Net Worth Update: $454,521 – October 2020

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Net worth: $454,521!

This is my 22th net worth update. In September I had a 88,7 % savings rate!

By Route 2 FI

Index Funds

In the figure below you can see my index fund value as of 1. October 2020. 

  • The blue line is the market value of my index funds: $401,509
  • The orange line is the investment value of my index funds: $339,149

Income, Expenses And How Much I Can Withdraw According To The 4%-rule

  • The figure above shows the connection between my income (orange), expenses (blue) and monthly FI money according to the 4% rule
  • As a result I will become financial independent when the blue and red line crosses each other.
  • If I quit my job today and never took a paid job again - my monthly FI money would pay out $1,338 every month for the rest of my life

It’s motivating to see that I can safely withdraw $1,338 every month for the rest of my life.

I will do everything I can to raise this dollar amount in the future. 

As you all know my goal is to save $500.000 USD.

This means my monthly FI money goal is $1,667 USD each month. I’m over 1/2 to my goal and it feels great!

Recently I wrote a detailed post on how I will reach a $500.000 net worth in only 12 months!

Financial Stats September/October 2020

  • Averarage expenses in 2020 so far: $1,247
  • In 2019 my average expenses was: $1646
  • Average income in 2020 so far: $8,072
  • In 2019 my average income was: $5,575
  • Monthly FI money as of October 2020: $1,338

Mortgage

We own an apartment 50/50 that has a total value of $547,000. That means my share is $273,500.

While this sounds good, my share of the mortgage is $226,574

The interest rate on the mortgage is 1,40 %.

Pension

My current pension is $59,215.

I recently found out that I had a pension plan in a job I had as a teenager as well. Pension is a really iliquid asset class, because I can't withdraw the amount before I'm 62 years old.

Student loan

After nine years with different studies I got $53,129 in student loans.

In Norway the university has no fees, so this is a loan covering basic living expenses while you're at the studies.

The interest rate is 1.39 %.
I'm not paying anything on this loan at the moment.

Total Net Worth

  • Index Funds: $401,509
  • Mortgage: $46,926
  • Pension: $59,215
  • Student Loan: $-53,129
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Net Worth (USD $)

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