As expected this month was a huge drop from October 2017. However, there also happened some things that forced me to unexpected expenses which make it even worse.
Right up front, my biggest failure was lending out money to family members…again! I keep failing on this from time to time. It’s always the same person and it always takes more than a month to get the money back. I really have to figure out how to say no to my relatives when it comes to money!
It’s especially bad because right now I only earn 1,400€ per month before taxes. But soon, I will start freelancing and earn 5-6 times that amount. You can imagine how often I will get asked for money then. So this has to be on the first spot of my bucket list for 2018!
Without further ado, let’s dive into my second net worth report!
My total net worth
Note: All Dollar values are calculated with Googles exchange rate from Euro to Dollar on the 1st December 2017! 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 8,942.81€ ($10,641.52)! [Change: -1,150.36€ ($1,368.87)]
First, let me give you an overview of my different accounts:
- Checking account: 3,499.19€ ($4,163.87) [Change: -1,251.64€ ($1,489.39)]
- Freelance checking account: 0.00€ ($0.00) [Change: 0€ ($0)]
- Savings account:
- Emergency fund: 1,200.00€ ($1,427.94) [Change: -200€ ($237.99)]
- Apartment savings: 1,050.00€ ($1,249.45) [Change: 0€ ($0)]
- Working equipment savings: 50.00€ ($59.50) [Change: +50€ ($59.50) ]
- Wedding savings: 913.00€ ($1,086.43) [Change: +50€ ($59.50)]
- Vacation savings: 400.00€ ($475.98) [Change: +100€ ($119.00)]
- Depot account (investing): 1,220.59€ ($1,452.44) [Change: +0.74€ ($0.88)]
- Investing cash account: 610.03€ ($725.91) [Change: +100€ ($119.00)]
You may have read my net worth report of last month and know that I was expecting a huge drop in my checking account. You may have also read iPhone X: Why I’ve bought the most expensive iPhone in the world and know the reason for this. I have spent more than 1,500.00€ on my iPhone X. If you think this guy is mad, you are maybe correct. However, I have planned this move ahead for 2 years and saved all the money up front. Last month, I’ve transferred the money from my equipment savings into my checking account to be ready for the cash flowing out of my pocket. So I feel totally guilt-free.
The purchase of the iPhone was the most expensive one this month. Though, I don’t regret it at all. This phone is really amazing and the Animojis are just as great as you can imagine. As I am an iOS developer, the money is invested in my work equipment and a good idea overall.
Even if the iPhone was the biggest expense this month, I really regret another thing. I’ve lent out 100€ ($119.00) to one of my family members. This hasn’t happened in a while but it seems to happen once a year. For now, I’m fine with it. My finances are that well that I can easily make such a move. The thing that makes me angry is that it happens again and again and I keep failing to say no. This time it was different as the person who asked for money really used it for required things. But I am more concerned about what’s coming when my income increases drastically during the next several months. They will know it, and I don’t want this to happen on a monthly basis (as it did some years ago).
There are three more things to note beside the regular contributions to my saving accounts. I had to transfer 200€ ($237.99) from my emergency fund as my glasses just broke while I was cleaning them. Therefore, I wanted to get some of a higher quality this time.
Next failure: I didn’t continue my monthly contribution to our apartment. I have simply forgotten that I set a time limit for the automatic transaction as I was expecting that we already have an apartment at this time of the year and I need to use the money for our rent.
Lastly, I want to point out, that I haven’t invested this month again. I have found my first stock I want to buy as a dividend investor. However, I used a limit order to purchase it and the price never fell below it. But it was close to it yesterday. I am still learning how to invest in dividend growth stocks and it’s okay that I haven’t made a deal yet.
Net worth detail: Income
Overall income: 1,821.47€ ($2,167.46) [Change: +279,63€ ($332.75)]
In more detail my income looks like this:
- My student job: 971.49€ ($1,156.03) [Change: -120.35€ ($143.21)]
- Support from my parents: 400.00€ ($475.98) [Change: 0€ ($0)]
- Other income: 449.98€ ($535.45) [Change: +399.98€ ($475,96)]
Don’t get fooled by nearly 300€ more income than last month. My income is all money that comes from the outside. I received over 400€ from my mother-in-law because of a flight that she took and I have paid with my credit card. So this means a bigger expense next month. However, as I also had to pay a deposit for different glasses I’ve tested this will more or less be of the same value. I also got my cash back for a book that I’ve purchased and that was never shipped to me. The support from my parents was the same as always and my day job went back to the normal rate. (I’ve received some more money last month as there was an accounting mistake in September and I was paid less).
