Savings Report #14 – Biggest Loss Yet

This is a Saving Ninja savings report. Go to How To Track Your Savings to check out the Saving Ninja Super Spreadsheet. Please note that I split my expenses equally with my partner and the savings rate, house equity and house value represent my share only. The spreadsheet calculates my savings rate based off Β£12,000 worth of expenses per year, even though my expenses are actually Less Than 10k Per Year. This is to create a buffer; I’m aiming for at least 12k to reach financial independence.

After so many months of huge gains, there was bound to be a tumble at some point. I only hope it doesn’t continue and push me below 100k net worth, it would be embarrassing to have to celebrate it again!

This month saw my investments lose Β£2,546 of value, although as I’m still contributing a hefty chunk from my salary each month I’ve still gained Β£1,370 in total net worth.

It’s going to be a sad month when my net worth has decreased, which I’m sure will come sooner or later.

My ‘years to FI’ number now stands at 3.6 years. I’m expecting this to fluctuate up and down as the time comes closer, so I’m thinking that I’ll need to figure out some kind of better metric for figuring out how long I actually have left. Maybe looking at an average ‘years to FI’ decrease over a 12 month period?

Other News

My house welcomed me back from my expensive honeymoon by demanding I replace the boiler. This is the first time I’ve ever had to stump up the cost for something like this so I was shocked to find out that I’d have to pay a little over Β£2000!

We opted for a second-from-the-bottom Worcester Bosch 30i, apparently, the low-end 25i would have trouble providing enough heated water to run a bath, (just about the only task that we’d need our boiler to do).

This will be installed before the end of September, I’m hoping that there will be no ‘complications’ or increased cost as we barely even use the heating.

After the boiler, we’ve still got a few more things on our DIY list before we get another valuation (although I’ve heard a lot of peoples house prices are dropping?) These include: Replacing all of the carpets, painting the hallway walls, painting the doors and skirting boards, knocking down the front wall and turning it into a driveway, and potentially getting a new front door.

I’m currently going through the process of switching into contracting or getting another permanent job, so most of my other ventures, including TSN, have taken a bit of a back seat. I do have some articles which are nearly finished though, so hold tight!

Speaking of articles, I’ve almost finished writing the next Thought Experiment, so keep an eye out for this on the 15th of September.

See you next month, hopefully when we’ll be back in the green πŸ™‚


17 thoughts on “Savings Report #14 – Biggest Loss Yet

  1. Interesting that you’ve noticed a dip. It really does make me think tracking things monthly like this (aside from generating easy monthly update content for us bloggers πŸ˜‰ ) is not the way to go.

    I haven’t looked since January and checked in with all of my investment accounts just yesterday, and they are all up very nicely since Jan! I reckon 6 monthly check-ins is the way forward πŸ™‚

    Cheers and good luck with all the house reno’s.

    Knocking down your front wall and turning it into a driveway sounds pretty crazy :oD

    1. Yeah, I totally agree, although it was nice to look back on the year at each month in the Excel sheet to notice trends etc. Not that I’d ever act on the trends πŸ˜€

      Our front wall is completely buggered, we need to knock it down anyway, so we’re just going to see if we can fit a Ford Fiesta in there after we’ve done it, as we only have roadside parking at the moment, if not then we’ll just build another wall πŸ˜› If only you were closer, you could come and help me sledgehammer it down!

  2. Signs seem to be pointing to a recession soon, so probably not good for your house price or net worth, but good news as you continue to invest.

    TFS is right, tracking monthly means you see the downs as well as the ups on a regular basis. However, doing it every 6 months might not be enough to keep me engaged – the monthly action of checking and logging it all is what keeps me motivated (and accountable).

    Good luck with all the house stuff – don’t forget that if you need the kerb lowering outside your house for your new driveway, you may need to check with the council first.

    1. Yeah, I’m actually remortgaging at the moment and they’ve requested a manual inspection to check it’s worth, so I’ll find out soon enough.

      The kerb is actually already kinda lowered, I know I’ll be rejected if we apply officially though as we’re near a corner, but one of the benefits of living in a low-cost area is, people do it anyway πŸ˜€

  3. Rather than changing your front door you could get it sprayed. Assuming its UPVC, new paints such as Kolorbond are really durable and a professional could spray it and make it look better than new for significantly less cost than a new door.

  4. It definitely gets worse the higher your net worth is. My pension lost 30k in December with the market pull back and I ‘lost’ 12k from my inheritance as I put the lot in isas in August. One benefit I’ve found is the numbers are so big they become abstract. And actually as a % of what’s left I’ve definitely felt more comfortable. Plus I’m putting about 25k a year in investments now so it’ll only take me a year or two to get back up to the same level anyway. I’ve definitely found my risk tolerance increasing the higher my net worth goes

    Plus I compared it to my dad who’s in drawdown with a 2m pension pot. Can you imagine how a 20% fall feels at that stage!

    1. I just shuddered thinking about it! I don’t know how I’m going to cope just yet πŸ˜› I hope, like you said, it does just become abstract.

  5. Your net worth may be down, but at least everything you buy this month is essentially on sale!

    Good luck with the job search/switch over to contracting. Hope all goes well.

  6. The way I look at accumulation is that when it’s completely doable for you to patch any drops in net wealth by savings, then we should welcome the volatility from the market.
    Buying stuff cheaper now is much better than having a sale in the market much closer to your FI goal.

    Well done ninja, keep it up!

  7. Nice update. You could put annual growth on there, as well, will look a lot better.

    You were on 50k when started? So gone up 100%?

    When markets go down I look at growth in 3 year period, and see if its better than cash isa. If worse then i’d worry!

    1. Hey Adam, awesome idea! I went and added this to the top of the sheet underneath net worth totals.

      My Annual growth excluding house equity has grown by 101.37% in 2019, including house equity it’s 61.39%. Pretty cool!

  8. Yes, it’s ironic that a love reading FIRE bloggers’ monthly reports, and seeing how they align with my own investments’ performance, yet being aware of the resulting ill advised short term view point.

    I note my S&S ISA every month and last few months have been annoying. Damn you trade war! But after TFS’s comment I checked its performance since January and I’ve got back nearly as much I’ve put in. Noice.

  9. Welcome to the world of diy!
    It can be expensive enough just to make your house habitable .let alone a luxurious abode!

    It makes me think that all these young grads or even students that live in exclusive executive en-suite apartments are in for a rude awakening when they find out that houses are a major drain on funds (if they haven’t spent it all on rent that is) and luxury comes at a price!

    On mammoth monthly losses – I’ve seen that over the last few months and years – commonly 5 figure swings!!!
    Makes me feel good when they go up and bad when they go dowb but as others have said it should be the opposite.
    If you are buying beans now you would prefer the prices to keep falling.
    If you live off your beans then high is good.
    But the trend is your friend and the habit of big savings and your sensible attitude (wedding notwithstanding) to living a happy nut lcol life whilst minting it in London is great – just keep up the good work!

    1. Yeah, luxury is a killer, I’ve tried to find the right balance with my renovations between value and luxury, I’ve opted for the more luxury items when they’re functional, like an oven or hob!

      Thanks for the encouragement dude, although I’m not sure how much longer I can stay in London! I’ll hopefully make it to base FI before buggering off πŸ˜€ Then I’ll probably join you in Scotland.

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