Here is my monthly post of our net worth progress for September 2018. I'm sharing this to show how important it is to track your net worth and seeing the progress and this is what I also expect and advise my clients. From tracking you can learn of what works and what you should change in your finances.
This month our next worth is up by another 1.54% .
Last month I told you that we started investing in p2p through Envestio , and it’s already started paying dividends. This is because all their projects are paying the interest monthly. So, from the month’s Envestio is on the report and part of my calculation.
If you missed the August 2018 Networth post, here is the explanation again:
Envestio is a p2p platform from Estonia which allows non-EU residents to invest through it. These guys are paying up to 22% yearly on different investments they give bridge loans to , until they get proper long term financing from the bank.
I already re-invested the profits we got from then in the previous month into new projects in the platform and will continue to do so. At some point I’ll have to start cashing out, as I don’t want to risk too much money in a single platform.
If you do decide to join Envestio through my link, you’ll get extra 5 € bonus + 0.5% cashback after you invest.
I also checked another platform which Jorgen Wolf shared with me called Fast Invest. This is a classic p2p platform ( Vs Envestio that are actually a crowdinvesting platform). They have EUR loans giving up to 15% yearly interest.
The next step was transferring them EUR from my Israeli account. So, just like I used Covercy last time to do that, I did the same thing.
Covercy unfortunately rejected my transfer. This is only because Fast Invest has a cryptocurrency activity. I never intended to participate in that, but the fact that it’s the same company on the same website worries them. Covercy says that crypto currencies are used for illegal activity and they don’t allow this.
No matter, how much I explained to them on the phone that I’m investing in their super legit activity of P2P, they refused and rejected my payment. WTF?!
Now in order to transfer the money with my bank, only this will cost me ~30 EUR and a lousy EUR/ILS conversion rate.
So, I’m looking for other transfer companies willing to do this. Transferwise BTW, don’t let yet sending ILS, only receiving. So, I can’t use them.
Before I go into the details here are 2 things I improved this week in my tracking.
- I have an HSBC account which I didn’t add to the report so far. Why? I don’t have a good answer on this. That one doesn’t have lots of money in it, so to be honest with myself, I’d say I forgot about it. Anyway, it’s in now.
- Every month I put in on the assets column our car and I always used almost the same value. I knew it will depreciate of course. So, this month I check it’s value and I realized that the depreciation was much more than what I thought. From now on I’ll do it on a monthly basis.
The bottom line is that the depreciation of the car and the amount on that bank account are around the same, so it didn’t influence too much on the monthly net worth change. Besides, working it all backwards will be lots of extra work which will give no tangible benefit.
Let's dive into the details:
Loans: We have a few loans going on. They have good interest rate of 1.5-2.3% on them. And while that rate is good, I just got off the phone with my bank trying to renegotiate that. So, let’s see. I’d like to have all my loans on 1.5%, not just some of them.
Stock portfolios: Our Israeli stock portfolios went down a bit. While the US portfolio one stayed about the same.
I’m in a long process of stating to invest on the US market also through my Israeli broker. So, I’m slowly selling them through my US broker and buy new ones with my Israeli broker.
Why is that?
Because I pay zero tax on my Israeli portfolio investment up to a certain amount. Even if I add in more than the amount that I’m tax exempt from in that Israeli portfolio, I still have the tax deferred until I take out the money from the account (That hopefully will never happen). So tax deferring is like paying less tax.
Trading in the US on US stocks is cheaper though. But since I don’t do a lot of trading it’s not significant in the long run while the tax benefits are very significant.
My Insurance portfolio is on record high. Still, I wish I could withdraw it with no penalty (it’s 35%!). I could have done much more money from them, doing it myself. But I deposited that money before I knew what I know today. You learn!
US real Estate: I hope that in the next few months there will be a sale of some of the portfolio there. But I have no news on that yet.
Bitcoin: The amount stayed about that same is last month. My Hashflare Mining is not profitable anymore.
The plan for the next couple of month is looking for more real estate investment to have a constant cashflow from that.
I’ve been reading a lot in the the last few month and about to hit my 12 books goal ahead of time (I’m at 92% of my goal). I invite you to follow my profile on Goodreads.
My last book is the FIRE (Financial Independence, Retire Early) Bible: “Your money or your life” by by Vicki Robin,Joe Dominguez . You can read my review on it here
I recommend reading it. My spoiler is: Your money or your life? The Answer is: BOTH!.
We are planning our next workation which will take place in Sri Lanka
We are about to go in November, though no final date yet, as we haven't bought the tickets.
I made a whole research about the visa as we plan to go for 3-4 month which is longer than the 30 days visa they gave as a standard. So, we are getting ready, need to rent out our Yurt, buy the tickets and find a place there for the first few days.
I'm also looking for Kite Surfing schools as I'd like to take lessons.
Last thing. I published a guest post on Financial Free blog which got a nice 75 shares (So far) and good traction. I invite you to read it here. Thank you Jorgen for this opportunity.
Here is what you should take from here:
My lesson for this month is that I should improve the tracking of my finances. I mean, I’m glad I improved it after adding the car and new account but I can do even better with tracking the different metrics leading to FI.
Reading the book also helped with realizing how important that is. So, yes. Think how you can improve your tracking for the future.
Now over to you
Do you track your net worth? What insights did you get recently?