Our Financial Independence Journey: Monthly Update #42 (June 2020)

Hi friends,

Better late than never this month – let’s have a look at how June went down.

Personal life: What happened in June?

June was a great month with decent weather and a few weeks of vacation in Denmark.

It feels like most of Denmark is back to normal after the coronavirus pandemic peaked here a few months ago. We have seen friends like we usually do and enjoyed going to restaurants and cafes again.

We have started looking at whether we should buy a summer house or move to a house in the suburbs recently since raising a family in Copenhagen is not how we envision our future. We have not decided what and when yet.

During the past month, I have spent most of the time with my family and on a few hobby projects. I have so many things I would like to do but simply not enough time.

As you might have noticed, I haven’t posted as frequently as I would like to on the blog, but it’s not because I have become lazy. I have many projects ongoing and I hope to be able to reveal some of them on this blog in the future.

Financials: How are we tracking on our FI goal?

Once again we have had a great month in terms of our financials.

Even small changes in the market can lead to quite big changes in absolute terms to our net worth.

After crossing the 3.000.000 DKK (460.000 USD) mark last month, our net worth has continued to increase. This is primarily due to the stock market.

We ended up with a savings rate of 39%, which is just below our 12-month average savings rate of 41%. We know we spent too much money in June and have decided to make July a more frugal month.

Our combined take-home income was at 81,663 DKK (12,563 USD). We managed to save 31,821 DKK (4,896 USD) resulting in the 39% savings rate.

Our net worth increased by 2.9% this monthΒ adding close to 100,000 DKK (15,000 USD) to our net worth in a single month.

Our total combined net worth at the end of this month is 3,106,382 DKK (477,905 USD).

34% of our assets are liquid meaning they can relatively easily be converted to cash.

Let’s take a look at our investments.

All of our assets yielded a positive return last month (except CC but who cares?).

Stocks indexes increased by 5.8% meaning we are back above pre-coronavirus levels.

Pension investments increased by 2.6%.

Our real estate net worth increased by 0.7%, and we have received indications the net worth might be higher these days given market conditions.

Crowdlending increased by 1.0%. No comments here – just crossing my fingers it will continue being a stable investment.

Lastly, cryptocurrencies fell by 7.4%.

All our three financial independence goals increased this month:

  1. Three years’ expenses in savings: 72.5% (up from 68.1% last month)
  2. Optimistic FI goal: 46.9% (up from 44.5%)
  3. Traditional FI goal: 12.0% (up from 11.4%)

We are getting closer to having three years’ expenses in savings (a good chunk of FU money) and to the half-way point of our optimistic FI goal (with an SWR of 7% and some passive income).

Blogging: How did key metrics develop on MoneyMow?

MoneyMow continued to decrease slightly and I suspect it is partly due to a lack of updating the site more frequently and a drop in search engines.

The metrics on the blog last month were:

  • Visitors: Number of visitors was 5,020, and decreased by 22% compared to last month
  • Page views: Page views were 6,928 and decreased by 29% compared to last month

Favorite posts of the month

My favorite posts of the month were:

See you in August πŸ™‚

Onwards,
Carl

4 comments

4 comments

Nick @ TotalBalance.blog July 8, 2020 - 09:36

Exciting times! I know that you probably knew that I was gonna comment on this one πŸ˜›

I don’t want to be that annoying “adult” who tells “the youngsters” what to do, but one thing that I would urge you to consider – if you’re thinking about moving – is where/what sort of environment you want your daughter to grow up in, and also more importantly: which school you want her to attend. If you want her to go to a private school (any), you need to sign her up NOW.

So my advice to you would be to sign her up to any school in a 10km radius from where you’re currently looking at houses. I know where you work, and I know where you live, so I think I can imagine which areas you’re currently looking at πŸ˜›

We’re very happy with having moved “out of the city”. There’s just something about nature that’s calming and soothing πŸ™‚ If you live close to water that’s even better! πŸ˜› Unfortunately now there’s no shadow of a doubt that my daughter is going to grow up to become a horse-girl…Big, expensive, and smelly. Great. That’s what you get for moving to the countryside! πŸ˜›

Which cars are you looking at then? πŸ˜‰

Reply
Carl Jensen July 9, 2020 - 20:02

It’s a piece of great advice that I will follow for sure – and you are right about the location I guess πŸ˜‰ I have always wanted her to go to a public school, but I guess it doesn’t hurt to sign her up.

We are looking at a cheap, used station car, so anything in between a KIA and a VW I guess. Any tips?

Reply
Gentleman's Family Finances July 7, 2020 - 21:59

Thanks for the shout out and glad that you liked my post on hillwalking.
Just a shame that you live in one of the flatest countries on earth!
I should know – I’ve cycked over your Danish fjord and didn’t break a sweat.

The move out of Kopenhagen – is that prompted by the virus or for other reasons?

Reply
Carl Jensen July 9, 2020 - 20:01

I did indeed! πŸ™‚ And yes, Denmark is flat, so we go for distance instead of heights, I guess!

The move out of Copenhagen is prompted by wanting to have a garden primarily. The apartment feels a bit small now that she is walking around.

Reply

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