My 2023 financial year in review

With only a few days left in 2023, now is a good time to reflect on how things went this year, considering the ongoing impact of COVID. The TSX closed this past Friday's session at a satisfying 20,881.19 points. On those positive numbers, my non-registered portfolio closed at $143,247.83, my US portfolio at $5,150.63, my RRSP stocks-only portfolio at $63,830.84, and my TFSA portfolio at $134,573.77. Although my overall results are not as strong as of December 14, when I reached my highest net worth ever of 380k, my TFSA portfolio closed Friday higher than ever. It's been enjoyable to watch my investment portfolio perform well in the past couple of weeks. Overall, 2023 has been a very good year for me, with other peak net worth moments in April at 373k on April 21, 2023, and $370k on April 13, 2023.

Considering that I started the year 2023 with a net worth of $337,875.65, my net worth is now probably around $380k. This reflects a gain of over $40,000 for the year, representing approximately +12.5%. Notably, this outperforms the TSX, which has seen a 7.72% gain so far this year. While it's always satisfying to beat the market, my primary goal in investing is not just to outperform the TSX but to build a portfolio for the long run that provides a reliable dividend income.

I did well in paying down my margin account debt, but as a result, I don't have much cash reserve. I started the year with a $46,658.58 debt at 7.75%, and my margin account debt is now at $28,208.20 at 8.50%. It was recently within the $25k range, but I had some expenses and withdrew money from my margin. I should be able to bring my margin debt back to $25k by mid-January. Despite spending a lot in November and December, I'm currently on a financial break, especially considering the winter in New Brunswick. I'm unsure how long I'll stay here, but for now, things are stable.

Dealing with a $25k debt is both a lot and not that much. I can envision paying off that debt in 2024, but it will require considerable effort. My overtime earnings, which I frequently do, will go entirely towards that debt, as well as all dividend income that doesn't DRIP, amounting to roughly $7,000.

Here's a breakdown of my financial scenario:

Income for 2024:

Annual possible income after tax, with overtime: approximately $43,500
Dividend income that doesn't DRIP: $7,100
Total income: $50,600

Annual expenses for 2024:

Rent: $8,760 ($730 per month - that could eventually get increase later on unfortunately in 2024)

Clothes wash: $240
Cell: $360
Internet and cable: $998.16
Netflix: $84

Crave: $75
Groceries: $6,240
Travel to NB: $1,032.40 (4 times a year at least, $258.10)
Vacation money: $6,000 (I know it seems a lot, but let's go a little bit crazy in 2024)
Clothes: $1,400 (around $500 per season, skipping winter because I have everything I need for next year)
Others (coffees, eating out and others): $3,000
Health expenses: $700
Driver's license renewal: $80 (about)
Extra income taxes: $500
Hairdresser: $350
Highlights, once a year: $250 (approximately)

Tenant insurance: $350 (could be a bit higher for 2024)

Income taxe declaration: $120 (more or less)

Banking fees: $94.80

Total expenses: $30,634.36

Expenses ($30,634.36) - Income ($50,600) = $19,965.64, which I will have available to put toward my margin debt.

Considering my margin debt will be at $25k by mid-January, I won't have exactly enough to cover it. Despite my good income, taxes take a significant portion, and managing expenses is crucial. By being mindful of my spending, I might be able to reduce my expenses and come close to covering the full $25k in debt repayment. Even if I'm left with a margin debt of $6k by the end of 2024, it's a manageable situation worth pursuing. The more I delve into this debt repayment scenario, the more I see it as a two-year plan instead of just one year.

Other than putting in some overtime, I've thought about selling a piece of jewelry I own but never wear. It's a sophisticated bee brooch with sapphires that I purchased a while ago. I've never worn it because brooches aren't really my style, and I'm concerned I might lose it if I do. It's challenging to estimate how much I could get for it—perhaps around $1,500? It looks similar to this.

I could get my hands on $3,000, and maybe a bit more once one of my ETF crypto holdings recovers. For a little while, I was actively trading crypto ETFs until I couldn't sell them for a profit anymore. That's why I still hold the following ETFs in my TFSA portfolio: Bitcoin Fund Class A units (QBTC), Purpose Bitcoin ETF CAD ETF non-currency hedged units (BTCC.B), and 3iQ CoinShares Ether ETF (ETHQ).

It's all I can think of at the present time regarding how I can possibly pay off the remaining balance of my margin account debt, which is currently around $28,000. Let's just hope that 2024 will bring many dividend increases and a lot of fun!