Networth

Networth Update – 10/2019 (October)

In October all went smoothly. Our Networth continues to grow at a good rate per month.

Vacation = relaxing time

Since we were some in time on vacations this month and we are sitting in some cash i have made de decision to invest in two new P2P platforms. I’ve funded 3k in Monethera and 2k in Wisefund.

Summary:

Values will be settled with next months pay. Our Networth value for September is 387 737.70€ (+1 294.57)

Hightights of October:

  • Invested in two new P2P Platforms – Monethera and Wisefund.
  • Steady ETF portfolio (+2%)

Assets:

Investment accounts

  • ETFs Portfolio: 23 039.71 € (+314.30)
  • Retirement Accounts (aka PPR): 13 488.95 € (– 13)
  • Certificates Deposit + Emergency Fund: 33 872.98 € (-4 826.92)
  • P2P Portfolio: 15 592.03 € (+5 206.56)
  • Total Investment accounts: 85 993.67 € (+680.94)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Rental property: 254 378.75 €
  • Farms: 70 000 €
  • Total Real Estate: 624 378.75€ (=)

Cars

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

Total Assets: 749 872.42 € (+680.94)

Liabilities:

  • Primary Residency: 193 962.12 € (-334.23)
  • Rental property + Farm: 168 172.60 € – Both are comprised on the same loan (-279.40)

Total Liabilities: 362 748.35 € (-613.63)

Our Networth drilldown looks like this:

You can follow our Networth status always here

Neuschwanstein-castle

Monthly Update – 10-2019 (October)

October was quite a busy month. Sorry for the late posting but work has been quite hectic.

This month i was again for a full week working in Munich the good thing was that Mrs.Firecracker joined me in the middle of the working week. We used a voucher she had from TAP (The trip ended up only costing 100€ back and forth) and she stayed with me, thus no Hotel costs until we actually started our vacation.

We stayed in the Bavaria region, went all the way until Bayreuth (Wagners town), Nuremberg and then using the Romantische Strasse road which goes all the way south through some really nice medieval villages up to the Neuschwanstein castle next to the Austrian border!

Neuschwanstein-castle

Germany was quite lovely in this time of the year. We used afterwords the Alpen road to drive until Salzburg. It was a different Halloween i would say. The black forest can get really foggy.

As any other vacation this also had a cost in our budget (~900€) but luckily we saved quite a bit with the voucher. On the side of the extra expenses we had 440€ for roof repairs in the building we live in. The roof is in very poor conditions and the guy doing the repairs is on a trial since if this goes well he will be also doing the facade of the building.

I don’t know if i mentioned this but our facade is in poor condition and currently almost feels like we are going to have a hole in our wall everytime it rains. Lets hope he can start the work asap and solve this. Construction labor is rea lly lacking in Lisbon right now. Work ethics is bad, they dont return phone calls, when they do they will anwser they are busy and that YOU should try to get in contact in them maybe in a couple of weeks.

But enought with the talking, lets go to the numbers, here goes our October monthly update ! We will be focusing on the operational part. Income vs Expenses vs Savings rate.

Income

Salaries: 3 733.84 €

Expenses

Housing

  • Mortgages: 1 101.26 €
  • Insurance, Condominium, etc: 49.74 €
  • Utilities (Water, Lights, Gas, Internet, Phones): 122.07 €
  • Total Housing: 1 273.07 €

Cars

  • Fuel: 57.39 € (No need to use car when i’m travelling 🙂 )
  • Maintenance: 55.41€
  • Insurances: 129.55 €
  • Transportation (parking, tolls): 30.90 €
  • Total Cars: 273.25 €

Health & Personal items

  • Consultations & Exams: -18.96 € (Reimbursement of last months expenses and other normal expenses for this month)
  • Clothing: 12 € (i’ve bought several shirts for work and we had a wedding)
  • Total Health: -6.96 €

Food

  • Grosseries: 272.52 €
  • Eating-out: 294.70 € (Damn..still over our 200€ budget)
  • Total Food: 567.22

Misc

  • Home repairs: 440 €
  • Vacation: 965.84 €
  • Others: 9.20 €
  • Total Misc: 1426.03 €

Total Spent: 3549.11 €
Budget for the Month: 2 685.78 €

Savings Rate

SR = ((Income – Expenses) / Income ) x 100 = ((3 733.84 – 3 549.11) / 3 733.84 ) x 100 = 0.05 % or 184.73 €

Our Networth still keeps on growing (you will be able to check on my next post) but we are still quite a bit above our monthly budget.

