April was such a great month financially but this one was a big drop again!
I expected that to happen as soon as I buy my car as I already knew what I have to pay for it. With that said, yes, I’ve purchased my very first car in May! It’s great and I’m really happy with the deal. However, I would have dropped below zero normally. But there were also two unexpected sources of income this month. Well, one was unexpected and the other one came earlier than expected.
Sadly, I have to introduce a new section in my net worth reports. Debts! It’s the first time in my life that I have a loan. It’s a strange and definitely uncomfortable feeling. But it’s a good thing that I feel that way!
I’ve got a lot to cover as there was a lot going on. 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 1st June 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 5,970.29€ ($6,982.26)! [Change: -6,444.92€ ($7,537.35)]
First, let me give you an overview of my different accounts:
- Checking account: 4,089.02€ ($4,782.12) [Change: +3,488.74€ ($4,080.09)]
- Freelance checking account: 15,611.11€ ($18,257.22) [Change: +9,862.50€ ($11,534.21)]
- Freelancing savings account: 0.30€ ($0.35) [Change: 0€ ($0)]
- Savings account:
- Emergency fund: 1,175.96€ ($1,375.29) [Change: +1,105.00€ ($1,292.30)]
- Car savings: 255.00€ ($298.22) [Change: -645.66€ ($755.10)]
- Working equipment savings: 350.21€ ($409.57) [Change: +50.00€ ($58.48) ]
- Wedding savings: 1,214.26€ ($1,420.08) [Change: +50.00€ ($58.48)]
- Vacation savings: 300.54€ ($351.48) [Change: +100.00€ ($116.95)]
- Depot account (investing [ETF]): 1,234.16€ ($1,443.35) [Change: +55.51€ ($64.92)]
- Investing cash account [ETF]: 0.19€ ($0.22) [Change: +0.19€ ($)]
- Depot account (investing [DGI]): 2,209.20€ ($2,583.66) [Change: +293.76€ ($343.55)]
- Investing cash account [DGI]: 324.50€ ($379.50) [Change: +280.08€ ($327.55)]
- Depot account (investing [DGI USA]: 912.88€ ($1,067.61) [Change: +622.00€ ($727.43)]
- Car loan: 21,702.04€ ($25,380.57) [Change: +21,702.04€ ($25,380.57)]
Overall, everything went up pretty nice! You see that my investment accounts and emergency fund grew more than usually. That’s because I gave them two contributions as I received a second paycheck this month. Normally, I’m paid at the beginning of each month (like in this month). However, they have to pay my bills after 28 days! This time I was able to charge the company earlier and that’s why I get that money earlier. Therefore, you see the money of May and June combined here. That’s also why my checking account is that high. The whole costs of June are not taking away so far and also the contributions to the other savings accounts are not taken away.
My business account is still that high as I have to pay my income taxes only twice a year. Usually, I have to pay them 4 times but as I didn’t know how this first year will go, we waited with handing in the papers until this month. Now I know that I have to pay approximately 12,500.00€ in September and December. But that’s fine as a lot of that money is already there.
I will cover the car purchase in the section ‘Loans’. The car savings account is now used for extra payments to get rid of debts faster!
Net worth detail: Income
Overall income: 21,004.13€ ($24,564.37) [Change: +10,576.65€ ($12,369.41)]
In more detail my income looks like this:
- Freelancing salary (for my work in March AND April): 20,655.84€ ($24,168.74) [Change: +10,478.36€ ($12,254.46)]
- The contribution of Mrs. Budget to our rent: 0€ ($0) [Change: -250.00€ ($292.38)]
- Insurance company: 88.39€ ($103.34) [Change: +88.39€ ($103.34)]
- Side project: 249.90€ ($292.26) [Change: +249.90€ ($292.26)]
Okay, as I told you already, I’ve received two paychecks this month. That could mean that I won’t receive any money from my freelancing work in June. However, that’s not really a difference. It’s just a few days earlier on my bank account.
Mrs. Budget had no job this month. So, she couldn’t give me money for our rent. However, she already found a new working student job and will pay me the full 300.00€, like two months ago, again! That is great news for her as well as for our finances. It’s also a job where she really shines and where she can use her creativity perfectly.
The insurance company charged me for a month where I wasn’t covered by them anymore. So they paid that money back. The side project was pretty cool! I’ve created a website for a small company during my studies. Now, they needed to make adaptions because of the new data protection laws of the EU. I executed the steps for them and was paid accordingly. Hopefully, I can find more opportunities like that. I used the money out of that side project for another contribution of 105€ to my emergency fund and 105€ for my car savings account. The rest of the money is left for VAT.
One last note, it’s really crazy! I never had more than 20,000.00€. Now, I earned more than that in a single month! It’s great to see how the hard work of the last years finally pays off!
Net worth detail: Expenses
Overall expenses: 5,793.61€ ($6,775.64) [Change: +1,002.70€ ($1,172.66)]
In more detail my expenses look like this:
- ATM money: 124.50€ ($145.60) [Change: -393.66€ ($460.39)]
- Rent: 630.00€ ($736.79) [Change: 0€ ($0)]
- Mobile phone contract: 101.59€ ($118.81) [Change: 0€ ($0)]
- Insurance: 477.80€ ($558.79) [Change: -471.83€ ($551.81)]
- Spotify subscription: 9.99€ ($11.68) [Change: 0€ ($0)]
- Credit card payments: 161.37€ ($188.72) [Change: -22.41€ ($26.21)]
- Amazon: 149.27€ ($174.57) [Change: +114.33€ ($133.71)]
- Development stuff: 0€ ($0) [Change: -19.85€ ($23.21)]
- Blogging stuff: 0€ ($0) [Change: 0€ ($0)]
- Train tickets: 15.50€ ($18.13) [Change: +15.50€ ($18.13)]
- Taxes: 1,418.54€ ($1,658.98) [Change: -462.46€ ($540.85)]
- Miscellaneous: 2,705.05€ ($3,163.56) [Change: +2,243.14€ ($2,623.36)]
Overall, a pretty good month even if the whole number increased more than 1,000.00€. I’ve already made a down payment for the car of 2,000€ this month. I had to pay for the registration of the car and also we needed to pay for the garbage collection. Except the down payment there is not much to add. Small unexpected sums but I get better at planning them in.
