Another year is over and so here’s another update, this time for Q4 2016. As I mentioned in my last quarterly update I was jamming all of my trips into the last half of this year, so we’ll say I was on vacation…even though I probably wasn’t.
I’ll do a quick brag about my trips to start this off and get it out of the way. Read more
So a year has gone by since my first Q1 update and basically since I started this blog. So I’ll be looking back at the entire year to see how I did with my goals. First a quick recap of the year.
I started this blog in the last few days of March in 2015. I started it with the intention of just getting a creative outlet in my life that I can share some thoughts and stuff on my trips and inspire people to start planning their financial futures a little better and earlier then most start to plan. That idea turned into more of a focus on personal finance since my personal life took a big turn and I wasn’t in a good place to talk about it, even typing this now is difficult.
So you want to make money with income properties? Here’s 4 ways to do it.
So you want to start investing in income properties now? Great choice! Just like investing in the markets, income properties are all about one thing; time in the market. The best time for you to buy is now and the best time for you to sell is a long time away.
Real estate is similar to many investments in the fact that you cannot time the market. Analysts and the general public often get this wrong. Usually when someone does get it right, it was by pure luck and they’ll never be able to duplicate that performance again. In Canada, for example people have been talking about the bubble bursting in Vancouver and Toronto for as long as I can remember but from January 2015 to January 2016 they’ve still increased by 30.9% and 14.2% respectively.
It’s been any day now for those bubbles to burst for over a decade and they’re still booming. This brings me to the first way to make money with income properties.
What is net worth and why should I know mine?
Net worth is a measuring stick. It’s the way to tell if you’re in debt as compared to just have debt. You can have debt, but still have an overall net worth that is positive, but if you’re in debt your overall net worth would be negative. Net worth is a financial measure which can be calculated by taking the value of what someone owns and subtracting what someone owes.
Net worth of course like most financial tools can be much more complicated but we’re going to stick with being simple. So, how do you calculate net worth simply?
Net worth = Assets – Liabilities
First let’s break down assets.
Here’s my starting point for tracking my financial journey of increasing my net worth to a point where I can say I’m financially free. I’m actually many years into the journey already, but there are a lot of improvements to make over the next few years. I’m going make quarterly updates for us to see and discuss my progress on becoming financially independent.