Financial Statement – May

Even though our savings rate was not great (48%) we managed to take care of many things related to Property #2. We will pay it completely over the next couple of days/weeks, therefore I have already excluded the cash we are about to pay from the Cash category.

Cash 600
Peer to Peer 863
Pensions 78,030
Security deposit for current house 4,000
Rental Property #1 100,000
Rental Property #2 133,000
Debt (Bank) -35,000
Total networth 281,493

Very soon I will update you on the real numbers of my first real estate investment which is yielding more than what I had previously calculated!

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Financial Statement – April

We had an increase of +6.6k in net worth which I am pretty happy about! Plus, this month we had an additional cost of 0.8k because my husband purchased the monthly transportation ticket and, even so, we managed to save a lot!

Cash 55,800
Peer to Peer 858
Pensions 76,540
Security deposit for current house 4,000
Rental Property #1 100,000
Rental Property #2 133,000
Debt (Rental Property #2) -94,000
Total networth 276,198

Savings rate = 53%

Our savings rate is not great and we could definitely improve it. It is amazing what you find out when you really start computing the figures! I would have guessed that my savings rate is around 60/70%.

Even though we are saving 6.6k, we are still spending 5.9k a month which sounds like a lot (and it is!). Almost 40% of that is on rent which we are not willing to compromise because 1) we love our apartment and it is quite cheap for the type of apartment/area in which we live 2) is it very convenient/time saving that both of us live close to work and to the creche 3) additional costs when moving into a different apartment.

My husband is not very keen on tracking expenses and for the sake of my marriage I have decided not to force him to 🙂 He is relatively frugal by nature and willing to engage in actions that allow us to save more money but he does not want to track every single expense. I get it and accept it. This month we have decided that from now on we will go to the cheaper/discounter supermarket at least twice a month. I am not really sure but I would say that our second most significant expense is groceries, as I think we spend more than 500 Euros in supermarket on a monthly basis. I hope we can go down by 100 or 200 Euros.

Very soon we will be buying Rental Property #2 and hopefully have it ready to rent it to tourists before August. Read more about our strategies in my previous post on Rental Property #1. I still cannot believe how much we have achieved in the last 3 years, from only slightly above 0 in net worth to almost 300k and from 0 properties to almost 2!

Financial Statement – March

March was a pretty good month. I am very proud to say that we were able to increase our net worth by 6.5k mostly due to the fact that we did not spend much + some extra cash that I got from my previous employer.

Cash 50,700
Peer to Peer 857
Pensions 74,980
Security deposit for current house 4,000
Rental Property #1 100,000
Rental Property #2 133,000
Debt (Rental Property #2) -94,000
Total networth 269,537

Savings rate = 52%

I am still waiting for property #2 to be completely built in order to officially buy it. The property is not officially mine yet, I have just paid part of it in advance while it was still in construction. There is always some sort of risk in these businesses, I have to admit I am nervous and I will be until the day I get to sign the contract!

Financial Statement – February

February was a very bad month in terms of savings because my husband took unpaid parental leave and we have decided to go on holidays before he started a new job. However, personally it was very rewarding 🙂

Still, our net worth has increase by 2.5k when compared to January due to the increase in my pension amount and plus a bit of cash we managed to save. We have a lot of cash not invested because we will soon need it to pay Property #2 (and we will still need to ask for a loan because we will not have enough available). We will officially buy it once it is built, which should be in the following 2 months, hopefully! I am so looking forward to start cashing in!

Cash 45,700
Peer to Peer 854
Pensions 73,480
Security deposit for current house 4,000
Rental Property #1 100,000
Rental Property #2 133,000
Debt (Rental Property #2) -94,000
Total networth 263,034

Savings rate = 21%. My husband took parental leave the whole month so we were living on one income. Next month hopefully this value will skyrocket to at least 50%!

Financial Statement – January

I have just realized that my last post was written on September 2017, almost 5 months ago!!! Lack of time I could say? But let’s face it, we never really have lack of time, just time management issues or different priorities. I have been a bit busy with managing working full-time + having a baby + my first real estate investment. And, although I feel having a blog is useful as it makes me fell accountable for how I manage my money, I couldn’t find the time/motivation to sit in front of a computer. I missed it though!

Since it is of no use crying over spilt milk, I will just go on and update you on what happened in my life in the past 5 months (many exciting real estate news!) but first I want to update you on my financial net worth at the end of January 2018.

Cash 44,900
Peer to Peer 700
Pensions 71,920
Security deposit for current house 4,000
Rental Property #1 100,000
Rental Property #2 133,000
Debt (Rental Property #2) -94,000
Total net worth 260,520

This is, of course, mine and my husband’s. Our combined savings rate this month was 37% (mostly due to husband’s salary lower than usual as he took parental leave since mid-January).

Check out the next post to see how I am managing my first real estate property and how I am currently on my way to buy the second one!

Financial Statement – August

 

Euros July August Gain
Mine 41,400 38,950 -2,450
M 24,200 30,800 6,600
M Pension 31,000 31,000 0
My Pension 34,840 34,840 0
House guarantee 4,000 4,000 0
House paid 100,000 100,000 0
Total 235,440 239,590 4,150
Cash 65,600 69,750 4,150

This month and the following will be atypical. My salary is much lower because I am on my parental leave until the end of September. M, on the other hand, got some money back from taxes. So, overall, an increase of 4k is not bad for a low salary month!

We are currently thinking where to invest next.. having 70k in cash is killing me! I feel I am losing money every day for not having it invested. Index funds? Or real estate?

Financial Statement – May, June and July

I have been very busy (and a bit lazy) but here is an update on my financial performance over the last three months.

Euros April July Gain
Mine 50,080 41,400 -8,680
M 40,520 24,200 -16,320
M Pension 30,000 31,000 1,000
My Pension 30,490 34,840 4,350
House guarantee 4,000 4,000 0
House paid 55,000 100,000 45,000
Total 210,090 235,440 25,350
Cash 90,600 65,600
Money to be spent in the apartment 44,585
Cash – debt 46,015

I am very happy to say that I have finally paid off my first real estate investment. The apartment is finally built and it is currently being furnished by the company who will manage it afterwards. We will start with short-term rental because currently it is more profitable. Porto is on the top European cities for tourism so my estimation is to have an average of 7% net profit per year. I am so excited to have my first passive income generator 🙂 And praying for the company to hurry up and start in August advertising the house on the online platforms (there are still a few things they have to do before: furniture, pictures, etc.).

Meanwhile, we have to decide what do with the 65k cash that we have. Any suggestions?