket should be well over 40%.

In any case, your on the right track - You have a budget planned out, you know where your expenses are and you have a savings strategy in place. 

All I can add is to maximize your RRSP to benefit from max tax sheltering. Keep expenses low and savings high! Do not go out and upgrade your vehicle!! As you already saw, you will take a hit on your savings again. The only debt you should get is a mortgage - besides that, remove the word 'loan' out of your vocabulary.


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## ashin1

Mortgage u/w said:


> Where you from? Cause if you're anywhere near ON or QC, you tax bracket should be well over 40%.
> 
> In any case, your on the right track - You have a budget planned out, you know where your expenses are and you have a savings strategy in place.
> 
> All I can add is to maximize your RRSP to benefit from max tax sheltering. Keep expenses low and savings high! Do not go out and upgrade your vehicle!! As you already saw, you will take a hit on your savings again. The only debt you should get is a mortgage - besides that, remove the word 'loan' out of your vocabulary.


I live in Alberta, yes, definitely done putting money into my truck! yeah my TFSA will be maxed out really soon! and hopefully i can max out my RSSP this year, i feel so behind!! i would like to own a home one day but where I'm living it(northern Alberta) it wouldn't be a good idea to buy a home, buying is easy part, selling is the hard part.(lots of transient workers, and housing market has very little curb appeal). For me i want to be able to get up and go, without having to worry about selling a house. For now i want to have most of my money (85%) invested working for me!
what is this word "loan" you speak of...never heard of it haha


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## peterk

ashin1 said:


> i feel so behind!!


hehe. Oh don't worry, you aren't. Most 23 year olds don't have 37k and make 130k, nor do most 30 year olds, and probably 35 as well. 

Are you doing your taxes yourself? Don't forget that you might qualify for a Northern Resident deduction. Check the official list for your city/town in northern Alberta.


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## ashin1

peterk said:


> hehe. Oh don't worry, you aren't. Most 23 year olds don't have 37k and make 130k, nor do most 30 year olds, and probably 35 as well.
> 
> Are you doing your taxes yourself? Don't forget that you might qualify for a Northern Resident deduction. Check the official list for your city/town in northern Alberta.


haha thanks man, i still think about the money i put into toys and if i would have had more discipline i would be much further none the less, at least i started now 

ill have an accountant do my taxes this year, i am mos certainly eligable for northern resident deduction!


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## gladaki

Do you mind telling which job in alberta health sector pays that much as starting just curious..
ARe you doctor?


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## Homerhomer

23 year old, making $130k and already interested in taking a hold of your own financial future.

Congratulations, you are doing fantastic.

I really shouldn't give you any advise since you are much smarter than me, I would only suggest setting realistic goals so you can also enjoy the fruits of your labour and not becaming obsessed with savings, planning for the future and financial independence doesn't mean that you can't enjoy life now ;-)


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## ashin1

@gladaki-no i am not a doctor haha, they make around 400k a year where i work/live

@homerhomer- Thank you! I know what you mean about setting a realistic goal and not getting too obessed on saving however, the more i get involved with my financials the less of a chore it becomes and more of a hobby, i truly enjoy managing my money and making it work for me, its almost like having a bunch of little employees working for you and managing them its quite fun. i'm sure lots of people on this forum would relate 
however one thing to consider is before you invest in money and wealth, you must invest in your own well being and health, no point on being wealthy if your sick, so going to the gym and eating proper is another hobby that gives me a break from pinching pennies haha.


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## ashin1

Update.

So even though I have enough share to drip with HR.UN, the dividends came in on 2 different payments for 21.57 and 1.94. I phone my broker as to why this happened he said it was a shared trust and that because of that i get paid on 2 different payments on the same date.
luckily I wanted to get rid of my shares with REI.UN anyways and bought 19 extra shares in HR.UN, so hopefully i can get DRIP in the next payment date.

Never the less i just got paid and 
I just depsoited another 3.3k in my TFSA
and i just deposited 1.2k into my RSSP
with 2k left in cash

Current assets now:
TFSA: 30.8k (its maxed but markets are fluctuating)
RRSP 8.2k
CASH: 2k

Liabilities: 0$

Total ASSETS: 41k

Question, i have 3.3k in cash in my TFSA left i want to invest with, and 8.2k in cash to invest with as well, should let my money idle until a correction or buy now?


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## peterk

I'm holding mostly cash and adding only to cash. I have around 25k in stocks and 45k in HISA. But I am maybe, possibly, perhaps saving for a house. So your situation might be different.

I am not in a big hurry to buy stocks at these high market prices.


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## ashin1

Update!
well finally have my RRSP set up into a self directed account! will patiently be waiting for a correction to make any big purchases. Also just got back from a trip to Korea, and was able to stay on budget!

current stats
TFSA: 31.4k
RRSP: 15.4k
CASH: 2.2k

Liabilities: 600$ credit card

Total assets: 48.4K

almost at halfway point for my goal for 2014!

anyone else waiting for a market correction?


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## Mortgage u/w

ashin1 said:


> anyone else waiting for a market correction?


Nope. And not concerned if there is one. Might have some dips here and there....but overall, market should perform well if you hold solid dividend paying stocks. Tough to time the market. 

Look at it this way; when market is down, your DRIP buys you more stocks. When market goes back up, dividends increase getting your further ahead.


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## Time4earlyretirement

Mortgage u/w said:


> Nope. And not concerned if there is one. Might have some dips here and there....but overall, market should perform well if you hold solid dividend paying stocks. Tough to time the market.
> 
> Look at it this way; when market is down, your DRIP buys you more stocks. When market goes back up, dividends increase getting your further ahead.



Not if you're buying these dividend paying stocks overpriced, otherwise I do partially agree.


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## peterk

Is DRIPing really DCAing? I mean I guess kinda, but it's not "new" money, just your same investment in a different form. If your dividend pays 2% at $100, then when the market crashes to $50, your dividend payments now drop the stock 4% instead of 2%.

It's not like injecting new cash at regular intervals to take advantage of down markets (DCAing)... is it?


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## Mortgage u/w

peterk said:


> Is DRIPing really DCAing? I mean I guess kinda, but it's not "new" money, just your same investment in a different form. If your dividend pays 2% at $100, then when the market crashes to $50, your dividend payments now drop the stock 4% instead of 2%.
> 
> It's not like injecting new cash at regular intervals to take advantage of down markets (DCAing)... is it?


The point is the lower price buys you more shares which in turn will pay out more dividends.


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## ashin1

Its unfortunate discount brokers won't allow you to purchase fractional shares with your dividends


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## ashin1

First Update:
So far this month as been a bit expensive.
my roomate moved out, and i ended moving into her room(master bedroom), I figure that seeing as i will be in the house the longest ill take care of the bills and have my roomies split the cost. Lucky for me i found anther person to fill up the extra place and even though he hasn't moved in yet he agreed to pay for the rent in june, even though he is here maybe half the time. so transferring accounts to my name and having to pay despots hurt just a bit. not to mention bought an awesome set of couches for a steal of a deal! 











heres the break down of extra expenses that don't fall under my normal bills which is gas, insurance and rent LOL.
gas/electricity deposit: 200$
couches:350$
security deposit on house:950$
deposit internet:40$
graduation gift and suit rental: 450$

i know at least ill get most of that back when i do decide to move to a different home 

however i was still able to pay myself 2900$ so that went straight into my RRSP! and I got a pretty hefty dividends from one of my companies($24.72 LOL)


current stats now is:
TSFA: $31,962
RRSP:$18,590
CASH: $2,006

Liabilities:
Mastercard: $193

Net Worth: $52,335


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## ashin1

update/dividend update


TFSA: $31,129
RRSP: 19,308
CASH: $7951

Liablilties
MASTERCARD: $2155

Networth: $56233


Dividends received for the month of May Consists of:

Interpipline: $35.05
H&R Real Estates: $40.27
National Bank of Canada: $92.00


Total Passive Income: $167.32


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## james4beach

If you want my advice... you're making great income.

Just try not to develop addictions to alcohol, drugs, and gambling. Avoid bad crowds who have any involvement with crime or addiction. Beware of women who may bleed you dry.

I'm absolutely serious. Your income is fine, but those things above can ruin your financial future. Avoid them and you'll be fine


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## nobleea

james4beach said:


> Just try not to develop addictions to alcohol, drugs, and gambling. Avoid bad crowds who have any involvement with crime or addiction.


'Gambling' doesn't have to be at the casino or sports select. It could also be on the stock market. You seem to be focused on quality dividend payers, so that's not a huge risk.


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## KaeJS

I would give anything to make $130k/year...

You already have the biggest advantage, which is your income.
If you have half a brain - you will do very well.

I just turned 24 years old and my net worth is double yours. I only make $40k/year. If you have some common sense (and it seems like you do), you will do extremely well.

Just don't forget to enjoy your life, as I often do.


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## Jon_Snow

I agree with the others, you are doing well. Here's how you can do even better.

Meet the right partner - the ONE. Hopefully they will also make an excellent wage (my wife and I grossed 230k this past year). Save the vast majority of your income. Do this for about ten years and you probably have the option of retiring early, or doing whatever job interests you regardless of what it pays.

This has been my blueprint, and my life is just about to become pretty great as I no longer have to work for money.


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## KaeJS

Jon_Snow said:


> Meet the right partner - the ONE.


This is important, too. :biggrin:


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## peterk

KaeJS said:


> I would give anything to make $130k/year...


Then pack up your stuff and move out here KaeJS! No offence man, but you were complaining about your 40k bank job in Mississauga with bad raises two years ago, and it seems like not much has changed since then. You should use that more than half a brain of your own to realize that moving out west and making 100k+ for even a couple of years is going to put you a decade ahead financially by the time you are 40.

Anyways, no insult intended. I just know that you were itching to get out of your lame stuffy mediocre-paying office job in the suburbs and come on an adventure in Alberta! It seems like that never happened.... but it's not to late! Come come come!!! I'll put you up for a couple weeks in Fort Mac while you get your act together and find a job! 

Maybe ashin can talk a bit about how it was hard to make such a big change and move to a remote place but how it is incredibly worth it financially and that it's really not that bad...?

Commuting an hour each way in GTA in my own car and wearing buttoned up shirts & slacks everyday while working indoors in a cubicle for 40k/year sounds like absolute hell on earth from the perspective of an Alberta oil sands worker, fyi. Again, I mean no insult. Just trying to impart on you the realization that there are great opportunities to be had if you are brave enough to go for them!


