2# My Monthly Financial Independence Update

The Quick Takeaways

This month savings rate: 20 %

This month leverage: N/A

Rolling savings rate since February 2016: 56 %

Total value of portfolio: 540.000 DKK (84.000 $)

Years till I hit a 7 % SWR: 3.1 Years

% Change since last month: 3.2 %

So What The F*** Happen This Month

This month has been the third worst month according to my savings rate since I started this journey back in February 2016.

I have been away with the national rowing team for six weeks. First we were on a four-week training camp in Austria, and then we left for the world championships in Bulgaria for about two weeks.

Even though we did terrible at the world championships, I’m still grateful for the experience.

Because of the six weeks away from my day job, I ended up with almost no money this month. That is not moving me closer to my FI goal. But I do love rowing. So getting the opportunity to eat, train and rest for six weeks where I don’t have to pay for it, is even more awesome!

After my last update, I ended up buying more stocks and leveraged more than I wrote. So the comparison to last month is a bit off. In the future I will do all of my savings, borrowing and investing before I make this post. So I don’t end up doing other stuff than I what I have written here.

Due to the bad savings rate I’m not going to invest, or leverage anything this month.

I would like to have about 10 % in cash. As a buying opportunity if the market will crash (Which if think it will soon). I do not believe in market timing, and the only reason I’m not investing this month is because of the lack of my saving. It doesn’t make any sense to buy a low amount of shares, because of the fees it will cost me on the transaction.

I have invested this month though. I maxed out a tax-advantaged retirement account with 5100 DKK (800 $) with funds from my account where I borrow my money.

The money of that retirement account is not included in my networth. Because I won’t be ale to use those money until I hit the “cultural retirement age” of +65 years.

Hopefully I will have a better savings rate next month.

1# My Monthly Financial Independence Update

I thought it would be fun to share how far I have come with my financial independence project. I have always enjoyed watching other people’s numbers. And here I am. About to do one myself.

I have never understood why personal finance should be a tabu. But I can feel there is a slight resistance in me. Telling me that I shouldn’t tell everyone about my finances.

But here it goes:

 

This is how my allocation looks like September 2018.

I have about 465.000 DKK (72.500 USD) invested in stock index funds. Where 125.000 DKK (19.500 USD) is money I have borrowed to a rate of 1%.

And 58.000 DKK (9.000 USD) in cash.

My first goal is to have a SWR on 7% on my 110.000 DKK/year budget. Which is about 1.600.000 DKK (250.000 USD).

523.000 DKK / 1.600.000 DKK = 32,6 %

If I continue the way that I save, invest and borrow. I will hit my 1.600.000 DKK in about 36 months from now.

This month savings rate was at about 78 %. Which is quiet high for me. I have a 3 year rolling savings rate of 58 %.

This month I have chosen “only” to invest 5.000 DKK and leverage it with another 5.000 DKK so in total 10.000 DKK (1.500 USD). Because I would like to have som surplus cash when the market is going to tumble.

Never hesitate to contact me if you have any questions.

Cheers