Next Steps

We will sign the final contract to sell our Rental property. Only Vodafone remains to be cancelled. This will be another fight. Lets see. Some expenses my occurs from this.

Hopefully we will get all the renovations needed in our building and also our apartment.

Want to see how our Networth is going? Check here

Monthly Update – 09-2019 (September)

September was a great month in Portugal! Lots going on as usual!

This month was Mrs.Firecrackers birthday and we had several celebrations. We had dinner in a nice place with friends, we hosted our family for some home-made pancakes (our nephews loved it!) and of course i took Mrs.Firecracker for a lovely candle like dinner in Lisbon. Or was she who took me? I don’t remember 🙂

Additionally, we went for a boat ride with some friends in the Tróia area (next to Setúbal). I’ve rented a speedboat (yes, i’m also allowed to be a captain from time to time) and we enjoyed so much!

Just have a look into this area. They have a somewhat sand island between Tróia and Arrábida which is just awesome. We managed to make a picnic with some wine, cheese, fruits…ahh..a day to remember.

Our friends were a bit scared when we went into high tide areas and we navigate against the wind but…its all part of the adventure! Definitely something i would enjoy doing more often.

I went for a 4 days trip to Munich for work and i could attend Oktoberfest for free since some business partners invited me. You don’t have to pay to get it but you do have to pay for food and drinks and they can be quite expensive! I’m always down for some free Oktoberfest invitations! For those of you who don’t know what Oktoberfest is check here.

Basically, its a huge beer festival done in the end of September where Bavarian folks (Germany state of Munich) dress in their traditional clothing, salute each other with 1 Liter beers, eat lots of pretzels, pork knee and schnaps (Bavarian Licour). It goes without saying this is the town event for the whole month since usually around 6 million visitors go there.

While at work i also managed to get some free lunches and another dinner in my boss place which is always nice. Overall Munich is a great city i don’t mind coming back once for a while.

Summing up, i still had some expenses which will only be reimbursed next month (~1.5k). This made our budget go quite higher this month. I’ve removed from our budget the hotel and plane which land in a different account and have only maintained the transportation & food while i was there.

Another highlight this month was that we had a wedding event on which we wanted to give a good gift (300€). Usually the values in Portugal are lower, around 150€ but this was a close friend so we didn’t mind.

Finally i managed to do a medical procedure that was pending to check for a bacteria which likely runs in my family. I’m waiting for the lab results but since i had to be knocked-out for the exam it was quite expensive (175€). Luckily my company insurance covered a big chunk (~130€).

Next month i will also be going to Munich and Mrs.Firecracker will join me since we will have 1 week vacations afterwords. It her first time and i hope she likes it!

Here goes our September monthly update ! We will be focusing on the operational part. Income vs Expenses vs Savings rate.

Income

Salaries: 3 521.02 €

Expenses

Housing

  • Mortgages: 1 101.26 €
  • Insurance, Condominium, etc: 49.74 €
  • Utilities (Water, Lights, Gas, Internet, Phones): 70.02 € (lower due to the mistake of the energy company last month)
  • Other Housing expenses: 46.20€
  • Total Housing: 1 267.22 €

Cars

  • Fuel: 269.60 €
  • Maintenance: 55.41€
  • Insurances: 129.55 €
  • Transportation (parking, tolls): 131.20 € (Work related Uber & Metro)
  • Total Cars: 585.76 €

