Saturday, December 28, 2013

Self analysis 2013

In January I posted my financial goals for 2013.  It is time to review these goals and see how I did. For each goal I have given myself a grade from A to F.

  • Goal 1: "I save more than 65 percent of my net income in 2013". I ended up saving 65,2 percent of my net income. This number could have been even higher (maybe 70 percent) if I had been a little more carefull with my spending. Grade A. 
  • Goal 2:  "I have a net worth of more than $90,000 by December 2013". I reached $90,000 in July 2013 and ended up with almost $130,000 in net worth by the end of the year. The 2 main reasons behind this is (1) higher than expected income from my new job (since February) and (2) a very good stock market.  Grade A+.
  • Goal 3: " I have an emergency fund with $10,000 in a separate account by December 2013" I didn't reach this goal. I saved a lot more than $10,000 in the bank this year, but most of that money is tied up towards buying a home. I now have about $5,000 available for emergencies, but not in a separate account. I guess this goal will be on my goal list for 2014. Grade D.

Conclusion:
I accomplished 2 out of 3 goals, and ended up with the grades A, A+, D. Overall I am very happy with this year. I will soon post my financial goals for 2014. 

Wednesday, December 11, 2013

December 2013: $129,979 (+$8,668)

Bank accounts$70,528
Investment account$98,171
Pension savings$9,444
Student loan$–48,164
Net worth$129,979
Burn rate6,2 years
Savings rate65,2 %
Millionaire month   April 2025

Large increase in net worth mostly because I worked a lot extra in November. The last 12-16 months have been extraordinary, with relatively high income, low expenses and more than 20 percent annual return from my index funds. I surely don't expect the same rate of increase in net worth the next 1-3 years, but an increase of between $2,000 and $5,000 per month is realistic.