Updates from January, 2016 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 22:17 on 2016-01-30 Permalink | Reply  

    January 2016 – net worth and expenses 

    In January the markets started to tank. I did not expect this – and so my trades went quickly under water. At one point the drawdown was about 20k, but then things got better and I ended at a loss of 6.8k.

    • brokerage accounts 235.9k (-6.8k)
    • ETFs 4.0k (+0.3k)
    • cash 23.2k (-0.4k)
    • alternative investments 44.4k (+0.1k)
    • taxes -22.5k
    • total 285.0k (-6.8k)

    The tax liability is from 2015, no gains in 2016 so far.

    Monthly expenses

    • January 2.8k

    Compared with 2015 (2.5k) January was +300 Euros. Last year we did not pay for child care and January has some car-related expenses so this number is actually quite good.

    Last month I mentioned that our yearly expenses were at 35.5k. This number might be wrong. My book keeping shows two numbers: 33.9k and 35.5k. I think 33.9k is the proper number. I do not want to spend hours to verify one number. I assume it has to do with “yearly expenses”. I book some expenses (e. g. car insurance) as yearly, which means the amount is divided by 12 and added to the next 12 months. If I wouldn’t do this, January had expenses of 4.7k and would be incomparable to the other months. But in the end it is the yearly number that counts. (And the 35.5k figure is derived from the monthly numbers, whereas the 33.9k is derived from the yearly numbers.)


    • Chris Weinert 18:33 on 2016-02-07 Permalink | Reply

      Hello there! I wanted to let you know about our site, NetworthShare. It lets you track your Net Worth over time and also has a WordPress Widget so you can display a chart right on your site automatically.

      Take a look, it’s free!


    • DivHut 10:56 on 2016-02-09 Permalink | Reply

      Knowing your monthly income and expenses is the first step in getting a handle on your finances. Do you own any dividend paying stocks or planning to create some type of passive income stream?


      • eurfi 13:42 on 2016-02-09 Permalink | Reply

        Yes, I have some dividend stocks and REITs (XOM, O, STAG). But I use most of my investment money for option selling. But this is not passive. And the swings are sometimes huger than I like them to be…


  • eurfi 0:01 on 2016-01-02 Permalink | Reply  

    December 2015 – net worth and expenses 

    December was a good month – but it could have been better if I hadn’t made a costly mistake in the financial markets. I wanted to reach an internal net worth goal and so I stayed in a position longer than needed. In the end I closed it for a big loss. I’m glad the month turned out green.

    • brokerage accounts 242.7k (-0.7k)
    • ETFs 3.7k (+0.4k)
    • cash 23.6k (-8.5k)
    • alternative investments 44.3k (+11.5k)
    • taxes -22.5k
    • total 291.8k (+2.9k)

    I transfered roughly 12k to alternative investments (and 600 Euros each month to ETFs), so basically all investments were slightly down in December. The only increase comes from our savings (which were higher than usual due to year end bonus and money gifts).

    Monthly expenses

    • January 2.5k
    • February 2.7k
    • March 2.7k
    • April 3.2k
    • May 3.5k
    • June 2.6k
    • July 2.9k
    • August 2.6k
    • September 3.1k
    • October 3.6k
    • November 3.3k
    • December 2.9k

    This brings our yearly expenses to 35.5k, which is below my revised goal of 36k. But I will talk about the yearly figures in another post.

    • Financial Independence 14:23 on 2016-01-20 Permalink | Reply

      Do you find it financially beneficial to buy every month? I understand idea behind spreading but commission alone is going to have negative impact on the return. I admire you ability to stay at 36K a year.


    • eurfi 21:09 on 2016-01-20 Permalink | Reply

      This 600 Euros a month are commission free savings plans. It is the “cost average effect” – which is debatable. In the past (years ago) I was pro “cost average”. Nowadays I’m no longer so sure about it…

      If we pay off our house, stop all pension plans and cut some insurances we will be around 24K. That is really empowering to me!

      So maybe this should be my goal for the stock market – 2K a month after taxes…


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