Category Archives: Monthly update

Networth

Networth Update – 07/2020 (July)

Welcome to the July Networth update! Networth increase of 1.6k, returning to normal!

On July we had awesome weather here in Lisbon and we started slowly to go for drinks in the afternoon with friends and relatives.

Praia do Pego (Carvalhal) - ATUALIZADO 2020 O que saber antes de ...
Pretty much the beach we usually go

We also have some great news since after several months of search (and negotiation!!) we can finally announce that we will be buying a house! And not really any house i believe its fair to consider it a small building since we will 5 fractions to let! I will explain more down below.

Talking about good news i also gave my first Keynote speach in an executive program in a major known Portuguese university. Not only was it fun to share what i do, meet other executives from other companies (always good to increase network) and get paid for that !

July Summary:

1) Portfolio swings, coming back to values close to may (-1,89%) .

2) Saved 32% of our income (1347.37€ / 4181.13€). A little bit higher due to Mrs.Firecracker extra work this month.

3) Projects. If you recall my last post i explained 5 3 side projects i was working on besides my regular job. I will be giving an update on those from time to time since this could have a big impact into our financial progress.

Project A Implementing a solution end-to-end for health (video, triage, IOT and analystics). Progress: I’ve quit from the partnership. Me and several other partners didnt think our product was good enought to apply for the RFP. Nonetheless, one of the partners holding the most needed technological piece decided to go alone. All i can wish is good luck!

Project B with 1 partner doing a market analysis for implementing new player in the European market for the mobility + energy area. Progress: No news here. And i’m expectant to hear any news soon…

Project C – Consulting project for a major telecom player. Progress: We had a sit-down with the responsibles from the project and told them we need to act since the market is moving. They decided to ask us for a proposal to implement a showroom into their offices around september and we will comply. Here i expect to gain around 2.5k for a small project.

The domotics project was delivered to the customer and was submitted for financing here we wait for the results!

Project D – Since the beginning of this month i’ve decided to (similar to project C) do consultancy for other companies. I’ve partnered with a marketing agency that for now has brought different opportunities (and also, lets say…different working methods 🙂 ). Nevertheless, we managed to land a project with a furniture company and we should sign the deal end of August. This will be a 24 month contract that will net me ~22k. Monthly it will mean ~1.2k, just for one customer!

4) P2P world.

45.1) Wisefund – Nothing new. Some comms from Wisefund but no interest or principal returned yet.

4.2) Mintos – Nothing new…some people claim that interest is being paid but unfortunetly i have a lot still on hold in Monego and nothing got paid..

4.3) Monethera – still same. Nothing new.

5) New House: Finally! So this will be a 220 m2 house with 4 floors (Sub basement, basement, ground floor and attic). It also has a nice garden with around 100m2. All of this in the center of Lisbon and close to 3 major universities (2m driving). Sweet.

So how will this turn out?

This will be an aquisition & construction process. We are all set with the aquisition but the construction part will be a first for us. specially when it comes to credit for this process. We are king of struggling since the bank asks for many details that we will need to adapt only after the construction is very close to start..

Does it make sense financially?

Yes! We have 2 ways to measure this. Value & income.

For value we can calculate how much the house is worth and how much it will appreciate during the years to come. As they say you make money on the buy not on the sell. Despite the value metric since we are not going to fully finance the deal we need to account for funding expenses and what to actually do with the asset. This is where income comes to play. With income we calculate how much we could monetize the asset (rents, etc) minus costs (Morgage, repairs, taxes, etc).

Value

The house will cost us 374k (355k selling price + 19k buying expenses). We will take a credit of 242k for the aquisition and 110k for the construction. We need to do major remodeling otherwise we wouldn’t of course catch this awesome price!

In Total this will cost us 374k+110k (we are considering constrution to be fully financed) = 484k.

Despite the worth of the asset (location, facilities, degradation, etc) income can also influence the value, since the logic is the bigger money generator the most valuable the asset is.

In this case a building / house with 5 independent apartments (and another potentially with 20-35m2), namely 4×1 Bedroom apartment and 1×2 Bedroom apartment, newly refurbished, with river view, 100m2 garden in a decent Lisbon municipality neighborhood minimum price would be 700k.

Even considering that Portugal had the 4th largest GDP drop in the European Union – see here – i would have to say that for 700k you will not find a 100m2 garden for comparable buildings and this makes all the diference in Lisbon center.

