Our Financial Independence Journey: Monthly Update #24 (December 2018)

Our financial independence journey


We have reached the last month of the year, and I am sure I’m not the only one who feels like the past year has been flying by at an insane speed. A lot of things have happened this year, which will be the focus of my yearly recap in next month’s update.

As you will see in this month’s update, it has not been a normal month, since we have a negative savings rate.

Personal life: What happened in November?

November was our first month of having combined finances, so we spent time on setting it up in spreadsheets and reconfirming some of the talks we have had about spending. I am confident we will be able to figure it out, but we also agree that if it doesn’t work out, we can separate it again.

November was also the month of Black Friday, Cyber Monday and what not, and I decided not to buy anything in particular, but instead donate some money to UNICEF. I’m not opposed to people buying things on Black Friday if they really need the things and have planned to buy it at a discount, but I also believe we should donate to charities as I do every month.

As of late November, we have now embarked on our mini-retirement and it is amazing. We are traveling in LCOL areas and are just enjoying time off work. It is an amazing way of testing elements in our post-FI lifestyle and I will make sure to follow up on this in the coming months.

In the beginning of November I got some great news. I have been promoted quite some time before I expected it, which means new exciting opportunities professionally and a 30% (!) salary increase. This will obviously make a big difference in our monthly take-home income and boost our savings rate.

Financials: How are we tracking on our FI goal?

The bad news of the month is that we got a negative savings rate. Since we are now on our mini-retirement, we will not be getting any salary in the coming months (except for a few weeks of vacation and a good bonus on the way). This obviously means that the next couple of months will have a worse savings rate than normally.

Our savings rate for November ended at a horrible -174%. This is my worst savings rate ever. This means that we obviously spent way more than what we got in salary, but this was expected since we didn’t plan on getting salary this month due to our mini-retirement.

MoneyMow savings rate over time (%)

Our combined take-home income was 19,236 DKK (2,959 USD) and we managed to spend 52,647 DKK (8,100 USD) resulting in the -174% savings rate excluding income from the blog. This is mostly because of travel-related expenses, a much larger heating bill than expected and a low income for the month.

Our total combined net worth is 2,326,429 DKK (357,912 USD) and declining -1.6% last month due to low income, high spending on the mini-retirement and another sharp drop in cryptocurrencies.