Hellooo July!
I thought the heat dome had passed but apparently it’s still here. We have been enjoying the super hot summer weather in both our backyard and at the family cabin.
I’ve found some time between my holidays to do some work on the blog this month which brings me to my 2021 Q2 financial update.
What have I been up to?
Since March I’ve been enjoying being outside a lot. I took time off in April to build a ground-level deck in our backyard. This was high on our list of things to do as we had put it off for a couple of years. The deck increases our enjoyment of the yard a lot. We now have a great spot that we can watch the kids, have picnics, and host company.
Yes, it sucks that lumber prices have been so high, but it has been worth it! Not only has it improved how much we’re using the yard, but I learnt how to build a deck and got that sense of accomplishment that comes with doing things yourself. I now have knowledge and skills that I didn’t have before that I can use on my next project.
On the personal finance side, I’ve been keeping up-to-date with my favorite Canadian FI podcasts (FI Garage and Explore FI Canada) and have added a new one (Rational Reminder) to my list.
I’m still making an effort to contribute regularly to the ChooseFI Canada Facebook group and to connect with my Money Buddy’s.
Blog Update
I’ve been working away in the background, writing and building content for the site so stay tuned. I added one post about how I became a DIY investor and while all that was going on, I got some big news.
My blog was listed as one of the Top 25 Canadian FIRE blogs for 2021 and I did a Q&A interview on Hardbacon!
You can check out the links for those posts below:
Podcasts
I set a goal to catch up on my two main podcasts, FI Garage and Explore FI Canada (EFIC), and I’m happy to report I’ve finally caught up. Moving forward it should be easier to listen to the latest episodes as they drop.
I also added a new podcast to my top listens. The Rational Reminder podcast with Ben Felix and Cameron Passmore have some great guests. I really enjoy the psychology of money and these three podcasts stood out to me. Each of these guests have books which I plan to listen to.
- Rational Reminder Podcast
Besides finance podcasts, I’ve only had one podcast that I’ve listened to consistently for over 5 years. And that’s the Skeptics Guide to the Universe (SGU). They are dedicated to promoting critical thinking and science literacy through insightful content and resources, including their award-winning weekly podcast.
I highly recommend checking them out. The SGU has been a big part of my life for the past 6 years and they helped me navigate all the Covid misinformation that was going around. I owe a lot to them.
Reading
When I say “reading”, I really mean listening to the audiobook. I have a few books on the go that I physically read, but I enjoy the convenience of listening while I drive. This way I’m able to enjoy and finish books consistently.
Since March I’ve listened to three finance related books plus a couple others. Check out my quick reviews below.
The Psychology of Money – Morgan Housel
I really enjoyed this book. There are so many good points and quotes. I knew going in that this book aligned with my personal finance biases. It confirmed those nicely for me. 🙂
Highly Recommended!
“There is little correlation between investment effort and investment results.” As a passive index investor, this speaks volumes to me. I don’t need to spend more energy for better results. I’m happy with what the market makes me.
Quit Like a Millionaire – Kristy Shen & Bryce Leung
Overall, I enjoyed this book. I found Kristy’s backstory and upbringing to be quite interesting. She had some good advice in the book and I came away learning some things.
However, I found it difficult to relate to her story as I have no interest in geo-arbitrage and I don’t want to grind the way she did to make her savings rate possible. Her story is interesting, but may not apply to everyone. That aside, there was lots to take away.
The Value of Simple – John Robertson
This book is an easy primer for those starting out or for people like me who need that reminder to keep things simple.
John goes for so far to include screenshots of how to set up Questrade. Although dated, it has lots of great information and visuals. I actually refer to John’s RRSP visual in my How an RRSP Works post.
Health and Wellness
I haven’t done a health update before but I think it is important. I’ve had a great first half of this year and I wouldn’t be where I am mentally and physically if it wasn’t for my self-care.
Since January I’ve been joining fitness challenges with a personal trainer. They run 8 weeks each, I’m given a meal and exercise plan, and we have weekly check-ins for weight and measurements. I lost 29 lbs in 16 weeks and I’ve been hovering at 23lbs lost since then. I’ve also been jogging and set a new 5k PB at 29:05!
