November - General overview

My Overview

Total portfolio: £24230(+593)
Debt: £1135(-1056)
External funds: ZERO
Car: No
Net Worth: £23095(+1639)

Investments UK: £8215(-296)
Investments overseas : £3606 ( same)
Cash: £1379(+1018)
Pension: £10442(-156)

Total Income: £2704(+1001)
Passive income: £1070 (41%)
Savings rate: 30.58%

Side hustle 2 value: £0
Side hustle 3 value: £374.48 (Profit October 202.29)
Side hustle 4 value: £683 (Funds spent:5083)

The year is almost over, and i did not get the expected results. For 2019 i will probably stop the cryptocurrency experiment (it was not a loss, but too close to it, as the total gain after one year is probably right under £3000) because the coins market is still pretty bear-ish. Matched betting was good as usual, given the amount of time spent for it. My portfolio had a slight increase, as i try to still save on First To Buy ISA and to pay the remaining debts. I need to re-work my strategy for the next year, as this year one was proved ineffective. Probably i will become a bit more conservative, given the Brexit approach and the complete chaos on shares market and crypto market.

Hope you have good news in the coming year. Merry Christmas and Ho-Ho-Ho!

Discussions with a 5-years old

Adult:
-One day we will die!
Child:
-But until then, every other day we will live!

August 2018 - Monthly report

My Overview

Total portfolio: £23647(-8672)
Debt: £2191(-1477)
External funds: ZERO
Car: No
Net Worth: £21456(-7195)

Investments UK: £8511(-8701)
Investments overseas : £3606 ( same)
Cash: £341(-362)
Pension: £10598(+383)

Total Income: £1703(-94)
Passive income: £183 (10.77%)
Savings rate: 30.58%

Side hustle 2 value: £4.10
Side hustle 3 value: £103 (Profit July 476.51)
Side hustle 4 value: £913 (Funds spent:4928)

I need to admit that i am an amateur, and all you need is lack focus for a moment for everything to go South. How shall i start? The experts use to state that a catastrophe is usually happening not because of one mistake, but a suite of at least 5 severe mistakes. Under 3 mistakes, we are still able to recover. Let's count my own. First, due to a moment of being distracted and not matching, I lost 400 on betting (Error no.1). Second, as you can see the side hustle number 4, if you did not guess, it is about cryptocurrency. Summer 2017, i made about 12.000 after investing 3000. All of them nicely invested. But Bitcoin was growing so fast, i was thinking that maybe i will make it second time. I did not want to take money from investment, so i made a loan. As you can see, the actual value of my loan is now £913, with 4928 spent. The loan is paid with the money invested on The House Crown, a sum of 5000 used one year ago (interest still to be paid). So i lost approx. 80% of what i invested in crypto. Greed is not always good. Third, the lovely Government found out that i need to pay £2200 as tax from some years ago (4-5 years ago, the last three are not yet calculated). I already paid 600, with everything to be paid in the next 4-5 months. Did i stop here? No, of course, i went to spend almost two thousand on two lovely holidays in August and September. (error no.4). And i used almost 500 from a credit card, with a very low interest, but still, error no.5. This is the story of how my net worth decreased with 25% (I have decreased with 7200 in 2 months).

What did i learn? Do not make any loans, if you do not have it cash, you cannot afford it. Whatever you do, check twice, and if it is to risky, just stop. Or, according to the previous rule, invest what you can afford to lose. Always pay your credit cards in full. And the final one, if you are having not enough cash, do not go on spending free.

Except all this ranting about my loss, the debt is clearing up nicely, the pension increase slowly every months, and my side hustles are not bringing much profit and are just using my free time. I will try a different approach, according to the Pareto principle, focusing 20% of my time on the activity that is bringing 80% of the results, and just stop doing the others. This series of unfortunate events will not deter me from my way, and i am restarting the quest adjusting my strategies once more. Main focus is on building a solid cash reserve, and only after to invest some more. I am thinking of maximizing my TSB account, as they are paying 3% up to 1500 and the Santander123 as they are paying 1.50% up to 15000. If you know a better alternative to keep cash available, tell me please.

