Updates from May, 2015 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 22:01 on 2015-05-31 Permalink | Reply  

    May 2015 – networth and expenses 

    May was a solid month for the networth, but not for the expenses. This seems to be a pattern for 2015, I remember writing a similar sentence already a few times. The overall gain was 5.9k (+2.64%). I adjusted my book keeping for taxes, so that the numbers do not directly compare.

    • brokerage accounts 171.6k (+6.0k)
    • mutual funds 25.7k (-0.1k)
    • cash 9.9k (+1.0k)
    • alternative investments 30.3k (+0.5k)
    • taxes -7.7k
    • total 229.8k (+5.9k)

    Last month the total was 230.1k, but without any taxes. Also my stated goal of 250k at the end of the year is a bit harder now, because of the taxes. But this is a more realistic view.

    Monthly expenses

    • January 2.5k
    • February 2.7k
    • March 2.7k
    • April 3.2k
    • May 3.5k

    May was the most expensive month of the year so far (and hopefully this will stay the most expensive month). But it was still cheaper than 2014. We were on vacation, which cost us around 600 Euros. We were also on vacation in May 2014 (which was a little bit more expensive, but still reasonable). Also, I bought some extra stuff (like a hard drive). Without all of this the month would be very close to 2.5k (which was my goal for 2015).

    In June I will be doing some extra tracking. Next to each expense item I will note the amount of non-essential spending. An example would be ice cream or some insurance policies. Let’s see how little is necessary…

    Also, regarding my escape 9 to 5 project, I could work over 10 hours last week on it (11 so far). I will report the time spent once a month, although I measure them weekly. But I feel a weekly post is too much.

  • eurfi 22:54 on 2015-05-30 Permalink | Reply  

    My June project – tracking non-essential expenses 

    In June I will not only do my normal expense tracking, but next to each expense (or each item in grocery purchases) I will note if I think it is essential. That way I hope to get a feeling what our minimal expenses could be like.

    Non-essential are things like cookies, ice cream, but also some insurances. I even count our pension payments as non-essential, because if we were retired, we wouldn’t pay them.

    This year I’m aiming for expenses of 33k – 36k, which is between 2.750 and 3.000 Euros per month. I think the essentials are maybe half of that amount.

    I’m not trying to reduce expenses to the extreme. I will continue buying gras-fed beef (Paleo diet) and fresh produce. These also do not count as non-essential.

    • ambertreeleaves 15:13 on 2015-05-31 Permalink | Reply

      hey eurfi, This is an interesting experiment. I will follow up on where it takes you. An experiment like this could help to define the amount on money you need in the minimal retirement scenario. This is a number that I only guesstimate now. some insight from others could help.

      keep us posted.


      • eurfi 22:02 on 2015-05-31 Permalink | Reply

        Thanks for your interest. I will report also in between the month (not just at the end of it).


  • eurfi 23:59 on 2015-05-26 Permalink | Reply  

    My benefit of blogging/book-keeping 

    I wrote about saving money by procrastinating. Now I realised, that I keep off expenses by counting my monthly and yearly expenses. Maybe it is because of the yearly goals. Maybe this is also a benefit of blogging.

    I my concrete example I would like to replace my old NAS (computer stuff, if you don’t know what it is) with a newer, but smaller version. Two hard disk slots are enough and it would cost around 156 Euros for the new NAS and 2x 260 Euros for the hard disks (6 TB). So maybe 680 Euros with shipping. My current capacity is 4 TB, so this is 50% more. And also power consumption would be much less (which saves some Euros each year).

    But I constantly push the purchase away, because it would lead to a very expensive month (and I would like to stay below 2014’s expenses). Maybe I just buy a 8 TB Seagate Archive hard disk for 240 Euros instead.

    • Financial Independence 1:16 on 2015-05-27 Permalink | Reply

      Hi eurfi,

      I concur that booking keeping you alert and acutely aware about the expenses. However, sometimes it makes life a little bit sad as you always counting how much you have spent so far and what is remaining.

      The trouble with Archive that if you are using NAS RAID with mirror copying, you are reducing reliability of the entire system.


      • eurfi 21:57 on 2015-05-27 Permalink | Reply

        I like numbers, so counting my money (or expenses) does not make me sad. I admit, I sometimes just look at my numbers and I get a positive feeling from it 🙂

        Thanks for the suggestion about the RAID mirror. I’m aware of this. I just ordered the Seagate Archive yesterday evening for 240 Euros and will use it as single drive. I will only store stuff on it, that I also have somewhere else (e. g. as backup). The really important files will stay on my old NAS (RAID 5).


  • eurfi 23:05 on 2015-05-26 Permalink | Reply  

    First steps of my 9 to 5 escape plan 

    A few weeks ago I posted about my wish to escape 9 to 5. The cruical part was to generate a net income of 1.5k Euros per month. I’m on track to make this amount on the stock market this year. But I didn’t all the years before, so it would be very risky to rely on this.

    Instead I want to build a lifestyle business. It will be a software project. I already started writing it, but it will be a long way to go. At the moment the biggest challenge is finding the time (or energy) to work on it. I can only start when the kids are in bed, which is usually around 8 pm. So in the best case I have about 3 hours every day. In reality it feels more like 10 hours a week. I will track the time spent and report from time to time.

    • Financial Independence 1:19 on 2015-05-27 Permalink | Reply

      Everybody wishes it but than you would have more time and need more money to keep yourself busy.

      Because of the inflation and investments risks it is highly unlikely that I would ever risk to stop working in this life time. I hope that when I reach my financial independence I would get more relaxed about the job, mentally wise.


    • ambertree 6:48 on 2015-05-27 Permalink | Reply

      Good luck with the project. I hope you make it a reality.
      Finding energy in the evening is not always easy, eecially with kids. I gave the feeling that it gets more easy, as they grow older ( they entertain themselves from time to time already)


  • eurfi 23:00 on 2015-05-02 Permalink | Reply  

    Networth reduction: taxes 

    I found a way to reduce my April networth by 6.2k – taxes. I did not edit the post, but the changes will be reflected in the May numbers.

    For every investment gain I have to pay taxes. I think its more correct, when I account for these taxes already during the year. And for April this number was -6.2k.

    That way, when I have to pay the taxes the networth does not drop (the negative tax column disappears and the checking account is reduced by the same amount). Otherwise it might be a substancial drop.

  • eurfi 13:46 on 2015-05-01 Permalink | Reply  

    April 2015 – networth and expenses 

    Up until a few days ago April was looking like a solid month. I was up around 7k/8k. The sharp market decline in the last few days shrank that to almost zero.

    • brokerage accounts 165.5k (+34.5k)
    • mutual funds 25.8k (-35.4k)
    • cash 8.9k (+1.6k)
    • alternative investments 29.8k (-0.4k)
    • total 230.1k (+0.3k)

    I opened another brokerage account and sold some mutual funds. For my personal networth goal I have to increase our networth to around 250k. I’m well on track to reach that. Lately I’m thinking about putting the excess money into a (virtual) savings account to fund maybe one or two years off of work. This is part of my 9 to 5 escape plan. I will blog more about this topic in the future. I’m still at the very beginning.

    Monthly expenses

    • January 2.5k
    • February 2.7k
    • March 2.7k
    • April 3.2k

    It would be really helpful, if we could further reduce our expenses, but unfortunately, the last few months were rather expensive. And April was no exception – quite contrary it was the most expensive month since May last year. Groceries were almost as expensive as in January and we bought lamps for 330 Euros. The Paleo diet is expensive, but I’m okay with that. Overall we are on track for 36k yearly expenses.

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