On my last post i’ve started to analyse our 2020 goals and how did they went. I’ve started with the savings rate goal of 30% that we had and that we have hit the 31% mark.

Back in February i did a post mentioning our 2020 goals and they could sum up to the following:

Financial

• Savings rate at 30% – done (31%)
• Increase networth in 10% – done (15%)
• Starting a company and having revenue of at least 10k – 0€ in 2019, company not started
• Find a new property to invest (Optional) – done

Non-Financial

• Remodel the farm houses – we just had a small budget for some minor renovations in order for the main house to be usable. – not done
• Maintenance primary house – not done

Focusing on networth + new property:

We have ended 2019 with a networth of 396 667,95 €. Even with solid 2 digit growths without any significant change i did some calculations:

• Cash: Assuming a saving of 1.4k monthly which would mean ~30% savings rate. In line with our prior post and estimation.
• Portfolio: 5% increase
• P2P: 10% increase
• PPR: 35% increase – due to mostly contributions i do every month plus my employeer matching.

So, back in February when i did the post what i considered was a 22k increase which would mean circa +5% and the following:

Since that seemed like a low number i decided to put our objective in 10%, or +39k with a total of 435k to challenge us to find creative ways to increase our networth just more than our monthly savings.

Than we had covid and our Portfolio took a hit of almost -7% in February and -5% in March.

This meant a stable and slightly decreased networth up to March. Since March, well…everything started to improve.

Our investment in the portfolio paid off and not only this we recover what we have lost but we managed to get a ROI of 7,5% and IRR of 6,5% (discounting the 5k invested in March) from our ending value of 2019.

Networth moments of the year:

What a ride!

Starting in April, adding to almost 600 € less expenses in that month we managed to save ~2k and our portfolio started going up resulting in 5k networth gain that month.

In June we got our 13th month payment (vacation) together with our tax refund and a portfolio +1k bump.

In September (winner) we managed to find a rental building for 355k – below market value of which the bank valued it at 414,5k. Excluding the aquisition costs ~19k we ended up increasing out networth by 37k. You can see more details here.

October we had some extraordinary expenses – arquitects and gardner to clean the new aquired property.

In November we got our 14th month payment (Christmas) of which we managed to save a huge chunk of it together with a portfolio +1k bump.

To end nicely in December i’ve gotten my anual company bonus which gave us another 2.6k bump.

Conclusions

Our networth managed to increase by 15%, bigger than the 10% projected for 2020 and it keeps growing! I wonder if for 2021 we will be able to go double digits again.