My progress towards reaching financial freedom as per July!

financial chipmunk reaching financial freedom july 2020

What a couple of months it was. COVID-19 isn’t going away any time soon and I’m definitely feeling the impact on my life! Not necessarily in a bad way, but still. Being stuck in my home and ‘commuting’ from the groundfloor towards upstairs for 5 months isn’t easy. However, I shouldn’t complain. I still have a job and an income. Everyone is safe and healthy. So let’s just skip the complaining part and dive into the numbers of my progress towards reaching financial freedom as per July!

My net-worth shows a steady increase!

So far, so good! My net-worth has increased with a steady 1.45%. However, it’s going to be tough to keep this percentage up as my financial ‘snowball’ keeps growing larger!

My progress towards reaching financial freedom in 2020!

Currently, my net-worth sits at around EUR 232K. Which is pretty crazy if you compare this to my net-worth in January 2019 of about EUR 125K. An important driver for this significant increase is real estate. My personal home to be precise. Real estate is booming in The Netherlands!

Focus on income generating assets

As my personal home only provides utility and no income, I take my net-worth with a grain of salt. Although it’s nice to have significant equity in your home, it doesn’t provide any cashflow. It provides shelter and comfort, but it doesn’t make you retire much earlier.

There are many benefits of owning real estate. I’ve written about 5 important lessons that investing in real estate teaches your kids, here. However, as long as your personal home doesn’t generate cashflow, I do not consider it an income generating asset.

This makes looking at my investment portfolios that much more important.

Taking a look at my income generating assets

In the past couple of months I’ve significantly contributed to my investment portfolio. Not only during the corona virus induced market crash, but also afterwards when the stock market was recovering.

A lot of uncertainty regarding the economy and the virus seems already priced in. The stock market is moving somewhat sideways, anxiously waiting for news to come out.

I’ve decided to ignore all the noise and steady the course. With the FED and ECB printing money and buying up assets like there is no alternative (and they are right). Investing still seems like the way to go.

Please be careful…

But please, to all of you who are new to investing, please make sure you have an emergency fund ready! And please read my blog post about this topic here. These are very uncertain times. You can lose your job at any moment and there are ways to be prepared! Better late than never!

My road towards a EUR 100K portfolio

My personal portfolio: dark blue – The portfolio of my kids: green

As you can see, I’ve been significantly adding to my portfolio. The portfolio now stands at about EUR 21K. Obviously, a lot of things can happen. The stock market can tank another time or it can soar towards new heights. I just don’t know. Personally, I don’t even care.

The reason for this is simple. I just want to reach a EUR 100K portfolio as soon as possible. Most of that 100K needs to come from money that I saved. Only a relatively small portion in the coming 3 years (hopefully sooner) will come from investment returns. The time horizon is just too short for compound interest to move the needle.

By dollar-cost-averaging in 5 different ETFs, I hope to ride the ups and downs towards a EUR 100K portfolio.

The portfolio of my kids

The portfolio of my kids (green line in the previous chart) shows a steady increase. Every month I deposit and invest about EUR 250. Sometimes a little bit more. In about 15 years I expect it to be around EUR 80K (excluding taxes) with an expected return of 5% after inflation.


If you read this and you are from the United States, it may seem like not a lot of money. Considering college tuitions, etc. However, one of the good things that studying at a prestigious university in The Netherlands will cost about EUR 2,500 a year. So EUR 80K for 2 kids should be more than sufficient.

July has been a good month

To summarize, July has been a pretty good month! I’m looking forward to a hopefully healthy, sunny and relaxed August and I wish you the same!

How was July for you? Please let me know in the comments below!

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