Health & Personal items

  • Consultations & Exams: 176.26 € (Medical procedure)
  • Clothing: 151.64 € (i’ve bought several shirts for work and we had a wedding)
  • Total Health: 327.90 €

Food

  • Grosseries: 268.20 €
  • Eating-out: 450.84 € (Around 200€ above our budgeted values, here goes my food in work trip ~70€ and also birthday related food)
  • Total Food: 719.04

Misc

  • Wedding: 300 €
  • Rest: 309.8 € (Mrs.Firecracker birthday gift, Boat rental, etc. We also had the credit card yearly payment ~41€. We only have it because it collect miles we can use on trips)
  • Total Misc: 609.8 €

Total Spent: 3 509.00 €
Budget for the Month: 2 685.78 €

Savings Rate

SR = ((Income – Expenses) / Income ) x 100 = ((3 521.02 – 3 509.00) / 3521.02 ) x 100 = 0.34 % or 12 €

This was a different month with several 1 time expenses. Nonetheless, our networth kept on growing. We also had a wedding gift from my colleagues of around 90€ which was respectfully saved.

Expectation is even tough we will have 1 week vacations in October that we should resume our budgeted values.

Next Steps

To lower down our costs and right after signing the Rental property selling contract i’ve cancelled Gas and Electricity (got a ~35€ credit, yes…first they take and then make the adjustments…). Water cancellation is scheduled and i’m trying to negotiate with Vodafone since i still have 7 months of contract. They seem very adamant on making me pay the rest of the contract ~300€ and there i’m trying to increase our primary residency internet/TV package. Better than having it doing nothing in the rental property.

We should expect some building renovations to take part in next months as well. Our building roof as not been clean for a while and some of the leaks caused the facade of the building to deteriorate. This made an ongoing hole in one of our walls…meaning. Urgent fixing before the rain season starts!

Want to see how our Networth is going? Check here

Networth

Networth Update – 09/2019 (September)

In September we have some news! Remember i told your about an apartment we had for sale ?

Rental property (Short update)

Well, we accepted the 305k offer and signed the preliminary agreement. In Portugal they call this CPCV (Contrato promessa compra e venda) which is a contract between the buyer and the seller on which the buyer signalizes intention to close the deal in the next 60 days. In case the deal doesn’t come true the buyer loses the money and in case i wouldn’t like to sell anymore (or whatever reason) i would have to reimburse the buyer in double.

The apartment has been sitting empty for the past 5 months and it was just a money drain, so now we fell much better all will be solved! To be honest i didn’t expect it took so long to sell due to the prime location, maximum 3 months… But i guess the market is slowing down?

Summary:

Now, lets drill the numbers! The progress is not so great this month due to a trip i had to do for work (~1.5k). Usually i’m able to get the money from the company and i don’t have to advance our own money. In this case since the trip was booked with some time in advance, well…its just how it is. Values will be settled with next months pay. Our Networth value for September is 386 443.13€ (+1 037.56)

Hightights of September:

  • Advancement on the rental property – 40k – of which we used ~10k to pay half of the mediation fee. We will be paying the other 10k once we sign the contract. This anyhow means i’ve taken ~30k from the apartments value to not inflate our Networths value.
  • Finally i was able to move my pension fund to my current employers fund. For the past 5 years i’ve known nothing about this value. Zero transparency. I’m now able to see how this value is progressing.
  • Cash that was in another broker was finally brought together in Degiro and almost all invested today!
  • Not so usual expense. Had a 4 day trip for work to Germany which was booked last month. This means i will be reimbursed on next pays (~1.5k). Otherwise our Networth would be bigger this month!

