After the shortest month of the year, it’s now March and it is time for a monthly update from February.
Let’s do this!
Personal life: What happened in February?
Our mini-retirement is now over and we are back at work. Taking those months off work was one of the best things we have done in a long time. There’s nothing like doing exactly what you want to do every single day.
We have had days of sleeping, days of being active and days of reading books from morning to evening. Even though I also like having more structure to my life, we have become even more certain that pursuing financial independence is the right thing for us. It gives us the flexibility to do what we want when we want it.
The contrast between a mini-retirement and being back at work is insane – it’s two different worlds – but it is amazing how fast you get used to both of them.
We are now counting the last few months before we’ll get to meet our baby later this year. My wife will be on maternity leave for nearly a year and I’ll have some months too. At the same time, I am becoming more and more certain I want to work less when we become parents. This will obviously influence my life positively, but perhaps our finances a bit negatively. We’ll see 🙂
Financials: How are we tracking on our FI goal?
February was a great month in terms of our finances. We managed to get back on track with savings and had decent investment returns.
In February, we managed to get a savings rate of 49%. This is close to our minimum target of 50%, and I’m pretty confident we can keep this up in the months to come.
MoneyMow savings rate over time (%)
Our combined take-home income was 75,836 DKK (11,667 USD) and we managed to save 37,405 DKK (5,755 USD) resulting in the 49% savings rate excluding income from the blog.
Given we worked a lot, we had relatively few expenses for food and we didn’t do too many expensive things in the weekends.
Our net worth developed negatively this month since the real estate prices in our area is going down (our apartment decreased 110,000 DKK (16,923 USD) in value this past month). I expect the value of our apartment to increase in the long run, but for now the effect is negative causing an overall decrease in our net worth.
Our total net worth decreased -2.0% in February only because the market value of our apartment fell. Liquid assets (stocks, cash etc.) actually increased 7.8% last month, but was kept down by decrease illiquid assets (real estate).
Our total combined net worth is 2,340,638 DKK (360,098 USD), which is 2.0% lower than last month. Most of our assets are illiquid:
Liquid assets now make up 28% of our total assets with a value of 649,646 DKK (99,946 USD).
Illiquid assets now make up 72% of our total assets with a value of 1,690,991 DKK (260,153 USD).
Investments had another good month in February
Real estate prices decreased with -7.0%.
Pension increased with 4.0% (excl. employer contributions) due to a good month for the stock market.
Stock indexes increased with 2.4% last month continuing a few months of good returns.
Bonds increased with 0.2% just like last month.
Crowdlending increased with 0.7% – it was not 1% this month since I added a chunk of money that is slowly being invested, so there’s a bit of money drag.
Cryptocurrencies increased for the first time in nearly a year with 26.1%. I’m not getting my hopes up for crypto anytime soon though.
As you know, we are pursuing three financial independence goals and all goals have increased this month:
For the first goal, we are 45.1% (up from 41.8% last month) of the way towards having three years’ expenses in savings.
For the second and third goal, we are 31.1% (up from 30.0% last month) of the way towards reaching our optimistic financial independence goal and 8.0% (up from 7.7% last month) of the way towards reaching traditional financial independence.
Blogging: How did income and key metrics develop on MoneyMow?
Again this month, the blog has been growing and I continue to be amazed by all the people visiting the site 🙂
The metrics developed really well:
- Visitors: Number of visitors were 10,983 and grew with 27% compared to last month
- Page views: Page views were 16,953 and grew with 10% compared to last month
- Income: Income from sponsors, affiliate and AdSense was 8,188 DKK (1,260 USD), which is a new record
I’m super thrilled that people are visiting my site and it is possible to make a little extra income on the blog. Thanks for making it possible!
Favorite posts of the month
My favorite posts of the month were:
- EarlyRetirementNow wrote a great piece on why you cannot use a “yield shield” to defend against sequencing risk. If you like detailed, fact-based posts on investments and safe withdrawal rates, you should read the full SWR series 🙂
- MyMoneyBlog wrote a post on why money can’t buy you more time. It is scary to see statistics on what your chances are of dying in the next 20 years. It was a great reminder for me to focus as much on living life to the fullest while we are here, and not only struggle to reach a certain FI number
- Abandoned Cubicle wrote a post about why getting promoted can complicate your early retirement plans. I can really relate to this, as I am in the exact same situation with my work. There’s many good reasons to leave, but also many good reasons to stay after getting promoted!
That’s it for February. I hope you are going to have an amazing March!