Income

There were several simulations we did and already accounting for COVID19 rents impact. Currently we are also within a rental “moratory” which means since 1st April 2020 and until September (we will see if this wont be extended) several new rules come to enforcement:

  1. Financial support for tenants and guarantors of students who have no income from work and who, due to their loss of income, are unable to pay the rent. These tenants can access an interest-free loan granted by the IHRU to pay the rent due. The amount of this loan is equal to the difference between the monthly rent due and the amount resulting from applying a maximum effort rate of 35% to the household’s income. In no case shall the household’s remaining disposable income be lower than the social support index (IAS).
  2. Impossibility of cancelling rental contracts due to non-payment of rent during the state of emergency and provision for a special period for the payment of rent due for households with a significant drop in income. These tenants are required to pay the outstanding rent during the following twelve months in monthly instalments (not less than one twelfth of the amount due), paid together with the rent for each month. The landlord can only terminate the agreement if at the end of those twelve months the debt has not been paid in the prescribed manner. If during this period the tenant wishes to terminate the lease, he or she is obliged to make immediate payment of the unpaid rent.
  3. An indemnity for late payment of rent (in normal circumstances, equal to 20% of what is due) cannot be claimed in the event of late payment of rents in accordance with this scheme. Landlords on low incomes who have proven to have a significant loss of income due to non-payment of rents under this bill and whose tenants do not use a loan from IHRU, I.P. to pay the rent may apply to IHRU, I.P. for an interest-free loan to offset the amount of the monthly rent due but not paid.

See more details here.

What does it mean for us?

Well..its means rents will adjust to the crisis as always and we need to be carefull to not rent to someone who might take adantage of this moratory. If the moratory will indeed be extended and our construction ends before that. We plan it will take around 3 months. Summing up, this will mean a 1 bedroom ~50m2 (not refurbished) that would be rented by 600-700 € might likely drop to 550 €. A 2 Bedroom that would go for 900-1000 € might likely drop to 750-850 €.

As stated previously we have other factors in our favor like the garden and the fact that the whole thing is brand new, but we like to be conservative on this and by our calculations income would be as follows:

  • Attic – 500 €
  • Ground floor (2xbed) – 800 €
  • Basement left – 600 € (larger area)
  • Basement right – 600 € (larger area)
  • Sub-basement right – 700 € (has a private part of the garden)
  • Sub-basement left – 500 € (potential)

Total: 3 200 € (Gross) – not counting the potential one!

The costs we will have are:

  • Mortgage – 865.80 € (with insurance already)
  • Anual tax – 12.5 € (150 / 12)
  • Rent income tax – 896 € (3.200 x 28%)

Total: 1 425.7 €

We still have some factors that might influence this like apartment occupancy (good rule of thumb is 80% calculation) and emergency nest for repairs. Even in this case we will have 5 years warranty on the construction.

Bottom line: ~ 17k net income per year. Taking in account we spent 135k of our savings its almost 12.5% return. Not bad 😀

What does it mean for our FI?

If you recall one of my first posts about our 2 milestones for FI we set our first objective in 1.600 € monthly and the second at 2.000 € monthly. With this deal we are very close to hitting our first milestone (even without moving to the countryside). AND! If we can use the potential other apartment our monthly income goes to 1786 € (3700 – 1036 – 12.5 – 865.8 ).

Now, coming to our monthly networth…

Summary:

Our Networth value for April is 410 376.76€ (+1 672.56)

Assets:

Investment accounts

  • ETFs Portfolio: 27 877.81 € (-538.06)
  • Retirement Accounts (aka PPR): 14 652.93 € (+466.06)
  • Certificates Deposit + Emergency Fund: 101 202.47 € (34 105.28
  • P2P Portfolio: 7 545.14 € (+ 1.96)
  • Total Investment accounts: 156 284.05 € ( –34 175.32)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Rental investment: 35.500 (signal given for the preliminary contract)
  • Total Real Estate: 405 500€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 601 284.05 € (+1 324.68)

Liabilities:

  • Primary Residency: 190 907.29 € (-347.88)

Our Networth drilldown looks like this:

You can follow our Networth status always here

Networth

Networth Update – 06/2020 (June)

Welcome to the June Networth update! Networth increase of 6.8k, hummm nice progress!

June was an overall good month! We had our first wedding aniversary ! yeyy

Anniversary Gifts: Best Wedding/Marriage Anniversary Gifts Online ...

We have also started to see again some friends in local caffes with outside tables and proper care.

