My journal and the long way to financial freedom

New! Use this space to post your goals, accomplishments, and setbacks on your path to get rich slowly. Others can read about your situation, and provide critiques and motivation. Look here to find somebody who has experienced a situation similar to yours!

Moderators: lvergon, Fiscal Fitness Moderator

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

My journal and the long way to financial freedom

Postby Masterlandlord » Mon Apr 25, 2016 2:10 pm

First of all I live in Finland, Europe. We do NOT have high salaries as USA. On top of that I work part time as Team Leader in Marketing&Sales after many previous year in IT. As education goes I am a Bachelors' Engineer(Data-Communication) 4 years of studying.

To understand Finland better compared to USA it is very socialistic and less capitalistic. This thread is not meant to be political. I never needed any student debt, but Finland has clearly higher tax then USA.

Please note all sums are in EURO currency.

Assets:
Cash 1000,00+
Emergency Fund 2065.00+
Magic The Gathering cards worth of roughly: 2500 euro.
The rest like 42 inch TV and furniture etc I do not count as assets those are
things that I really need. I don't own a car despite having valid driving license, but I do like Fast and Furious movies and I do respect car owners. Everybody decide what they need enough said.

Retirement: The Finland system works that you do get pension, but pension
is not accesible before pension age which is roughly 65 years age. After that the goverment pays pension until you die. I am not thinking of retiring as an old man and lol I am not even near pension age though I am mature
.

Living House(not in capitol area) worth: 50. 000 euro(but potential to become 80 000-100 000 in the future)
Investment apartment in capitol area 1 built 1970 worth 100.000 euro
Investment apartment 2 in capitol area built 1986 worth 135.000 euro
Investment apartment 3 in capitol area built 2014 worth 150.000 euro
Total apartments Assets: 435 000 euro

Liabilities:
Credit Card Debt: None.(I do have Mastercard, but rarely need it).
Student Loans: None. I never needed any student loan.
Living House mortgage: None. All is paid.
Investment apartment 1 built 1970 worth 100.000 euro mortgage: None. All is paid.
Investment apartment 2 built 1986 worth 135.000 euro
Mortgage debt investment apartment 2: 69 155,58 euro with: 1.16% with eurobor 6 month included total interest rate. Mortgage is automatically payed 651,70 euro/month, but however that includes the interest payment.
Mortgage debt investment apartment 3: 78 235,66 euro with: 1.47% with eurobor 6 month included total interest rate. Mortgage is automatically payed 563,00 euro/month, but however that includes the interest payment.
Total Liabilities: 147 391,24 euro.

Net Wealth: Total house Assets: 435 000 euro - Total Liabilities: 147 391,24 euro = +3k cash savings Net Wealth is currently 290 609 euro.

As income? Typical Europe income but I refuse to tell sums because it is so much calculating but the rental income covers the automatic mortgage payments. Wealth is not all. I am uncle to two small children, but still looking for a suitable wife candidate.

I recently made an extra payment of 20 000 euro reducing the bigger mortage with higher interest rate.
You see goverment pays me taxrefund of the mortgage interest, but if the interest rises so high that is bigger then the monthly payment then it sucks. I am talking about a scenario with really high interest. As it is wise decision is to keep the debts managable if you don't have fixed interest rate.
Last edited by Masterlandlord on Mon Oct 03, 2016 2:01 pm, edited 2 times in total.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Fri Apr 29, 2016 2:37 am

Increased this updated information:
Emergency Fund 3165.00+

The emergeny fund is still low, but have patience and I will increase it.

Regarding living costs:
I don't have car, kids, animal pets, the list goes on and I live fairly frugally despite paying for gym and I like to see movies in the cinema. Finally as food costs and living costs I live very frugally.

42 inch TV is a must have for me. I dislike those culture people who claim TV is bad but theater, opera, art etc is so excellent. Everybody enjoys what they like that simple it is subjective taste what you like.
TV series and movies from my 42 inch TV are very good entertainment to me.

