Last updated on March 11th, 2022 at 02:06 pm
Welcome to my net worth update for February 2022! These numbers represent my wife and I’s net worth as of February 1st. Please check out our previous net worth update if you haven’t already!
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It was an exciting time to be an investor last month. Markets were so volatile, which allowed for ample buying opportunities. Most of this volatility was in the tech sector, but it still weighed down our holdings enough to encourage us to jump in!
We began by deploying our $10,000 emergency fund and put it to work to take advantage of this small market correction. I transferred $4,000 into my TFSA and used it to buy shares of VUN. We also transferred $5,000 to my wife’s freshly opened RRSP, where she planned on starting a position in XEQT.
But the best news of all was that most of our ETFs paid dividends! And in total, we earned an incredible $1,606!
The 1201 shares of VEQT I paid for with borrowed money really began to shine last month, earning us $617 in dividends. Too bad VEQT only pays once a year; I wish it paid that much monthly! Check out my post on getting started with leveraged investing if you’d like to learn more about my strategy with VEQT.
However, it wasn’t all good news. Because of the market volatility, our investments lost $5,000 across all of our accounts. But I’m not too worried; I don’t really care what markets do in the short term. In fact, it was nice to be able to “buy low” for the first time in over a year.
Expenses in Depth
Last month ended up being a very low-spending month for us. Perhaps due to Omicron or Christmas fatigue, we hardly did anything social and didn’t shop at all. That helped us save $5,900, which offset our investment losses.
If you read my 2021 year-end review, you may notice some new expense categories I’m tracking. These are parking, donations, electronics, and interest.
Parking was previously tracked under “other,” while “electronics” was tracked under “Digital.” I decided to break these out this year, and I’m already making use of them: we spent $267 on a laser printer which has saved us a few trips to Staples already.
“Interest” is perhaps the most interesting new category. This is the interest I pay on $25,000 my Tangerine line of credit that I use for investing. Since these expenses are supposed to represent actual cash flow, I don’t list the interest I pay on my margin loan with Interactive Brokers, which amounts to about $20 per month.
Net Worth Update
Excluding home appreciation, our net worth increased to $456,100 from $453,100 in the previous month. This is an increase of $3,000!
But that’s not all! I recently shared the details of our recent real estate windfall, where I reported our property assessment surged by $283,000 in 2021. In that post, I also shared that I plan to average our last three property assessments to come up with a conservative value to add to our net worth.
And so for this year, I’m adding $129,000 to our net worth to account for the increase in our home’s value since we purchased it.
This is a massive change for us. But in one aspect, it means we need to work even harder to keep saving and investing to help balance out our assets. Our home equity continues to make up the bulk of our net worth which is not ideal for someone trying to be a diversified investor!
In 2022 I hope to balance out our holdings by buying even more ETFs than in 2021. My 2022 new year’s resolution to take out a HELOC to invest will help me achieve this goal. Stay tuned for progress on that front in a future net worth update!
Thanks for Reading
I recently refreshed a few of my most popular articles. This includes my post on the best REIT ETF in Canada my pick for the best dividend ETF in Canada. Consider giving those articles a read if you think they’ll help you on your financial journey!
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