This was the month of receiving our vacation paychecks and our tax return. We also learned that our major Portuguese airline is in trouble and the state will bail them out witch means “Grandkids, be prepared to pay for this..”.

We are still looking for any good real estate deal since all forecasts point to a GDP crash of 10% in Portugal. Usually in crisis thats when the best deals are made.

June Summary:

1) Portfolio went up significantly (6%) . Lots of swings but going in the upright way!

2) Saved 74% of our income (7042.22€ / 9479.31€). Best month ever!

3) Projects. If you recall my last post i explained 5 3 side projects i was working on besides my regular job. I will be giving an update on those from time to time since this could have a big impact into our financial progress.

Project A – Implementing a solution end-to-end for health (video, triage, IOT and analystics). Progress: We should soon receive a RFP for our project. We have decided to do some POCs for free to get trackion on the solutions and also since one of the requirements of any RFP is usually number of customers.

Project B – with 1 partner doing a market analysis for implementing new player in the European market for the mobility + energy area. Progress: Project on hold until the Customer representatives come to Lisbon. Planned for September.

Project C – Consulting project for a major telecom player. Progress: First lead still in decision. Another 2 leads on the pipeline.

In the meantime i’ve decided to pick up another project about IoT and Domotics for a Rural turism in the north of Portugal. This was a speedy proposal since we (me and the partner that invited me) did it in 2 days. Lets see how it turns out! Some really nice solutions which if they make sense – and i will know this while implementing – they could potentialy be applied in the farm 🙂

4) IRS: Finally! We got 2 380,26 € as a tax refund.

5) P2P world.

5.1) Wisefund – New projects announced and according to the website interest replayment should start in the end of July.

5.2) Mintos – Nothing new…some people claim that interest is being paid but unfortunetly i have a lot still on hold in Monego and nothing got paid..

5.3) Monethera – still same. Nothing new.

5.4) Robo.cash – Full exit.

Now, coming to our monthly networth…

Summary:

Our Networth value for April is 408 704.20€ ( 6 795,87)

Assets:

Investment accounts

  • ETFs Portfolio: 28 415.87 € (+1 073.95)
  • Retirement Accounts (aka PPR): 14 186.87 € (+246.40)
  • Certificates Deposit + Emergency Fund: 140 313.45 € (+5 127.06
  • P2P Portfolio: 7 543.18 € (+ 0.86)
  • Total Investment accounts: 190 459.37 € ( +6 448.27)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Total Real Estate: 370 000€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 599 959.37 € (+6 448.27)

Liabilities:

  • Primary Residency: 191 255.17 € (-347.60)

Our Networth drilldown looks like this:

You can follow our Networth status always here

Networth

Networth Update – 05/2020 (May)

Welcome to May Networth update! Networth increase of 3.2k, yay!

With the COVID situation things are progressing as planned. Places start to open up here in Portugal (Lisbon) and people are going out. For me personally i will only “need” to return to the office somewhere around September or October so this date was pushed for now.

To be honest i kind of prefer it as i stated previously. Much more chances to grow my prospect projects and collaboration.

This month was also my birthday and we celebrated within reasonable means. Mrs.Firecracker ordered some seafood for lunch and we had a feast ! We also had some hotdogs for dinner and my parents came by for some cake (wearing a proper mask).

Pin on What I Would Eat
Something like this.

May Summary:

1) Portfolio went up not significantly (only 2%) but we are in the break-even part. Meaning regaining not only all the losses of the market crash and shooting upwards.

2) Saved 29% of our income (1185.43€ / 4121.07€)

3) Projects. If you recall my last post i explained 5 side projects i was working on besides my regular job. I will be giving an update on those from time to time since this could have a big impact into our financial progress.

Project A – Implementing a solution end-to-end for health (video, triage, IOT and analystics). Progress: We onboarded a 4th partner and have decided to implement a fully free POC in the Portuguese market. I guess this month we will see if we can walk the talk.

Project B – with 1 partner doing a market analysis for implementing new player in the European market for the mobility + energy area. Progress: Partnership extended to evaluating startups for a Canadian business organization. This is moving well and my partner is really pushing for the topic.

Project C – Sucess fee partnership. There is a mature product developed by one of my partners for ticket management. He chargers per user of the tool. – Progress: All halted. Not only sucess should be transmitted. I was unable to find any customers for this solution. I will drop this project.

Project D – Consulting project for a major telecom player. Progress: we have made some slide decks to present to potential customers. Commercial developement is progressing slower than expected. We have now a lead to push a project proposal so lets see how that goes.

