This is our first monthly update where I plan to share our numbers at the end of every month so our progress is visible and we can be held accountable. As you can see we’ve already paid down the linear mortgage by €38.652,51 since our move. €38.050 are the extra payments, the remainder are regular principal payments. The large payment we made yesterday is not yet reflected in our numbers because it isn’t cleared yet, so this will be included in the numbers for September.
August Mortgage Numbers
|Interest Only Mortgage||€98.788||no change|
|Savings Mortgage*||€80.000||no change|
|Annuity Mortgage||€109.442,44||– €188,41 change from last month, just the regular payment|
|Linear Mortgage||€53.059,49||– €157,17 change from last month, just the regular payment|
|Savings Balance attached to Savings Mortgage*||€13.629,65||+ €38,50 change from last month|
|Total Mortgage including Savings in Savings Mortgage||€327.660,28|
The mortgage is 26,41% paid off, 73,59% is still outstanding.
* The €80.000 mortgage remains outstanding until the end of the 30-year loan. Attached to this mortgage is a blocked savings account where you save for 30 years and receive the same interest as the interest rate that you’re paying on the mortgage. After 30 years there is €80.000 in the account and you pay the mortgage off.
August Savings Rate: 47,58%
Savings Rate 2017 Year to Date: 18,16%
Our savings rate in 2017 is not that impressive, because we had a lot of expenses in the middle of the year because of our move. However I’m really pleased with our savings rate for August.
* To calculate our savings rate I deduct everything we’ve spent in a month from our income. Divide that number by our income, and that gives us our savings rate. Not included in the savings rate are pension contributions because those happen before taxes and are mandatory.
Progress towards FI
In addition the mortgage numbers I also look at how far along we are on the path to be financially independent. Since we’re not investing that much just yet this is not a very impressive number. Using the 4% rule we are currently at 1,44% of the amount that we need in order to declare ourselves financially independent. That’s an 0,02% increase from last month…
Looking Forward to September
We emptied our savings in order to make some large extra payments on the mortgage, and in the next few months we will focus on refilling some of our savings goals that we took the money from.