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## ashin1

james4beach : Thank you, and as far as staying away form bad crowds I hear you loud and clear. I truly wish there were more like minded people where I lived. Well actually there was he was a traveling nurse but i think he left to go to med school, but he got me inspired to get into investing. He was only 34 and had a half million dollar portfolio. This forum is a great escape from all the peers i see that do not understand why i do what i do!

nobleea: Yep stocks are still a gamble, but almost educated gambling hehe. but casinos are a big no no. Gotta buy the "best of the best"

KaeJS : Thats pretty awesome! when did you start investing and saving? and as for the 40k annual income, it may not be 6 figures but you do got a six figure net worth so your doing something right. as what peterk was saying why not make the move out west? what do you have to lose? I myself since i was 19 have been traveling all over sask and alberta for work and honestly im so glad i did right out of school.
At 19 is when i stated my career as a lab and x-ray tech after i graduated NAIT in 2010.
At 19 I made 40k
At 20 I made 69k 
At 21 I made 75k 
At 22 I made 80k
At 23 I made 128k
For this year I'm going to estimate 140k

from the age of 19 to 22 i worked all over southern Saskatchewan pretty much grinding as much as i could working casual and working part time, and at 22 I decided i was sick of having to work all over the place and not get the full time benefits.
so at 22 used a website called indeed.ca to find work in other areas. found a job recruiter and next thing you know i have a interview with a company in northern Alberta. I was not looking forward to the move because after living in Sask for 3 years i have made lots of friends and had a nice girlfriend. but ultimately i realized that *change will never happen unless you step outside for your comfort zone *. Looking back i do miss my friends but, realistically im soo much happier that i made this move. Seriously, one of the things that made me enjoy living up in such a remote area was simply just changing my attitude, not only that but if it wasnt for the move, i wouldn't be making the money that i am now, which which is why i decided to knowledge my self with investing and saving. 8 months ago i didnt even know what TSX standed for and didnt even know what an ETF was. 8 months later I feel confident dropping 10k on a company. This move has been a huge impact on my life and i thank myself everyday that i did it. 
If you not satisfied with where your at in life or your career, honestly take the plunge because the only person your hurting is yourself.
By no means am i trying to act like and arse or nothing but i just want to give you my take on the situation. as far as investing goes maybe i should tak eosme advice from you seeing as how your got double my worth on less than half the income. keep killing it bro! 

Jon_Snow : I hear you man, there is one rule i know i will always stick by and* its never give anyone any money unless its in the form of a gift* as far as the ladies go, my current girlfriend is 19 so shes about 4 years younger than me and she is pursuing post secondary education that when she finishes im sure she will get a good job. She is aware of my passion for saving and she is well aware that if she is not on board with that, there is no real future in the relationship. it makes it kind of difficult sometimes with her having a child already, but truth be told when we move in together (dating for 1.5 yeas) she knows that i wont be taking her out for dinner a whole lot and i will be budgeting and living frugal. For the most part she has agreed o embace the same lifestyle as me, so im hoping all goes well. i've explained to her many times how important money is and how important it is to shape our spending habits while we are young. However if things do not go as planned i have to stick to my guns and keep on living my life, my only hope is she is willing to come for the ride!

peterk: long time no talk! hope all is well friend! how is the Mac treating you! Lets try and get a movement of people to move to AB from this forum and we can have a big a$$ BBQ.....one can only dream lol


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## SkyFall

Man I don't know if I should be inspired or depress......

alright lets work hard and start making some dough!!!!!!!


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## KaeJS

peterk said:


> Then pack up your stuff and move out here KaeJS! No offence man, but you were complaining about your 40k bank job in Mississauga with bad raises two years ago, and it seems like not much has changed since then. You should use that more than half a brain of your own to realize that moving out west and making 100k+ for even a couple of years is going to put you a decade ahead financially by the time you are 40.


Peter,

I am not insulted or offended in the least bit. You are absolutely correct. I have been foolish. I need you to post more things like this. I need a swift kick in the head.

You are absolutely 100% right. I cannot be insulted by the truth. Thank you.

I am taking a trip (a free one, at that) from Toronto - BC in August. I will be stopping most probably in Calgary. I should use this time to look at the surrounding area. 

Fort Mac sounds like a dream...



ashin1 said:


> KaeJS : Thats pretty awesome! when did you start investing and saving? and as for the 40k annual income, it may not be 6 figures but you do got a six figure net worth so your doing something right. as what peterk was saying why not make the move out west? what do you have to lose? If you not satisfied with where your at in life or your career, honestly take the plunge because the only person your hurting is yourself.
> By no means am i trying to act like and arse or nothing but i just want to give you my take on the situation. as far as investing goes maybe i should tak eosme advice from you seeing as how your got double my worth on less than half the income. keep killing it bro!


Ashin, I started investing at 18/19 as soon as I hit college. My mother told me if I didn't go to post-secondary education, I would have to pay rent. I figured I might as well pay for school and live for free (the only sensible choice). Turns out.... I just went to class and day traded and read about investing. I never actually did any work. I remember one class in particular I was supposed to make this huge presentation. I had 2 weeks to do it. I never started. I was messing about in the markets for those 2 weeks and I completely winged my entire presentation. I don't know if I should be proud of myself for still getting good grades or ashamed for not doing what I was supposed to. lol.

My net worth is solely related mostly to the markets and passive income. Ashin, I have a house here that I make $1050 net from each month. So it does help with the bills. I also have some stock (not as much as before) that provides some passive income. I also don't go to parties or spend too frivolously.

Ashin & Peter, as for going out west. It's something that I would love to do. I no longer have anything to lose. I did have a girlfriend that was holding me down from progressing financially. I stopped educating myself. I stopped dabbling in the markets. I became content, and as I said previously, I have spent all of 2013 and the better part of 2014 being foolish.

I was not using my brain.




SkyFall said:


> Man I don't know if I should be inspired or depress......
> 
> alright lets work hard and start making some dough!!!!!!!


I don't get inspired. I get depressed. LOL


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## ashin1

KaeJS: wow impressed you got into that life style so early in life! that's pretty awesome, and to own a home by 24 that is very impressive. So exactly what are you skill sets? if you do make the move to the west where would you want to try and get a job?


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## KaeJS

Ashin, the problem is exactly that. I don't really have any "skillsets".

I ended up not finishing my program at college, as I saw that I could easily make 50-60k/year and keep investing as opposed to paying 5-10k/year to go to school and wasting a lot of time. Why would I pay to go to school when I could make money working and investing? The house prices weren't going to be getting any cheaper, and inflation would only work against me. That was my thinking. Plus. I knew that rates would be low and I wanted to take advantage of this for housing (mortgage interest rate %).

I was enrolled in Business Administration Finance (Advanced). It was a joke. I knew everything I was supposed to be "learning", so I just dropped out and started working. I made more money back then from employment than I do now. However, with my passive income, I make more money now than I ever have. This is not necessarily a good thing. My income from employment has decreased by about 10-20k over the last 3 years. This is my problem. I make $41,500 as a salary. It is peanuts.

With that being said - you can easily see how crystal clear it is that I don't have a piece of paper with my name on it, or any particular skillset.

I like to think that I am intelligent, disciplined, and hard working. Maybe I am a fool who did it all wrong. Maybe I am not.
Looking at my "smart" friends who went to university? Well... Lots of them have $0 and none of them make more than $50k/year. I'm also not talking about the people who go to university and study philosophy or some other sort of nonsense. I am talking about my friends that went to study something useful. So far, I am ahead. It's just a question of whether or not it stays that way.

If I had to list my top skills, it would probably be with finance and auto mechanics. I don't think these would get me very far. I might not be able to find a higher paying job unless I return to school. And to be honest? I don't really see school as an option.

I know, I know. "School is important" Blah blah blah.

School is like prison for me. I loathe it. I also don't believe that education is the way to riches and happiness.
I believe that education is something people do when they can't make it for themselves.
"If you learn from someone else, you will always work for someone else."

Plus, everyone has a piece of paper these days. Getting an MBA, for example, hardly separates you from the pack.
Everyone goes to school forever these days and I just don't think it's really worth it. All that time and money spent studying and yadda yadda.
For what? A better _chance_ you _might_ get a better job? 
Nah....

Education to me is sort of like playing Greater Fool.
There's always gonna be someone taking more classes and getting more degrees. The more you get taught by others, the more you lose the ability to think for yourself.

However - I am not picky. I go to work to do a job and get a paycheck. I really don't mind what I do. I would clean up **** all day if it meant more money.
The way I see it? I probably won't like any job that I have to do, so I should probably pick the one that pays the most so I can enjoy my time when I am not working.

I'm sure I would enjoy being a race car driver - but that's not even realistic in the slightest bit. :wink:

If I moved out west, I would have no idea what to do.
I hear those oil rigs need some love - and I would be down for working 12 hour days, 2 weeks at a time, getting dirty and whatnot. I'm 100% for that, so long as the money is there.

Like I said, I'm not picky. I'm pretty easy going.


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## ashin1

KaeJS: you seem to be in a bit of a interesting situation. is there a reason why your wage went down? Also is the 41k also added with your passive income from your home?
also i do see where you are coming from with the whole education thing and what not. So maybe being a rough neck on the patch wouldnt be a bad thing for you if you dont mind the hard work. however our body's can only handle so much. which is why getting an education can help you pick and choose the types of job you can get that will not hurt your body in the long run. i know you hate school but look at it this way, at least while your in school you have a form of passive income, and why not enroll in a short 2 year thing. i know some people who took a 2 year program for power engineering and operating big machines, and im sure they are making 80k and up, and they got one of the cushy jobs in the oil field. I do agree, university and all those 4 year degrees are kind of a waste of time unless you know for sure what you want to do for the rest of your life, but trade school is awesome in my opinion, doesn't even really feel like school at all too be honest.
KaeJS, what are your goals money wise? do you want to retire early?


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## el oro

KaeJS, if your skills are finance and auto mechanics, then I suggest going out west and becoming a mechanic. For example, http://ca.indeed.com/viewjob?jk=4a1...ort+McMurray,+AB&tk=18rqlqmb81a520dr&from=web

That mechanic position calls for 3-5 years experience and pays $12K+/month. When you service your car at a dealership in Ft Mac, they charge ~$200/hr labour rate.

Or if you don't have the experience for that, see http://ca.indeed.com/viewjob?jk=779...ort+McMurray,+AB&tk=18rqlqmb81a520dr&from=web
The parts department would pay $40-$48/hr for minimal experience and appears to be a not-too-demanding job.

Alternatively, if you're willing to become a heavy duty mechanic or other any other in-demand position, there are many jobs that offer work rotations. For example, you work 14 days in a row, 12 hours per day, followed by 14 days off (There are many different rotations). Flights are covered, typically to Edmonton/Calgary and some take this as an opportunity to live in BC/Ontario/elsewhere and/or travel the world. Meals and lodging are free while working so it's easy to save a decent portion of your six-figure salary. http://www.now-hiring.ca/view.php?job_id=30895&type=search

Great opportunities are out there for those with initiative.


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## Homerhomer

$1600 Gold by 2011 said:


> That mechanic position calls for 3-5 years experience and pays $12K+/month. When you service your car at a dealership in Ft Mac, they charge ~$200/hr labour rate.
> 
> .


That's about right, my buddy is a mechanic in Fort Mcmurray and makes $180K per year.


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## peterk

The importance of an education isn't so much the learning part. It's what completing the education signifies. It shows 80% that you're willing to sit down and do **** that you don't want to do, in a concentrated effort, organized by someone else, for a number of years. And 20% that you are sorta kinda smart.

To play devil's advocate, kaeJS, how the hell do I know that you are "intelligent, disciplined and hardworking", hmm? I've got a pretty rough idea that you are smart because I've read hundreds of your posts over a number of years and come up with a positive opinion of you. Now take that all away and convince me of the same in 2 sheets of paper and a 30 minute phone call... cause that's all you've got without a degree or a really REALLY good idea if you insist on working in the white collar world.

To recap:
you - 2 sheets of paper and 30 minutes.
me - 2 sheets of paper and 30 minutes, and 1 sheet of people that says "We are 10 professor from the university of bla bla bla and we have spent 4 years with Peter and believe him not to be a complete dumbass who will listen to his superiors (us) and get some work done."