Project E – Currently this started as a pro-bono consulting for Augmented Reality implementation in hospitals. Good news is that we made a presentation to a hospital group board and they might be interested in doing a POC. I have many partners here since the CEO of the company is surgeon. Good thing is that we have the field experts already onboard. I cannot calculate any payout for now but we are planning to apply to some european grants and since my partners are all very well placed and senior this should be attainable. Progress: Project halted. Nobody available to lead the project so i decided to jump-out.

Bottom line i’ve decided to re-focus and this still means a lot in the pipeline.

4) IRS: Still no anwser here. They had the nerve to say in national news they are deliberately taking more time to process..

5) P2P world.

5.1) Wisefund – still same. Nothing new.

5.2) Mintos – Nothing new. Everything seems to be stopped.

5.3) Monethera – still same. Nothing new.

5.4) Robo.cash – Full exit.

Now, coming to our monthly networth…

Summary:

Our Networth value for April is 401 908.33€ ( 5 605,08)

Assets:

Investment accounts

  • ETFs Portfolio: 27 341.92 € (+548.28)
  • Retirement Accounts (aka PPR): 13 940.47 € (+109.96)
  • Certificates Deposit + Emergency Fund: 135 186.39 € (+3 241.12
  • P2P Portfolio: 7 542.32 € (– 1048.69)
  • Total Investment accounts: 184 011.10 € ( +2 850.67)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Total Real Estate: 370 000€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 593 511.11 € (+2 850.67)

Liabilities:

  • Primary Residency: 191 602.77 € (-347.31)

Our Networth drilldown looks like this:

You can follow our Networth status always here

Networth

Networth Update – 04/2020 (April)

Welcome to April Networth update! Ding dong our Networth is up 2k since the start of this year. Not bad considering we are in a pandemic and we managed not only to recover all the losses but to increase 😀

Still working from home and should continue for May & June. Actually i don’t mind. Missing the ocasional going out but it gives more time to focus and increase our FIRE speed!

April Summary:

1) Portfolio went up 11% since last months end. We are now very close to break-even. With still some ETFs with a long way to go like REIT.

2) Saved 46% of our income (1955.76€ / 4223.75€)

3) 200 € extra from a consulting project i had. I took the advantage of being at home to start working in several parallel projects. Remember my goal of 10k for 2020? here

Project A – with 3 more partners implementing a solution end-to-end for health (video, triage, IOT and analystics). 2 customers proposals sent. 1 in discussion and another preparing info. With this it should bring in income in case one of the first proposals is accepted ~600 € per month. If the other in progress is met this can be upgraded to 1k monthly. My allocation should be less than 4h week. One of the partners will take up a full-time job and ensure project execution. I will be in a advisory role.

Project B – with 1 partner doing a market analysis for implementing new player in the European market for the mobility + energy area. Here it should be expected 500€ monthly. This project can last 1 year and it will include several meetings with board members from major Portuguese companies.

Project C – Sucess fee partnership. There is a mature product developed by one of my partners for ticket management. He chargers per user of the tool. I will take a comission of ~40% per user. I’ve made a few contacts and should be able to sell 30 users which means 150€ monthly of return for me.

Project D – Consulting project for a major telecom player. This started has a pitch to one of the board members to hire me and another partner. Since things dont workout has we like they are conservative and wouldnt like to jump in into this technological field asap. This means i will setup a company and provide them with a POC implementation. They are choosing which customer from them to implement it. This could take ~4 months since analysis to implementation. Good news is that i should gather at least ~3k from this. They will pay for our consulting fee.

Project E – Currently this started as a pro-bono consulting for Augmented Reality implementation in hospitals. Good news is that we made a presentation to a hospital group board and they might be interested in doing a POC. I have many partners here since the CEO of the company is surgeon. Good thing is that we have the field experts already onboard. I cannot calculate any payout for now but we are planning to apply to some european grants and since my partners are all very well placed and senior this should be attainable.

Phew….thats enough. No more room for projects. I will only think in another things if one of those gets finished/dies/is on hold.

4) Still waiting for IRS to deliver the amount we payed extra last year. Usually they are fast but this year its taking its time…c’mon we need the 2.4k !

5) P2P world.

We continue to reduce exposure since credit moratory or freezing in the countries the LOs are applicable.

4.1) Wisefund – Still with 1 payment missing. They launched a survey this month. This should be on hold for the next months.

