Financial update #5

I haven’t done a financial update in a while so I will go through our current situation and then hopefully keep a more regular update schedule. What’s happened since April 2019 is that we got married, bought a house, bought a car and sold our apartment. So quite a lot!! All of this has of course affected our financial situation.

Wedding

To start off with we kept within the budget of what we ourselves planned to spend on our wedding although we are forever grateful for the financial help our parents contributed with. We had saved up for our wedding in advance and saw this money as delayed spending and not savings while we were doing it. So the financial effect of the wedding was on our total net worth but didn’t affect our monthy savings rate or our monthly spending.

House

We then bought a house in September right after our first honeymoon! We had been looking on and off during the spring but found it really hard to find a small house. It is very important to us not to have a house that is too big with lots of extra rooms that we don’t need. We had a max size of 100 square meters but it was easier said than done since most houses built now are so big and older houses that were small at some point have been added to. We also wanted to be close to nature and not too far from the city so I could still work at my job. A house within these parameters seemed impossible to find until Mr LILs dad sent a link to a housing project he found. It was first come first served so we were the first ones and got to pick the house we wanted for a set amount. So no bidding war which was so nice! The house is 76 square meters, two floors, 3 bedrooms (although were turning it into two bedrooms), 2 bathrooms, kitchen, living room and a small garden with a porch. It’s right on the edge of a nature reserve, close to the water and not too far from the city. In other words perfect for us! It is of course more expensive than our apartment but not by a huge amount considering it’s a house. We made sure we were going to be able to not just afford it but be comfortable with the cost of the payments on the house and still be able to save at the rate we have planned.

Car

In December we bought a car. Our other car was costing us loads since there was always things breaking down. It was only a couple of years old but there was obviously something generally wrong with it so we threw in the towel and sold it just before christmas. We did a lot of research before we landed on a Kia Ceed. We wanted a reliable brand aka not prone to breaking down after the disaster of our last car, it needed to be a bit bigger since we plan on having this car for a long time and not too expensive since we had no intention of taking on a car loan. We bought a used car so it had gone through some of its depreciation even though it’s from 2019. We payed for the car with cash and also got financial support as a gift from Mr LILs parents. This like the wedding affected our net worth some but not that much since we count the value of the car as an asset.

We then sold our apartment at the end of January for a profit which was amazing since the market has done a deep dive since we bought the apartment three years ago and has just started to stabilize. Since it had been valued for lower than we bought it for we are so happy that it sold for more than we bought it for! This means that we won’t have to take as big of a loan as we thought which then increases our net worth and makes our monthy costs a little lower.

All the while the above mentioned things have been underway we have steadily been putting money into out money making machine since they haven’t affected our month to month saving or spending. I have made the graph below into quarterly updated instead of monthly so in December Q4 2019 we were at 7,7% of our goal. For 2020 our financial goal is to hit the milestone 10% of our FI number.

At the moment our total savings rate is at 37%. We are hopefully moving in to our house in April and will then find out what our new monthly spending and saving will look like.

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