You mention how education forces you to comply with a system and teaches you not to think for yourself, something you find undesirable. This is correct in an academic sense, but you are missing the point. The point is that in 99% of all white collar jobs, high paying "good" jobs included, the primary job description is "comply with the system and do some light thinking" THAT'S IT! Having a degree is the same as having a resume that says "4 years of complying with the system and doing some light thinking", and it is EXACTLY what every single white collar employer is looking for.

But anyways I will stop shitting on you now. You're a cool guy and I am sure you are making the best decisions for yourself that you can.

If you are serious about wanting to get into a trade in Alberta let me know and I will PM you a fantastic link with hundreds of posts by several blue collar workers in Alberta who are all making insane amounts of money (amounts that make me jealous).


I'll also add that the most valuable thing about making double the money of my peers by working in the oils sands is this: It's all of a sudden made me think very big about money. If I stay in my current career I should be making about 250k within 10 years. I am already eyeing up a potential career move which could have me working internationally and making 500k+ within 10 years. It's a lot riskier and I haven't fully vetted the idea, but I'm starting to think seriously about it.

If I was working in the GTA and never been exposed to the opportunities out west, I would never have learned to think big like I am now. I would be planning for my retirement at 65 and saving my $500-1000/month in an RRSP mutual fund and wondering if I work hard enough will I be able to make 100k by the time I'm 40, like a good little engineer.

I have a classmate who was making 50k, then went back to grad school, and wants to make "at least 10k more at my next job". That dude needs to THINK BIGGER!

And I will stop this psychotic rant now. I have yet to decide whether it is "ambition and self focus" that I am feeling, or "greed and narcissism". Maybe I should set up a CMF poll. :biggrin:


----------



## Causalien

If I remember. You are in Europe right? You must've discovered Norway. Who needs oil trades people and basic jobs starts at 100k.

Shinh: For your income progression. $50k in net worth is too low. There's something wrong with your lifestyle. I am speaking from my own experience only.


----------



## ashin1

Caus: yep there most definitely was something wrong with my lifestyle. I think I had an addiction to buying and trading sports cars. It was brutal. I try not to think of those days lol. But yeah this is primarily the reasons I'm as aggressive as I am now for saving.


----------



## KaeJS

peterk said:


> kaeJS, how the hell do I know that you are "intelligent, disciplined and hardworking", hmm?


You don't. :wink:


----------



## KaeJS

ashin1 said:


> KaeJS: you seem to be in a bit of a interesting situation. is there a reason why your wage went down? Also is the 41k also added with your passive income from your home?
> KaeJS, what are your goals money wise? do you want to retire early?


Ashin, my wage went down because I made a bad career decision. I left one employer and went to another. I thought I was making the right decision at the time.
The 41k base salary is not inclusive of my passive income from my home. I receive about $1050 net/month from the home on top of the 41k salary.

To be honest with you - I don't have huge goals. I want to live year round in Parry Sound, ON with maybe a $600,000 cottage, a $60,000 summer car and a $20,000 winter truck.
I would not like to retire early. But I would like to move from full time to part time in a responsibility-less job, such as a grocery stockboy.

My goal is to be sitting in a nice year-round cottage in Parry Sound on a secluded lake with a beautiful sports car in the driveway (I don't need a lambo, but a decent mid-grade sportscar), trading stocks and watching the market with a beer in my cupholder, overlooking the lake with the sun beaming down on me, maybe puffing a cigar or two, and occasionally working part time.

That's the goal, my friend.

All I need to do is win $1Million and I am set....


----------



## Jon_Snow

KaeJS, that sounds really good. I think you and I are cut from the same cloth (except for the cigars).


----------



## KaeJS

Jon_Snow said:


> KaeJS, that sounds really good. I think you and I are cut from the same cloth (except for the cigars).


A little cigar now and then never hurt anybody. :wink:

It is not for everyone, though. I can understand.

But yes, it sounds beautiful. That's about all I need. Of course, I would have to live there with lady friend, too. :biggrin:


----------



## RBull

KaeJS said:


> Ashin, my wage went down because I made a bad career decision. I left one employer and went to another. I thought I was making the right decision at the time.
> The 41k base salary is not inclusive of my passive income from my home. I receive about $1050 net/month from the home on top of the 41k salary.
> 
> To be honest with you - I don't have huge goals. I want to live year round in Parry Sound, ON with maybe a $600,000 cottage, a $60,000 summer car and a $20,000 winter truck.
> I would not like to retire early. But I would like to move from full time to part time in a responsibility-less job, such as a grocery stockboy.
> 
> My goal is to be sitting in a nice year-round cottage in Parry Sound on a secluded lake with a beautiful sports car in the driveway (I don't need a lambo, but a decent mid-grade sportscar), trading stocks and watching the market with a beer in my cupholder, overlooking the lake with the sun beaming down on me, maybe puffing a cigar or two, and occasionally working part time.
> 
> That's the goal, my friend.
> 
> All I need to do is win $1Million and I am set....


I can totally relate to your description. Don't underestimate the magnitude of your goals. I feel blessed to have made it there, now retired and FI. 

Good luck in your journey.


----------



## james4beach

KaeJS and others, like you guys I started making good money early in life. (I'm a bit older, in my 30s). I had income, ran a business, accumulated money and continue to accumulate money.

If you're willing to listen to some advice from a guy who's just a few years older than you...

Don't neglect your health, especially your mental health and happiness/wellness. When you're in your early 20s you're basically invincible but this advantage fades rapidly into your late 20s. I have friends who work in a variety of jobs (including stressfull things like law and Bay Street) and the stress started taking a toll in their late 20s. This is when bad things start to happen, like becoming depressed, deeply unhappy, or starting to rely on drugs including alcohol -- which is our legal and much celebrated drug.

So while money is great, don't lose sight of your happiness and your mental health. It's far more important, long-term, to stay healthy and well. It's beneficial to you both from a health perspective and also a MONEY perspective.

So KaeJS if you feel stuck somewhere you don't like... GET OUT OF THERE! I just did something similar. I gave up a job that paid quite well but was unpleasant. I was unemployed for a while and started enjoying life again. Now I have a new job that pays even more (13% raise, nominally) and is much more fun and pleasant than my last job.


----------



## SkyFall

I feel you KaeJS, I am still in school getting my major in finance. I work part-time at a local bank as financial services rep.... It is a great job for a student, I don't have to work at minimum wage, students around my work for fast food chains (nothing against that) and it's somehow ''related'' to my field of studies.... but boy I really don't picture myself staying in retail banking.... I mean the pay is good for me now because I am a student.... but I wouldn't want to get this pay if it was my career.


----------



## ashin1

J4B: Yep you hit the nail on the head, No point on being wealthy if you got no health to enjoy. I'm not going to lie and say i don't like drinking alcohol with my friend, but i do realize everything in moderation. Yes we all realize that stress is no good, but i believe part of why people get so burnt out and stress is because they let themselves get that way. 
I know every situation is different for everyone so i just feel blessed i work in a career where the greater the stress can usually lead to a greater reward both tangibly and non-tangibly. 
Word to all those young guns here, i hope you remember to go to the gym, accumulating money is a great thing but accumulating excess weight however....not so good. 

on that note ill give you guys a quick update:

TFSA: $31,486.34
RRSP: $21,566.63
CASH: $5, 541.21

Liabilities: $0

NetWorth: $58,594.18

Dividends so far:

H&R Real Estates: $51.86
Telus: $50.16
Rogers: $56.27

Total passive income: $158.58


----------



## ashin1

UPDATE:

TFSA: $32,093.17
RRSP: $24,827.61
CASH: $9953.60

Liabilities: $1079.68

Networth: $65,794.70

Passive income since the last post:
Bell: $63.60
HR real estate: $48.23
Interpipeline: $35.15
National Bank of Canada: $96.96
TD bank: $53.11

Total Passive income: $297.05


----------



## KaeJS

You increased your net worth by $7k in one month?

Jesus. Good stuff, kid. It would take me 6 months to do that.


----------



## peterk

Have you added any new stocks in your TFSA/RRSP or are you continuing to increase only your positions in the 5 above?


----------



## ashin1

@kaeJS yes sir. my goal is a 100k saved by the 2015(using my tax return on top of that), come to AB brother!
@peterk
TFSA: 
National bank of canada
Rogers
telus
TD
H&R real Estates

RRSP:
H&R Realestate
Interpipeline
Bell
EnBridge

I just DRIP all my stocks


----------



## KaeJS

ashin1 said:


> @kaeJS yes sir. my goal is a 100k saved by the 2015(using my tax return on top of that), come to AB brother!
> 
> I just DRIP all my stocks


Every time I read this thread, I want to come to AB.
I will be passing through AB for the first time in about 10 days from now. I'll be in Calgary on the 18th or 19th. Not sure which yet.

I will see how I like the place while I am there.

And you should always drip your divs unless they are covering margin interest. (just my opinion, of course. )


----------



## peterk

KaeJS said:


> I will be passing through AB for the first time in about 10 days from now.
> I will see how I like the place while I am there.


Awesome! What brings you out west?

Alberta is no Ontario as far as lifestyle and livability. It's got the rockies which is pretty unbeatable, but besides that everything else in Ontario is better IMO.

If you are just passing through and hope to be "wowed" you may be sorely dissapointed. The "wow" comes after you move here and start working and get your first pay cheque. :biggrin:


----------



## ashin1

peterk said:


> Awesome! What brings you out west?
> 
> Alberta is no Ontario as far as lifestyle and livability. It's got the rockies which is pretty unbeatable, but besides that everything else in Ontario is better IMO.
> 
> If you are just passing through and hope to be "wowed" you may be sorely dissapointed. The "wow" comes after you move here and start working and get your first pay cheque. :biggrin:


you seem to have hit me right in the feels, too much real life right in that post haha


----------



## LLLynnWoW

hope everything will be better again, good luck:biggrin:


----------



## rossco12

Awesome to see another member of my generation using their earning power to get ahead when it matters. Like-minded people are few and far between, congratulations.


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## ashin1

thanks dude! i just checked out your thread too, very impressive, i like how you included your car as an asset!


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## LLLynnWoW

Merci beaucoup pour ce très bon topic.


----------



## ashin1

Asset Assessment
Update on the liquid asset department. Even though I didn’t save nearly as much as I wanted to I still managed to put away some money. My current goal for 2014 is to have $100,000 in liquid assets and when I include my tax returns I’m sure I will come fairly close. 
As of September 7, 2014
Liquid Assets:
TFSA: $33,496.64
Nice little bump due to Mr. Market, and several dividend payments.
RRSP: $32,249.08
Looking forward to maximizing this bad boy out. Still have maybe another $25k before this thing is maxed out for 2014. Will be adding American positions very soon. 
Cash: $4631.68

Liabilities
MasterCard: $0
Just paid it off this morning, feels great!

Net worth as of September 7, 2014:
$70,377.40
Net worth of August 10, 2014:
$64,271.00

Total difference is a 9.5% increase


----------



## KaeJS

Good stuff, bud.


----------



## OurBigFatWallet

That is impressive! What American stocks are you looking at?