I also played Magic The Gathering card game yesterday evening with 3 friends of mine. Yeah one should enjoy life and of course I like women and I am 100% heterosexual. This does not mean that I look down upon minorities that like their own gender.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Wed May 04, 2016 3:39 am

Jackpot!!! Finally I got money from one renter who was lagging behing in payment
in form of Finland goverment payed me the rent deposit sum this week! In addition ALL my fairly new renters have paid now the May 2016 rent during this week!

==>
Emergency Fund(with high interest crystal more then 1%): 4165.00+NOTE this Emergency fund is located in high interest well crystal clear more then 1% interest. However due to a bit slow access and withdrawal system from that special account I have now created separate David Ramsey Baby step 1 fund.

Dave Ramsey Baby step 1 fund started not done yet since I am so freaking GREEDY on the high interest rate fund: 600 euro(1000 euro goal to reach).

Travel holiday(vacation fund) started again I killed the previous one since cancelled an earlier trip: 700 euro.

The rest of the cash? Well I have enough money to pay mortgage automatic reductions, food etc.
Please note Finland is not paradise! High unemployment and I have parttime job. Actually since I am landlord I feel like having 2 part time jobs.

PLEASE NOTE JUNE 2016 month is BREAK on economic growth(unless you count automatic mortgage reductions!)Reasons:
1. I need to pay pretax 2016 landlord sum 3/6.
2. I will take a holiday(vacation).

Due to these factors my expection to June month is not an increase except the mortgage reductions.

I want my holiday(vacation) enough said! Oh I do have more income coming, but part of it is delayed to June and seriously when I go on vacation I don't have such a lame budget as 700. Since I will increase considerably my travel budget not counting any other additional income now.
Last edited by Masterlandlord on Tue Jun 14, 2016 12:07 am, edited 1 time in total.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Wed May 04, 2016 4:10 am

Argh I got bad news. About 6400 euro of repair cost will hit me at end of 2016 or early example January 2017 and that sum is none tax refundable.
Well this is what separates men from boys. I see it is as a necessary challenge and NO I don't want to sell my apartments.

As it is I might change my vacation to more frugal, but I hate frugal backpacker style so not that frugal.

I will increase and increase my emergency fund with crystal clear more then 1% interest(and at some point rename the part of it 6400 to repair fund though the money is on the same good yearning saving account).

What separates men from boys is that they don't whine to much and accept challenges and defeat them! When that repair payment comes I will pay it ASAP and still have a ok/good emergency fund!

kombat
Posts: 1979
Joined: Tue Mar 11, 2008 12:19 pm
Location: Ottawa, Canada
Contact:

Re: My journal and the long way to financial freedom

Postby kombat » Wed May 04, 2016 4:25 am

This is exactly why I push back against those who claim that investing in real estate is strictly superior to investing in the equities markets. They point to the potential for higher return on investment, but ignore the increased risks (interest rate risk, bad tenant risk, lack of diversification risk, market fluctuation risk, etc.), and the "surprise" factor of these large, unexpected expenses. My S&P 500 index fund is never going to surprise me with needing a new roof. My Dow Jones index fund is never going to be late with their dividends this month because its husband got laid off.

Risk is directly and inextricably related to reward. You cannot get higher returns without shouldering higher risk. This is what most real estate investors fail to grasp. They believe they are taking on the same (or less!) risk than someone who invests in the market, and they believe they are making higher returns. But over time, when you crunch the numbers, you see that it's just not true. Owning real estate is risky, and involves a lot of work. Owning index funds is far lower risk, and completely hands-off, for only slightly less return.

Enigma
Posts: 130
Joined: Tue May 03, 2016 10:52 am
Location: WashingtonDC/TN
Contact:

Re: My journal and the long way to financial freedom

Postby Enigma » Wed May 04, 2016 7:00 am

Wow... I am going to have to add my journal which looks a lot like yours. Just has an American twist. I am a little jealous at the lower interest rates as my apartments and investment loans tend to be around 5%. Yet I do get some tax breaks for that.... even repairing a roof gets a tax break at the end of the year. At least for me...

