Updates from February, 2015 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 22:28 on 2015-02-28 Permalink | Reply  

    February 2015 – networth and expenses 

    February was a very good month, but not spending wise. I was over my goal of 2.5k (and this for the shortest month of the year).

    • brokerage account 122.0k
    • mutual funds 60.4k
    • cash 6.9k
    • alternative investments 30.0k
    • total 219.3k

    This is a gain of 8.6k (+4.1%) compared to last month and marks a new all time high. Besides huge gains in my brokerage account (6.3k or +5.4%) the mutual funds also rose nicely (most of it is in a very conservative fund) by 1.2k (+2.0%). Also our cash is recovering. I do consider my conservative fund as “quasi cash”. (I sold a portion last month to pay taxes.)

    Monthly expenses

    • January 2.5k
    • February 2.7k

    Roughly 400 Euros is for my kids – we bought an used bed, a new mattress and a lot on the flea market. The bed alone would have cost 1.000 Euros. So despite the big expenses I’m very happy.

    The Paleo diet is starting slowly. I noticed grocery expenses will rise quite a bit. Also, my wife will join (except breakfast). I really welcome the support of my wife and I’m totally fine with the increased expenses, even if that means missing my yearly goal of below 33k expenses. I think that money is very well spend (by living longer and better).

    (Monthly) goals for 2015

    • 1 of 6 months below 2.5k
    • 0 of 1 month below 2.0k

    No changes compared to January.

    Update for my networth goal

    This month I had a revelation about my networth planning. In the mean time I showed the table my wife – at least she was not totally uninterested. She even high-fived me and said “let’s go for it” in regard to the million which we would reach at the end of 2023. And I can open another brokerage account and increase the account size a little bit. All in all very good news. I really need more capital at risk to reach these aggressive goals.

     
    • There's Value 22:40 on 2015-03-16 Permalink | Reply

      I really like the paleo diet too. What made you decide to try it out in the first place?

      Like

    • eurfi 23:25 on 2015-03-17 Permalink | Reply

      For me its the health benefit. I also like the sport/fitness/movement component.
      Plus I always enjoyed eating meat 😉

      Like

  • eurfi 23:14 on 2015-02-17 Permalink | Reply  

    The missing networth goal 

    My 2014 report contained a small section about goals for 2015. All three dealt with expenses. I didn’t have a networth goal; and this was okay for me.

    But a few days ago, I had a revelation. In 2012 our networth grew by 20k, 2013 30k and in 2014 40k.

    Disclaimer: This is my internal networth number (including our house and mortgage). The difference for 2014 is our mortgage payment (principal) or almost 900 Euros a month. When I started the blog the difference between the two networths was very small, but later I realized it will be growing every month… I don’t know if/when I fix that. For now I keep two separate numbers and my internal networth number will be higher each month.

    But back to my revelation. When I project this “every year 10k more” into the future, the goal for 2015 will be a gain of 50k and 2016 +60k. The million milestone would be reached at the end of 2023. As 600k is a number were I would think about quitting my job, this is a more interesting milestone for me: end of 2020. This means 6 more years to work!

    But I didn’t stop here. How can the goal be reached? We usually save 20k each year (from our income). For the 2015 goal this leaves 30k to investment gains. If I wanted to achieve that with my brokerage account (roughly 100k), I would need a 30 % return. That is not impossible, but not very likely. A solution could be to increase the account size – with 150k only 20 % would be needed. Unfortunately, my wife is against that (which I understand given my wild swings.)

    So, no happy end yet. But I will figure out ways to achieve this 50k gain. In my spreadsheet I even have a “diff” column. I hope to fill it with positive numbers… 😉

    PS: I think about quitting my job almost daily, but with 600k I could really do it, maybe, eventually.

     
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