As promised in my last net worth report, my net worth finally increased again! This was a crazy month and so much has happened! I want to start my first net worth increase since writing this blog with a short overview of the last month. So you already know what’s going on in my (financial) life.
Mrs. Budget and I moved into our very first apartment and it’s great! There is a lot of stuff to do but we pay just 630€/month for the rent (including heating). It’s also a nice that I have one room that I can use as my office.
But there is also bad news concerning our apartment. The previous tenant was a jerk that told us we can buy the kitchen for 400€ from him (in Germany, it’s pretty common that a kitchen is not included). At the handover, there was still furniture and garbage in the apartment. He tried to force us some days later to take care of it, otherwise, we won’t get the kitchen for 400€. Well, he gambled and he lost. He had to remove everything including the kitchen.
Therefore, we had to pay an extra 1,000€ for a new kitchen and do the installment on our own. We had to use a delivery service. So it wasn’t a financial success for us at all. However, it felt so good to be in a financial situation that allows me to stand up against a bully. Yes, it felt great to see him work for 4-5 hours and losing 400€ while doing it.
The rest of the month was dominated by work for my first freelancing project. I had to keep up with the hours and today (6th April) I was able to deliver the first prototype and the company was very satisfied with my job. Financially, it’s still far from perfect as I had to do already 2 tax prepayments but only received 1 paycheck. But well, that is how it is.
Okay, I think that’s enough information to start looking at the raw numbers. 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 6th April 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 according EUR values.
My total net worth of this month is 6,859.14€ ($8,418.91)! [Change: +1,049.20€ ($1,287.79)]
First, let me give you an overview of my different accounts:
- Checking account: 468.56€ ($575.11) [Change: -47.72€ ($58.57)]
- Freelance checking account: 2,083.63€ ($2,557.45) [Change: +883.63€ ($1,084.57)]
- Freelancing savings account: 0.30€ ($0.37) [Change: 0€ ($0)]
- Savings account:
- Emergency fund: 0.96€ ($1.18) [Change: +0.73€ ($0.90)]
- Car savings: 50.66€ ($62.18) [Change: +50.66€ ($62.18)]
- Working equipment savings: 250.21€ ($307.11) [Change: +50.19€ ($61.60) ]
- Wedding savings: 1,114.26€ ($1,367.64) [Change: +51.09€ ($62.71)]
- Vacation savings: 100.54€ ($123.40) [Change: -399.55€ ($490.41)]
- Depot account (investing [ETF]): 1,156.01€ ($1418.89) [Change: +16.26€ ($19.96)]
- Investing cash account [ETF]: 8.40€ ($10.31) [Change: +3.99€ ($4.90)]
- Depot account (investing [DGI]): 1,523.24€ ($1,869.62) [Change: +357.47€ ($438.76)]
- Investing cash account [DGI]: 2.37€ ($2.91) [Change: -17,55€ ($21.54)]
- Depot account (investing [DGI USA]: 100.00€ ($122.74) [Change: +100.00€ ($122.74)] This depot was created for trading US stocks with low fees
Okay, overall a nice increase! You have to take into account that I had to buy a brand new kitchen and this was totally unexpected. However, before I praise myself too much. I had to make one decision and it influences the overall net worth heavily!
Note: I’m not counting in the income taxes that I have to pay in the next 2 months. I pay them quarterly and parts of this money are already put aside for this reason. Anyway, I’m putting way more money to the side just to be 100% sure that I don’t have unexpected tax payments in a few months. I also think these 5-10k payments will make my net worth reports a little bit more interesting as the direction is not only upwards. If I would be able to write down a concrete number to this, then I would add it as a liability. But as I can’t, I decided to ignore them and add them as expenses when the government charges me with them.
