February 2016 (€77891.44)
I am currently worth €77891.44 (this is 11.63% of my first goal of €670K).
This is the first report of my monthly balance, so exceptionally I won’t be comparing with the previous month. There is one thing to keep in mind: I impose myself a very frugal lifestyle. I am making about €2600 net a month, and I try to live off €800-€1K every month. Here is how my assets looked like at the end of February:
Checking accounts – Cash in 2 accounts (daily expenses account and investment account)
Interest accounts – Interest bearing accounts
Emergency fund – Money I have in a very liquid form
Stock account – online
Bonds – Debt of European countries
P2P Loan account – online
Credit – Money my employer owes me and deposit for my rented apartment
Toxic credit – Credit I have from a company that filed bankruptcy (assets will be sold and profits distributed among creditors)
Rental property #1 – In Portugal, currently rented out
Rental property #2 – Planned to buy till summer
Car and home assets – To be sold in 2016
So this means that I have about €6K on my checking accounts (I have two accounts, one for daily expenses, another one for investments). Interest accounts are accounts where I have money which is paying me interest. Right now, interest rates are very low and I am getting less than 1%, but the bank pays me monthly (I am getting €6.5 a month for the €18K I have). The great thing about these accounts is that they are really liquid – I can take the cash without penalties, whenever I want to.
I also keep an emergency fund, which I typically feed with €250 a month. Once I have €6K there, I will stop feeding the fund and start investing the €250. I currently have no stocks or bonds. I will buy €750 worth of stock this month, so we’ll see some activity there, for March. I have €2800 in credit (mostly in the form of rental deposits or money I have to put upfront for business trips – which my employer reimburses me typically 6 weeks after the trip is over).
Toxic credit is what I call a financial application that I had at a corporation which filed for bankruptcy. There will be a liquidation of the company’s assets (promised for more than 2 years now) and they will then distribute the profits among the creditors. I don’t know if I will ever see any of that money, though. My rental property is worth €40K and it is my biggest asset. It is currently rented out for €275, but as I have to pay a property manager at the moment, and pay taxes on that, I end with with €160 of net cash flow (a month) from that.
The only reason I am considering my car and some “home assets” in the assets category is because I plan to sell them in the next 6 months, as I will be living Germany. I expect to make about €4K from that. I have also put a “Rental property #2”, as I am thinking about acquiring another rental property after July. I currently have no debt. 🙂
I will update this section every month (most likely in the last day of the month).