Assets:

Investment accounts

  • ETFs Portfolio: 22 725.41 € (+354.27)
  • Retirement Accounts (aka PPR): 13 501.95 € (+700.66)
  • Certificates Deposit + Emergency Fund: 38 699.90 € (+29 870.70)
  • P2P Portfolio: 10 385.47 € (+104.52)
  • Total Investment accounts: 85 312.73 € (+31 030.15)

Real Estate (Based on Market Values)

  • Primary Residency: 300 000 €
  • Rental property: 254 378.75 € – removed the signal 30k here (– 30 621.25)
  • Farms: 70 000 €
  • Total Real Estate: 655 000€ (-30 621.25)

Cars

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

Total Assets: 749 191.48 € (+408.90)

Liabilities:

  • Primary Residency: 194 296.35 € (-333.91)
  • Rental property + Farm: 168 452.00 € – Both are comprised on the same loan (-294.75)

Total Liabilities: 362 748.35 € (-628.66)

Our Networth drilldown looks like this:

Firecrackers Networth

You can follow our Networth status always here

farm_portugal

Retire in Portugal

Lets start with the major assumption! We will Retire in Portugal! Therefore, i believe you guessed the theme of the post!

I will start by quoting a fellow FIRE living in Portugal, Mr Obvious Investor that with his post shared several of the living costs in Portugal. I would like to make a few comparisons about our current budgeted living costs and the ones explained.

Remember my post about milestones and goals? I have refered that currently our budget is around 2k monthly even tough we believe once we reach FI we would be able to achieve 1.6k monthly. Below is the drill-down:

Scenario 1 (Current 2k monthly expenses) – Retire in Portugal

For this one to be more realistic, i’ve removed the Rental apartment costs since this is something – as i have explained in this months update here – that will be removed as a cost. A drill-down into the categories and budget.

CategoryBudget
Housing €        599.81
Energy €          60.00
Telecoms €          67.39
Water €          20.00
Grosseries €        200.00
Auto Insurance €        129.55
Auto Maintenance €          58.74
Auto Gas €        240.00
Parking €          55.00
Professional expenses €          16.50
Hobbies €          40.00
Clothing €        100.00
Health €        122.00
Eating Out €        200.00
Others €        113.59
Total €     2,022.58

As you can see we have some costs which can be related to not yet achieving FI like maintenance, gas and insurance with 2 cars. This would be the cost of living for a family of 2, no Kids and living in Lisbon city center (owning the place, not renting). We also have a generous buffer for health costs which can be mostly free in Portugal.

Scenario 2 (Future – FI – 1.6 monthly expenses) Retire in Portugal

For this scenario i’ve made a few adjustments like reducing almost to 0€ the housing costs. We have to still pay IMI which is a tax to the municipality. I’ve considered the scenario that we move to our farm which is located ~55 minutes driving from Lisbon which is paid in full.

I’ve also reduced Auto insurance, maintenance and gas to half since i do not expect we need more than 1 car once we reach FI. This can be a challenge since me and Mrs.Firecracker are used to move independently. I’ve maintained all other values. Values are the following:

CategoryBudget
Housing €       50.00
Energy €       60.00
Telecoms €       67.39
Water €       20.00
Grosseries €     200.00
Auto Insurance €       64.78
Auto Maintenance €       29.37
Auto Gas €     120.00
Parking €       15.00
Professional expenses €       16.50
Hobbies €       40.00
Clothing €     100.00
Health €     122.00
Eating Out €     200.00
Others €     113.59
Total €  1,218.63

Whooaa. Values are even lower than 1.6k ! This is good news right? But is it doable?

Conclusions

Do you think its doable to live outside of Lisbon with housing payed in full for the cost of 1.2k monthly (14.6k yearly)? Well, lets even assume 1.6k (19.2k yearly).

I’ve seen many people pointing to their FI goal in Portugal to be around 1M or even 1.2M . Are they considering an extra Ferrari? Im really wondering how they come up with this values and would be interested in your opinion fellow reader.

And with Kids ? How much do you think i would need to add to our budget? Would the buffer of ~400€ monthly be enought?

Summing up, those would be our values for retire in Portugal. Scenario 1 would be applicable to our current spending living in Lisbon and Scenario 2 to living in our Farm outside of Lisbon.