Welcome to the Million Dollar Journey November 2017 Net Worth Update – Team MDJ edition. A select group of readers were selected to be part of Team MDJ which was conceived after my million dollar net worth milestone was achieved in June 2014. Karl the Real Estate Agent was selected as a team member and will post net worth updates on a regular basis. Here is more about Karl.
- Name: Karl
- Age: 35
- Day Job: Full-time Real Estate Agent
- Family Income: $150,000 (Personal full-time job);
$TBD (Income from consulting company); and, $150,000 (spouse full time job).
- Goals: Mortgage paid off by 36 (DONE!!!), million dollar net worth by 40 (DONE!!!). $500,000 in RRSP/TFSA savings by 40 (In progress)
- Notes: Almost all of net worth is in the real estate market (principal residence). Starting to invest in the markets now. Also a sucker for holding second mortgages.
- Cash: $10,000(-33%)
- Registered/Retirement Investment Accounts (RRSP): $170,000 (+94%)
- TFSA: $22,500(+16%)
- Business Account : $16,000 (+6%)
- SAVINGS ACCOUNT : $6,000
- Other Corp Account : $75,000 (+400%)
- 2016 Truck Paid For : $35,000 (-12%)
- Flip Property : $350,000
- Building Lot: $350,000
Consulting Business: $60,000
- Principal Residence:$750,000
Liabilities: $715,000 (+74%)
- Principal Residence Mortgage : $0 Paid in Full
- Building Lot Mortgage: $275,000
- Wife’s Car Loan: $30,000
- Line Of Credit Used to Buy Consulting Business, RRSP and Flip Property: $410,000 (+310%)
- MasterCard: $0
Total Net Worth: $1,069,500(+1.8%)
With the help of the crazy real estate market we did it – Million Dollar Journey accomplished! It really is a strange feeling but in the big picture, nothing has changed. No one in
your life really cares lol. My wife and kids don’t love me anymore than before, but there is something inside that feels fantastic. I remember when I found this blog in 2007 I was so jealous of FT’s commitment. I never thought I would be able to follow him along the way. I have to say that being part of TEAM MDJ has truly changed my life and helped me achieve my goals that at one time were only dreams. Now it all seems easy moving forward because I have done the work on the front end (mortgage free) and not spending everything I make (sadly this is the norm in the real estate industry). It really has been super simple. Work hard and don’t spend it all. Saving becomes addictive once you see the results. Just like getting up to go to the gym in the morning (at least that’s what my wife tells me).
Suffered my first major setback on this journey. The consulting business that I recently purchased didn’t pan out and as such, I had to walk away from it. I haven’t finished my taxes yet to know exactly how much it cost me but regardless, it was the time invested that was the biggest loss (approx 40k).
With the Setback I have learned some valuable lessons:
- You only have one butt for each seat. Juggling multiple businesses that require your daily attention to any degree is extremely taxing mentally.
- As much as you think your existing business is on autopilot if you take your eyes off of it slowly things will begin to deteriorate and it will cost you clients and money.
Now that I have got my life back I am as focused as ever to continue to excel in my current profession. Everything I make is currently savings so I’m hoping to have this $500,000 goal ticked off by 2019. We are expecting approximately $70,000 tax return due to the massive amount that we have put in RRSP’s and have maxed out what we can do this year before we start putting ourselves in a reduced tax rate.
The property we purchased to renovate and sell should be closed before 2018 and all of that is going against the LINE OF CREDIT which we plan to get rid of asap.
As this will be my last update of 2017, I’m looking back over the year and it’s been a whirlwind. I can honestly say that I have never worked harder in my life trying to juggle it all and I’m hoping not to go down that road again in 2018. I’m hoping to be more focused on my goals and hammer away selling real estate only and allowing myself some free time mentally.
I’d also like to share that I’m surprised to say that even though we reached our million dollar goal I still struggle staying committed every day to our financial future. Reaching the $1,000,000 mark wasn’t the relief I thought it would be and I’m prepared that when I meet my next goal it will be the same story.
I’ve learned financial freedom is a lot like keeping your weight in check:
- Spend less than you earn; eat less than you burn; focus on the number you want (bank account and scale); don’t lose the faith; and, it doesn’t happen overnight.
Again thanks to all for your comments and kind words. I hope my story in some way helps you reach your goals. MDJ has definitely kicked me in the butt to get me where I am today. Bring on the $500,000 portfolio!