Today I’d like to share a little about myself. Some of you may have noticed that I have a lot of liabilities (debt). At the time of this writing, I am carrying $30,000 worth of debt. Why? I used it to invest. Every single cent of that I invested over the last 4 months.
To understand why, I’d like to reveal a little bit about myself. I started a new job this year that pays a decent salary. I don’t make a LOT of money, but I make enough for a fairly comfortable life with my relatively frugal lifestyle.
One of the stipulations of my new job was that I was on probation for 3 months. I started my job in January, so you might be able to imagine some of the stressors I experienced when the pandemic hit and we went into quarantine. To be blunt, I had no idea if I would still have a job – I was still on probation.
On the other hand, I saw a huge opportunity in what was unfolding in the stock market. There was just one problem… I was poor. At the start of 2020, I had 10k in assets / net worth and 0 debt. I was fully invested in a few dividend paying stocks.
I had a few options: Do nothing, save and invest what I could spare. Or take on a massive amount of risk. I took on the risk.
By no means am I condoning taking on debt. If possible, one should try to live debt free. Believe me, it’s much simpler. I cannot describe how sick I felt in April, May and especially in June. But this was a rare opportunity for me to “catch up” to my peers financially.
Over the course of the last 5 months, I gradually took on more and more debt to invest with. I missed out on tech skyrocketing because I invested instead for long term value. I invested instead in stable companies that paid a decent dividend yield and were otherwise very sound, Canadian blue chip companies.
I invested in sectors that people will pay for even if stuff hit the fan. Things like utilities. I invested knowing the risk that I might not have a job as things unfolded – I still carry this fear, but it’s lessening with time.
This blog started as a way to document that journey.
Here’s where I started:
- $10,000 in assets and net worth
- $0 in debt
- $66.77 / month in dividend income
Here’s where I am as of July 2020:
- $80,000 in assets and net worth
- $30,500 in debt
- $441.77 / month in dividend income (averaged)
It’s a terrifying experience, but I’ve learned an incredible amount over the last few months and my choice of investments and strategy changed as the situation evolved and circumstances changed.
I ultimately don’t know whether or not my choices and decisions will pay off, but I do hope you’ll follow me through it all. Please feel free to leave a comment.
Until next time, take care, stay safe.
