It’s time to give you guys an update again on my progress towards reaching financial freedom. This post is all about the progress I made in January! The purpose of this monthly series is to monitor my progress towards reaching financial independence. One baby step at a time… Let’s find out more!
My net worth is now almost EUR 214K!
Another solid increase in January. More than I expected. The reason is… (spoiler!)… We’ve officially sold our house, so I’ve included the sale value (minus broker fees) in our net worth.
What?! You bought a new house?!
I know, what happened to the negative impact of buying a larger home on reaching financial freedom? However, other things in life are important as well… Such as, living closer to family and work.
Nevertheless, I thought about the financial side of things as well. I now switch from an interest rate of 4.3% to about 1.3%. That saves me a lot of money! But more about that in a separate post.
As you can see below, my net worth chart shows a steady increase. Month-on-month around 6%. Not too shabby!
Savings rate of January
As mentioned in my previous post of December, I’ve set myself a target of 27%. It turned out to be a solid 33%! Nice! Completely on track with this one!
I have two investment portfolios. One for my kids and one for myself. As you can see, the portfolio of my kids increased steadily.
Looking at my own portfolio, it sky-rocketed! However, don’t expect stock picks from me. It’s all in cash. Even though, Ray Dalio considers ‘cash as trash’, I feel just fine for know.
I don’t do stock market timing, but since I bought a new house, not plunging everything in stocks seems like a sensible thing to do! Better ‘safe’ than sorry.
But if a significant (>15-20%) market correction is coming in the following months, I probably cannot resist buying great companies at a discount.
What to expect in February?
I know, it doesn’t seem fair to make a prediction for February when we are almost in March. However, I don’t keep track of everything on a daily basis so it will be an educated guess.
Excluding charitable givings, my savings rate will probably be around 25%.