dull numbers journal

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fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

dull numbers journal

Post by fog_tree » Thu Dec 01, 2016 1:13 pm

Just some numbers to keep track progress.
Liabilities: 270,754
Assets: 288,826
Net: 18,075

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Gilberto de Piento
Posts: 795
Joined: Tue Nov 12, 2013 10:23 pm

Re: dull numbers journal

Post by Gilberto de Piento » Thu Dec 01, 2016 5:29 pm

People around here love dull numbers. Throw in a lentil recipe and something about permanent portfolio and you'll have a popular journal! :)

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Sat Dec 03, 2016 7:32 am

I love number since i started school at 6.
At the age 6 a was able to calculate to 100 ..... old story.
Math was my favourite subject....
You people have so compounded numbers in your diaries.
My (local currency) numbers translate into:
2261 day to FIRE, or
pay off my mortgage (the only debt) and live 1 year from savings - pretty small :( , or
8,5 years living of savings with current expenses (including mortgage).
Low interest rates time - weird sytuation;
ARM margin 0,3%. Why should I pay my mortgage off right now?

bestintentions
Posts: 9
Joined: Mon May 16, 2016 8:29 am

Re: dull numbers journal

Post by bestintentions » Sun Dec 04, 2016 4:37 am

fog_tree wrote:I love number since i started school at 6.
At the age 6 a was able to calculate to 100 ..... old story.
Math was my favourite subject....
You people have so compounded numbers in your diaries.
My (local currency) numbers translate into:
2261 day to FIRE, or
pay off my mortgage (the only debt) and live 1 year from savings - pretty small :( , or
8,5 years living of savings with current expenses (including mortgage).
Low interest rates time - weird sytuation;
ARM margin 0,3%. Why should I pay my mortgage off right now?
It's an interesting question but no one can really answer it definitively.
The rate is historically low right now... Stocks are valued higher than ever. This means we are in for either a very long period with low growth or a single big equities crash / rate crash. Scenarios:

1) The rate could increase quickly and stocks could plummet leaving you in a worse situation without the ability to pay off the mortgage and much higher monthly payments.
2) Hopefully the rates will only increase with economic growth in the economy keeping the value of equities at the current "fully priced" levels. This will leave you with same assets and the possibility to pay off your loan but with a much higher payment.

So it only "gets worse" from here on for people with an AMR loan. There are no reasons not to pay out your loan if you have the ability. There are only reasons against keeping it (risk).

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Sat Dec 10, 2016 1:43 am

I agree with you @bestintentions in general. Risk management is very important and I should change my liability/asset ratio.But here, in europe, stock market is not so bullish. We have may difficulties and problems "in prices". My local market is still 20% below 2014's and 50% below 2008's because of many political issue, Brexit, fears about EU disintegration.
I think, I should start with directing all "new" money to flow towards mortgage as opposed to what I did in past.
My former goal was to create "stack of money" to keep my finanse more job-lost-resist.

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Sat Dec 10, 2016 8:15 am

What I really hate is unexpected expenses. It's not possible to avoid them so i decided to establish financial buffer to cover them (that was 1 y.a.). Buffer is now about 1 month earnings and growing of "extra" money e.g. tax deduction, children benefit and some payment's ending e.g 55,12 euro. As a matter of fact when I get paid i devide my money into many "pockets". Mortgage pocketd, fuel + bus pass pocked, grocery pocket, utilities pocket. There are easy to predict spendings. Of course, the biggest pocket is/was labelled "sawings". So when I get hit by of extra expense I withdrawal money from my "buffer" pocket without interfering my saving or any other pocket.

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Sun Dec 18, 2016 6:11 am

The last decade of december is a perfect time to summarize a year. I started with negative NW and credit card fully utilized. Somewhen in february I run across MMM blog. This caused a big change in my money approach.
I spend 2 months reading MMM post, sometimes 2 times, 3 times one. My eyes were widely open. Soon after I started to dig the internent searching similar blogs. That's way I went here to see so many FI/ ERE follower. Your stories induce me to organize my 'ad hoc' money attitufe in more organized way. Thanks for everyone :)

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Fri Dec 30, 2016 11:45 am

The end of december journal updates:
liabilities: 269,352
assets: 294.295 (except house)
NW: 24.943
emergency found: 3,300 (not included)
Goals for 2017 year are simple: increase NW to 100,000 (PLN) and decrease liabilities by 20%.
I think the money targets won't be a problem, but the rest ....
I need to consider WHAT i'm goimg to do when I reach FI/ERE.

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Sun Jan 29, 2017 10:30 am

Nothing really important happened to me this month. I did double mortgage payment and started my 'reduce the mortgage' target. I noticed that having reported spending helps me to reduce my spending.
liabilities: 267,200
assets: 299,100
NW: 31,900
emergency found: 3,800
Saving ratio : 4800/8500 ~ 56%
I updated my stocks portfolio values this gave me ~ 2,000 gains, but I don't want to do this every month because I want to avoid 'swing' portfolio value. It can only mess up my numbers.

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Mon Feb 27, 2017 12:09 pm

It was a really, really, really GREAT month. I've received my annual bonus and it was the biggest bonus in my life. I spend only 3% of it for a whim and 97% put to mortgage payment. I've reduded my debt by 5% so i'm happy with all of it. Also put some money to my emergency found to have this money for vacations. My numbers are as follow:
liabilities: 249,540
assets: 294,890
NW: 45,350
emergency found: 6,000
Last edited by fog_tree on Mon Feb 27, 2017 1:37 pm, edited 1 time in total.

MDFIRE2024
Posts: 36
Joined: Fri Jan 06, 2017 5:09 pm

Re: dull numbers journal

Post by MDFIRE2024 » Mon Feb 27, 2017 12:37 pm

Great Work. Keep going.

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Chris
Posts: 484
Joined: Thu Jul 22, 2010 2:44 pm

Re: dull numbers journal

Post by Chris » Mon Feb 27, 2017 2:31 pm

What is the target goal for your emergency fund?

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Tue Feb 28, 2017 12:46 pm

@Chris
There are sometimes unpredictable expenses like dentist services, car repair or house maintenance. I don't want to 'pollute' my monthly expences with 'one time shots'. So I decided to create reserve for such expenses the same way banks create reserves for 'to be lost' assets. I predict some spending and prefer to put some money aside than include this money now and exclude later. I hate to be surprised by one shot expenses.

fog_tree
Posts: 32
Joined: Tue Nov 22, 2016 12:35 pm

Re: dull numbers journal

Post by fog_tree » Tue Mar 14, 2017 11:56 am

A word about asset allocation:

Image

It looks like i have to much assets in stocks given my 5-6 years FI/ER targets.
I didn't consider ER since last year so I have to change my asset allocation to more defensive and at the same time reduce my mortgage. I'm not good at investing and it is so hard for me to predict market. I will go 'baby steps' way and spread in time stocks reduction and mortgage overpayment.

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