I received my first freelancing payment and therefore my business checking account has increased. My savings accounts received their regular contributions and I also get my quarterly interest of 0.4%! My emergency fund was used last month to cover two VAT tax prepayments I had to pay. I already took out a lot of the vacation savings account already and added another 500€ this month to pay for the kitchen. Today (6th April), I already filled some money back into my emergency fund but I will talk more about it next month.
My stocks and ETFs grew again and that’s why these positions are better now. I also made my usual investing contribution of 300€.
Net worth detail: Income
Overall income: 6,430.70€ ($7,893.04) [Change: +6,030.70€ ($7,402.08)]
In more detail my income looks like this:
- Freelancing salary (for 2 weeks in January): 6,130.70€ ($7,524.82) [Change: +6,130.70€ ($7,524.82)]
- The contribution of Mrs. Budget to our rent: 300.00€ ($368.22) [Change: +300.00€ ($368.22)]
- Support from my parents: 0€ ($0) [Change: -400.00€($490.96)] This position will be deleted permanently.
Man, that’s some money! Really, a great month and I think it’s okay to spoiler that right now…my salary in April will even be higher! These were just two weeks in January. In February, I was able to work 4 weeks. My salary in May will then even be better again. However, this only works as long as I work full-time on projects. If I go on vacations for one week (like I will this month) I will also lose a whole week of income. But that’s how self-employment works. For now, I’m very thankful to have this opportunity!
I was a little bit concerned as there were some difficulties with my payment. But 3 days after the agreement I received my first paycheck and this shouldn’t happen now in the future again. The project goes well and since February I haven’t been at my client’s place. This saves also a lot of commuting time and costs! If you are also interested in building a 6-figure freelancing business, make sure to read my 5k words, super detailed post about it.
Mrs. Budget receives only a small salary during her internship. However, she decided to use a good portion of it to support me by paying parts of our rent. I knew already that she is the best but she keeps on proving it! This helps me a lot, especially in the beginning when I have to make a lot of payments upfront.
As planned, my parents canceled their support as I now earn more money then they do and it’s obviously not needed anymore.
Overall, a great month that will be topped by the following months!
Net worth detail: Expenses
Overall expenses: 5,444.79€ ($6,682.94) [Change: +2,746.78€ ($3,371.40)]
In more detail my expenses look like this:
- ATM money: 250.00€ ($306.85) [Change: -10.00€ ($12.27)]
- Rent: 630.00€ ($773.26) [Change: 0€ ($0)]
- Mobile phone contract: 101.65€ ($124.77) [Change: -35.19€ ($43.19)]
- Insurance: 126.79€ ($155.62) [Change: +38.40€ ($47.13)]
- Spotify subscription: 4.99€ ($6.12) [Change: 0€ ($0)]
- Credit card payments: 462.22€ ($567.33) [Change: +346.99€ ($425.90)]
- Amazon: 17.09€ ($20.98) [Change: –29.78€ ($36.55)]
- Development stuff: 0€ ($0) [Change: -219.79€ ($269.77)]
- Blogging stuff: 0€ ($0) [Change: 0€ ($0)]
- Train tickets: 0€ ($0) [Change: -8.15€ ($10.00)]
- Kitchen + Furniture: 1,134.45€ ($1,392.42) [Change: +1,134.45€ ($1,392.42)]
- Taxes: 2,542.57€ ($3,120.75) [Change:+2,542.57€ ($3,120.75)]
- Miscellaneous: 35.95€ ($44.13) [Change: -1,054.73€ ($1.294.58)]
Okay, huuuuuuge increase. But it was actually a very good month of me!
My insurances went up as I had to make the annual payment of our household insurance. I’m part of a development mentorship program which costs me 75€ each month. I also bought two train tickets which I paid with the credit card. So more than 100€ are related to work alone. It was a failure because I added a course on creating passive income as well for 320€. I haven’t had any time to look at it and right now I think, I won’t have the time for it in the next 6 months. However, I will probably revisit it at some point in time. Still, at this moment a bad purchase.
