This is our third monthly update where I share the most important numbers that I try to keep track off. This was an expensive month again because we traveled to Edinburgh for a weekend. J. had to go there for work during the week and we decided that I would come over for the weekend. I really enjoyed Edinburgh! Also we bought a new bed this month and we had to pay 25% of the purchase price. Let’s dig into the numbers for this month!
October Mortgage Numbers
There is not a lot of news this month on the mortgage. We have paid off the 10% of the mortgage balance that we are allowed to pay off without penalty so no progress here other than our usual payment.
|Interest Only Mortgage||€98.788||No change|
|Savings Mortgage*||€80.000||No change|
|Annuity Mortgage||€109.052,79||– €200,76 change from last month, just the regular payment|
|Lineair Mortgage||€5.251,68||– €14,79 change from last month, just the regular payment|
|Savings Balance Attached to Savings Mortgage||€14.013,68||+ €191,56 change from last month|
|Total Mortgage incl. Savings in Savings Mortgage||€279.078,79|
26,65% of the mortgage is paid off, 73,35% is still outstanding (0,1% improvement from last month).
* 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.
October Savings Rate: 38,47%
Savings Rate 2017 Year to Date: 21,97%
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. Our savings rate for October is quite good considering the purchase of our bed and the trip to Edinburgh. I’d like to get this number to 40%…
** 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 in our case.
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 1,46% of the amount that we need in order to declare ourselves financially independent. That’s an 0,03% increase from last month. In order to calculate how much we need for early retirement I use the average of our expenses over the past year. Even though the markets were strong this month, this is not a very large increase, but at least we’re heading in the right direction this time!
How did your October finances go? I’m going to receive some extra pay in November so I’m looking forward to my numbers in November!