Our Financial Independence Journey: Monthly Update #51 (March 2021)

Hi everyone

It’s time for an update from March 2021.

We have been busy lately. With two kids, a new house under renovation, and maternity leave/full-time work.

I have had little time for anything else than working, spending time with the kids, and overseeing the renovation. It’s incredible how much time goes into renovating a house – all the small decisions really just add up. I am looking very much forward to having some free time again to focus on my own projects (like this blog), but that being said, I still find it very meaningful to build our dream home that we will live in for a long time.

The renovation has meant that we have not been able to save up money for a while and that doesn’t really go well with FIRE. So, what happened to our FI journey? It’s still very much on, and we have agreed to save and invest again following this period of constant cash outflow.

The March financials

Our savings rate dropped to 18% in March due to payments on the renovation. I expect this to continue for the next couple of months after which we plan to return strongly 🙂

Our total net worth has been increasing significantly this year. The primary reason is real estate price increases. The prices in our neighborhood have increased by more than 10% in 6 months. In addition to this, we have built a few extra square meters which also add to the real estate value. In essence, the money we do not save up and invest at the moment, we invest in the house which translates into real estate value. In the net worth split below, you will also see that real estate makes up a larger and larger part of our net worth (66%). The secondary reason is very good returns on stocks this year so far 🙂

If you take a close look at the net worth split, you will see that I longer have anything in cryptocurrencies. After increasing several hundred percent over my purchase price, I decided to sell it all and invest it in the house instead. I became tired of looking at the prices daily and decided that it was over for me. I might/might not regret this in a couple of years’ time 😉 Also, I have decreased my position in crowdlending slightly and shifted it towards stocks. I am targeting roughly 5% of my liquid assets in crowdlending.

That’s it for March!

See you next month 🙂

All the best,
Carl

4 comments

4 comments

Jesper May 23, 2021 - 10:06

Hi Carl!

Great to follow your blog. Keep it up… One question from a fellow dane (and apologies, if this has been up before): How do you estimate the value of your house on a monthly basis?

Reply
Carl Jensen May 25, 2021 - 20:08

Good question, Jesper. I use Bolighed.dk and Dingeo.dk – the latter is the most precise for my new house. They update monthly and they have been quite precise (and relatively conservative) for my current and former house 🙂 I subtract the remaining part of my mortgage from the value.

Reply
Jakob April 9, 2021 - 14:03

I har et ret stort beløb låst fast i mursten – nu kender jeg selvfølgelig ikke den totale værdi af huset, men ville det ikke give mening at hæve realkreditbelåning til 80% og investere proceeds? Personligt har jeg ikke noget imod at investere frem for at betale gæld ned, når renterne er så lave som realkredit.

Reply
Carl Jensen April 10, 2021 - 08:23

It’s a great point, Jakob. We are currently having a look at our loans. Personally, I like the idea of paying off the principal. If we decide to pay off less and invest, it is basically leveraged investing, but I believe we will go for a 50/50 split 🙂

Reply

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