The first three months have flown by! As promised, we look back on the past quarter every quarter and discuss our plans for FIRE for the coming quarter by category.
Retrospect: With this chapter FIRE we mean the theory and our knowledge about becoming financially independent. In the past period we have deepened ourselves by reading books and articles such as Poor Dad Rich Dad, The Simple Path to Wealth, various blogs about personal finances and financial independence and the sub reddit forum DutchFIRE. In addition, we have started to inventory our expenditures and we have determined our FIRE target. In 2020 we had the breakdown as shown below.
Outlook: we will continue to delve into the theory in the coming quarter. We plan to read the following books: Financial Freedom and Your Money or Your Life. In addition, we will continue to follow the DutchFIRE sub reddit and we will read several blogs related to the topic. We will then try to apply new information and share it with you.
Retrospect: In terms of savings, we took a good look at our expenses and canceled and / or reduced subscriptions where possible. This has resulted in savings of +/- 250 per month. For example, we have canceled our gym and TV subscription, reduced our Internet subscription and adjusted our car insurance. In addition, we are shopping more consciously and we no longer order food. A nice additional effect is that we now also eat a lot healthier and exercise more. If you want to know more about our savings, check out our articles in this category: Savings
Outlook: The focus will be less on savings in the coming quarter. Of course we want to save where possible and consider purchasing carefully, but we feel that we have already made a big step in terms of saving and further savings will have a minimal impact. We also feel that if we continue to save, it will be at the expense of our happiness.
Retrospect: In the past quarter we initiated quite a few things to increase our income. For example, we started this blog (currently only costing money), we are selling stuff via Marktplaats with a nice profit and we are exploring new job opportunities. To learn more about our efforts to increase income, check out our articles in this category: Income
Outlook: The coming period will be exciting when it comes to finding a new job. With this new job we not only want to get more income, but also to gain important knowledge to be worth more in the future and if possible for fewer hours a week, so that we can spend more time with the children. Very ambitious, but we’re going for it! In addition, we will of course continue with this blog and look for other ways to increase our income.
In the past quarter we tried several things, for example we bought VWRL through DeGiro, but after reading about dividend leakage we also sold again, bought index funds through ING and invested more in cryptos. We have converted more than half of our savings into these investments. On March 31, we had the following breakdown:
We converted most of our savings into ETFs in the first quarter, but due to the extreme growth in cryptos, this has nevertheless become 72% of our “assets”. Normally we should convert this to a healthier spread … but since our assets are nowhere near our FIRE amount, we also dare to take more risks … perhaps a very bad choice, only time will tell. Our crypto wallet looks like this on March 31:
As far as index funds are concerned, we believe this is the safest way to invest and want to follow the ratio of 88% Northern Trust World and 12% Northern Trust Emerging Markets as much as possible. This should follow the entire market closely. We had done this in the first instance, until we read about ACTIAM Wereld, which focuses more on sustainable companies. We have also purchased this and it pays off quite well. We have currently invested in the following funds:
More information about our experiences with investing can be found here:Investing
In the coming quarter we will probably switch our cryptos to all-in VeChain, as we have the most confidence in this project. Incidentally, our intention is to invest any remaining income in ETFs and not in crypto.
A whole lot of text. Do you have any questions or comments? Let us know by leaving a comment!