January net-worth and upcoming plans

Hey folks,

After achieving over 50% net-worth growth in the past year, I decided to set up bigger plans. It took me a while to decide if I should or not move this blog to a new platform, but sadly I wasn’t able to find anything that suited my style.

January started great for me, I finished paying off one of my smaller credits and I allocated more money into paying more of my mortgage. It’s something that’s ongoing and doing this will be more advantageous for me in the near future.

Net-worth distribution

Allocating more money towards real estate created a big bump in my chart of assets allocation. The biggest change was in the real estate sector where I increased from 13.7% to 36.8% in just one month.

The chart will look very different once I will end up fully paying the mortgage and after sell the apartment. This will take some time, but it’s something that I planned to do this year.

I can’t predict when the recession will come but I can take care of my own finances. Managing my exposure in each asset category is important in this case maintaining a low level of risk in each category is my goal.

Savings rate

Things continue to go in the right direction with the saving rate, another great month when I reached a whopping 70.64% savings rate. It’s really important to keep the savings rate high, meaning that I’ll have more money to invest.

Bellow is a full chart with my savings rate, I was able to calculate some of the months back from 2017 and to recreate the full chart. I had some “bad” months when I went way over my head with some of the expenses. I guess that’s why keeping track of your finances is really important.

What else I have been doing?

Besides my focus on the real estate I also experimented with various trading platforms, but because of the fees I kind of got stuck to crypto trading at the moment. What I dislike in crypto trading is the fact that everything seems to be glued to BTC which is quite severe.

If BTC goes up, same thing is happening with other coins and the reverse is true as well. There are delays for a correction to take place and that’s when the opportunity arrises. I’ll see how much growth I can have in my account after a few months and then I’ll decide if I’ll increase my exposure in that area.

P2P lending

Everything went great in this area gut I had to withdraw some cash from my portfolio and to send it towards my real estate. Once I’ll close my mortgage and sell my apartment I’ll be able to reinvest more towards this area.

I started investing small in real estate platform Reinvest24 and I’ll keep track on how things will be going in the next few months. This platform is new in the investing market, they opened to the public last year and they are doing a great job so far with over 10 million euros invested!

The best part is that you can become a long term buyer, acquiring property with a one time cost and without a headache. They made this process so simple that buying real estate and taking care of tenants is just at a click of a button. I’ll keep you informed about how the investment in this platform will work.

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