Amazon was this month a little bit higher, as I’ve bought 3 books about real estate investing in Germany. I can’t wait to read them but I have enough time for this task. I won’t be able to finance a house in the next 12 months as banks want a secure income and I have a brand new business which is far from that.
Next month these expenses should be lower again but I have to make the semi-annual car insurance payment and also start paying off my loan. But we will see.
Net worth detail: Loans
Overall expenses: 21,702.04€ ($25,380.57) [Change: +21,702.04€ ($25,380.57)]
In more detail my expenses look like this:
- Car loan: 21,702.04€ ($25,380.57) [Change: +21,702.04€ ($25,380.57)]
Okay, I’ve mentioned already that I made a down payment of 2,000€. So, the car was bought for 23,702.04€?
Nope! It was actually bought for 19,500.00€. It’s a good price for that car as it was only driven for 30,000 kilometers and 1.5 years. So, it’s a used car. It has everything I wanted. My criteria were:
- When I go to a client, I should make a professional look. The car shouldn’t destroy that.
- The car should be much lower than what it usually costs (with that equipment I would pay more than 30k for a new one).
- I want it to be collision-free.
- It shouldn’t be a small car as we want kids in a few years and I don’t want to switch the car because of that.
- The car shouldn’t be too old as I want good security features in it (again because of kids).
- When I look at the car, I want to think ‘hell yeah, that’s my car!’.
- I want to think like that for at least 6 years.
I’ve bought a white Škoda Octavia with aluminum rims that meet all of these points listed above.
Okay, back to the finances. Why I then have such a large loan? Because my business is new they didn’t want to give me a loan for less than 6 years! That’s why the sum at the top is not what I have to pay back. When I make an extra payment, I have to pay less money in interests. I will try to get rid of the debts in the next two years. I also added another insurance for the next 3 years which is included in that loan. Then I should pay less than 19,000€. I already have 255.00€ on the side for an extra payment and I will probably make extra payments every 500€ that I have.
Net worth detail: Investments
My investments look like this right now.
- Dividends received: 14.51€ ($16.97) [Change: -20.08€ ($23.48)]
- Taxes paid: 3.96€ ($4.63) [Change: +3.96€ ($4.63)]
- Portfolio value: 3,974.13€ ($4,647.75) [Change: +589.16€ ($689.02)]
- Money in my cash accounts: 706,80€ ($826.60) [Change: +662.38€ ($774.65)]
My dividend this month dropped a lot but this was totally expected by me. It’s still my second best month overall! I had to pay some taxes but I need to take a look if I can get them back. They were just paid because the country of that company keeps taxes and I think that I could get them back. I definitely need to check that soon!
The portfolio value didn’t go up so much as a lot of money is right now transferring to my cash accounts. I just had no time to already buy something with the second contribution of this month. But well, that’s why my cash accounts are that high right now (or should be tomorrow). In general, I already have the feeling that my investments start accelerating. It’s the second month where I have at least 10€ more to invest because of dividend payments. Some of my companies also increased their dividends which increases my annual forwarded dividend even more! I achieved this month my first milestone! My annual forwarded dividend is now above 120€! That means, in the next 12 months, I will make 10€ on average with dividends. #feelsgoodman!
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.
Most of those values change on a monthly basis. But I have two goals that are fixed values. Donations and buying a car. Now, I have reached the first one by buying the Škoda Octavia. However, without that, I would already be on 27k with my net worth. Last month, I was very pessimistic to achieve the net worth of 30,000€. I’m still not sure if I can make it but I got a new plan. I will try to find some small side projects that just give me 500-1,000€ for one weekend of work. This money will be used for the next big purchase (my MacBook Pro which is needed for my job as an iOS and web developer). After I can buy that, I can put the money into my emergency fund and car savings account to get rid of the debts faster.
One thing I have to add is that I’m still having to pay my taxes which will cost me roughly 25k. That means I’m not 24.000€ away from my net worth goal but 49k. Well, I’m a big fan of dreaming big and therefore, I will do my very best to achieve that.
I’m halfway to the annual forwarded dividend goal of 240€. I did smaller contributions at the beginning of the year and had just one month in 2017 where I invested. That’s why I guess, I should easily reach that soon.
What do I expect the next month(s) to be?
The next months will be crucial for my financial year 2018. The project I’m working on right now should be finished in 1-2 months. After that, I hopefully find another project soon.
I’ve already discovered some German websites for freelancing projects that could help me to achieve my goals. However, it’s hard to get one of these projects. If I can get 2-3 extra projects this year, I don’t have to take another loan to get a new MacBook. So wish me all the best!
The stock market is falling pretty much right now because of Trump’s tariffs. I don’t know if this is a good thing but it dropped the price of the stocks I’m usually buying a lot. Therefore, I can buy more shares of them and get more dividends faster. However, economically it’s maybe a bad thing which will hurt us later on. We will see.
For my blog, I had this month two interviews. One was held by me with The Fire Engine that you can find here. The other one was by a blogger buddy of mine that interviewed me which will be shared during the next months. I hope to get more such opportunities as this is a lot of fun, interesting and entertaining.
So how was your net worth behaving in the last month? Let me know by leaving a comment in the comment section below.