The kitchen and other furniture weren’t planned but needed as we moved into our apartment. Next month, these costs will be lower, but still, we will need to do some things and this is also related to buying stuff.
The taxes are only the VAT tax prepayments. However, it’s a prepayment and I had to pay for January and February. I only received one salary so far but two prepayments have eaten most of my income.
My other positions went down which is a good thing! I didn’t spend much money to buy me any clutter or so and therefore, I am convinced that we can cut our expenses again in the following months. However, as mentioned before, four times a year I have to make an estimated income tax payment. These will be huge expenses but I put the money aside already.
Net worth detail: Investments
My investments look like this right now.
- Dividends received: 6.14€ ($7.54) [Change: +5.90€ ($7.24)]
- Fees paid: 9.30€ ($11.41) [Change: -0.95€ ($1.17)]
- Taxes paid: 0€ ($0) [Change: 0€ ($0)]
- Portfolio value: 2,779.25€ ($2779.25) [Change: +473.73€ ($581.46)]
- Money in my cash accounts: 10.77€ ($13.22) [Change: -13.56€ ($16.64)]
I added some shares of a company I already own. They were so ridiculously low priced that I had to buy them! My dividend growth portfolio consists still of just 4 companies. But you’ve maybe noticed before that I’ve added a new depot specifically for US trading! This should help my diversification over the next months.
Right now, I have just some 100€ on that portfolio. I didn’t want to trade as it costs me extra fees to exchange Euro for Dollars. That’s why I waited until April to make my first move in the US market. Even better with this new depot is that they support dividend reinvestment plans (DRIP) if the company offers such a plan. I will make use of those often. I will write a blog post about them soon and tell you the benefits of them.
The dividends were pretty nice this month but most were coming from my ETFs and not my DGI portfolio. Just one company made their last quarterly dividend of 2017 (their quarter started in December). They’ve increased their dividend in 18 consecutive years, so I expect to see another increase in 3 months.
My portfolio went up mostly through my contribution of 400€ (300€ in DGI depot and 100€ in the new US-DGI depot). The rest were some small increases in the stock prices.
Next month, I will receive my first big dividend payment! I can’t wait to share that with you.
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 March:
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 increased my net worth by a lot but as soon as I have to pay the taxes this will go down again. However, I’ve only received the salary for half a month now and I’ve already charged the company with 3 bills. There is a lot of money coming. But there are also big purchases for our apartment and the car we want to buy soon.
My forwarded dividend went up by 16.34€ and this keeps me motivated to increase my investing contributions even further!
The remaining positions didn’t really change much but I will tackle them one after the other after my car purchase.
What do I expect the next month(s) to be?
Okay, I didn’t receive two paychecks in March as assumed last month. However, today (6th April), I’ve already received the second salary and the third one is also handed in. These should boost all my plans for this year. However, we will go on vacation for one week in March and visit the family of Mrs. Budget in Serbia. I can’t wait for some time to relax as the last weeks were very stressful.
I’ve already done my first purchase of a US stock today and increased my monthly investing contributions to 600€. This should really help to achieve my investing related goals in 2018. Two days ago, I did my first huge contribution to our emergency fund. I had to use the emergency fund twice in the last two months. I am very thankful that I have one and want to have a decent amount in it again. If you don’t believe me why it’s important to have one, make sure to read this post by my buddy The Fire Engine.
I already put some money into my car savings account. I will increase that contribution and maybe I am ready to buy a car in May. This would really help us with our groceries and so. I probably have to use a financing option and you know how much I hate them. However, I don’t want to buy a trashy car that I can just drive for a few years. Therefore, I will pay a little bit more but get a very good used car and get rid of the loan in roughly one year.
I think the next coming months will be incredible! Not only financially. So make sure to read my next net worth report next month. Thanks for your attention!
So how was your net worth behaving in the last month? Let me know by leaving a comment in the comment section below.