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Net worth report – June 2017

This is the first time we decided to sit down and calculate our net worth. Kasper wasn’t too keen but I lacked a clear picture of where we are financially at the moment.

Having read Your Money or Your Life some months (!) back, it made sense to me to simply follow the exercises from the book. And so, on a rainy Saturday afternoon, we ended up crunching numbers and even managed to add up all expenses and income for June (coming next).

What gets measured, gets done. We created a Google spreadsheet for our calculations and I promised myself to join the online FIRE community in the UK as a fellow blogger. After all, accountability is a pretty powerful tool when motivation levels get low.

Assets:

Cash on hand:

Maya: £26,741
Kasper: £82,958
Fixed Assets:

Bank loan: £62,926
House: £400,000
Flat: £220,000

Stuff in the house:
Kitchen: £220
Living room: £1420
Garden: £370
Bathroom: £0
Bedroom 1: £1450
Bedroom 2: £150
Store cupboard: £50

Family owes: £9000
Friend owes: £300

Assets total: £805.585

Liabilities:

Maya: £19,431
Kasper: £35.352
House: £295,875
Flat: £114,500

Liabilities total: £465.158

Net worth: £340.427

I didn’t break the liabilities into smaller parts because we know they consist of credit card debt (0% interest, not actual interest-incurred debt) and fees related to running two limited companies – we usually keep enough money to cover salaries / tax / corporation tax for months ahead.

So here we are, our first mutual net worth report done.

If you feel like sharing any advice, observations, please do. Always keen to learn something new.

Our Story So Far

We’re Maya and Kasper (not our real names but online personas) – a pair of Londoners hailing from continental Europe. I, Maya moved here first and Kasper followed me some years later. We’re not married and have no children.

Our interests have more often than not stayed away from what we’d consider excessive spending or luxurious pastimes – except from travelling which we both enjoy a lot. As such, we’ve usually been able to live below our means and one day in 2010 decided to empty our small coffers and bought our first flat.

Although highly functional and located in what they call a desirable area of the capital, the flat started being a nuisance the moment we both had to commute for work to central London (either one of us worked locally before). We started a hunt for a new place and three years later bought our first house. Located in another leafy area, this time in a well-connected zone 3, it cuts our commuting times by half and more. We’ve been letting the flat since and are not sure what to do about it at the moment.

We’re both contractors in the tech and creative industries. This means plenty of freedom and a similar amount of uncertainty about our month to month income.

Until 2016 we were pretty sure our base would be London – as immigrants who lived in other countries we don’t always easily call somewhere a home. It made sense logistically, financially and socially. To make our base the way we’d like it to be – I suffer from an incurable love for architecture and design – we hired an architect, got a further advance and planned a whole remodel, refurbishment and also extension of the house. An obtained planning permission, hired professionals and the Brexit (Great Britain’s decision to leave the European Union) vote later we were well on our way to make things happen. And then… we changed our minds.

But why?

It could be because I started reading all the FIRE blogs (particularly MMM) and books about urban architecture and it also could be because our architect had been more than flaky for months and dragged the project interminably. It could be because we realised that most of our close friends have left / are leaving London and it could also be because we travelled around the UK and Europe a bit more at the time.

What we came to consider a relatively cheap house for London started being a stupidly expensive house for most parts of the UK and Europe. What we saw as our base with good transport links and friends nearby started being an overcrowded town where meeting friends was possible only if they worked as centrally as us (otherwise everybody was too tired).

We needed a wake up call and luckily it didn’t come too late.

What next?

We decided to make the most of our earning opportunities in London and save + invest enough money to leave it. Where to? We’re not sure yet but definitely somewhere human and cyclist-friendly – the search is on.

Maya

Why nownot?

Whenever I meditate and cannot help my monkey brain, I repeat two words:

now not.

It’s a signal to my brain – you will be heard but later.
It’s a reminder of my intention – to choose now over any other moment.

I find it much gentler than the commanding, irritated “not now” which I learnt to associate with busy parents.

“Now not” sounds like a conscious choice. A polite refusal. A lesson in patience. Something I find pretty damn necessary on a journey towards financial independence.

Maya