----------



## ashin1

@ourbigfatwallet:Right now im looking at KMI, PG, KO, & GE


----------



## ashin1

TFSA:
STOCKS: $31,622.86
Cash: $88.69
Total:
$31,711.55

RRSP:
STOCKS: $33,855.46
CASH: $7,426.31
Total: 
$41,281.77

Cash:
$2699.82

Liabilities:
MasterCard: $0

Net worth as of October 17, 2014:
$75,693.14
Net worth of September 7, 2014:
$70,377.40
Total Difference:
7.02% Increase


----------



## peterk

Awesome month! You added 5k even when your stocks went down 3-4k?


----------



## ashin1

@ peterk
You bet!

Even thought the stocks went down i still continued to save as much of my paychecks as possible. On top of that, I was able to receive some reimbursement checks through my benefits plan for several large purchases made throughout the year so that also worked in my favor as well. Also in late September, i received some money from family for my birthday and that also worked towards my benefit. Right now im sitting in a good position with an other $12k coming soon hopefully within the next month or two. as of recent i found out i was contributing to a pension plan when i was working in SK, those 3 years i contributed my pension was valued a little over 12k so the process of having it transferred to my RRSP are the in the works. I'm hoping the market keeps declining for when i have that 12k + the 7k in my RRSP to purchase some equities with at discount prices


----------



## peterk

Ballin'

I got 4 more months to go until my pension vests. Figure that's worth another ~10k!

Do you manage to work a lot of overtime in your field? I find that even when I get the opportunity to work overtime when I get to the end of the day I just feel beat, saying "I don't care how much they pay me, I'm going home!"

Coming up to winter though I'm going to try and push through that and work as much extra as I can. Not much else to do when it's dark and -30c out...


----------



## ashin1

@peterk

With my field of work, i get more call backs then overtime. and the thing about call backs is they have to pay me a minimum of X amount of hours even if it is for something short and quick. there have been instances where I have made 2 weeks of wages in a weekend because of the amount of calls you get back to work (most of the time calls usually don't last more than 45 mins) 
I know that burnt out feeling all too well, but the truth is i just grind it out regardless because i know the next day I will be so happy that choose to grind it out. but with my line of work its not a really physically enduing labor more so mentally. So i never feel to beaten up the days after a busy night. Either way i live only a couple blocks from work so going back between home and the hospital takes zero effort haha.


----------



## ashin1

Well here is another update on the value of the assets that I hold. This month in particular was pretty awesome because I finally had some extra funds transferred into my RRSP that I didn’t even know I had (as of recent at least). What happened was when I was working in Saskatchewan I was contributing to a second pension and I didn’t even realize this. Like I said before, when I was young I really didn’t have any financial literacy. Well either way, after I left my old employer I never thought of trying to reclaim the money that I contributed to this pension fund because I simply didn’t even knew it existed. Well several months go by (15 to be exact) I received some mail from my mom saying that my old employer sent her forms with my name on it. To my surprise this letter told me that I had a pension account valued at a little over $12k and they were wanting to liquidate it because I wasn’t working for them anymore. So luckily for me I was able to transfer the money tax free and in kind into my broker through my RRSP. Even though this was all money that I contributed I still feel like I won the lottery! 
I suppose that’s the power of making automatic withdrawals from your account. You save without even knowing it

TFSA
CASH: $133.27
STOCKS: $33,143.50
Total: $33,276.77

RRSP
CASH: $12,420.84
STOCKS: $42,374.67
Total: $54,768.51

CASH: $5,363.92

Liabilities 
Mastercard: $2081.92

Net worth as of November 9, 2014
$91,327.28

Net worth from October 17, 2014

$75,693.14
Total Difference:
Increase of 20.7%

With this new addition of cash, I actually do not plan on investing with it anytime soon. I think It’s always good to have cash on reserve in case of a massive correction or market dip so I will be prepared to have some capital at my disposal. So until that happens I will try and keep a surplus of 10K cash in my RRSP for those types of events.


----------



## SkyFall

That is awesome! Money we didn't know we had is always a good surprise! Keep it up buddy, looking pretty good!


----------



## ashin1

Now if you notice my portfolio mainly consists of Canadian equity. Although I would like to diversify it with more American Equity, I am choosing not to for now. Why? For the simple reason that our dollar (CDN) equals only $.86 USD. I will choose to wait until our Canadian dollar has more buying power to start positions with American companies. To me it doesn’t matter if I have a portfolio made completely out of Canadian blue chip stocks, realistically my main focus is too have my money working for me. The earlier the better. With that being said, the moment our Canadian dollar starts to have more buying power I will start to look beyond our borders to initiate positions with our neighbors down south.


Having a portfolio that mainly consists of companies from the same country, does leave me more vulnerable for market swings. Having said that, the controversy with OPEC has caused quite the ripple effect in the TSX, therefore my portfolio did take a hit, not just oil companies but also the big banks in Canada. However, I still sense no fear. Yes, I am a little bummed out to see the value of my portfolio decrease but at the same time, it’s great to see all these amazing companies at discount prices and with a higher dividend yield. With all that in mind, it makes me wish I had more capital to put back into the market, and knowing this I believe these deals will not last forever. At the end of the day my dividends will keep rolling in and continue to be reinvested and as more value investors come in to scoop up these sales I know my portfolio will recover. In essence, when you own solid blue chip companies, patience is key and not to get emotional or scared. As a dividend growth investor, I mustn’t forget my dividend income is just as if not more important than the value of my portfolio.

Moving forward, here is an assessment on the assets I hold:

TFSA

STOCKS: $32,344.26

CASH: $138.11

Total Value: $32,482.37



RRSP

STOCKS: $59,566.64

CASH: $43.10

Total Value: $59,609.74



CASH

$4,616.63



Liabilities

Mastercard: $121.56





Net worth in November 9, 2014

$91,327.28



Networth as of December 21, 2014

$96,587.18



Total difference:

Increase of 5.76%


----------



## the_apprentice

Very impressive!


----------



## My Own Advisor

Almost 6% gain in 6 weeks is very impressive. I wonder what our gain was? I don't track NW closely but I do check in with it from time to time.


----------



## ashin1

@MOA For me NW is just a cool thing i like to keep tabs on to keep myself motivated and remind myself how far I've come since starting not to mention its really fascinating to see the effects of compounding interest live.


----------



## My Own Advisor

Not knocking it at all...if that's what motivates you, all the better! 

I also like to see our NW grow, don't get me wrong, it's combination of mortgage going down and assets going up. 

Keep at it ashin1.


----------



## ashin1

I still can’t believe that last year my net worth was just below $20k. Starting that year I had no idea what I was capable of. In the beginning of 2014 I had modest goal to reach a net worth of $70K, but after getting more into this lifestyle and meeting more people who have a similar passion with early retirement, I began to get even more aggressive, and decided that my new goal was to reach a net worth of 100k before the year was over. 
Well I am happy to say that I did reach that goal with only 2 days to spare. Having reach these goals has made me more motivated than ever to keep pursuing my dreams, and to stay on track. In a way I have to thank the cult of dividend growth investors and other likeminded individuals not only for keeping me motivated and inspired but also for helping me come to a realization that it’s the intangible things that matter the most in life. Whether it be the feeling of love and joy you get when you’re with your friends and family, or the feeling you get when you accomplish something after many years of commitment, it’s very clear the things that bring me true happiest cannot be bought off a shelf.
Now to review the assets that I currently hold. 

TFSA:
STOCKS: $38,558.78
CASH: $28.93
TOTAL: $38,587.71

RRSP:
STOCKS: $62,466.33
CASH: $1,171.18
TOTAL: $63,637.51

CASH:
$5,033.26
LIABITIES:
MasterCard: $636.44

Net worth on December 21, 2014
$96,587.18
Net worth for January 22, 2015
$106,622.04

Total difference:
10.4% Increase


----------



## ashin1

For me net worth is only one of the few metrics I use to calculate my success, and progress. Not to mention I truly do believe that anyone who wants to excel in their own personal finances should track their net worth on a regular basis. It’s a great way to stay accountable for all your expenses and keeps you aware on where your hard earned money goes. I think it is safe to say during February, my expenses were higher than they have been compared to prior months. Truth be told, it was all on expenses that provided me instant gratification, from going to concerts to get away trips in the mountains these are all things I could have lived without. Though I cringe at how much I spent in February, looking back, if I were to do it all over again I wouldn’t change a thing. Now, I know I talk about delayed gratification, and the importance of it (I’m still and advocate of the idea don’t worry guys haha) however, I am only human. My ultimate reasoning was with recent shortage of staff members at my work site, the potential for me to have less days off and more overtime shifts are very real. With that being said, an opportunity came in February came where I was able to only work half the month. I have to remind myself that you can trade your time for money but the opposite can never be done. There really does need to be a balance. 
Moving forward, here is how my net worth as of this moment. 
RRSP
Cash: $1,842.63
Stocks: $66,013.51
Total: $67,856.14

TFSA
Cash: $90.12
Stocks: $38,143.77
Total: $38,233.89

CASH: $786.79
LIABILTIES
Mastercard: $597.71
Net Worth as of March 14, 2015
$106,282.11
Net Worth for January 22, 2015
$106,622.04
Decrease by 0.3%


----------



## none

Sorry for the small dash of reality but your RRSP is not worth 67K but rather closer to 55K max. Tax man always gets paid.

Sorry to be a downer but that's how the math works. Nice work though.


----------



## ashin1

@none
I can't get too upset honestly, considering that I was able to bring myself down 2 tax brackets this year with all my RRSP contributions. feelsgoodman


----------



## none

I have no doubt - that's great. I just wanted to ensure you were aware that 50K in a TFSA is worth about the same as 70K in an RRSP (depending on income at retirement). Many people don't incorporate that into their planning. Like I said, nice work.


----------



## OnlyMyOpinion

none said:


> Sorry for the small dash of reality but your RRSP is not worth 67K but rather closer to 55K max. Tax man always gets paid.
> Sorry to be a downer but that's how the math works. Nice work though.


Except that ashin1 has reported their RRSP value correctly. It just happens to be a before tax value. I'm not aware of anyone who tries to guess what the after tax value might be just for the purposes of listing their assets. You of course are also correct, that most RRSP's will have a tax liability when the money in them is accessed. So 'what you see is not likely what you get'.:distress:


----------



## ashin1

@none
for my purposes I really do want to try and retire in my 30's. My retirement strategy is based on living off dividend income. So the value of my RRSP doesn't do nearly as much as the dividends that it produces.


----------



## none

OnlyMyOpinion said:


> I'm not aware of anyone who tries to guess what the after tax value might be just for the purposes of listing their assets. You of course are also correct, that most RRSP's will have a tax liability when the money in them is accessed. So 'what you see is not likely what you get'.:distress:


The ultimate goal of listing your assets is to properly estimate their value. It would be the same as listing the sticker price of a 2005 Honda - that doesn't really make a lot of sense.


----------



## OnlyMyOpinion

Different strokes then. I list the current market value of my accounts if I want to list my assets - before tax. But then I would never list a vehicle as an asset.


----------



## none

THose are different strokes as I certainly consider a 2013 Tesla roadster an asset!!! (I wish!)


----------



## ashin1

OnlyMyOpinion said:


> Different strokes then. I list the current market value of my accounts if I want to list my assets - before tax. But then I would never list a vehicle as an asset.


I knew i wasn't the only one  lol


----------



## ashin1

get that electric car out of this thread. 

