It’s time for yet another monthly update as we are already a few days into May.
Personal life: What happened in April?
This month was a great month with lots of vacation being used in the sun.
My wife and I spent some time and money refurbishing a room in our apartment we have long wanted to do and thought it would be wise before the baby arrives (you’ll see the financial impact of that on this month’s savings rate).
I had some unused vacation I used over Easter, so half of the month was spent in the sun with high temperatures that arrived early in Copenhagen this year – and I was not that busy at work in the remaining weeks. People say it’s good with some decent time off before you get a baby, so I guess I can consider that done 🙂
Financials: How are we tracking on our FI goal?
Financially, April wasn’t the best month. While our net worth increased, our cash holdings went a bit down given the refurbishment of our house. You could potentially include that in real estate gains, but that would be too much speculation, so for now they only count as a negative.
In April, we managed to get a savings rate of 16%. This is well below our target of 50%, but I expect our savings rate to increase again in the coming months. Most larger purchases for our baby have been made and there are no big expenses on the horizon.
MoneyMow savings rate over time (%)
Our combined take-home income was at 75,836 DKK (11,667 USD) and we managed to save 11,881 DKK (1,828 USD) resulting in the 16% savings rate excluding income from the blog.
Our net worth developed positively this month reaching yet another all-time high nearly reaching 2.5 DKKm in net worth. Despite decrease in cash, the growth in net worth was driven by stock, pension, crowdlending and cryptocurrency returns and real estate price increases.
Our total combined net worth is 2,494,633 DKK (383,790 USD), which is 2.0% higher than last month. Most of our assets are illiquid:
Liquid assets still make up 28% of our total assets with a value of 708,819 DKK (109,049 USD).
Illiquid assets still make up 72% of our total assets with a value of 1,785,813 DKK (274,741 USD).
Investment returns were positive and good for April except for bonds (the most boring investment in bull market times).
Real estate prices increased with 1.1%.
Pension increased with 1.1% (excl. employer contributions).
Stock indexes increased with 2.6% last month leading to a grand total of 13.8% this year until now excluding dividends. Pretty good start on 2019!
Bonds decreased with -0.2% (boooooring!).
Crowdlending increased with 1.0% continuing the nice and steady climb.
Cryptocurrencies increased for the third month in a row with 10.2%, however, still below the level I bought them at.
We progressed on all our three financial independence goals this month:
For the first goal, we are 49.2% (up from 47.7% last month) of the way towards having three years’ expenses in savings.
For the second and third goal, we are 33.6% (up from 32.7% last month) of the way towards reaching our optimistic financial independence goal and 8.6% (up from 8.4% last month) of the way towards reaching traditional financial independence.
Blogging: How did income and key metrics develop on MoneyMow?
After a large increase in traffic last month, this month remained more stable (at the new high level) with a slight decrease.
The metrics stayed high at:
- Visitors: Number of visitors were 19,581 and declined with -5% compared to last month
- Pageviews: Pageviews were 27,180 and declined with -3% compared to last month
In April, I also published my yearly study of the fastest growing personal finance blogs of 2019. I love making the study because I find so many cool blogs doing it – and it is also received well by the always supporting personal finance community.
I have decided not to publish blog income monthly in the future because of three reasons:
- Reporting income gives a wrong picture of how much profit I make from the blog. I currently only report income, but I also spend money on hosting, plugins, marketing, taxes etc., and I can’t make a full P&L each month to give a correct picture
- It takes too much time compiling the income data from different sources each month
- It is nearly the only question people ask me on email, and I would rather talk about FI(RE) than how to start a blog
However, I will still publish my blog income on a yearly basis to ensure transparency. I’ll also still donate 20% of my profit to charities and document the amount donated by the end of the year 🙂
Favorite posts of the month
My favorite posts of the month were:
- Kathy at Baby Boomer Super Saver wrote a touching post about the hiddens costs of caring for a loved one. The post touched me deeply and is a topic (and risk for everyone) I had not considered previously.
- Young FI Guy wrote a review of the “Playing With FIRE” movie that I’m super excited to watch myself. I’m looking forward to showing it to friends and family to inspire them. I have big expectations for that movie.
- Mrs W at What Life Could Be wrote a post as an answer to SavingNinja’s monthly thought experiment about what to do when you retire. Being FI herself, I always love reading about the life on “the other side”.
That’s it for this month. Have a lovely May until we speak again!