It's the net worth that we need to reach by 2030 in order to never have to work again. Ever.
I find it cool to introduce this new net worth update blogposts' series so that this blog is a bit more transparent, which will make me more accountable to you. It'll only help me stay on track. And on your side, well, it allows you to satisfy your voyeuristic side ;)
By the way, if you want to see all the articles in this category, you can use this specific link: mustachianpost.com/category/net-worth/.
Some elementary reminders
All figures below are in CHF (potentially converted from their base currency at the current exchange rate).
In terms of assets, the only thing I don't take into account is our good old Toyota Prius because uno, it's worth about CHF 3'000-3'500 max (insignificant amount compared to our total net assets), and secondly, I see cars as a gulf of financial depreciation so clearly, no, it's not an asset for me.
Finally, if you're wondering how I can calculate all my net worth without spending hours every month, it's actually quite simple:
- All my accounts, real estate properties, mortgages, etc. are listed in YNAB, the unique tool I use to manage my global budget
- I export monthly an Excel file from the section "Reports" > "Net Worth" > Select the previous month
- And I put this into a homemade spreadsheet to compute the difference from month to month (let me know if it's of interest to you via the comments, I could detail it in a dedicated article)
And here is how July went
CASH FLOW AND SAVINGS (-CHF 4'046.94): I take into account what I owe on my credit card in this category. But clearly we're running out of cash flow right now. We will restore the situation over the next few months with dental reimbursements (long live the children :D) and future salary increases to come (shush, I didn't tell you anything!)
STOCK MARKET INVESTMENTS (+CHF 7'932.77): The market is still growing and my first investments in value are already showing positive signs (don't think it works like that because it normally takes at least 2-3 years to see such effects). Ditto, I updated the value of the few shares I have in my company (new value comes in July) and it is still on the rise.
COINBASE SPECULATION (-CHF 40.66): After a good rise in the last few months, we're in bear mode now. Good speculation as we don't like it on this blog, limited to this first and last investment of 1'100€.
MP'S 2ND PILLAR (+CHF 602.85): Filling my second pillar as usual.
MRS.' MP 2ND PILLAR (+CHF 35.92): It's not huge but it's normal because there's a change of job in the air right now, and this point should increase in the next quarter :)
MP'S 3RD PILLAR (+CHF 3'888.45): I explained you in my last journal article how much I hated my pillar 3a compared to my wife's pillar 3a at VIAC where everything is ultra-transparent. Well, I managed to get a little more transparency with mine thanks to.... a screenshot. I'm trying to get the factsheets up to date on the certificates to try to find out more about what has happened in terms of performance over the past few years.
In any case, it's a good news because my cash value (which I had via the screenshot, which I had to ask for because well, too much transparency could hurt them :)) has gone up by almost +4kCHF. I'm at that point now, being happy for +4kCHF vs. my 6.5kCHF paid...
MRS' MP 3RD PILLAR (+CHF 921.69): Oh, here we go, let's talk about something I'm more pleased about. My wife's 3rd pillar at VIAC (see my full article on this subject) follows its way by taking advantage of the bull market. As a reminder, we pay CHF 564 per month, to fill it up to a maximum of CHF 6'768 deductible from taxes (oops, no, it's CHF 6'826 in fact in 2019, I have to change our automatic transfer!) so that makes about CHF 350 of increase in market value.
APARTMENT AND MORTGAGE IN SWITZERLAND (n/a): Nothing special about that. Until I have done an evaluation by a market professional, I do not play with this value. And regarding mortgage level, no repayment in sight for the moment because as we are at an insurance company (FINMA directives different than for financial institutions...), we can only repay our second mortgage tranche at the legal retirement age (65 years ^^). We'll see what we do until then.
RENTAL BUILDING IN FRANCE (n/a): Same as for our apartment in Switzerland, no price speculation. We'll wait until we want to sell it to make an evaluation.
MORTGAGE LOAN IN FRANCE (+CHF 727.45): A very French thing is this willingness to repay the loans (compared to us in Switzerland at least). In any case, from a financial point of view, we can't hide it: it's very cool to see your capital increase thanks to the rents that are paid. On the other hand, I don't get excited too much yet until we have passed the first and second year of ownership because French taxes will come in, but if everything goes as planned (thanks to my favorite tool Rendement Locatif for that), we should reach the break-even point right away thanks to the new 2019 French legislation which taxes "only" at a rate of 20% (instead of 30% until then) when the rental income perceived in France by a foreign resident is below 27'519€.
SCI (SOCIÉTÉ CIVILE IMMOBILIÈRE, REAL ESTATE INVESTMENT COMPANY IN ENGLISH) IN FRANCE (+CHF 273.87): As explained for our mortgage loan, I don't get too excited about this positive cash flow (I sketch a slight smile at most) until the French taxes have taken their share of money. But at least we're not in the negative :)
That's it for July! With CHF 372'961.45, we are gently approaching the CHF 400'000 level.
Compared to our financial independence target of CHF 2'156'000, we are currently 17% of the way.
I'll see if I can keep up with the monthly rhythm of this publication, but I like it so far.
I advise you to do the same because it allows you to step back once a month, which helps you make decisions on budget issues in order to stay on track on your way to financial independence!
And by the way, how was last month for you? Big variations or the usual routine?