Boom! What a great month. Nearly doubled my net worth in a single month and also achieved a new personal record for my net worth reports!
The great thing is that this month wasn’t perfect at all. There was a payment of 430.62€ health insurance wasn’t planned. I will get some of that money back in May. I also received another extension of my current freelancing project to the end of June which sets me in an even better position for the coming months and big purchases (car, furniture, etc.).
The best thing about this month is that we had a trip to Serbia for one week and even more expenses, therefore. Still, finished this month with an impressive result. But I need and want to note that a huge portion of that money will be gone in the next couple of months as I have to pay my income taxes for the first quarter/half a year.
However, I still think I’m in a great situation as most of those one-time or once a year payments for our apartment are now done.
So without further ado, let’s dive in.
My total net worth
Note: All Dollar values are calculated with Googles exchange rate from Euro to Dollar on the 3rd May 2018! I prefer EUR over Dollar as it’s easier to compare my performance without a dependency on the recent exchange rates. The monthly changes in dollars are not calculated from the last month but from the exchange of the EUR values.
My total net worth of this month is 12,415.21€ ($14,868.07)! [Change: +5,556.07€ ($6,653.78)]
First, let me give you an overview of my different accounts:
- Checking account: 600.28€ ($718.88) [Change: +131.72€ ($157.74)]
- Freelance checking account: 5,748.61€ ($6,884.36) [Change: +3,664.98€ ($4,389.07)]
- Freelancing savings account: 0.30€ ($0.36) [Change: 0€ ($0)]
- Savings account:
- Emergency fund: 70.96€ ($84.98) [Change: +70.00€ ($83.83)]
- Car savings: 900.66€ ($1,078.60) [Change: +850.00€ ($1,017.93)]
- Working equipment savings: 300.21€ ($359.52) [Change: +50.00€ ($59.88) ]
- Wedding savings: 1,164.26€ ($1,394.28) [Change: +50.00€ ($59.88)]
- Vacation savings: 200.54€ ($240.16) [Change: +100.00€ ($119.76)]
- Depot account (investing [ETF]): 1,178.65€ ($1,411.51) [Change: +22.64€ ($27.11)]
- Investing cash account [ETF]: 0.00€ ($0) [Change: -8.40€ ($10.06)]
- Depot account (investing [DGI]): 1,915.44€ ($2,293.87) [Change: +392.20€ ($469.69)]
- Investing cash account [DGI]: 44.42€ ($53.20) [Change: +42,05€ ($50.36)]
- Depot account (investing [DGI USA]: 290.88€ ($348.35) [Change: +190,88€ ($228.59)]
Overall a very nice increase! Especially my freelancing checking account went up quite a bit. But I want to point this out again. Most of that money will be used for my income taxes. In Germany, I have to make those prepayments every quarter. In my first business year, I have more time to give an estimation and now I’m expecting to pay roughly 22k in income taxes in 2018. As you can see this is just a small part of it but should be more than needed compared to the money I’ve received so far.
I was finally able to build my emergency fund again. Sadly, I had to use this money again so instead of 500€ I could just add 70€. My car savings went up drastically. This was planned before but I think I will make my car purchase in May, so I’m pretty sure that my net worth will drop heavily next month.
The rest of the payments were quite normal. I’ve added some great stocks and my first US-stocks as well! But more on that later.
Net worth detail: Income
Overall income: 10,427.48€ ($12,487.63) [Change: +3,996.78€ ($4,786.42)]
In more detail my income looks like this:
- Freelancing salary (for my work in February): 10,177.48€ ($12,188.23) [Change: +4,046.78€ ($4,846.30)]
- The contribution of Mrs. Budget to our rent: 250.00€ ($299.39) [Change: -50.00€ ($59.88)]
As expected my salary went up as I now received the payment for a whole month. Remember, in March I only received the payment for 2 working weeks in January. I hope my salary will be pretty close to this number for the rest of the year. However, as I’ve told you before, we had a trip to Serbia which means in June, I will have 2-3k less. Also in this summer, we will go on long holidays, but I’m trying to prepare myself for that by saving some money for those months.
The contribution of Mrs. Budget went down a little as she paid a for a lot of groceries and I told her to decrease that value. Additionally, she finished her internship and therefore, she can’t give me money for our rent which is totally fine. I’m sure that she will find a great job as a working student and increase this number again.
Net worth detail: Expenses
Overall expenses: 4,790.91€ ($5,737.44) [Change: -653.88€ ($783.07)]
In more detail my expenses look like this:
- ATM money: 518.16€ ($620.53) [Change: +268.16€ ($321.14)]
- Rent: 630.00€ ($754.47) [Change: 0€ ($0)]
- Mobile phone contract: 101.65€ ($121.73) [Change: 0€ ($0)]
- Insurance: 949.63€ ($1,137.25) [Change: +822.84€ ($985.41)]
- Spotify subscription: 9.99€ ($11.96) [Change: +5.00€ ($5.99)]
- Credit card payments: 183.78€ ($220.09) [Change: -278.44€ ($333.45)]
- Amazon: 34.94€ ($41.84) [Change: +17.85€ ($21.38)]
- Development stuff: 19.85€ ($23.77) [Change: +19.85€ ($23.77)]
- Blogging stuff: 0€ ($0) [Change: 0€ ($0)]
- Train tickets: 0€ ($0) [Change: 0€ ($0)]
- Taxes: 1,881.00€ ($2,252.63) [Change: -661.57€ ($792.28)]
- Miscellaneous: 461.91€ ($553.17) [Change: +425.96€ ($510.12)]
A lot of strange numbers here. I took that much money from the bank for our trip to Serbia. However, there was still a huge sum left that I used for grocery shopping after our trip.
