Recently, I’ve stumbled upon a great blog post about blogging income reports by Pete McPherson on Do You Even Blog. He asked 100 bloggers what they think about blog income reports. I thought about it for a while and I really believe I shouldn’t write an income report. Why?
I’m not writing for bloggers because they are not my audience. I don’t believe that most of my readers are interested in blogging, so I see no use in sharing my blogging success and failures with you. But people who are interested in personal finance stuff like investing, income generation and budgeting are my target group.
If I would write a blog about blogging, it would make sense to share my income reports. But I am a PF blogger and there is no need for it. However, I really enjoy reading income reports as they create credibility and are entertaining.
After some brainstorming, I was thinking that maybe a net worth report is much more useful for my readership. I can show you, that I’m really using the techniques I am writing about and also show you that the system of mine is working.
So today, I’m happy to share with you my very first net worth report!
I will try to maintain the same structure every month so you can easily compare them to each other. I will make use of many graphs and tables. However, this is just useful when you have at least two months to compare. That said, today will be more text-based but starting on next month I will add more visuals.
My total net worth
Note: All Dollar values are calculated with Googles exchange rate from Euro to Dollar on the 1st November 2017! I prefer EUR over Dollar as it’s easier to compare my performance without a dependency to the recent exchange rates.
My total net worth of this month is 10,093.71€ ($11,739.49)!
First, let me give you an overview of my different accounts:
- Checking account: 4,750.83€ ($5,525.45)
- Freelance checking account: 0.00€ ($0.00)
- Savings account:
- Emergency fund: 1,400.00€ ($1,628.27)
- Apartment savings: 1,050.00€ ($1,221.20)
- Working equipment savings: 0.00€ ($0.00)
- Wedding savings: 863.00€ ($1,003.71)
- Vacation savings: 300.00€ ($348.91)
- Depot account (investing): 1,219.85€ ($1,418.75)
- Investing cash account: 510.03€ ($593.19)
I will list the monthly changes here in the following months but for now, we will assume that I start from $0.
I dropped the equipment savings heavily on this month when I transferred the money to my checking account. This move was necessary as I purchased the iPhone X and it costs 1,548.00€ (with Apple Care Protection Plan) in Germany. My checking account wasn’t charged with the amount yet so my net worth will be a lot lower next month which is pretty bad. This is also the reason why my checking account is much higher than regular.
I also save some money for our first apartment. We weren’t able to find one that is close to Mrs. Budget and my working place and less than 900.00€/month. However, this gives me the chance to save a little bit more for our deposit as it will be about twice the amount I have right now.
Net worth detail: Income
Overall income: 1,541.84€ ($1,793.23)
In more detail my income looks like this:
- My student job: 1,091.84€ ($1,269.86)
- Support from my parents: 400.00€ ($465.22)
- Other income: 50.00€ ($58.15)
My income in this month is a little higher compared to a normal month. The reason is there was an accounting mistake from my company last month and they added the missing amount 116.63€ ($135.65) from September on my October salary. I also received 50.00€ ($58.15) from my insurance company because I had to repair 2 of my teeth. The overall bill was 140,60€ ($163.52). However, I didn’t want to choose the cheaper solution as my dentist explained to me that the more expensive ones are better.
Net worth detail: Expenses
Overall expenses: 1,075.42€ ($1,250.77)
In more detail my expenses look like this:
- ATM money: 153.90€ ($178.99)
- Mobile phone contract: 23.70€ ($27.56)
- Insurance: 0.00€ ($0.00)
- Spotify subscription: 4.99€ ($5.80)
- Credit card payments: 33.74€ ($39.24)
- Amazon: 40.67€ ($47.30)
- Development stuff: 110.66€ ($128.66)
- Blogging stuff: 31.28€ ($36.38)
- Train tickets: 237.74€ ($276.50)
- Hosting: 19.85€ ($23.09)
- Miscellaneous: 418.89€ ($487.19)
My overall expenses were a lot higher than normal. I had to do an annual payment to a job platform that I am using and also had to buy my 6-month train ticket which costs more than 200.00€. I bought a great book for development which adds another 80.00€ to my expenses. The category miscellaneous is also much higher as I had to buy some gifts for birthdays and pay a high bill for my dentist.
Net worth detail: Investments
My investments look like this right now.
- Paid dividends: 2.40€ ($2.79)
- Stock value: 1219.85€ ($1,418.75)
- Money in my cash account: 510.03€ ($593.19)
My stocks are slowly increasing again and my trust in the investment decisions I did before, does equally come back. I have already noticed that I failed here. The price went low and I failed to buy more stocks. Instead, I was unsure and now when they are up again I know that I missed a great opportunity to buy them for a great price. That’s also the reason why my cash account is pretty high right now.
See 5 investing mistakes I did in year one that you need to avoid for more on that topic. If you are a very emotional investor you should consider ETFs and Dollar-Cost Averaging which helps a lot on limiting your emotions.
Anyway, I’ve recently found a new investing strategy called ‘Dividend investing’ and I need to evaluate it first and learn the basics before I want to start. I think in December I can make my first try on that.
Net worth detail: Financial goals of 2017
Let’s compare my financial goals of 2017 with my current situation:
|Car savings account||50.00€||0.00€|
So first of all, the net worth seems to be totally crazy compared to my goal. Though, it was a good decision to set the goal that low. I knew, that my GF and I want to move together and I was expecting more expenses here already. Also, I’ve considered the iPhone X in my plans. However, I have to admit that I’m doing pretty well and I’m already looking for my 2018 goals.
The portfolio volume is that low because I have over 500.00€ sitting in my cash account. I hope I can change this in December when I start dividend investing.
My checking account is much higher than my target goal was but I will transfer all the money at the end of December to my savings account and add it to my emergency fund. In that move, I will also take away 50.00€ for my car savings and 100.00€ for donations. I think December and especially Christmas is a great time to help others who have less than I have.
What do I expect the next month(s) to be?
The year is coming to an end and I think I’m right on my track. However, I assume that I will drop below 10,000€ next month again. I have to pay 1,548€ for the iPhone X alone. I want to have it as I am working as an iOS developer. However, I also took aside 50.00€ every month so I don’t have to use zero percent financing or even worse take a loan for it. So I was well prepared for that and it was already planned in my calculations.
I have several short- and mid-term savings that will drop my net worth from time to time when I use the savings to achieve the goal (e.g. working equipment or vacations).
Over the next two months, there will be some birthdays, Christmas and Mrs. Budget and my anniversary. So there are several costs coming. Anyway, I think I will be able to break the 10,000€ mark in January again. I hope I will find another small freelance project in December and this could help me to improve my finances very drastically.