Financial Freedom Progress Report (FFPR) – February

Blog11FinancialFreedomProgressReport(FFPR)-February-Personalportfolio-Featured

February with just 28 days passed by rather quickly! Time to see what February brings in terms of progress towards financial freedom! Let’s take a closer look at my net worth and investment portfolios.

Targets for February

In January I’ve set some ambitious goals. But ambition is necessary if you want to reach financial freedom sooner rather than later. The targets for February were:

  1. Hit a savings rate of 25%
  2. Increase net worth with 1.25%
  3. Invest €250 in our kids’ investment portfolio
  4. Invest €400 in our personal investment portfolio
  5. Deposit €450 in our mortgage savings account
  6. Deposit €750 in our savings account

Let’s find out in the following chapters if I accomplished these goals!

Savings rate and Net Worth

Blog #11 Financial Freedom Progress Report (FFPR) - February - Net worth savings rate

With no significant one-off expenses, I achieved a savings rate of 24%. Barely missing the target of 25%. As mentioned in the FFPR of January. The savings rate of December and January was much lower than I expected. So I’m glad I almost reached 25% in February.

My personal net worth turned out to be almost €123,000 (excluding retirement portfolios). This is an increase of 1.19% compared to January. So I missed the mark of 1.25% as well. But maybe 1.25% was a bit too optimistic.

To reach a net worth of €150,000 at December 31st, 2019 I need to increase my net worth 2% (!) every month. So €140,000 is probably more realistic.

Overall, I’m pretty pleased with the outcome of February. I will keep these targets the same for March, hoping to beat them this time.

Our personal investment portfolio

Blog #11 Financial Freedom Progress Report (FFPR) - February - Personal portfolio

The stock market has recovered very nicely in February. In January my year-to-date (YTD) return was 4.41%, while in February it ended at 9.02% (incl. dividends). Apple paid out a dividend of €7.

I did not add to my personal investment portfolio but replenished my emergency savings account, which I used partly to buy stocks in the December stock market correction. Because I don’t want to risk ever getting caught short of cash!

The investment portfolio of our kids

Blog #11 Financial Freedom Progress Report (FFPR) - February - Kids portfolio

The investment portfolio of our kids recovered nicely as well. From a -3.91% YTD return in January to a 0.38% YTD return in February.

But somehow the European stocks in the Euro Stoxx 50 ETF have difficulties to recover from their December lows compared to the S&P 500. Let’s see how that works out.

I have deposited €400 into the portfolio and invested it in 2 shares of Berkshire Hathaway (BRK.B). I am very confident that Berkshire Hathaway will perform well in the next couple of decades. Probably not continuing their historical returns of 19% per year, but slightly above the S&P 500 returns.

Summary of capital allocation

Blog #11 Financial Freedom Progress Report (FFPR) - February - Cash allocation

Overall, I added €1,870 to my savings and investment accounts. Exceeding my February target by €20. How’s that for strict budgeting? 😉

Key targets for March

Based on this FFPR, I have set some targets for March:

  1. Hit a savings rate of 25%
  2. Increase net worth with 1.20%
  3. Invest €250 in our kids’ investment portfolio
  4. Invest €300 in our personal investment portfolio
  5. Deposit €450 in our mortgage savings account
  6. Deposit €1,000 in our savings account
To my readers, how was your February? Exceeded your targets or did you need to reset your expectations?
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2 thoughts on “Financial Freedom Progress Report (FFPR) – February”

  1. Impressive results, Chipmunk! Keep up those numbers and goals. Our february shows somewhat similar results, we added about € 1850 to our investments / pension savings. Every month we invest € 100 for our daughter.

    1. Thanks! Keep it up as well!

      I’m always amazed what relatively small amounts invested every month can do in the long term! Our goal is to invest €250 every month on average. Let’s say we continue that for 20 years, this will lead to about €120,000! With average S&P 500 returns of 7% (after inflation before taxes). Our 2 kids can then split it evenly and thank me later 😉

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