6# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 59 %

This month leverage: 55 %

Rolling savings rate since February 2016: 56 %

Total value of portfolio: 652.000 DKK (99.600 $)

Years worth of annual expenses: 6.4

% Change since last month: 10,5 % 

So What The F*** Happen This Month

The stock market has been REALLY gentle to me.

Allmost to gentle.

It worries me a bit. It is kind of to good to be true.

I made more money with my investments, than I did at my job.

And a 10,5 % change since last month is just insane.

Less Leverage

Because the market has taken such a huge jump. I have not invested that much this month. In order to stick to my 10 % cash allocation. The other months I have been leveraging 100 % no matter what the market did. This means if had saved 10.000 DKK I would borrow another 10.000 DKK. But that does not mean that I will invest all of 20.000 DKK. If the market had gone no where, I would invest 18.000 DKK and keep 2000 DKK in my cash cushion in order to be in 90 % equities, and 10 % cash.

This month I had to throw more than 10 % of what I have saved in order to keep my 10 % cash allocation. I managed to save about 13.000 DKK, and I needed to keep about half of that it in order to hit my cash allocation. I just think it would be absurd to keep 6.500 DKK in cash, but still be investing 19.500 DKK with the majority of the invested money being leverage.

I have only leveraged 100 % with the money that I did transfer to my investment account. Which was about 7.500 DKK. And that’s why my leverage is less than 100 % this month.

If I can keep my leverage at about 40 % or less, my rate of the loan will then only be about 1 %. If I’m between 40-60 % leveraged, I will pay 2 % in annual fees. And if I move above 60 % I will pay 7 %.

OUCH! I have no intention to do that.

My January Challenge

I tried to start 2019 with a little challenge.

A challenge where I tried to spend less than 1000 $ dollars for a month. And I failed. But what ended up as an average month (with about 60 % savings rate). Could have been quiet catastrophic I hadn’t had a laser focus on how I spent my money.

CPH FIRE MEETUP

I have finally got everything in order for the FIRE Meetup in Copenhagen.

It will take place in my rowing club (Roforeningen KVIK) the 8/3/2019 at 6 PM. Everybody is welcome so feel free to join.

The concept is that there will be a pizza waiting for you at 6 PM for the price of 100 DKK. I know, a pizza doesn’t cost 100 DKK, but the remaining money will be donated to The Ocean Cleanup. It was a demand from my rowing club that I needed to raise some money for charity, if I should borrow the club for free.

So MobilePay me 100 DKK to 25400183 if you would like to attend the meetup.

There will be some keynote people at the event.

Jacob Lund Fisker from earlyretirementextreme.com is going to be there. He is quite famous in this community. He is visiting some family in Denmark, and I convinced him to swing by our little meetup.

Then we have Pernille Wahlgren. She is not a typical FIRE lady. But she has made herself financial independent in relative young age, by investing in stocks. She is also getting quiet famous at the moment. With her “live & think freely” concept. Which I like. She runs the page PernilleWahlgren.Dk

And we will also have Sanne Fehmerling Kristiansen. Who runs the site passivindkomst.nu. Her concept is trying to make her whole family financial independent through passive investments.

I know all of these people from documentary made about FIRE from Danmarks Radio. It was called “Stå Af Hamsterhjulet” (Quit the Rat Race). And is definitely worth to watch.

Blog Posts This Month

Challenge: Live Below 1000 $

1# Update: Sub 1000 $

2# Update: Sub 1000 $

3# and Final Update: Sub 1000 $

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It is not going so well at this stage.

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8 meninger om “6# My Monthly Financial Independence Update”

  1. Spennende det du holder på med! Jeg bruker også Nordnet Superlånet, men i Norge er det 2,19% rente under 40 % ?

    Hvor mye skal du spare opp totalt?

    1. Ja okay, så har vi det lidt mere lukrativt i DK. 🙂

      It depends. Når jeg rammer 1.000.000 DKK er jeg egentlig ikke så bekymret for ikke at skulle arbejde fuldtid nogensinde igen.
      Så bliver det vel en slags Coast FIRE.

      Men et sted mellem 1-3 mio DKK tænker jeg.

      Hvad med dig?