Nissan R34 skyline for the win heheheheeh


----------



## OnlyMyOpinion

BTW - you are doing great. Congrats!
(just kidding here > don't own stocks in a non-registered plan or _none_ will have you estimating when you are going to sell and at what price so that any captial gains/losses are accounted for (after tax) before you list the value of the account as an asset at any given time) :biggrin:


----------



## none

OnlyMyOpinion said:


> BTW - you are doing great. Congrats!
> (just kidding here > don't own stocks in a non-registered plan or _none_ will have you estimating when you are going to sell and at what price so that any captial gains/losses are accounted for (after tax) before you list the value of the account as an asset at any given time) :biggrin:


Well of course, why would you do it otherwise?

i do math for a living so these things are just how I do.


----------



## peterk

ashin1 said:


> @none
> I can't get too upset honestly, *considering that I was able to bring myself down 2 tax brackets this year with all my RRSP contributions.* feelsgoodman


Awesome year bro!

Just a bit of a warning based on the above though...

Don't go overboard with the RRSP deduction. You mention bringing your income down two tax brackets; I'd be careful there. If you bring yourself down into 32% compared to 36% you are losing a 12.5% return by not waiting until the following year to make the deduction. Soon enough you'll be well into the 39% bracket and lamenting that you used up all your deductions on 36% and (gasp) 32%!


From the sounds of it you put about 60k into your RRSP this year and intend to bring your income from ~140-145k down to ~80-85k. I wouldn't deduct this whole amount right now. Do the math to project your income out for the next 2 to 3 years, and figure out the optimal deduction based on a conservative 3-4% return. We can help you with the math here if you're getting stuck on it.

Myself I only put 10k towards my RRSP for 2014. Enough to bring me into 36% and give me a nice little cheque from the government.

I know that a 20k+ tax return from the government would be sweet, but if you delay now and strategically deduct based on the optimal tax bracket you will save yourself an extra couple grand over the next 2 to 3 years.


----------



## none

Sounds like you guys really need to fill out a T1213


----------



## ashin1

@peterk
woah thanks for the insight dude! I never even thought that far ahead, with my rrsp contributions for the year i think i only claimed about 39k of rrsp contributions for 2015, my annual gross income was 133k i actually didn't even bother to look what tax bracket i was in my accountant just laughed and told me i brought myself down 2 tax brackets so ill take his word. 

With my RRSP contribution room, i still believe i have plently of room for more contributions for this year(out of the 5 years i was employed i only put in small amounts per year like maybe 2 thousand a year lol until this last year. but ill wait until i get my reports back to see how much room i really have), I've have around 6.1k of unclaimed RRSP contributions too ill use next year, as well as my yearly northern tax break too, on top of any more contributions i make through out the year. so hopefully i can continue to bring myself down some tax brackets.

Again im still fairly new to CRA and the strategies used to effectively get the most of your tax returns. All I really do live well below my means and invest my money into solid blue chip dividend growth companies. Im still quite the noob if you already haven't noticed lol


----------



## peterk

ashin1 said:


> @peterk
> woah thanks for the insight dude! I never even thought that far ahead, with my rrsp contributions for the year i think i only claimed about *39k of rrsp contributions for 2015, my annual gross income was 133k i actually didn't even bother to look what tax bracket i was in my accountant just laughed and told me i brought myself down 2 tax brackets so ill take his word. *
> 
> With my RRSP contribution room, i still believe i have plently of room for more contributions for this year(out of the 5 years i was employed i only put in small amounts per year like maybe 2 thousand a year lol until this last year. but ill wait until i get my reports back to see how much room i really have), I've have around 6.1k of unclaimed RRSP contributions too ill use next year, as well as my yearly northern tax break too, on top of any more contributions i make through out the year. *so hopefully i can continue to bring myself down some tax brackets*.
> 
> Again im still fairly new to CRA and the strategies used to effectively get the most of your tax returns. All I really do live well below my means and invest my money into solid blue chip dividend growth companies. Im still quite the noob if you already haven't noticed lol


Ok that doesn't sound so bad then. At least the accountant did not use your entire contribution, so I'm assuming he stopped at the 32% tax bracket.

If you have quite a bit of room left still, and are adding another ~25k/year in new room (you don't have a pension, right?) Then I think you're safe in deducting as much as you want in the 36% bracket each year. The amount you'll be earning in the 39% bracket will be minimal so I wouldn't worry about waiting multiple years to deduct at 39% (waiting 1 year is equivalent to a 8% return, waiting two years is equivalent to a 4% return, 3 years is 2.7%).

So no worries from my post above, it sounds like you've got it right. Although that accountant sounds like he was trying to impress you with BS. You were brought down 1 tax bracket (unless you aren't an Alberta resident?), not two. But that is actually a good thing. You don't _want _ to be brought down by two tax brackets. If you do you should defer to the deduction to the following year.

If the accountant did his job right your "net income" (line 260 on your T1 General) should be exactly $87,907 (the 32%/36% threshold). If it's less, then he has used too big of a deduction in an attempt to increase this year's refund to impress you, to the detriment of your following year's refund.


----------



## ashin1

peterk said:


> Ok that doesn't sound so bad then. At least the accountant did not use your entire contribution, so I'm assuming he stopped at the 32% tax bracket.
> 
> *If you have quite a bit of room left still, and are adding another ~25k/year in new room (you don't have a pension, right?) *Then I think you're safe in deducting as much as you want in the 36% bracket each year. The amount you'll be earning in the 39% bracket will be minimal so I wouldn't worry about waiting multiple years to deduct at 39% (waiting 1 year is equivalent to a 8% return, waiting two years is equivalent to a 4% return, 3 years is 2.7%).
> 
> So no worries from my post above, it sounds like you've got it right. Although that accountant sounds like he was trying to impress you with BS. You were brought down 1 tax bracket *(unless you aren't an Alberta resident?)*, not two. But that is actually a good thing. You don't _want _ to be brought down by two tax brackets. If you do you should defer to the deduction to the following year.
> 
> If the accountant did his job right your "net income" (line 260 on your T1 General) should be exactly $87,907 (the 32%/36% threshold). If it's less, then he has used too big of a deduction in an attempt to increase this year's refund to impress you, to the detriment of your following year's refund.


dang Peterk, you know your stuff quite well. 
to answer your questions, the company i work for doesn't actually have a pension plan, the only type of pension i pay into is CPP, and yep as of 2013 i am again an Alberta resident. I'll have to look at my T1, i'll have to sift through the paper work her gave back to me to find out.


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## ashin1

Peterk:

After checking my net income it was $86,XXX

hmmmmm


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## ashin1

While February proved to be a month where I caved into the temptations of instant gratification, March is proving itself to be a pretty good month. Especially when it came to reaping the benefits of aggressively channeling money into my RRSP. Prior to when I started pursuing a greater wealth, maxing out my registered accounts was never a priority. What a shame I wasted several years I could have used to compound my dividends, oh well better late than never I suppose. So needless to say I have accumulated quite a bit of excess contribution room into my RSSP. So much that I was able to contribute over $39k in 2014, and still have nearly another $30k more for this year alone. Due to having a contribution that high into my RRSP, I received a hefty tax return of approximately $16,500. With that being said the smartest move I could make was to put that back into my RRSP. So with the extra influx of cash I was able start a position in a company I have been eyeing for the last year. 
Company Overview:
Canadian Real Estate Investment Trust (the Trust) is a Canada-based, real estate investment trust (REIT). The Company's real estate portfolio, excluding development properties, comprised 21 million square feet as on December 31, 2013. The Company's primary business objective is to accumulate a portfolio of high-quality real estate assets and to deliver the benefits of real estate ownership to its investors. The Company is diversified geographically. It is also diversified by product type. The product mix is 50% retail properties, 25 % industrial properties and 25% office properties. The diversified product mix is designed to provide both income stability and income growth to its unit holders over a long-term investment horizon.

Today I purchased 350 shared of Canadian Real Estate Investment Trust (REF.UN) for $46.66 a share bringing my total cost after commission to $16,337.95. Though the dividend yield isn’t as strong as some of its competitor it stands at a fair 3.75%. With a payout ratio of 88% and a 5 year dividend growth rate of 5.07% I’m happy to say I have good faith this company will continue to provide me a stable and rising income over the years to come.

With this purchase of REF.UN I have I have increased my annual dividend income by $612.36, bringing my projected annual passive income to $5188.31.


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## nobleea

ashin1 said:


> With this purchase of REF.UN I have I have increased my annual dividend income by $612.36, bringing my projected annual passive income to $5188.31.


Is this not in an RRSP? Going to be hard to access that income and it will be fully taxed coming out. Putting it in a TFSA would be best.


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## peterk

peterk said:


> If the accountant did his job right your "net income" (line 260 on your T1 General) should be exactly $87,907 (the 32%/36% threshold). If it's less, then he has used too big of a deduction in an attempt to increase this year's refund to impress you, to the detriment of your following year's refund.





ashin1 said:


> After checking my net income it was $86,XXX
> 
> hmmmmm


Ahh that's close enough. Wouldn't even bother worrying about it 



ashin1 said:


> With this purchase of REF.UN I have I have increased my annual dividend income by $612.36


Sweet! $50/month. That $16000 saved will pay for your cell phone bill the rest of your life! Pretty nice eh?


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## ashin1

unfortunately my phone bill is not something i should be bragging about, my last several bills have been $100-$130....im a data hog

either way an addition $50 a month for the rest of my life is nice hehehe


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## ashin1

As time continues to pass, it seems to have a positive effect on my portfolio, it really is fascinating how compounding interest work, and how satisfying it feels to have money that you didn’t work for fill into your bank account. I believe last month my asset’s growth remained stagnant, however this month with the help from a tax return of approximately $16,500 has really help to add a boost to my portfolio. For any of those who are curious how I managed to accumulate a tax return of $16.5K I essentially brought myself down 2 tax brackets by contributing almost $40k to my RRSP last year. For those who are concerned that I have over contributed, no need to fear, before 2014 I never prioritized in maximizing that account, so I had lots of extra room in my RRSP. 
Below are the Values of the assets I hold:
TFSA
Cash: $124.51
Stocks: 39,445.91
Total: $39,445.91
RRSP
Cash: $1,736.56
Stocks: $87,189.24
Total: $88,925.80

CASH: $3,181.74
LIABILITIES: $0.00



Net worth for April 15, 2015
$131,553.45
Net worth for March 14, 2015
$106,282.11
Increase by 23.8%


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## peterk

Awesome bro! You're really going all-in with the stock market eh?

I should try and do that, but I'm just too leery of a market crash. Would have seen a lot of gains if I just had put everything in the market over the past two years.


----------



## ashin1

peterk said:


> Awesome bro! You're really going all-in with the stock market eh?
> 
> I should try and do that, but I'm just too leery of a market crash. Would have seen a lot of gains if I just had put everything in the market over the past two years.


Pretty much fella, there are other means of putting my money to work, but I have no fears of a stock market crash, in fact If one happened tomorrow, I would still be in a rather fiscally advantagous position simply for the fact that I have maintained a low/no debt, and I have good faith in my job security.(only way ill be out of work is when the world is perfect and free of illness and sickness). Not to mention that seeing as how i am 24, now seems to be a good time to be aggressive with starting the cycle of compounding intreset. My thoughts are if i am aggressive in my early years, i can slowly ease off as time goes by and ill still beable to snowball my passive income comfortably. Ultimately its not the value of portfolio i am concerned about, its more less the amount of passive income that comes in that i care more for. 

