Net Worth Update: February 2021

Welcome to my net worth update for February 2021! These numbers represent my wife and I’s net worth as of February 1st. I do my best to round to the nearest $100 to keep everything easy on the eyes. Let’s get started!

Interview With Eat Sleep Breathe FI

This month I had a really fun opportunity to participate in EatSleepBreatheFI’s series on “How Much it Costs to Live the FIRE Life.” The purpose of the series is to do a deep dive into regular Canadians’ everyday expenses as they pursue financial independence. Some of the questions I answer in my interview include:

  • Where are you in your journey to FIRE?
  • What type of FIRE are you aiming for?
  • How much do you spend on housing?

I encourage all of my readers who are interested in learning how much it costs to live the FIRE life to check out my interview. I also think you’ll enjoy reading about how Chrissy over at EatSleepBreatheFI is working towards FI in Vancouver – all while having two kids and being a stay-at-home Mom.

Opportunities like this, where I connect with other personal finance enthusiasts, are one of the main reasons I started AnotherLoonie. I find that speaking with and learning from others can make your journey towards financial independence just that much more fulfilling.

Finally, Some Serious Dividends!

After months and months of contributing to our registered accounts, picking up shares of VIU, XDIV, and other favourites, we finally had a month where we earned some serious cash!

So, what happened? Well, since our last net worth update, a bunch of our big quarterly payers distributed dividends. The last time this happened, we managed to earn $140. This time around, we did much better, earning $394.

Passive Income Earned February 2021
Last month we earned over $400 in passive income.

$394 in dividends is significant for us; that’s enough money to pay for our groceries, cellular phone plans, and our internet! Hopefully, this trend will continue, and we’ll hit a few more all-time-highs in dividend income this year.

Our Goal to Invest $30,000

We also made some significant progress towards our goal to save $30,000 in 2021. Thanks to some contributions to our TFSAs, we’re now $1,850 closer to our goal. Between my wife and I, we bought 17 shares of VCN, 13 shares of VEE, and 16 shares of VIU.

Goal February 2021
Our $1,850 contribution brought us 6% closer to our goal.

At the rate we’re going, I hope that we’ll be able to meet or exceed our goal by the end of the year. I have to keep in mind that expenses like property tax, furniture and car insurance will all make a dent in what we’ll contribute to our investment accounts. However, I feel like our $30,000 goal is attainable, and I’m excited to eventually reach it.

Net Worth Increase

I’m happy to reveal that our net worth has increased by $6,500 since our January update. That’s an increase of 1.9%, bringing our total net worth, including our home equity, pension, investments and savings, to $356,100. Here’s where our net worth increase came from this period:

Sources of net worth increase February 2021
Our investments contributed $600 to our net worth increase.

Perhaps the most exciting component of our net worth, our liquid net worth, has had an incredible streak of gains over the past many months. Check out how we’ve managed to almost double our liquid net worth in just 8 months!

Liquid Net Worth February 2021
When starting AnotherLoonie, I reported a liquid net worth of $65,758.

Much of this gain can be attributed to the hot streak that the stock market has been on. To give you an example of the impact this has had: last March, I had some foresight to invest around $8,000 USD in VTI (the U.S. total market ETF) at the deepest depths of the COVID stock market selloff. That investment, including some later contributions, has since gained 40%.

Gains like these have been the story of 2020, with people who managed to pick up equities during the selloff making out like bandits. I only wish I had even more to invest at the time.

Thanks for Reading!

Thank you for checking out my net worth update for February 2021. I recently wrote a few articles that may help you in the new year. This includes my article on the best preferred share ETF in Canada and my article on whether you should contribute to a TFSA vs an RRSP. Consider giving those a read if you think they may help you on your financial journey!

As always, please consider following me on social media or signing up for my monthly newsletter if you’d like to get notified when I post new content. 

What did you think about my interview? Were you suprised by some of our expenses, including how almost 70% of our spending goes towards our home?

15 comments

  1. Hey Another Loonie! I have been reading your blog quietly for the past 2 months.

    You guys are doing some fantastic job at increasing the net worth and dividends. Keep up the great work. I am building our dividends paying portfolio slowly as well. However, I am not buying in sum lump but spending 1 hour daily to buy stocks and ETFs. With the market being at all time high, I don’t want to blame me for “not timing the market properly”.

    I am moving GICs, HISAs weekly. Invest daily and repeat. I think 2021 would be this strategy. We shall see.

    1. Hi Mr. Dreamer! Thank you so much for checking out my blog. I’m glad you’ve been getting something positive out of it.

      I totally get that feeling. It can be scary to buy a lot of stocks when the market is at an all-time high. It helped me knowing that the market is at an all-time-high something like 70% of the time. Especially during a bull market, it can spend years at or near an all-time high. For that reason, I feel not so worried about it. After all, we’re investing for 10, 20, or 30 years from now. And at that time, prices we see today will almost certainly be considered cheap.

      Despite that, I think your strategy of dollar-cost averaging is excellent. It allows you to get fully invested while avoiding the psychological stress of going “all-in” at the wrong time.

      1. I totally agree with you but the idea of buying at high price kind of makes me “emotionally” sad and yes long-term investors shouldn’t worry about short-term ups and downs. But yes, it allows me to pick the stocks. I think TSX will keep hovering between 16500 and 18000 mark for a while.

        My idea is, the cheaper I can get the stock, the more I can buy, and the higher yield I get. So it is kind of all connected. However, this is just an initial strategy till I am well invested and no big amount in GICs and HISA accounts.

  2. I can’t believe you’re nearly 1/3 of the way to your investing goal, even though we’re not even 1/6 of the way through the year! Nice work, AL! I bet you and your wife will blow through that goal in no time.

    Thanks again for doing the interview (and mentioning it here)! I loved reading your money-saving tips and being able to share it with my readers. You clearly know how to save money!

    I look forward to following along and seeing you reach your financial goals in 2021.

    1. Thanks, Chrissy! I had so much fun doing your interview. I look forward to seeing many more people share their expenses as well. It’s been so valuable to compare how others manage to spend and save on their way to FI!

    1. Thank you! I appreciate you following along with my journey. Based on our amount invested, I think we should be on track for earning around $200-300 per month on average in 2021. Hopefully the dividends keep on coming!

  3. Nice haul of dividends, AL! And great month for saving and moving closer to your savings goal. I am hoping my savings rate will pick up in the summer as my hours increase. That’s also an amazing jump in your net worth. I look forward to the next update!

    1. Thanks, Graham! Earning some dividends along the way has been a nice treat that I know you also enjoy. Here’s to us both accelerating our net worth in 2021!

  4. That is some great timing on VTI! I loaded some excess cash into VTSAX, but still had a bloated emergency fund that I should have parted with sooner. That was pretty clearly (at least in hindsight) a generational buying opportunity.

    1. Thanks! Yea, I think we all wish we could have bought in more at that time. I know others have crushed it far more on Tesla and a few select speculative stocks. But, as an ETF investor, getting a 40% return on investment is just about as good as it gets.

    1. Thanks, Tawcan! It’s been fun watching our dividends creep higher each month as we get closer to our goal. I can’t wait for us to hit $100k invested!

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