4.2) Mintos – Reduced exposure to 1k. Better than the 1.2k i had predicted. Now waiting for all the pending to come. Still stuck in Monego & Capital Service.

4.3) Monethera – still same. Nothing new.

4.4) Robo.cash – Reducing our exposure to ~0.9k.

Now, coming to our monthly networth…

Summary:

Our Networth value for April is 398 710.35€ ( 5 605,08)

Assets:

Investment accounts

  • ETFs Portfolio: 26 793.64 € (+2731.86)
  • Retirement Accounts (aka PPR): 13 830.51 € (+692.89)
  • Certificates Deposit + Emergency Fund: 131 945.27 € (+3 178.38
  • P2P Portfolio: 8 591.01 € (– 1 334.19)
  • Total Investment accounts: 181 160.43 € ( +5268.94)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Total Real Estate: 370 000€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 590 660.43 € (+5268.24)

Liabilities:

  • Primary Residency: 191 950.08 € (-336.14)

Our Networth drilldown looks like this:

You can follow our Networth status always here

Networth

Networth Update – 03/2020 (March)

Welcome to March Networth update! For the past 2 weeks i’ve been closed at home. Luckily neither me or Mrs.Firecracker have felt any health related issues and the pandemic is not as severe as in Italy or Spain.

Since i work in IT i’ve been having even more work (nobody takes easter vacations) and i’m now engaged with a potential new business venture. Lets see if it goes anywhere. Nevertheless i also manage to sleep more (or go to bed later) which makes me attend some morning work meetings in my Pijamas.

278 Best men's pajamas images in 2020 | Pajamas, Lounge wear, Mens ...
How i think i look like
How i most probably look like

When it comes to our finances March was not a boring month at all:

1) Invested 5k into our ETFs on the 19/March when our positions took a drop of ~25%. Currently we are still on the red but i’m not concerned.

2) Saved 23% of our income (873€ / 3769€) – with 2 extraordinary expenses

2.1) One related with roaming on a work trip i made to Switzerland. duh! I forgot about roaming after landing and my company didnt pay for it…

2.2) We changed our bed with my mother-in-law and during the move the company broke the entry window of the building. Since we are in Portugal of course they claimed it was not their fault and stopped picking up the phone. Result? 112 € extra expense.

3) Remember my January update “Taxes After selling an apartment” ? Well, we were waiting for the Tax simulation which started in April 1st and after speaking with another accountant option B is the one to go. This means that in order to avoid paying taxes on the surplus of the deal we will need to invest 136k into our next apartment / house and use it has a primary residence. Additional to this we are filling for the first time our taxes together and the taxman owes us ~2.4k, meaning we will get some extra income. (Not really, this is money IRS took that it was not suposed to…)

4) P2P world.

We continue to reduce exposure since credit moratory or freezing in the countries the LOs are applicable.

4.1) Wisefund – Managed to sell an investment in Wisefund. We now have 3 projects there and one of them didnt pay this month (suposed to do on the 31-03-2020)…

4.2) Mintos – Reduced exposure from 1.9k to 1.8k and hopefully to around 1.2k by end of April. We still have 600€ pending from Monego and now more LOs are starting to default.

4.3) Monethera – Not possible to reduce exposure and we currently have 5k there. Projects didnt pay this month since we were informed that their offices are closed to the pandemic. They claim to be back when this is over…so lets see.

4.4) Robo.cash – Reducing our exposure to ~1.5k. Short term credits in countries which will also suffer from lenders not getting their money back.

Now, coming to our monthly networth…

Summary:

Our Networth value for March is 393 105.27€ ( -2 742,10)

Assets:

Investment accounts

  • ETFs Portfolio: 24 061.78 € (+2110.98)
  • Retirement Accounts (aka PPR): 13 137.62 € (1 402.23)
  • Certificates Deposit + Emergency Fund: 128 766.89 € (2 830.31
  • P2P Portfolio: 9 925.20 € (– 956.36)
  • Total Investment accounts: 175 891.49 € ( 3077.92)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Farms: 70 000 €
  • Total Real Estate: 370 000€

Cars

  • Mr.Firecracker Car: 20 000 €
  • Mrs.Firecracker Car: 18 000 €
  • Scooter: 1 500 €
  • Total Cars: 39 500€ (=)

Total Assets: 585 391.49 € (-3 077.92)

Liabilities:

  • Primary Residency: 192 286.22 € (-335.82)

Total Liabilities: 192 286.22 € (-335.82)

Our Networth drilldown looks like this:

You can follow our Networth status always here