With another month gone, it’s time to update my net worth. I do this every month to keep track of my own progress, but also as a way to give you guys a clear window into what the road to financial indepence means money-wise. Let’s get to it.
Since publishing my net worth last month, a lot has happened. On the one hand I had a fantastic month savings-wise, but on the other the markets took quite a nosedive. So while I managed to save over €1,500 in September, the drop European stocks experienced over the past two months made it so my net worth didn’t budge that much.
As a result of both September’s savings and the drop in the market my net worth currently stands at €45,361, which is only 0.59% higher than last month. It’s crazy to think that, even with my relatively small portfolio, my investments almost have a larger impact on my net worth than my ability to save.
Please don’t forget that I list all my investments in Euros only, even if the underlying stocks are traded in other currencies. I use the last-known exchange rate to convert foreign currencies to Euros. Because of this approach, the US stock market drop from the past few weeks doesn’t really show in my portfolio. It’s true that most US stocks experienced lower price points, but the weakening Euro and falling EUR-USD rate made up for most of that loss.
Dividend growth stocks
After buying my first individual stocks in August, I’m starting to slowly but surely grow my dividend portfolio. The first passive income from dividends in my account definitely gave me a big boost to continue down this path. That’s why I’ve added 22 shares of General Electric (GE), 33 shares of GlaxoSmithKline (GSK), and 20 shares of Royal Dutch Shell (RDSB) since the previous net worth update.
By purchasing a stake in these hiqh quality companies my yearly dividend income increased with about €55 after taxes. While €55 doesn’t seem like much, it’s about 0.22% of my net yearly income. At my current savings rate €55 is almost 0.85% of my yearly expenses, which means I’m slowly moving closer to living off my investments.
The cost basis for each position includes the price of the shares, a 0.25% stock market tax and brokerage fees. Even though the value gain of my dividend portfolio doesn’t matter too much, I’ve added it here for the sake of completeness.
|Ticker||Company||Shares||Cost basis||Mkt. value||Gain|
|DE||Deere & Company||7||452.61||467.67||+3.55%|
|JNJ||Johnson & Johnson||6||473.79||461.95||-2.50%|
|PG||Proctor & Gamble||9||575.36||596.79||+3.72%|
|RDSB||Royal Dutch Shell||20||585.25||560.00||-4.01%|
|KO||The Coca Cola Company||17||540.05||588.79||+9.03%|
Just like last month I haven’t been able to buy into my ETFs because most of my free cash is going to dividend growth stocks. My next purchase is slated for some time in december, even though I’m itching to jump into the iShares Core MSCI World ETF now that it’s price has significantly gone down over the past few days.
Exchange-traded funds clearly show the volatility in the market when you look at them on a monthly basis. When I published my first net worth report, both my World and Europe ETFs were in the red. Last month, however, they jumped back into the green. Now they’re lower than ever before.
|Ticker||ETF||Cost basis||Mkt. value||Gain|
|IWDA||iShares Core MSCI World||4,982.96||4,970.16||-0.26%|
|IEMA||iShares MSCI Emerging Markets||1,214.59||1,247.94||+2.67%|
|IMAE||iShares MSCI Europe||3,561.94||3,344.00||-6.51%|
My other holdings include a tax-advantaged pension fund, a savings account through an insurance firm with a guaranteed yearly return of 3.15%, and an emergency fund.
|Name||Cost basis||Current value||Gain|
|Pension fund||760.00||730.00||-3.95% and 30% tax break|
|Savings account||N/A||17,612.75||+3.15% guaranteed yearly|
When considering all of the above it becomes clear that every downside has an upside. Even though my investments are down from last month, I still managed to get ahead by saving rigorously. The dividend growth investing strategy is also turning out great with my future income climbing ever higher, even though the market currently experiences a slump.
Because lower prices also mean a higher yield for future purchases, I can’t wait to use October’s savings to purchase some extra high quality corporations. Pouring extra money in stocks also brings me closer to reaching my goal of having €20,000 in the stock market by the end of the year. With three more months to go I’m pretty sure I’ll make it!
Thank you for reading and for your support.