Welcome to the December Networth update! Last one of the year 2020. i will be doing another post on how we matched our 2020 Goals so I will be focusing as usual on how our month went.

December

Fear not! We are both healthy 🙂 We just some had some high extra expenses this month due to some routine exams and consultations. Since they happened last in the month we havent got any reeimbursment yet. I’ve also went 2 times to osteopathy consultations and that alone were 100€. Yeah..i’m not doing so many sports has i should and that reflects in some ocasional back pain.

We also got my anual bonus with an extra company bonus this month which is always great.

Mrs.Firecracker enrolled into a course and the first year tuition is ~700€. We took advantage of paying the whole value and getting a 10% discount.

How about the rest?

Christmas was nice! Except for the fact that we couldnt join all our family members due to COVID, nonetheless we still managed to pass the 24th dinner with my parents and 25th with Mrs.Firecrackers. Our nephews got to enjoy opening gifts many times and so did we. This year i’ve given to my family a list of books that i’ve have ordered (7/8 books) and they could donate whatever they felt like. They all managed to get funded and i received them all as a christmas gift.

Another Reno round

There are now some threads regarding the new building we bought.

1- Construction: We had a meeting with the architects and finalized the “final version” and the “possible version”. They will now discuss the budget with the contractor and see if that is still inline with the first estimation we got. We need to keep a leash on the 150k threshold.

2- Tax gains “Mais-valias”: Here is the tricky part. I’ve now contacted a fiscal laywer to help us figure this one out..so apparently since in our contract we didn’t state exactly that our capital was coming from the sale of the house i’ve done in the past, the Portuguese IRS considers that between the money we put in – 136k – each of us gave 50% of it. Which is not the case…we are trying to see if we can get to put that small sentence there…not sure if this is possible.

Additionally, they also exclude taxes and banking fees from the capital we put in and only consider the cost of the property minus what we got financed, in this case 355k-242k = 113k. This amounts to almost 23k! Yes of course thats not a cost. Why would it be? Its cheap change right? I need to keep pragmatic while dealing with the IRS…thats how they get you, if you get emotional it wont help..

Savings Rate

On the savings rate part we managed to save ~26% of our income which is lower than usual and could definitly be improved. Something to do after the rental building is finished. For 2021 i antecipate a lower savings rate as stated in previous updates since our investment building is currently not generating any income.

December Summary:

1) Extra expenses : 700 € the course, 200€ above our eating out budget and 400€ more on health expenses.

2) Projects: So i’ve finally got the payment from the invoice i’ve given back in July (YEY!!!) The hardest 200€ i’ve ever waited…guess being an entrepreneur will have a lot of this…I’ve also gotten +500 € from a keynote i gave in an university in December.

Now, coming to our monthly networth…

Summary:

Our Networth value for December is 456 587.61€ (+2 599.40)

Assets:

Investment accounts

• ETFs Portfolio: 30 315.94 € (+383.94)
• Retirement Accounts (aka PPR): 16 961.03 € (+612.23)
• Certificates Deposit + Emergency Fund: 52 599.28 € (+ 811.13) 
• P2P Portfolio: 7 546.99 € ( – )
• Total Investment accounts: 107 423.24 € ( +1 807.30)

Real Estate (Based on Market Values)

• Primary Residency: 300 000 €
• Farms: 70 000 €
• Rental House: 414.500
• Total Real Estate: 784 500€

Cars

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

Total Assets: 931 423.24 € (+1 807.30)

Liabilities:

• Primary Residency: 189 163.60 € (-349.21)
• Rental House: 285 672.03 ( -442.89)

Our Networth drilldown looks like this:

You can follow our Networth status always here