Financial Statement – March

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

Total net worth increase = + 73,150 EURΒ  – 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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Financial Statement – February

Savings rate = 61%

Total net worth increase = + 7,905 EUR

This month we were pretty good in terms of savings from our monthly income. First of all, I am already on my maternity leave (3 weeks to meet baby #2) which means I am spending less money overall on small things, like going for lunch and transportation. I also have more time to go to a cheap supermarket and, in addition, we have decided to stop ordering food. Deliveroo was eating a chunk of our budget and we were ordering 2 or 3 times a week. It is amazing how much money you can save by only changing small things!

I managed to pay the overall debt for Property #2 and my husband has only very little to pay off. We want to get rid of this debt because we are thinking about buying our primary residence as I have told you in my previous post. We will ask for another personal loan for that purpose but the conditions would be much worse if we have 2 open loans. We are now struggling with the option of selling one of our Properties that we are currently renting short-term, we are not sure whether to do it or to ask for a proper mortgage. Tricky decision as I am very frustrated with the amount of costs you pay when you ask for a mortgage, even with a low interest rate environment! But, on the other hand, selling one property would significantly decrease my future passive income. So, we are still undecided!

If you look at my past financial statements, the real estate business is not yielding much money in the last couple of months, which is mostly due to the fact that it is low season, which means less cash per night and lower occupation rates, plus it is winter, so overall increased costs, in particular heating costs. The revenues should start increasing from April onwards, which should boost our net worth, and also allow us to have more cash to use to pay for our primary residence.

Cash 10,850 -650
Net Cash flow Real Estate Business 3,300 +100
Pensions 98,460 +1,730
Security deposit for current house 2,000 +0
Rental Property #1 115,000 +0
Rental Property #2 120,000 +0
Debt (Bank) -2,750 +6,770
Total networth 346,860 +7,950

I am happy overall just by seeing that we are approaching the 350k networth. Seems like a cool round number to me πŸ™‚

Financial Statement – December

Savings rate = 49%

Total net worth increase = + 6,655 EUR

December was not an amazing month as our savings rate went down mostly due to gifts and money spent going out with friends and family. We could have though about ways of being more frugal but we were a bit lazy this Christmas to do it!

We still manage to pay off our debt and to increase our cash reserves, so overall not bad. However, it is low season for our short-term real estate business and therefore it only yield 600 Eur.

Cash 9,650 +1,300
Net Cash flow Real Estate Business 3,100 +600
Pensions 91,460 +1,570
Security deposit for current house 2,500 0
Rental Property #1 115,000 0
Rental Property #2 120,000 0
Debt (Bank) -12,705 +3,185
Total networth 329,005 +6,655

This is lower than my expectation but hopefully next month, with a salary increase and a small bonus, the goal of growing my networth by 8k every month will be real again πŸ™‚

Financial Statement – November

November: another great month!

Savings rate = 57%

Total net worth increase = + 8,445 EUR

This is great to compensate the crazy month of December. Even though I try to be frugal, I always end up buying a few things for some family members that would take it wrong if no gifts are exchanged + I go back to my home country and I met with so many people I haven’t seen for ages, which means I end up spending way more than normal on lunches/brunches and dinners.

Cash 8,350 +2,400
Net Cash flow Real Estate Business 2,500 +1,300
Pensions 89,890 +1,560
Security deposit for current house 2,500 0
Rental Property #1 115,000 0
Rental Property #2 120,000 0
Debt (Bank) -15,890 +3,185
Total networth 322,350 +8,445

I am now 36% FI πŸ™‚

Financial Statement – October

October was a very exciting month! We were able to grow our net worth by 9.285 Eur, which is the maximum we have been able to do so far. There were a couple of reasons for this success:

  • Our savings rate was 57%, which is probably the highest value so far. I calculate our savings rate based on our salaries and I do not consider the cash-flow yield by our real estate business. No big or unexpected expenses this month!
  • I have adjusted the value of our rental properties and increased the overall value by 2000 Eur. Still, the values I consider are at least 20% below market value, but I want to be on the safe side here in case of a market crash. To compensate for this, I have decreased by 1000 Eur the money we expect to receive when we leave our current flat. Due to our baby, the flat is not as in good shape as it should, I am assuming we need to spend some money arranging the walls and the floor before we leave (2500 Eur is my current estimation).
  • Our real estate cash-flow has yield us 1.200 Eur net, which is amazing especially taking into account that we have hardly any work and it is not high season anymore.

 

Cash 5,950
Net Cash flow Real Estate Business 1,200
Pensions 88,330
Security deposit for current house 2,500
Rental Property #1 115,000
Rental Property #2 120,000
Debt (Bank) -19,075
Total networth 313,905

I am 35% FI (still 65% to go!). Seems like a lot but I think the hardest work is done, which is to get enough cash that allows you to start investing and creating passive income. In our case, passive income is generated through real estate but you can of course decide on what products suit you the best.

Currently, I am having another dilemma: invest the money we are saving or save it and buy a property for us to live in the future?

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 investmentΒ which is yielding more than what I had previously calculated!

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 πŸ™‚ 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.Β 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!