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.
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 😉
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.
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… 😉