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?


Financial Statement – April

To all those people who think having a kid is very expensive.. it is just not true (in Europe)! Yes, there are a few things which are expensive and you need to spend money on (stroller, crib, baby monitor, etc) but apart from that there are so many cheap and cute options for baby clothes! I also use cloth diapers so basically I have spend 250 Euros initially and that is it! Also, the truth is you end up going out much less, which means less money spent on dinners/cinema/etc + gifts from family and friends + not falling into the trap of thinking you need to buy everything baby related = savings

Euros March April Gain
Mine 47,080 50,080 3,000
M 36,770 40,520 3,750
M Pension 30,000 30,000 0
My Pension 29,050 30,490 1,440
House guarantee 4,000 4,000 0
House paid 55,000 55,000 0
Total 201,900 210,090 8,190
Cash 83,850 90,600 6,750
Money to be spent in the apartment 44,585 44,585 0
Cash – debt 39,265 46,015 6,750

We have saved almost 65% of our salaries which is actually the number I always had in mind when I started this journey. I am pretty happy about that 🙂

Financial Statement – February and March

Those last months have been crazy! My son was born on the 6 of March and I couldn’t be more happy (and tired!). There was really no time for anything, I could now even separate what I saved in February and March. So, here is the financial statement of both months together:

Our savings in March (including February):

Euros January March Gain
Mine 40,750 47,080 6,330
M 30,770 36,770 6,000
M Pension 30,000 30,000 0
My Pension 26,170 29,050 2,880
House guarantee 4,000 4,000 0
House paid 55,000 55,000 0
Total 186,690 201,900 15,210
Cash 71,520 83,850 12,330
Money to be spent in the apartment 44,585 44,585 0
Cash – debt 26,935 39,265 12,330

Financial Statement – January

Our savings in January:

Euros December January Gain
Mine 38,800 40,750 1,950
M 28,200 30,770 2,570
M Pension 30,000 30,000 0
My Pension 24,750 26,170 1,420
House guarantee 4,000 4,000 0
House paid 55,000 55,000 0
Total 180,750 186,690 5,940
Cash 67,000 71,520 4,520
Money to be spent in the apartment 44,585 44,585 0
Cash – debt 22,415 26,935 4,520

This month we have spent more than usual, in particular taking into account that both our salaries have increased. We have actually saved a bit less than 50% of our salaries, without considering our pensions, which should not have happened.

However, I can partially explain the reasons: we bought some furniture we were still missing for our recent apartment and also some things we needed for the baby (will be born in 4 weeks!), including cloth diapers which will hopefully allow us to save money in the future. So, hopefully, next month we will be able to compensate and have a higher savings rate!

Our portfolio:

  • 1 apartment, which is still not 100% ready, so only from July onwards we will be able to rent it and start cashing-in
  • 31k in cash (excluding the money we will still spend in the apartment: paying the construction company + legal costs + furniture and including the house guarantee in our current apartment)
  • 56k in pension funds

Financial Statement – December

Our savings in December.

Euros November December Gain
Mine 36,500 38,800 2,300
M 24,600 28,200 3,600
M Pension 27,000 30,000 3,000
My Pension 23,350 24,750 1,400
House guarantee 4,000 4,000 0
House paid 55,000 55,000 0
Total 170,450 180,750 10,300
Cash 61,100 67,000 5,900

Overall, I am satisfied. We managed to save, in terms of cash, 60% of our salary and our total equity has increased quite significantly, not only due to my pension fund, which is paid by my employee every month, but also because we have finally checked how M’s pension is worth and we have realized it has grown in value quite significantly.

According to Mr Money Mustache we would need around 12.5 years working until we reach financial independence. However, we need to bear in mind that: 1-we have already started this journey almost 2 years ago, and 2-if you plan to move to a low cost living country in the future the number of years you need to work actually decreases.

I am also very excited by the fact that, from this month onward, M’s salary will increase 15% and my salary will probably increase by 2% (still pending the final confirmation). Even though some extra expenses are expected, as we are having our first baby soon, they will certainly be lower than the salary increases.

Happy new 2017 and wish you all a quick and fun path towards financial independence!


Financial Statement – November

Here is the result of our savings in November.

Euros October November Gain
Mine 34,250 36,500 2,250
M 23,200 24,600 1,400
M Pension 27,000 27000 0
My Pension 21,950 23,350 1,400
House guarantee 4,000 4,000 0
House paid 55,000 55000 0
Total 165,400 170,450 5,050
Cash 57,450 61,100 3,650

I am not totally satisfied with the result as I believe we can save way more every month. We had some extra expenses this month due to the fact that we have bought some additional furniture, Christmas gifts and maternity clothes but, on the other hand, we did not travel so no money spent on that. I would expect, every month, to save, in terms of cash, 5000 Euros.

Next month will be better 🙂

Financial Statement – October

I am currently just updating you with my savings as I have to admit I do not account properly my expenses every month (I should!)

Mine 34,250
M 23,200
M Pension 27,000
My Pension 21,950
House guarantee 4,000
House paid 55,000
Total 165,400
Cash 57,450

I am very conservative in what concerns the house guarantee that I expect to get back when we move out of the new house. We have actually paid 5200 Euros but I will assume we will only get 4000 Euros back. Additionally, in M pension, since we are not sure how the pension fund is performing, I will assume a growth rate of 0%. Better to be conservative and then have positive surprises, I believe.

Despite being an unusual month in terms of expenses, as we have just moved into a new bigger house, I am happy to say that our equity increased by 4765 Euros.

Our cash has decreased due to the fact that we have paid 55000 Euros in our first real estate investment. The rest of the payment (45 000 + taxes + furniture) will be paid once the apartment is totally built, which should be in December/January. I am very excited about my first investment and looking forward for my first passive income generator to start working!