Financial Statement – March

Savings rate = very difficult to calculate this month but for sure higher than average.

Total net worth increase = + 73,150 EUR  – Mostly due to the fact that we were able to buy our (future) primary residence and, with my husband’s yearly bonus delivered this month + some cash we had available + some financial donation from both our parents, we were able to pay for more than 20% of it in cash. Therefore, our debt is only 317k, whereas the value of the property is 380k. I am, again, being conservative here, as all our apartments have costed us more than the value I consider in my net worth calculation.

In the next months, we will focus on aggressively paying down this debt. We will pay more than 3k of capital every month. We prefer this approach because we currently have high salaries and we want to take advantage of those (who knows until when we have high salaries..). Meanwhile, we will investigate the possibility of using our Pensions money to pay for mortgage, as our pensions currently yield very little and it is very inefficient to leave our money there (unless we legally have to).

Cash 16,600 +5,750
Net Cash flow Real Estate Business 3,500 +200
Pensions 100,210 +1,750
Security deposit for current house 2,000 +0
Rental Property #1 115,000 +0
Rental Property #2 120,000 +0
Primary Residence 380,000 +380,000
Debt (Primary Residence) -317,300 -314,550
Total networth 420,010 +73,150

In my last post I have talked about the possibility of selling Rental Property #2, but at the end we have decided not to sell it and take on more debt instead. We feel less free because we have debt, but on the other hand, we are building passive income with both Rental Properties. Selling one of them would mean less passive income in the future.

According to my previous FI number, I would be now 47% FI. However, I was reviewing my numbers and I decided to increase my family FI number, in particular due to the childcare expenses that we will have in the next following years. According to my new number, which is now just slightly over EUR 1 million, I am now 39% FI.


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