Another reason why i am so aggressive now, is that i plan to retire in my 30s, i have no goal of being insanely wealthy, I just dream to live a life where i can choose to work on the days i want to work, and never ever have to ask my boss again "if i can take some time off". To me i absolutely loathe having to ask permission for days off, so i will endure now and hope to in 10 years i can have the option to live and play where and when i want. 

So realistically if you have a certain goal in mind, maybe what you are doing right now is the right thing for you.


----------



## StockTrader

ashin1 said:


> Net worth for April 15, 2015
> $131,553.45
> Net worth for March 14, 2015
> $106,282.11
> Increase by 23.8%


Sweet! Keep it up. Nice to read an inspiring story!


----------



## ashin1

Asset Assessment 
Keeping this post short and sweet, here is another update on the assets I have been building since starting this journey back in November 2013. With a little over $16,000 net worth it’s pretty awesome to see this number steadily climb its way up as time goes by. I still to this day live by very simple financial rules, which is pay yourself first, make your money work for you, and keeping debt low. Realistically it doesn’t matter if you making 6 figures or not (it certainly helps but ultimately it isn’t the key factor in wealth accumulation) because at the end of the day consistency will be the biggest factor in your success. 
Now on the current value of the assets that I hold

TFSA:
STOCKS: $39,495.46
CASH: $201.28
TOTAL: $39,701.74

RRSP:
STOCKS: $91,587.99
CASH: $49.10
TOTAL: $91,637.09

CASH: $7,983.50
LIABILTIES:
MASTERCARD: 1103.93

Networth for May 28, 2015:
$138,218.40
Networth for April 16,2015:
$131,553.45

Increase by 5.06%


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## scorpion_ca

Is there any new contribution amount in May or just capital gains from the last month?


----------



## ashin1

scorpion_ca said:


> Is there any new contribution amount in May or just capital gains from the last month?


just capital gains and dividends.
i think i brought in a little under $500 in dividend income for the month of may


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## ashin1

May 2015 dividends:

I have been doing some thinking lately and I have come to the conclusion of the importance of consistency. It is an extremely overlook word, so simple to define yet very few people can truly carry it out. I really do believe that consistency is what makes the difference between failure and success. So what does consistency have to do with my monthly dividends income? Well as some of you already know I DRIP all the shares I own, so every time a company’s pays a dividend it gets automatically reinvested. I literally set it and forget it. By doing this I am keeping my goals of actively investing on auto pilot, I am only human and I will go through periods where I am not as constant as I would like to be, but that doesn’t mean my retirement fund has to be. With that being said here is the dividend income that I have accumulated throughout the month of May.

Dividend Payers of May 2015:

H&R REIT: $54.79

Power Corp Financials: $61.46

National Bank of Canada: $77.50

Riocan REIT: $30.55

Interpipeline: $41.28

Canadian Real-estate Investment Trust: $51.18

Royal Bank of Canada: $80.08

Bank of Montreal: $84.00



Total Dividends Received for May 2015: $480.84

Total Dividends Received for May 2014: $115.59

Increase from last year: 315.9%

Total dividends received for this year: $2055.46


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## peterk

I had this FOB roommate in first year who didn't like partying. We'd be up at 3am drinking and listening to loud music in res. and he would come out of his room and yell "Guys! I am trying to sleep! We must maintain a consistent lifestyle!"

At 19 I did not heed his words. At 28 now I'm not sure that I'm doing much better. Of course he didn't do anything substantial with his life either, so I guess consistency it isn't everything...

I prefer to think of it though as "forming good habits and eliminating bad habits", rather than consistency. After all, I _very consistently_ skipped class, didn't do homework, watched too much tv and drank too much beer all through university. :biggrin:

Awesome job on the dividends!

You still working tons and making mad bank with those call-outs? have you noticed things slowing down for your company at all?


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## albertabound

ashin1 said:


> May 2015 dividends:
> 
> I have been doing some thinking lately and I have come to the conclusion of the importance of consistency. It is an extremely overlook word, so simple to define yet very few people can truly carry it out. I really do believe that consistency is what makes the difference between failure and success. So what does consistency have to do with my monthly dividends income? Well as some of you already know I DRIP all the shares I own, so every time a company’s pays a dividend it gets automatically reinvested. I literally set it and forget it. By doing this I am keeping my goals of actively investing on auto pilot, I am only human and I will go through periods where I am not as constant as I would like to be, but that doesn’t mean my retirement fund has to be. With that being said here is the dividend income that I have accumulated throughout the month of May.
> 
> Dividend Payers of May 2015:
> 
> H&R REIT: $54.79
> 
> Power Corp Financials: $61.46
> 
> National Bank of Canada: $77.50
> 
> Riocan REIT: $30.55
> 
> Interpipeline: $41.28
> 
> Canadian Real-estate Investment Trust: $51.18
> 
> Royal Bank of Canada: $80.08
> 
> Bank of Montreal: $84.00
> 
> 
> 
> Total Dividends Received for May 2015: $480.84
> 
> Total Dividends Received for May 2014: $115.59
> 
> Increase from last year: 315.9%
> 
> Total dividends received for this year: $2055.46



This is some fantastic dividend increase! 

I was using this buy/rent calculator the other day and it has that threshold in it where if you invest enough in "X" your dividends actually pay your rent and you can live for free. Pretty amazing if one is able to save that much..

Great work


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## ashin1

peterk:
thats a pretty entertaining story, thank you for sharing haha. Perhaps i should have been more specific...oh well i think you knew what i meant 
As far as work is concerned i am still up in northern Alberta grinding hard, and still doing plenty of call. We are currently short staffed so i do more call than i should be doing but hey then again i don't necessarily complain when my pay checks come in. I guess 2 new up dates as far as work is concerned, I got roughly a $1.50 raise with my current company I am with, as well they are sending me to Edmonton to further my training in the quality control aspects of the lab, and i was told i am being sent for additional training because they do see me working with them for the long term(at least until i reach FI that is lol) So i am not to concerned about my job security. And as of recent I just picked up another job to work on my days off in a different community about 80km from my home. It works great because Ill not only be making some extra money on the side, but ill be working in a different hospital that will hopefully expose me to more interesting cases and also get my foot in the door with Alberta health services. Not to mention i have a summer squeeze who lives in this community too so now my gas money is well compensated to go see her lol. 

Albertabound:
Thanks man! I will admit It sure is a nice feeling to be at a point in my dividend growth investing journey to start receiving enough Dividends to have an impact on my life. Are you a dividend growth investor as well?


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## ashin1

Asset Assessment
Damn another month has already passed us by, they weren’t kidding when they said time waits for no one. No wonder you hear of people saying, if you haven’t started investing already, start now because that’s precious compounding time being wasted. With current affairs occurring my portfolio is starting to take a pretty good beating, but I still stand by the companies I own and this is why I love investing not only for the long term but also the style of dividend investing. I invest for the passive income, and even though the value of the stocks may change, one thing will stay consistent if you choose your companies wisely. What stays consistent for me are the dividends that come in. Although the value of my portfolio has gone down a several points, it’s always nice to know the dividends which I receive are always going up as long as I keep DRIPing. Being a dividend growth investor I feel as though we can be more optimistic too during market turmoil and we look at these negative swings as an opportunity more than something to be fearful of. It’s important to remember that the greatest rewards are to be reaped when you do the opposite of what the masses do. Unfortunately for me, my dog has been getting into trouble when I was sleeping and managed to scratch up my roommates vehicles pretty bad to the point where fixing the damages actually have costed me thousands of dollars. So these past couple months saving big chunks of my pay check wasn’t much of a reality due to me reimbursing my roommates for the expenses. I could be mad, but what’s the point of getting upset at something beyond your control? haha. No one said reaching the end of your journey would be an easy and straight road, and without those speed bumps how would I be able to truly enjoy the fruits of my labor?

RRSP
Cash: $118.00
Stocks: $$87,943.35
Total: $88,061.35
TFSA
Cash: $8.06
Stocks: $43,108.08
Total: $43,108.08

Cash: $3,795.35
Liabilities
Credit Card: $163.10

Net Worth for June 30, 2015 
$134,801.68
Net worth for May 28, 2015
$138,218.40
Decrease of 2.47%


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## peterk

**** happens.

Sure is nice that you can pay for an expensive mistake with ~1 month of savings though isn't it? Lots of young folks would need six months to pay for such a problem, and might have to re-jig their finances significantly to accommodate. We are very fortunate guys


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## ashin1

**** sure does happen, I just gotta count my blessings that I have job that helps dings like that much less painful compared to the mean. Honestly after living this lifestyle in the north for the past 2.5 years i really can't see myself moving back down south and trading what i have here for anything else. We sure are fortunate that is no lie, but I believe that good fortunes are rewarded to those who have a plan, are disciplined and work their asses off! I'm sure you feel the same way


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## peterk

I certainly want to move out of the north in the future. How far in the future I'm not sure yet. All I know is that I don't think I can go back to a city job where I can only save 1k/month instead of 4-5k like now. Always keeping my eyes open for a better opportunity but none has presented yet. I think the 5 year goal is to get my skills where I can become a private consultant for $150/hour, work lightly (~20hrs/week) and enjoy life to the fullest.

For a while I really wanted to pursue working "online" in an attempt at a "location independent" career, as seems to be so popular on the internet these days. Turns out that a one way street to mediocre money at best ($10-20/hour is pretty typical, $30-40/hour for online work is considered very good and it seems quite hard to break out to higher earnings than that).


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## ashin1

I totally agree, leaving the northern life right now especially while the getting is good just isn't a good idea for people like us. That is pretty slick you are looking ways to monetize your skills online so you can work anywhere in the world really as long as you have computer with internet access. Although its still no financial freedom, we may have different long term goals so it may seem more enticing to you than it is for me. Regardless i still think your plan is pretty stellar and ambitious, keep living the dream bro!


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## ashin1

June 2015 Dividends:
I use to dread the idea of myself growing old. Currently now being in my early twenties I am realizing that whether I like it or not I will one day not be able to consider myself a young man. However, the fear that perpetuated inside my mind is now slowly going away over these last several years when I began to assume accountability for all my actions, good or bad. With the mechanisms of dividend growth investing and compounding interest, I no longer dread the future, rather I welcome it and am waiting patiently for it. This is had profound effect on my mind and spirituality, I no longer worry about the small things in life, such as “who is doing what and where? Does that person like me? You mean I have to miss on this cause of work? “. I guess having a dream and plan being put into motion really does prevent from being envious of others, and trying to keep up with the social media Joneses. With every month that passes by it truly is an amazing feeling that I just take much closer to my goals of financial freedom. Here are June 2015 dividends:

H&R REIT: $55.01 (DRIP x2)
Fortis: $53.72(DRIP)
Enbridge: $79.05 (DRIP)
Riocan: $30.67 (DRIP)
Canadian Restate Investment Trust: $51.32 (DRIP)
Interpipeline: $41.41 (DRIP)

Total Dividends for June 2015: $311.18
Total Dividends for June 2014: $58.65
Increase from Last Year: 431%
Total Dividends Received for 2015: $2366.64


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## ashin1

July 2015 Asset Assessment/Recent Buy
Summer so far has been pretty amazing. This summer in particular I managed to spend more time around home and camping in the great north. This lifestyle of minimalism has really helped me enjoy this summer more. Not to mention keeping busy with working and all my outdoor activities sure has kept my mind off these poorly performing Markets, so it Is less likely to let my emotions get the better of me in these times of “discount prices”. Living in Alberta these days it is evident there is some restlessness amongst the “hard working” and the “hardly working”. I believe part of the reason why our markets are performing so poorly is due to this said restlessness. With the recent win of the NDP in the provincial elections, many big corporations, energy related have been under heavy scrutiny by the NDP. In essence these conglomerates who fuel not only our provinces economy but our whole nation’s economy needs to be brought down, because underserving people feel entitled to the rewards of other people’s hard work and labor. Through all this political controversy and social turbulence, the real wood workings of people who I once thought were “grown adults” have been made visible and its rather disappointing to see people who I thought had it together when I was younger are still just as childish as when they were middle school.
Regardless of the abuse these Corporations are getting from the masses I still believe in them and support their projects hence why I bought 137 more shares of Interpipeline last week for $26.30 a share spending a total of $3,610.92. Their current dividend yield is a hefty 5.37% with a payout ratio of 122% and a 5 year dividend growth rate of 9.33%. 

