I’ve reached a net worth of EUR 200K!

FFPR 200000 euro milestone financial freedom financial chipmunk

It’s been a while since the last update of my Financial Freedom Progress Report (FFPR), but here it is again! Because of these months of silence, the leap in progress is significant! I’m definitely making progress on my way towards financial independence! Let’s find out!

I have reached a net worth of EUR 200.000!

The past couple of months have been rather hectic. Very busy at work, home, etc. You know the drill. Nevertheless, when I calculated my net worth over the past few months I was positively surprised! I’ve reached a net worth of EUR 200.000! For me that’s a big milestone.

However, the increase in my net worth is mainly the result of real estate prices that are booming in The Netherlands. Recently, I’ve received an official appraisal of our home and the price was MUCH higher than I expected.

Steady increase in Net Worth with a spike in November.

I’m thrilled, obviously. But it’s only a profit on paper. It’s an unrealized gain that doesn’t buy me anything. Nevertheless, I’m happy :).

Savings rate of December

What’s more important, or at least, what’s something that I can actually influence, is our savings rate.

New financial model

I now use a new financial model that also contains a forecast. Every month I can easily include the actuals and adjust my forecast accordingly. This really enables me to know what’s coming and decreases the number of unpleasant surprises!

MY Savings rate was just 16%

Unfortunately, our savings rate was a lot less positive. Our savings rate for December was just 16%, while I expected 27%. Oops. Did I mention something about decreasing the number of unpleasant surprises with my new financial model?

However, the reason for this is simple. My daughter started swimming lessons that we needed to pay upfront. Consequently, our expenses spiked because swimming lessons aren’t cheap!

We recently decided to have her start swimming lessons, but as you may know there’s a lot of water in The Netherlands. Even more worrisome, 1/3 of The Netherlands is even below sea level. So, better not be frugal on swimming lessons 😉

Investment portfolios

Our investment portfolios performed really well in the past months. However, in October I decided to sell off my personal investments (and hold a bit in cash). The reason for this is that we might need to make a large purchase in the near future. More about this in another blog!

The portfolio of our kids performed really well. Even after I rebalanced the portfolio to be better prepared for the next recession! Can’t complain about the stock market returns in 2019!

Throughout the months, I’ve added a few thousand Euros to bring the portfolio up to my desired level. Currently, I only need to add about 200 Euros every month to give my kids a financial head start once they turn 18.

Blue: Personal | Green: Kids

What to expect in January?

In January I expect my savings rate to increase to around 27%. Hopefully I can increase my net worth with another 1%. However, with a net worth of EUR 200K it’s harder to move the needle! Now I now how Warren Buffett feels! Just kidding… 😉

To my readers, how was your December? Have you reached your net worth and savings rate goals for this month?

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6 thoughts on “I’ve reached a net worth of EUR 200K!”

  1. Congrats! That’s fantastic news!

    One thing popped up for me In this post is how your savings rate was 16% vs the 27% that you expected and it’s all due to your daughter’s swimming lessons!

    Growing up I loved going to art classes but I didn’t realized how much my parents sacrificed for me to attend them! I’m really grateful for that cause I love drawing and that memory stayed with me. It’s why we also have to readjust our FI target higher after having a daughter because we would like to fund her interest in the future, despite the cost! Okay, within reason 😉

    1. Yes… swimming lessons are expensive! But we’re doing a full package. She can definitely swim once she completes it.. It comes with a guarantee that she can continue lessons until she completes the requirements. So that’s good.

      It’s so important to be able to do the things you want to do! I always wanted to do a high school year in the US, but unfortunately it was too expensive for my parents (and me)…

      Once our kids are about 18-20 years old I hope to have around EUR 35K for each of them for studying abroad, travel, driving lessons, etc.. Compared to the US studying at universities in The Netherlands is very cheap (2K-5K per year for top EU universities). So the 35K is really for ‘special’ stuff.

      But we need to be careful not to make them lazy or feeling entitled 🙂

      1. Totally agree about the entitled part! It’s a delicate balance for us parents 🙂

        It’s so interesting to know that the tuition is also so low in the Netherlands for university. Yeah, the American education system is getting way too pricy for the value we get (many graduates don’t even get a job afterwards). In Switzerland, the tuition is also around 2k per year and for top universities like EPFL! I’m open to having my daughter to study in Europe if she wants to one day (fingers crossed haha).

        Glad to be able to share parental insights on our blogs 🙂

        1. That’s great. Didn’t expect it to be that cheap in Switzerland. Europe is great in that sense. It really gives people (rich and poor) the possibility to study whatever they want 🙂 Completely agree 🙂

  2. Nice article! We started swimming lessons for our kids as well, but rather to ensure that they can swim a little bit alone during the summer holidays.

    In Poland this is rather cheap though (3 euro per 30 min + swimming pool entrance fee) and you only pay when you go.

    200K is quite a little fortune already! I bet that this snowball is already at such size that you can’t easily pick it up anymore and that’s the point that you should turn it into a snowman 😉

    1. Yes, swimming lessons are important. If they at least can stay afloat, that helps 😉 Thanks! Yes we’re working hard to make it go even bigger! However, must admit that majority is from our personal home… so no cashflow coming from that..

      How is it to live in Poland? How is the economy there? Easy to find a job, etc.? A lot of handy Polish friends are coming to the Netherlands to work. So probably not enough work in Poland? Or does it just not pay as well as here?

      Thanks for stopping by! FC

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