The insurance looks totally strange and actually, it is. As I’m now self-employed I can’t use my student health insurance anymore. In Germany, I need to have a health insurance. There were two options, a very expensive one that will stay pretty the same over the next years or a cheaper solution that will get more expensive later on. I decided for the latter and this one (yes the cheap one) cost 430€ per month! As I was still at the student health insurance, I had to make an extra payment for March. To cover this unexpected costs, I took the money out of my emergency fund. So next month this position will be roughly at 430€ and stay there.
I will get back the money for this month of the student health insurance. So this means another 88€ in May. Yay!
The VAT taxes were smaller just because I only had to pay them for the money I made in March. Last time, I had to cover January and February!
The position miscellaneous includes all the rest of the costs and, therefore, also covers gas, electricity, water, internet, etc. Maybe I will split this up in my next net worth report. Otherwise, this is not spending money, it’s mostly money that I have to spend.
Net worth detail: Investments
My investments look like this right now.
- Dividends received: 34.59€ ($41.42) [Change: +28.45€ ($34.07)]
- Fees paid: 13.88€ ($16.62) [Change: +4.58€ ($5.48)]
- Taxes paid: 0€ ($0) [Change: 0€ ($0)]
- Portfolio value: 3,384.97€ ($4,053.73) [Change: +605.72€ ($725.39)]
- Money in my cash accounts: 44.42€ ($53.20) [Change: -33.65€ ($40.30)]
I added some shares of a company that paid out its dividend in April as well. They were not cheap but definitely below the value, I estimated for them. They paid out a dividend of 8.60€ per stock which means 34.40€ overall as I own 4 shares of them! That said, it was also the highest dividend payment and the highest dividend month I had so far!
This could also be the best month for 2018, but who knows what great buys I will make during the next few months. I think it takes a few years to really see the impact of a dividend growth portfolio. But it feels great to have such a high payment after just 5 months of dividend investing.
My stocks, in general, went up pretty nice as the dollar has become stronger. I also added a US company that has an incredible long dividend history and pays out its dividend monthly. Therefore, I won’t have a month without a dividend payment anymore. The dollar now also affects my forwarded dividend as my dividends in EUR change when the exchange rate to the dollar changes. Therefore, sometimes there could be odd changes.
Note: I won’t tell you what companies exactly I’ve purchased. The reason is, that I don’t want to influence any person to buy a company that I buy. Your circumstances are maybe totally different and a good buy at that time could be bad now. I also think that I am far from being an expert and I don’t want you to judge and buy a company because of my opinion. Anyway, I will add guides on how to pick successful DGI companies soon. For now, check out this post to learn more about the strategy.
Net worth detail: Financial goals of 2018
Let’s compare my financial goals of 2018 with my situation in April:
Note: For simplicity, I have cut my financial goals a little. I tend to write them down as whole sentences following the SMART principle. If you want to know what’s that about, make sure to check this post.
I’m now actually pretty concerned about my net worth goal. I decided to count in the debt I have in the future. Well, I will buy a car in the next 2 months and I need a new MacBook to work. This could even put me into a negative net worth. Additionally, I have to pay the income taxes which will nearly take all the money out of my freelancing checking account. Anyway, I have a smaller sum, proportionally, in the second half of the year (as I didn’t receive a payment in the first two months of 2018 at all). I think this goal was maybe too high to reach with these purchases and costs in mind. However, I will try my best to still reach it and get rid of any loans as fast as possible!
The annual forwarded dividend looks great! I’ve just increased my investing contribution to 600€/month. With this rate, I should easily achieve this goal and maybe reach 300€ in annual forwarded dividends.
My emergency fund is probably the most interesting goal. From now on, I save 500€/month. But this is not enough. So I need to push even harder. Maybe after I’ve made those big purchases I’m able to increase this rate again and reach 6,000€ in my emergency fund at the end of the year.
The car goal should be done in the next two months. I will probably pay a premium price. The reason is that I want to drive that car for the next 6 years. Therefore, it shouldn’t have too many miles/kilometers. I also want to avoid smaller cars, as I can’t foresee if we will have kids until that time. Lastly, it’s usually safer to drive a newer car. We don’t have children now, but if we have, I don’t want them to sit in a car without a reasonable amount of safety features. I’m not talking about a brand-new car. Also, I won’t buy a Mercedes, BMW, Jaguar or something like this. Just a solid car like the Škoda Octavia or the Seat Leon ST. We will see.
What do I expect the next month(s) to be?
I’m writing this post on the 3rd May. I’ve already received the payment for March which is even bigger than the last one. Great!
I hope that, finally, I don’t have any additional and unexpected costs during the next months. It was a lot in the past quarter like one extra health insurance payment, deposit for our apartment, new (we had none in that apartment) kitchen and tax prepayments. We still need to buy a car and some furniture for our first apartment. However, we will try to add one thing after the other and don’t overpay on those things.
Mrs. Budget finished her internship and she will look for a student job. Until she got one, we are SINKs (Single Income No Kids). I’m glad that I’m financially able to take care of most of our payments because we keep our costs low and I have a high income. Mrs. Budget’s parents are helping us out quite a lot and she also covers the things that are only needed by her. Therefore, it’s not a big change for now. But definitely, our finances will go crazy (in a positive way) as soon as she finishes her studies and has a regular day job.
The only thing that is really insecure for me is how long it will take to find another project after I’ve finished the current one at the end of June. I’ve talked to my recruitment company and they didn’t give me a clear answer. Just something like: “the market is great for iOS-freelancers right now and we are proactively marketing your profile to customers”. Hopefully, they can find a project in a few weeks then I’m good to go. With every project, my experience increases and it should be easier to find a new project.
So how was your net worth behaving in the last month? Let me know by leaving a comment in the comment section below.