This recent purchase of Interpipeline has increased my annual passive income by $201.39 making my current projected dividend income to $5,895.19.

Asset Assessment 
RRSP: $91,844.87
TFSA: $43,701.27
Cash: $2802.96
Credit Card: -$869.89
Total Net worth for July 31, 2015:
$137,479.21
Total net worth for June 30, 2015:
$134,801.68
Increase of 1.99%


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## ashin1

Well its days like today where I am exhausted from a busy stretch of work and stand-by services do I feel truly blessed that I have additional income coming my direction. For those who are not aware of what I do, I work in a diagnostic department in northern Alberta offering laboratory and x-ray services. The thing about providing diagnostic services to a 24/7 emergency facility, I am required to be near the site and ready to work on the drop of a dime. Having such responsibility, I am required to work at all hours of the day, and night. Whether it be a sunny, windy, raining, or a black out blizzard I am required to stop whatever I am doing(such as being in a deep sleep at 3 am) and rush to the hospital and provide my services for patients in need. This is obviously not a lifestyle for most people. However, I am a firm believer of the idea that unconventional methods will lead to unconventional results. With all these hours I bank from coming to work and putting in my overtime, I have been fortunate enough to supercharge the amount of extra capital I can funnel into my freedom funds. Although it is a nice thing to earn some extra coin, I would like to point out everything in this life has a price. For example, you may not have to actually pay money to idle and procrastinate but the price you pay is much worse, you give up your free time for nothing, and that would be worse than throwing money in the garbage because money can always be remade, time on the other hand cannot. With that being said, my commitment to my responsibilities does come with a price, many nights where I only sleep a few hours where I am required to be up early in the morning again to work my scheduled shift regardless of the lack of sleep I get from being called into work being one of the biggest prices to pay. This leads me to another reason why I choose to chase financial freedom rather than status possessions. Time is what I want the most out of life, when I have control over my own time, I’ll have full control of my life as well as how much sleep I get every night. It is a very liberating feeling, and as I type this entry out I feel myself more and more awake as I am getting excited for what the future has in store. 
Finally onto my passive income for the month of July. 



H&R REIT: $55.25
RIOCAN: $30.79
BELL: $69.55
Inter Pipeline: $41.53
Canadian REIT: $52.95
General Electric: $38.93
Scotia Bank: $99.96
Telus: $57.12
Rogers: $60.96
TD Bank: $82.11
Power Corp Financial: $61.84

Total Dividends for July 2015: $650.99
Total Dividends for July 2014: $282.18
YOY increase of 130.7%
Total Dividends for 2015: $3017.63


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## ashin1

I hope everyone has had a terrific summer. I know sure have, unfortunately due to all this fun and excitement I have had this past month, I not only have put my website to the side, I also put investing on to the side. However there is some degree of method to my madness. Well this summer I was fortunate enough to develop a new relationship and so it is a no brainer I want to spend my time with her before she heads off to a different city hundreds of kilometers away. As for me investing into the market well, I have been putting it off to the side, because I am in the process of saving some capital until after the federal election on October 19, 2015. Depending on how this election goes, I may see myself investing that said saved capital either into the market or into a different type of wealth building venture which involves real estate. Either way the future is looking bright, and even brighter for all you dividend growth investors. Like everyone else who has been deeply invested into the stock markets you can all see that there is a negative trend going on with the economy struggling, and oil at historically low prices. Although things may look bad, I’m sure things can still look worse, and in a sick and twisted way wouldn’t mind if they got more chaotic, but again I’m sure all of you money savvy readers out there know what I am talking about. So before I share with you my net worth for the month of August 31, 2015 I would like to share with you a quote that will help you remember when investors like us are living in the “good time”. “Be fearful when others are greedy and be greedy when others are fearful” – Warren Buffet.


Asset Assessment:
RRSP: $86,804.84
TFSA: $41,308.53
Cash: $7841.58
DEBT: $0.00

Net worth for August 31, 2015
$135,954.95
Net worth for July 31, 2015
$137,479.21
Total decrease by 1.1%


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## kork

Question, for your dividend payouts, are they getting reinvested or is it income? How are you collecting a dividend if most of yours investments are in RRSPS?

I'm looking to build a dividend producing portfolio as well and love the idea of a bit of passive income that can help toward groceries or other monthly bills...


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## peterk

kork said:


> Question, for your dividend payouts, are they getting reinvested or is it income? How are you collecting a dividend if most of yours investments are in RRSPS?
> 
> I'm looking to build a dividend producing portfolio as well and love the idea of a bit of passive income that can help toward groceries or other monthly bills...


This is all semantics isn't it? For a young person earning income and net-saving new money each month does it matter what the dividend is going towards or not? For that matter does it matter that the return is in the form of dividend at all?

Counting dividends at this point in one's career is nothing more than a fun therapeutic activity where watching dividend dollars increasing over the months/years may give you a sense of accomplishment. It has no bearing on the outcome of your future life or retirement.


----------



## ashin1

kork said:


> Question, for your dividend payouts, are they getting reinvested or is it income? How are you collecting a dividend if most of yours investments are in RRSPS?
> 
> I'm looking to build a dividend producing portfolio as well and love the idea of a bit of passive income that can help toward groceries or other monthly bills...


I reinvest my dividends through a synthetic DRIP offered by my broker. Each of my brokerage accounts have stocks and cash reserves. the dividends that are left over after i reinvest just build up in the cash aspect of my accounts, until i am ready to buy more companies again.


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## ashin1

This is all semantics isn't it? For a young person earning income and net-saving new money each month does it matter what the dividend is going towards or not? For that matter does it matter that the return is in the form of dividend at all?


*Counting dividends at this point in one's career is nothing more than a fun therapeutic activity where watching dividend dollars increasing over the months/years may give you a sense of accomplishment.* It has no bearing on the outcome of your future life or retirement.


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## kork

peterk said:


> This is all semantics isn't it? For a young person earning income and net-saving new money each month does it matter what the dividend is going towards or not? For that matter does it matter that the return is in the form of dividend at all?
> 
> Counting dividends at this point in one's career is nothing more than a fun therapeutic activity where watching dividend dollars increasing over the months/years may give you a sense of accomplishment. It has no bearing on the outcome of your future life or retirement.


Yes, it very much is semantics.

I don't need the dividend income now. In fact, I don't want it because it wouldn't be tax advantage with a high(ish) income. But if I were to start down the road to setting up a system where I could earn some dividend income, I'd feel a heck of a lot better if I were to lose by job or whatever. If suddenly, tomorrow, I lost my job and had zero income from working, I'd love to think that I'd been setting up a system where I could flick a switch and earn income from dividends... 

However, while working, have the dividends reinvest themselves so I don't need to claim it as income (I don't even know if that's possibly?)


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## peterk

kork said:


> Yes, it very much is semantics.
> 
> I don't need the dividend income now. In fact, I don't want it because it wouldn't be tax advantage with a high(ish) income. But if I were to start down the road to setting up a system where I could earn some dividend income, I'd feel a heck of a lot better if I were to lose by job or whatever. If suddenly, tomorrow, I lost my job and had zero income from working, I'd love to think that I'd been setting up a system where I could flick a switch and earn income from dividends...
> 
> *However, while working, have the dividends reinvest themselves so I don't need to claim it as income (I don't even know if that's possibly?)*


Nope, you sure DO need to declare them as income, whether you spend it or not!


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## kork

peterk said:


> Nope, you sure DO need to declare them as income, whether you spend it or not!


Good to know! Thank you!


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## ashin1

depends on the type of account they are in, TFSA not so much, RRSP depends on how you draw your money out upon retiring, and in a taxable account the income must be delcared regardless if you claim FI or not. 

I think......


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## OnlyMyOpinion

kork said:


> I'm looking to build a dividend producing portfolio as well and love the idea of a bit of passive income that can help toward groceries or other monthly bills...


One way to think of dividends helping to pay your monthly bills is to consider what necessary & discretionary products or services you buy in a month. Chances are the provider is a company whose stock you could buy (assuming they are considered to be a good buy & hold company). For example:
My $43 monthly cell phone bill with Bell. If I buy 200 shares of BCE (at $53.70 for $10,740), my dividend pays my monthly bill.
My $12 monthly teenburger meal at A&W. If I buy 100 shares of AW.un (at $26.94 fr $2,694), my dividend pays my monthly splurge.
My $67 cost to fill my car with gas at PetroCan. If I buy 700 shares of SU (at $35.07 for $24,549), my dividend pays to fill my car.

Or you can consider this exercise as a cockeyed way of quantifying the "capital required" to pay for your choices - like setting aside $6,861cdn for 100 Starbuck shares to provide a dividend to pay for my $5 of monthly coffees 
I'm ignoring any value that might be added by increases in share prices over time, or by increases in dividends (which are likely to to allow you to continue to buy your Starbucks when they increase the price).


