Financial update #6

Two major financial things have happened since my last financial update in February: the corona virus and we moved to our new house!

The house

Lets start with the house! We knew that we wanted to remodel the top floor and also that we would have to buy some new stuff (se post on that here) so we took out a slightly bigger loan that we needed for the actual house to have a cash buffer. We sold our apartment with a profit so we could do this without reducing the down payment that we brought with us from the apartment. This meant that all the extra expenses connected to the house was coming straight from our buffer so it didn’t affect our monthly expenses.

We haven’t started to fix things in the garden yet since we have to have an approved inspection of the outside first. Some of our bigger plans for the garden are a fence, a larger patio and building raised beds for our garden so there will still be expenses that will come out of the buffer but for now we’ve kept quite close to what we were planning to spend. An unexpected large expense was having to buy a new bed which we thought we wouldn’t have to do.

Our monthly expenses aren’t that different from our apartment. The montly payment is about the same and we only have a slightly higher rent payment on our mortage. We will have to pay for heating of our house and water which was included in our monthly payment for our apartment. Since it is summer we expect this to go up a lot during the winter so we will have to see the average cost per month once we’ve lived a full year in the house. Another expense that has been added is for our home alarm. All of the neighborhood has it pretty much so we didn’t really have a choice unless we wanted to be singled out as the only house without an alarm.

The corona virus

Let’s say that it is quite unnerving to see your investments being reduced by a third in only a couple of days. I am very glad that I have read alot about personal finance and investments and could keep my cool. Since we have such a longterm plan for our money what happens over a couple of months doesn’t really affect us. There will be plenty of ups and downs over the years and this was our first test. I am glad to say that we didn’t panic but non the less we avoided to check our balance except for our monthly run through of our finances and pretty much stuck our heads in the sand. The strategy was a success. We have been putting money in every month as usual and now in July our investments have gotten back to the level they were before corona (but then we have of course been putting money in during this time). So our nice curve had a little dip during the spring. I am still hoping that we can achive our goal of hitting our milestone 10% of our FI number but we’ll see.

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