Have a beautiful week!

G.

Relocating as saving option

As i read about some people struggling with the new achieved financial independence (really people, it this a real thing?), i decided to have some test runs, and to live for 10 days in two of the countries i was considering for retirement (this being Morocco and Italy - Sicily). I went to Morocco as i always wanted to see how it is to live in a hot country (as opposed to the rainy and windy Britain). And boy, how i could be wrong, as i am not prepared to live in a hot, tropical country yet. Test success achieved, and some lessons were learned. The second choice was Sicily, as the climate is more friendly, the food is awesome and i could use the full immersion in the Sicilian culture to speak my long forgotten Italian. This time was pleasant enough, and the results were positive, but i'm afraid that i could become bored over time if i lack a clear objective and some activity schedule. But that being said, one can be bored easily everywhere in the world, right. Sicily good points where 3-500 euro monthly rent for a nice flat or small house (why would you need more), food cost was 10-20% less than England if you cook, with 30-50 % less in restaurant if you don't - but still more expensive than the cooking option), the heat combined with a Mediterranean diet is keeping you from gaining weight, and you have seaside swimming ready nearly 6 months per year.

But this came with a cost - £1000 for Morocco and £820 for Sicily, both 10 days for 2 people. And included plenty of trips and exploring. In conclusion, now i need to build my cash reserves back, with should be not so hard as my next holiday is scheduled in May 2019.

Have a nice day!
G.

July 2018 - Monthly report

My Overview

Total portfolio: £32319(+44)
Debt: £3668(-255)
External funds: ZERO
Car: No
Net Worth: £28651(+225)

Investments UK: £17212(+537)
Investments overseas : £3606 ( same)
Cash: £703(-457)
Pension: £10215(+410)

Total Income: £1797(+293)
Passive income: £503 (27.98%)
Savings rate: 12.24%

Side hustle 2 value: £2.04
Side hustle 3 value: £476.51 (Profit June -0)
Side hustle 4 value: £520 (Funds:4528)

Total portfolio going up a bit, but the net worth increased with £337, as the debt is slowly decreasing. The investment in UK increased with half a grant, so i am pleased with this. Cash reserves are low, as i am getting ready to my next 2 holidays in two months. passive income was decent, thanks to £476 from World Cup match betting, which is not too awesome as i was taken by surprise by Germany loss. Side hustle 4 slightly increased, but not by much, as the crypto-market is still down. 

My main hope is to be on the positive side at the end of September, after all the holiday madness and other expected and unexpected expenses. We will see what the summer breeze will bring with it!

Have a wonderful tan! See you!

June 2018 - Monthly report

My Overview

Total portfolio: £32275 (-9)
Debt: £3923(-206)
External funds: ZERO
Car: No
Net Worth: £28226 (+71)

Investments UK: £16875(-7)
Investments overseas : £3606 ( same)
Cash: £1160(-327)
Pension: £9805(+199)

Total Income: £1504(-68)
Passive income: £52 (3.46%)
Savings rate: 14%

Side hustle 2 value: £3.30
Side hustle 3 value: £0 (Profit May-101.75)
Side hustle 4 value: £462 (Funds:4548)

What a month! What a story!

Not many changes, as a loan taken at the end of the year seems to stop all my growth (learn from my mistakes, not from yours). Anyway, it is half paid, and i am trying to pay it ASAP. Surprisingly, the net worth is up by £71, which it is a win for me. The two incoming holidays are not helping either, but we need to recover for time t time, so i put that on the good(ies) list, as the improved rest and productivity will make a difference.Due to economic environment, the investments are down by £7 (the horror!). Passive income is less than expected, as the matched betting will be counted at the end of July (World Cup was over June and July). I should probably focus a bit more on matched betting, and i decided to use a separate card for it, hoping to accumulate there all my future winnings. Cryptocurrency is still not moving much, so i am just waiting for the market to move first.

Children and financial illiteracy

This is a very interesting article about finance and childhood.

Check this out!