My goal is to maintain my weight for the summer. With holidays, altered schedules, and many many opportunities for getting together with friends and family for drinks and food, losing weight isn’t very realistic right now. I’m going to enjoy myself with friends and family, while trying for moderation.
For mental self-care, I had a session with my counsellor this quarter. It’s good to check in even when things are going well. But that doesn’t mean everything is smooth. I had been in several conversations, aka debates, with friends and family and was concerned about how I come across. I don’t want to be the opinionated a-hole and demean someone for their opinion. He helped guide me through some steps on awareness, curiosity, and asking for feedback.
For personal connection, I went on a weekend trip with some friends to their family cabin. I got to spend time with some people I knew plus meet some new friends. It was a great weekend. This was my first time out with others since Covid restrictions have eased. The trip out there also gave me plenty of hours of listening to podcasts and audiobooks and talking with my parents on the phone. Alone time well spent.
My parents also came to visit after the restrictions opened up. They hadn’t seen the kids in a very long time and my mom was itching to get here. We also had a great Canada Day weekend at the lake with my wife’s family. It was SO nice to be up there with everyone. Something we hadn’t done last year.
We’re thankful for everyone remaining healthy through this and we’re now all fully vaccinated. That’s another immense relief on the mental game.
Other Things I’ve Done This Quarter
- Moved my home and condo insurance to TD for a 40% ($850/year) savings!
- I bought a Bitcoin ETF in my TFSA. I’m happy to report it’s down 40%. :S Good thing it was very little money.
- I stopped my TFSA contributions to focus on saving up for some large expenses (deck, insurance)
Q2 Financial Update – The Numbers (June 30, 2021)
Q2 Net Worth: +$27,517
Liquid assets in Q2 are up $22,651. The increase is because of investment gains and the rest is from contributions and updating quarterly numbers. Our year-to-date (YTD) net worth has gained $42,212 and liquid net worth $38,813!
An interesting perspective – assuming you’re making $80,000 each as a couple, a $40,000 net worth increase at mid-year is equivalent to having a 3rd income (or a 50% raise)!
We keep dollar-cost-averaging and letting the portfolio do the work.
Q2 Savings Rate: +32.89%
My personal savings rate for Q2 is 34.68%. I’ve been consistently around this number with my YTD savings rate being 38.55%. This is below my goal of 40% and I plan to increase my contributions later in the year once we’re past some more large expenses during the summer.
My wife’s savings rate looks less than it actually is. She is a dedicated saver, but keeps her money in savings accounts. I only count RRSP and TFSA contributions as they’re considered “untouchable”. Her savings rate for this quarter was 23.39%.
That brings our combined family savings rate to 34.02% for Q2 and 43.38% YTD.
I have a new tool on the site to calculate your savings rate. Check it out below!
Final Thoughts
It was a great quarter. Financially, physically, and mentally, a lot of good happened. I plan to continue my self-care practises and with my family being fully vaccinated it is a huge relief. I feel we can enjoy the summer with the people we care about an not have to worry as much.
How did your quarter go? Let me know about your successes and challenges in the comments.
Congrats on the blog recognition! I very much enjoyed your quarterly update. I’ve been thinking to switch to quarterly updates vs monthly, and this format is nice. Also, great work on all the reading. How do you get your audio books? I signed up for the library a few years ago, but I find the selection is somewhat limited, or I have to wait a long time to get the book. Lastly, DO continue with the health update. I feel my health (particularly physical health) gets neglected and it was inspiring to read about your fitness challenges. I need to do more of this!
Thanks! The recognition was a nice surprise. I’m glad you like the format and the health update. Health and self-care is so important to financial success as well. Quarterly updates is definitely the way to go for me as I can go for long spurts of not writing.
I’m signed up with audible.com and also through my library card and the Libby app. I always check Libby first and if an audio version isn’t available, I check audible. I’m very particular about what I use my audible credits on and I only get highly rated books. I use goodreads.com and audible to check reviews. I used audible for Psychology of Money and Quit like a Millionaire, and I read the physical book, Value of Simple from my library.
I’ve been lacking on my physical health and eating lately. Summer drinks kill motivation! I just want to get out for walks and do the odd workout. Little habits. You can do it!