Net Worth Update: June 2022 – Inflation Roaring

Welcome to my net worth update for June 2022! These numbers represent my wife and I’s net worth as of June 1st. Please check out our previous net worth update if you haven’t already!

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Keeping an Eye on Inflation

Inflation is on everyone’s mind these days. Especially with the U.S. reporting a 40-year high of 8.6%. Because of this, expect to see continued interest rate increases from the Bank of Canada and their couterpart in the U.S.

However, I’m not panicking. And I don’t believe high inflation means you should change your investment strategy, expecially if you’re still far away from retirement. Ben Felix over at the Rational Reminder put out a great video on this topic recently called In Search of the Ultimate Inflation Hedge.

Mainly you should just keep buying, and know that having a well diversified portfolio is the best way to defend against inflation over the long-term.

Anyway, on with this month’s net worth update!..

Dividend Income

Unlike last June’s net worth update, this month we didn’t receive any dividend income. For some reason our two monthly dividend ETFs paid out a week late, so there’s nothing to report for this months update.

However, maybe that means we’ll get paid twice from our monthly ETFs in the next month, which would juice our July net worth update by around $200. We’ll see!

Expenses in Depth

Last month our expenses were unusually high. Most of this can be attributed to the $1,000 we spent on eating out, and $1,269 we spent on travel. Damn you inflation!

We managed to spend so much on food because we hosted two big get togethers at our home. This meant some extra trips to Costco were needed to prepare. We also took our Mom’s out for Mother’s day, and we all know how expensive restuarunts are these days.

The travel expense is a bit misleading as we had scaled back some of our travel plans afterwards and received a refund on that entire expense. We do have some other local trips planned for the summer, but those expenses haven’t fully landed yet.

For hobies, my annual Web Hosting Canada subscription came due, which cost me $140 Canadian dollars. I also spent $100 on some camping gear, and other odds and ends.

Next month I hope we spend a lot less on food and eating out. We also have our property tax bill coming due, so expect that to have a big impact on our ability to save next month.

Net Worth Change

As of June 1st, the stock market had recovered somewhat (okay, barely!) compared to when I reported my last net worth update. So for this month, I’m happy to report that our net worth is up $4,200! We now have a net worth of $664,000 and a liquid net worth of $259,500.

Much of this comes from our investments, which returned $2,000. A huge improvement from the $7,900 we loss we experienced in the previous month.

And although our expenses were higher than normal, we did manage to contribute $4,600 to our investment accounts. Some of this money was from saving our income, while the rest was from withdrawing some excess cash from our chequing account.

And funnily enough, when trying to make a purchase in my Smith Maneuver account, I accidentally bought an extra $10k of VEQT in my regular Interactive Brokers margin account. I quickly sold it the following week when I noticed, but for a while that pushed me up to a leverage ratio of 2.02—whoops.

Expect to hear more about my Smith Maneuver strategy in the coming weeks.

Thanks for Reading

I recently wrote a few articles that you may be interested in. This includes my pick for the best dividend ETF in Canada and my post on the 10 best Canadian dividend stocks. Consider giving those a read if you think they’ll help you on your financial journey!

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