I hope you are all doing well!
I have had a busy month with lots of things happening on the blog and at work – and I managed to get quite a decent savings rate 🙂
What happened in August?
I had my birthday in August and turned 27, which means that I am getting closer to my target of being retired at age 33. For that to happen, I will need to increase my savings rate though.
In August, I decided to do two things regarding my investments:
- I changed my investment portfolio to have less exposure to the US. I decided to include a European index (15%) and an Asian index (15%) together with my USA growth index (10%) and USA value index (10%), and my world index (20%). The latter is also quite reliant on American companies.
- I decided to jump on the crazy cryptocurrency train and invested a fixed amount of $2,500 (I will not invest more or withdraw anything). I know it is nothing more than a lottery ticket, but looking at the megatrends surrounding blockchain and cryptocurrencies, I decided to take a position for the long-term. I’ll write a post about exactly what I’ve done soon.
August was a quite busy month on the blog too:
- I have finally managed to write roughly a post per week this month
- I am increasingly getting emails from lots of people with different opportunities – some of them include compensation for various tasks. I am still struggling with how to balance this and I am trying to be as open about these opportunities as possible if I am going to accept them
- I finally decided to change my shared hosting provider after having been with iPage for many years. I changed to SiteGround, and I can’t believe how fast my website has become and how good the customer service is. I should have changed provider many years ago
- Traffic was relatively flat from last month. I had two insane days last month with lots of traffic because of my fastest growing blog list, so I knew that it would be tough to beat. Despite this, sessions and pageviews grew by 4%, and on a daily basis I am consistently getting more traffic which is great. Towards the end of August, I have started receiving a lot more organic traffic, so I am looking forward to seeing how that will go.
Last month, I decided to pursue three objectives, and I managed to deliver on two out of three.
I have achieved a savings rate of more than 40%, and I managed to front-load some of the writing with one post per week. However, I did not succeed in setting a date for a Danish personal finance meet-up. I really want to, but my calendar has simply not allowed setting a date in the near future yet.
The financials: How am I tracking on my early retirement goal?
My take-home income was 32,387 DKK (4,627 USD), and my savings rate was 42%.
My current assets are:
|Assets||1 September 2017 (DKK)||1 September 2017 (USD)||1 August 2017 (DKK)||1 August 2017 (USD)|
My total assets including pension of 240,888 DKK (34,413 USD) was an increase of 7.1% up from last month.
My total assets excluding pension of 134,939 DKK (19,277 USD) was an increase of 11.1% up from last month. This means that I managed to save 13,461 DKK out of my take-home pay of 32,387 DKK, which equals a savings rate of (13,461/32,387) = 42% (up from 27% last month).
As you can see, my stock index investments are still not performing, and it is now the sixth consecutive month (!!) that I have had negative returns. I know that I have to be patient and keep investing, but it gets harder each month 🙂
MoneyMow savings rate over time (%)
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My savings rate of 42% for August is good. In fact, it is my second highest savings rate ever! It is not perfect considering where I want to go, but I believe it is a good savings rate – especially compared to last month. I still have a target of pushing the savings rate above 50%, which I’ll try to do in the coming month.
Focus areas for the coming month
For the month of September, I have three focus areas:
- Aim for a savings rate of more than 50% (I know this might be a bit tough, but I’ll do my best!)
- Since I did not manage to set up a Danish PF meetup in the last month, I will make sure to do so next month
- I liked how I was able to write posts ahead of time this month, so I’ll try to front-load in September as well
Favorite posts of the month
Once again this month, I had the pleasure of reading great posts by FIRE bloggers:
- Steve from ThinkSaveRetire wrote a great piece on his “I quit” letter – it sure captures many of the things that I do not like about corporate life
- Tub of Cash had a really interesting post on the topic of how playing video games can give you an edge in life. I grew up playing video games as well, and I also feel that I learned a lot from it – even though my mom would probably not agree.
That’s it for this month. As always, let me know if you have any questions or comments.
Thanks for following my journey!