      1. Jeg så at 1 mill – 3 mill. DKK = ca. 150.000 – 450.000 USD. Høres fornuftig ut.
        Så når du når et sted i mellom 1 – 3 mill, så vil du jobbe kun nok til å dekke månedsbehovet ditt, og ikke røre aksjekontoen din frem til du er 60 år? Er det ikke det som er Coast-FIRE?

        Mitt FIRE-tall er 600k USD, men jeg vet ikke om jeg kommer til å slutte å jobbe helt, jobbe deltid eller om jeg vil fortsette å jobbe. Jeg synes det er vanskelig å si et eksakt beløp, for livet er jo dynamisk. Jeg har en samboer, og vi planlegger barn etterhvert. Dette vil helt sikkert forsinke min progress til FIRE, men samtidig tenker jeg at det er verdt det.

        Skrev forresten et innlegg om leverage / giring av aksjer i dag, kanskje du finner det interessant: http://www.route2fi.com/2019/02/10/how-i-plan-using-125-1-leverage-to-my-stock-portfolio-to-reach-financial-independence-faster/

        Hva vil du bruke tiden på når du jobber mindre? Ser du driver med roing blant annet ?

        1. Jo det er det vel egentligt. (altså coast fire)
          Men ved nu ikke om jeg kører helt efter den model. Kunne måske forestille mig at jeg gjorde det et par år. Og hvis der så kommer nogle børn, kunne man måske finde på at skalere endnu længere ned i arbejde. Jeg er lidt fleksibel. Men helt sikkert noget i den dur ja. 🙂

          Helt sikkert! Livet skal jo ikke dreje sig om penge. 600.000 $ var jo det samme som MMM i sin tid. 😉

          Fed blog post! Du har lavet dig der. Men der flere argumenter for at geare dine investeringer du kan overveje at skrive om. Nu kan jeg ikke huske om du allerede havde læst den her post. Men der er lidt flere argumenter pro gearing.
          Klik her

          Uha. Jeg har mange planer. Vil gerne sejle en masse, roning har jeg jo dyrket i en masse år, og kunne sagtens se mig selv lave noget indenfor det også. Efter jeg er blevet smidt af landsholdet her i november måned, er jeg ved at få en ny kærlighed for Brasiliansk Jiu Jitsu. Det er virkelig sjovt!

          Derudover kunne jeg godt tænke mig på en eller anden måde at lave noget filantropisk arbejde med min murer og bygningskonstruktør baggrund. Men den idé arbejder jeg stadigvæk på. 🙂

          Hvad med dig? Hvad kunne du godt tænke dig at lave når du en skønne dag ikke trænger at jobbe?

          1. Det høres ut som en riktig god plan ?
            Men 600k da MMM pensjonerte seg tilsvarer 790k $ i dag ? Inflasjonen gjør FIRE en smule hardt.

            Takk for linken til posten, skal oppdatere min gearing artikkel ?

            Jeg synes det du skriver er virkelig interessant. Fine interesser også ?
            Kunne du tenke deg å være med på et FIRE-intervju på min blogg? Jeg tenkte å lage noen spørsmål, også kan jeg sende dem til deg? Så lager jeg en bloggpost av det om du synes er OK?

            Jeg føler jeg har mange interesser jeg kunne tenkt meg å drive enda mer med. Landeveissykling, langrenn, squash og tennis. Ikke minst kunne jeg tenke meg å lage en online business. Men pga. 9-5, så er det ikke nok tid. Tenk hva man kunne utrettet med 40-50 ekstra timer i uken!?

          2. Det vil jeg da rigtig gerne. (lave et interview med dig).

            Stærkt! Vi har mange ens hobbyer. Dog ikke tennis (det er jeg virkelig skod til).

  2. Would you care to share the spreadsheet you are using for your calculations, you use in your monthly updates?

    Also, why do you keep such a big amount of cash around?

    1. Hi Lars..

      It is a very low key google sheet document I use for the monthly updates.

      But I would love to share it with you.

      Write me a mail on Loui@wannabewalden.com and I will sent you a link for it.

      I have account at my bank where I get 5 % on the first 50.000 DKK, plus I think it would be kind of irresponsible to leverage like I do without having a small amount of money on the side.

      All the best,

      Loui

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