There we are! 2018 is over and we are now in 2019. This also means that I will take you with me for the first time in my Dutch FIRE journey. From now on I will show my progress every month in the field of personal finance. I will tell you all about what the past month has done, my current financial assets and what I expect from the next month.
Last month: December 2018
For me, December 2018 was dominated by the start of my Dutch FIRE Journey and this blog. There is still a lot to look at to start a blog and there is quite some time in it. I have already made the first blogs and put them online, so that is certainly a good start. Also, it was, of course, the month of Christmas. This unfortunately meant a lot of spending. It is only Christmas once a year, so we must also be able to enjoy it. In addition, there were the necessary expenses for the trip that me and my girlfriend in February are going to make to Florida, America. This was quite a bit of money, but that is also part of it.
Then there was some negative news. I got involved in a car accident, where someone drove on my car. The car is total loss and unfortunately I also have some damage. This means that in December I had considerable costs for arranging replacement transport. These are costs that I will get back from the insurance company of the woman who drove on me, but I still have to pay these costs first myself. I hope to get these costs back in the summer of 2019, but do not count on that for now.
My current financial assets
My Take-Home salary was € 1.946 and my savings rate was 36% (€ 703).
My current financial assets as of 1 January 2019 are:
Cash: € 3.405
Index funds: € 562
Mutual funds: € 2.931
Total assets: € 6.898
This is my current situation. The stock market didn’t do well in December, so I had some loss in my index funds and mutual funds. However, I’m in for the long term, so it doesn’t matter that much. No panic from my side.
What is good to realize is that I also save pension through my work. Because this pension is only available from the age of 68, I will not include this in my financial asset overview, after all, it is not money that I can easily access and will only be available in the future.
My savings rate over December 2018 was 36%. What I mean by my savings rate is the percentage that remains for investment and saving of the Take-Home salary that I have received in the past month. I’m happy with the savings rate of December, considering it was a expensive month with payments of the upcoming holiday, Christmas and the car accident.
What do I expect from next month?
It’s a new year, so it’s time for a fresh start. Thanks to tax cuts on wages, I expect to have a higher net salary from January. Unfortunately, there has been an increase in taxes on things like food, so the costs will also rise slightly. All in all, the expectation is that purchasing power will rise in 2019 and we will have to expect this in January.
Unfortunately, there are also some huge costs in January for our trip to Florida, America. I have to pay the car rental and a hotel, so that will cost me some money.
Also, I will have some big costs because of the car accident I had last month. I will have to pay the physiotherapist, which I have to visit every week now since the accident. The insurance company will pay me back for these costs as well, but still… I have to pay them in January first.
So January will unfortunately not be a good month in terms of saving. My goal for January is to live as soberly as possible, to keep the costs as low as possible. I hope to have a savings rate of around 5-10%. In addition, I want to start working with this blog full of energy and I hope to put at least 4 blogs online.
Thanks for watching this first update. If you have any questions for me, let me know in the comment section down below. See you next time!