So broken down, it was pretty the same as always but this will change in the coming months.
Net worth detail: Expenses
Overall expenses: 2,973.11€ ($3,537.86) [Change: +1,897,69€ ($2258.16)]
In more detail my expenses look like this:
- ATM money: 100.00€ ($119.00) [Change: -53.90€ ($64,14)]
- Mobile phone contract: 38.48€ ($27.56) [Change: +14.78€ ($17.59)]
- Insurance: 174.20€ ($207.29) [Change: +174.20€ ($207.29)]
- Spotify subscription: 4.99€ ($5.94) [Change: 0.00€ ($0.00)]
- Credit card payments: 161.42€ ($192.08) [Change: +127.68€ ($151.93)]
- Amazon: 23.94€ ($28.49) [Change: -16.73€ ($19,91)]
- Development stuff: 76.19€ ($90.66) [Change: -34.47€ ($41,02)]
- Blogging stuff: 0.00€ ($0.00) [Change: -31.28€ ($37,22)]
- Train tickets: 5.50€ ($6.54) [Change: -232.24€ ($276,35)]
- Miscellaneous: 1,969.50€ ($2343.61) [Change: +1,550.61€ ($1845,15)]
Second month in a row I have much higher expenses than normal. This month it’s obviously caused by the iPhone X, my broken glasses and the lending out money. However, overall I also decreased some costs and I’m looking forward to cut my spendings in December and (because of Xmas) even more in January. I also added 1 calendar tool to increase my productivity which was also not that expensive and not planned at all.
One thing, I really hate is when companies forget to charge your account in a month. This time this has happened with my blogging stuff. Last month my insurance and that’s the reason why it’s that high this month. I’m also looking forward to checking my mobile phone contract again as it seems it is randomly higher than the fixed price I should pay (if I am not calling someone in a different country or add another data volume which I didn’t).
Finally, my train ticket went down that much as I only have to pay the bill every 6 months. I only invited my GF two times for a short distance.
Net worth detail: Investments
My investments look like this right now.
- Paid dividends: 0.00€ ($0.00) [Change: -2.40€ ($2.86)]
- Stock value: 1,220.59€ ($1,452.44) [Change: +0.74€ ($0.88)]
- Money in my cash account: 610.03€ ($725.91) [Change: +100.00€ ($119,00)]
To be honest, a totally boring month. My stocks went up 74 cents (yay!) and I received no dividends at all. I tried to spend some of the money out of my cash account but the limit order was not matched during the last 15 days. This is actually not that bad as I want to increase my knowledge of dividend growth investing in this month and then start heavily with the first stock picks.
I’ve already told you last month, that I switch from ETFs to dividend stocks right now and I believe that this could really work out. It just feels like I’ve found the perfect investment style for me. I literally can’t stop reading ‘Get rich with dividends‘. However, I am probably the slowest reader of all time and I only received the book some days ago. So I had just time to read yesterday. But if you are looking to get started with dividend growth stocks this is a great read! It’s fun, it’s backed by historical data and the gains sound incredible.
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€|
The net worth will stay above my goal. I set it low because I was expecting more expenses through moving to our own apartment in this year. Still nothing in sight yet. However, I also calculated that I will spend a fortune for the new iPhone, that’s why think the initial goal was okay.
My portfolio will grow in the next months but I am not sure if I can reach this goal this year. I have a lot of money in my cash account that just waits to get used for stocks. Anyway, I have to find good stocks in December and then I will add as much of them as possible.
The car savings and donations will be done in December when I take some money out of my cash account and put it into my emergency fund.
One success story, I was able to reach my goal of 900.00€ in my wedding account with one more moment to go!
What do I expect the next month(s) to be?
I believe that December will hit me hard again. You know, it’s Christmas time. So, I need to purchase many gifts and I know that I want to take aside some money for our apartment, my first car and donations, too.
But there are also very good news!!! I will start freelancing one month earlier (in February) and have already the first interested headhunters that want to talk to me. If everything works out as I’ve planned I will increase my income (before taxes) of my day job from 1,000€ to 9,000€ in a single month. This will speed up my investments, my savings (I need a new Macbook and finally a car) and also my spending money. This will also improve the chances of Mrs. Budget and me to find our own apartment to move in together.
You see, interesting things are going to happen. Honestly, I can’t really grasp what’s going on and that I eventually reap the benefits of the hard work I did through my studies when others went out to party. Wish me luck, guys!
So how was your net worth behaving in the last month? Let me know by leaving a comment in the comment section below.