April has been a mixed month – a lot of exciting things have happened in my private life, but it has had relatively negative impact on my journey towards early retirement.
I guess there will be ups and downs on the journey, so I am not packing – yet!
What happened in March?
From last month’s huge success with a savings rate above 60%, it was a disappointment to see it returning to 20-something.
Two things have primarily contributed to this:
- Moving houses: Damn, that is expensive. Moving cars, paint, new furniture, etc… I have been surprised by how much money just disappears through your hands when you have to move between apartments
- Vacation: I went on a prolonged weekend with a few friends and ended up spending more money than expected
Obviously moving houses is a one-off expense, but vacation and spending money with friends will be a recurring thing I will have to learn to deal with. Currently, my friends don’t know what I am trying to achieve in terms of financial freedom, so I will have to learn to deal with being together with friends around activities that cost money.
In March, I wrote a large article on the best personal finance blogs of 2017, and I got a lot of very positive replies from many bloggers in the personal finance sphere.
Despite many exciting things in my private life such as vacation and moving in to a new flat, I did not manage to reach my targets from last month regarding:
- Blogging frequently (minimum one post per week): I only wrote two articles in all of March, which is less than what I had expected.
- Engaging in the personal finance community: I managed to speak to a lot of cool people following the article on the best personal finance blogs, but I have not engaged in comments as much as I wanted
- Don’t let moving costs go out of hand: I have managed to keep moving costs down to some degree, but my savings rate still took a big hit
How’s that for a month? On top of vacation and moving, I have had a few really intense weeks at work, which means I have had very little free time to get anything done in. I’ll do my very best to improve on all of these in the coming month.
How am I tracking on my early retirement goal?
My take-home income was 29,524 DKK (4,217 USD) and my savings rate was 22%.
My current assets are:
|Assets||1 April 2017 (DKK)||1 April 2017 (USD)||1 March 2017 (DKK)||1 March 2017 (USD)|
The total assets of 105,039 DKK (15,006 USD) at April 1 means that I managed to save 6,457 DKK out of my take-home pay of 29,524 DKK, which equals a savings rate of (6,457/29,524) = 22%.
With a savings rate of 22%, I have more than 15 years until retirement. This is obviously much longer than I am willing to wait. My target savings rate is 75%, which will enable me to retire in 7.1 years and being financially independent.
Focus areas for the coming month
I have decided to have roughly the same focus areas for the coming month as last month. Thus, I will do my best to:
- Write an article once a week
- Engage in the personal finance blogger community
- Keep moving costs low and do not overspend on new furniture
Favorite posts of the month
Despite working long hours in the past month, I have managed to read a few golden articles, which I would love to share with you:
- Shoeaholic No More (Kayla) wrote a great article on what to do when your partner is a spender. This is something I can relate to and I believe being honest and sticking to a budget are two very important elements to succeed on a financial freedom journey with a partner who is not necessarily committed to the same goal
- Physician on Fire (guest post by The Happy Philosopher) wrote about whether you should rent or buy a home. Having just bought an (relative expensive) apartment myself, I found it interesting to hear his thoughts on whether or not you should buy or rent a home
- FireDK (a fellow Danish PF blogger, yay!) wrote an article on deciding to begin saving and a few practical tips on where to start
That’s it for this month!