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## ashin1

August 2015 Dividends
One of my favorite things to do is count up and add my dividend income for the month. Some say dividend growth investing is boring but personally I think it is very exciting. Watching the dividends slowly, but surely grow and compound is pretty damn thrilling, considering every time my dividends get reinvested it just brings me that much closer to Financial Freedom. Sometimes if I want to get creative with the way I look at my dividends I think to myself, that’s free cellphone services for the rest of my life, or I’ll never have to pay for my car insurance, I could buy a new wardrobe every month, and the list goes on, overall I’d say it’s a pretty cool way to look at dividends. 
I would say September, has been a pretty slack month(due to all the random days I took off during the month), my manager was encouraging me to use all my vacation time for the year so I don’t get taxed extra(I am unable to bank my vacation time). At first I didn’t really want to take time off work and potential calls, as well I wouldn’t have minded the extra income from being paid my vacation hours for the year. However, I took another step back and I had to remind myself that money is not everything. Yes money matters when it comes to building up any type of investment portfolio, however in the grand scheme of things money still doesn’t come top on my list of things that I value the most. My number one thing I value is the quality of experience you have throughout this journey of life. I thought to myself, do I really want to sacrifice time for money, or should I trade the money for time? I don’t know why at the time it seemed like a hard decision because looking back I am thrilled I chose the latter. During the time I spend off, I had about 6 days off in a row, I thought to myself I would designate a couple days to how it would feel if I was financially independent and see if I could fill my day with enough activities to keep myself busy and happy, without having the need to spend a ton of money. Well needless to say after I spend a couple days living as though I was “retired” I can safely say there still isn’t enough time to do everything you want to do in one day. The best thing about freeing yourself from a job is the ability to live life on your own terms. I chose to sleep until my body felt ready to get out of bed, which was about 9am, and I took my time creating as well as cleaning after hearty and healthy brunch. By the time I finished that task, I went and played my guitar for several hours trying to learn new things, and just practice in general. After my fingers got sore I found myself wanting to go skateboard for several hours, shortly after that I took my dog Duke out for a walk along the river I live by, and by the time I was down all that it was time to make another meal. After that was done, it wasn’t very difficult to get together with friends who have also just finished work for the day and get to hang out, relax and visit. I know my days wasn’t really exciting or glamorous but there is a lot to be said about being able to enjoy the moment of being, and truly living in the present, especially when you can live the rest of your days not having to worry about the responsibilities of working and paying bills. It’s a form of freedom that truly allows you to be your own person. 
Well that’s enough bantering about my outlook on life and what financial independence will feel like, on to my dividends for August 2015.
H&R REIT: $55.47
RIOCAN REIT: $30.90
Inter Pipeline: $41.65
Canadian Real Estate Investment Trust: $53.10
Royal Bank of Canada: $80.85
BMO: $86.92
National Bank of Canada: $81.12
Total Dividends for August 2015: 
$430.01
Total Dividends for August 2014:
$180.83
YOY increase of 138%
Total Dividend for 2015:
$3447.64


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## ashin1

October 2015 Asset Assessment/Dividends and Recent Buy
I hope everyone is having a fantastic Thanksgiving weekend. I would like to start this entry off with one of my favorite quotes about being thankful,

“Develop an attitude of gratitude, and give thanks for everything that happens to you, knowing that every step forward is a step toward achieving something bigger and better than your current situation.”
-Brian Tracy


The interesting thing I find about Thanksgiving is that it’s a yearly holiday that recognizes the importance of finding a way to be grateful regardless of the situation you are in. This is something that should be celebrated on a daily basis. We often get so busy in our own lives that we forget to be thankful for the “little” things in life, like good health, good friends, and living in a country where we have plenty of opportunity to thrive. It’s a shame that some people can forget about the good fortunes we already have, and even go as far as to neglect them to the point where some of the most important things like our good health and relationships with family and friends goes to waste. Let this weekend be a reminder for everyone to always value what you already have because tomorrow it might not be there. 
This Thanksgiving I am extremely thankful that I stretch of days off to not only enjoy some time away from work but to finally catch up on my blog. Unfortunately, September proved itself to be a busy month and I won’t able to calculate an accurate assessment on my net worth for that month. So in today’s update here is my estimate for October 9, 2015.
Non-Registered Account: $11, 807.35
RRSP: $91, 403.81
TFSA: $42, 989.06
Cash: $3,102.10
Liabilities (credit card): -$491.94
Total Net Worth for October 9, 2015:
$148, 810.28
Total Net worth for August 31,2015:
$135, 954.95
Total Increase of 9.5%



September 2015 Dividends:
H&R REIT: $55.69
Fortis: $54.06
Enbridge: $79.52
Riocan: $31.02
Inter Pipeline: $58.56
Canadian REIT: $53.25
Canadian Utilities: $38.94

Total Dividends for September 2015: 
$371.04
Total Dividends for September 2014:
$132.52 
YOY increase of 176%

Recent Buy:
I know I was talking earlier about waiting until after the elections to start buying companies, but seeing so many Canadian companies at great prices it’s so hard to turn down the temptation. So I folded and I ended up initiating a new position with TransCanada Corp.

So Why TransCanada Corp?
All though there is always room for the market to get more bearish especially with current affairs happening not only on a national level but on a global level, I still choose to dump more money into the markets, just not all of it ha-ha. However I still do believe we are very much in a buyer’s market, especially in the case of energy stocks, and if I can get my paws on a high quality dividend growth stock at near its 52 week price low I couldn’t resist. I have always wanted more exposure to the energy sector in my portfolio, I am prepared to ride out various storms the future has in store with my dividends reinvested back into the company through all the good times and bad. 
I purchased 110 shares of TRP.TO for $44.92 per share, leaving me a total cost of $4,948.15 after broker fees. The dividend yield is at a hefty 4.6% leaving shareholders like me happy knowing they can afford to pay that much with a payout ratio of 81.9%. TransCanada Corp currently have a 5 year yield growth rate of 4.8% so I sure feel safe knowing that my dividends will grow faster than inflation. Interesting fact about TransCanada Corp is that they have increased their dividends consecutively for the last 14 years!
This purchase of TransCanada has increased my annual passive income by $228.80 bringing my projected annual dividend income of $6,219.81.


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## peterk

What's your blog? Please PM me if you don't want to post it here.


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## ashin1

Dividends for November 2015

National Bank of Canada: $81.64
HR REIT: $56.14
Riocan: $31.26
Inter Pipeline: $59.05
Canadian Real Estate Trust: $53.55
Royal Bank of Canada: $83.74
BMO: $87.74

Total Dividends November 2015
$453.23 
Total Dividends November 2014
$158.11
YOY increase
187%


Asset Assessment

Non Registered: $15,764.38
TFSA: $43,796.78
RRSP: $90,156.54
Cash: $8527.64
Liabilities (credit card): -$72.18	

Net worth for Nov 30, 2015
$158,173.16	
Net worth for October 9, 2015
$148, 810.28

Increase of 6.3%


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## Underworld

Good job on the net worth growth - I like the dividend growth strategy.
Between Oct 2015 and Nov 2015 - your net worth went up ~10k. Are you adding 5k worth of investments per month?


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## ashin1

Underworld: I think the bump in NW had to do with a combination of my stocks running a bit higher than last month, as well as slightly bigger pay checks for that time period. I would say ~5k a month is a good average for how much money i try invest a month.


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## ashin1

I hope everyone had a fantastic Christmas Holiday, I know that I am still recovering from all the hyper indulging that I have done these past several days. Looking back it is pretty crazy how fast time has passed. Almost a year has gone by since I cracked the $100K milestone in my net worth and it does not seem as though a full year has elapsed since that point. Only difference between this year and last year is I am entering 2016 with a weak Canadian Dollar, and more bearish market than in 2015. So in other words I feel as though I am in a rather advantageous position to make some big gains in the future if I am prepared to ride out the waves the markets bring with the next couple years. One thing I would like to highlight is the importance of automating your life to take advantage of bearish markets. The way to do this is through a Dividend ReInvesting Plan, otherwise known as a DRIP. I am not advocating anyone enroll into a DRIP without doing their research but one thing I have noticed these past several months is that being in a DRIP I can mindlessly practice the technique of dollar cost averaging my purchases especially when certain stocks do not perform well. 


RRSP: $89,851.88
TFSA: $42,355.00
Non-Registered: $22,228.90
Cash: $4,881.22
Liabilities: $0

Net worth for December 29, 2015:
$159,317.00
Net worth for November 30, 2015
$158,173.16
Increase in 0.7%

Dividends for December 2015

H&R REIT: $57.83
Canadian Utilities: $39.24
Forts: $60.00
Enbridge: $79.98
Riocan: $31.37
Inter Pipeline: $64.74
Canadian REIT: $53.70

Total Dividends: 
$386.86
Total Dividends for December 2014:
$183.09
YOY increase of 111%

Total amount of dividends received for 2015:
$5335.65


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## My Own Advisor

"The way to do this is through a Dividend ReInvesting Plan, otherwise known as a DRIP. I am not advocating anyone enroll into a DRIP without doing their research but one thing I have noticed these past several months is that being in a DRIP I can mindlessly practice the technique of dollar cost averaging my purchases especially when certain stocks do not perform well."

Mindless investing is smart


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## scorpion_ca

What do you hold in your RSP, TFSA and non-reg accounts?


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## ashin1

TFSA:
HR.UN
NA
RCI
T
TD
PWF
CU

RRSP:
BCE
ENB
HR.UN
IPL
GE
BNS
REI.UN
BMO
RY
REF.UN
FTS

NON reg:
TRP
POT
CM
CWB


And I DRIP everything I own.


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## ashin1

New plan for 2016:
Keep holding and DRIPing all my investments, and maximize the TFSA and RRSP contributions.
After those accounts have been maxed out, save as much cash as possible, and unless there is a significant meltdown in the economy(crash in the markets/major housing correction), all the extra money i save will go towards building my own home come 2018(i hope to build a small house and pay for it in cash)

Thoughts?


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## Moneytoo

Sounds great! 

(Small house - how small?  I've been watching the Tiny House craze on HGTV: http://www.hgtv.com/shows/tiny-house-hunters , wondering for how long people actually would live in them... )


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## ashin1

I think i want to build a small cabin house 16x24 enough for a small kitchen and bathroom and a bedroom loft, and then beside that i want to build a large tin/lumber shop maybe 60x90

in total spend about 100k


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## Moneytoo

Do you have the land or would have to buy it, too?..


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## ashin1

unfortunately no i don't have any land, I would most likely buy a lot.


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## ashin1

I am definitely pumped on some recovery in the markets lately, It has helped me get back some of the gains i have lost from last year(not quite fully recovered yet). Despite the losses i still kept investing both my dividends(DRIP) and fresh principle into the Canadian markets when times were more grim then they are now. Needless to say I am optimistic. Ignorance is bliss right? Haha 

Currently in a very good position right now, I am expecting a $13.5K tax return, as well I am expecting to receive some retro pay from the end of April 2015 to Feb 16 for all the hours I've worked for 40 cents(includes all the overtime and call backs). With that being said, I am getting 2 raises this year, I got my first one 3 days ago and I'll be expecting my next one this May. 

Life is good here in the North It has really grown on me. I've survived through a couple relationships since i have been here and its really starting to feel like home here now that i am a part of the community. Not to Mention I feel as though I am very appreciated by the company, they treat me well to say the least and truly do believe in me. 3 days ago my manager told me that the company wants to invest in me, and they are sending me to Delaware to attend a workshop for several Days and I would be the Chemistry Analyzer expert in my depart. I honestly never thought i would have made it to this point in my career, this is a company who has helped me make this area a home and live-able for me. 

RRSP: $98,286.24
TFSA: $47,924.10
NON REG: $22,662.55
Cash: $2935.57

Liabilities: $0


Networth: $171,858.46

increase of 7.9%
From December


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## ashin1

Much over due update:

Been rather busy these past couple months since around May, I took on a ambitious project where i bought some land and moved a trailer onto my lot(without any loans from the bank). 
Unfortunately with all the expenses associated with setting up a dwelling, i wasn't able to put any money into the market( in-fact I had to crystalize and dissolve most of the funds in my non reg account).
However dividends are still being reinvested so i have that working for me.
So here is a rough estimate on my net worth as of today:

RRSP: $131,644.19
TFSA: $55,196.30
NON-reg: $4,218.72
Cash: $7,846.59
~value of home: $90,000

$288,905.80

Liabitlies:
personal debt to parents: $43,000
credit: $881.93
auto loan: $19,000

Networth:

~ $226,023.87


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