Overall you look to be on track. As for the US stock market hovering near all time highs of 18,000+ points... I trust that very little. Just one major event in the US will cause the markets to hit 52wk lows (9/11, bank collapse, oil issues, car industry, housing boom)

So my assets:
(26 units - $1.250Million, 9 buildings) 70% paid off
Rental Income - 12K/month

Liability
Monthly PITI (Principal, Interest, Tax, Insurance) Expense - $6.2K/month
- Due to only 1 loan remaining
Repairs Varies but tend to be averaged - $2K/month (US Tax breaks)

Any extra money from rental income each month I put into paying off my loan. Also I keep personal finances separate than my rental finances.

As education goes I have a Master's in IT Security (+2yrs) and a BS in Mathematics (4yrs). Constantly trying to better myself.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Thu May 05, 2016 2:41 am

Enigma wrote:Wow... I am going to have to add my journal which looks a lot like yours. Just has an American twist. I am a little jealous at the lower interest rates as my apartments and investment loans tend to be around 5%. Yet I do get some tax breaks for that.... even repairing a roof gets a tax break at the end of the year. At least for me...

Overall you look to be on track. As for the US stock market hovering near all time highs of 18,000+ points... I trust that very little. Just one major event in the US will cause the markets to hit 52wk lows (9/11, bank collapse, oil issues, car industry, housing boom)

So my assets:
(26 units - $1.250Million, 9 buildings) 70% paid off
Rental Income - 12K/month

Liability
Monthly PITI (Principal, Interest, Tax, Insurance) Expense - $6.2K/month
- Due to only 1 loan remaining
Repairs Varies but tend to be averaged - $2K/month (US Tax breaks)

Any extra money from rental income each month I put into paying off my loan. Also I keep personal finances separate than my rental finances.

As education goes I have a Master's in IT Security (+2yrs) and a BS in Mathematics (4yrs). Constantly trying to better myself.

Excellent! I would like to follow your journal and for record I am capitalist and like millionaires despite not being millionaire myself. Have you not thought about early retirement since you are millionaire? However that discussion is perhaps better in your own journal.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Thu May 05, 2016 2:44 am

It is good to hear criticism from kombat also. One of my apartments has increased value from 74k to 100k+.

Taking FRUGAL actions:


Emergency Fund(with high interest crystal more then 1%): 5165.00+
NOTE this Emergency fund is located in high interest well crystal clear more then 1% interest. However due to a bit slow access and withdrawal system from that special account I should have David Ramsey baby step 1 account.

Dave Ramsey Baby step 1 fund started not yet since I am greedy on the emergency fund interest.
0 euro(1000 euro goal to reach).

Travel fund reduced frugally now to: 550 euro , but in June when I get money I will increase it again at least slightly.

I have paid of all apartments cost for June 2016 month. The only thing is that annoying landlord tax 3/6 2016 and automatic June mortgage reduction, but I can handle it and pay it in June.

Edited sum made some banktransfers etc.
Last edited by Masterlandlord on Tue Jun 14, 2016 12:08 am, edited 1 time in total.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Sat May 07, 2016 10:41 pm

Lately I have been very busy with making tax report of 2015 and deadline for me is 13th May 2015, but I am almost done. I will check only one apartment cost. Tax report take many hours for me it includes every renter their time payments, reductions also due to travel costs to capitol area where my investment apartments are etc.

Career is going nowhere I only have parttime job as Team Leader in marketing and sales and no good job opportunities in my country for IT without insane amount of competition.

Tax report will yeld in December 2015 a tax refund because it is always the same thing even though you pay pretax they don't count the interest from mortgages for investment apartments. That reduction is counted later this year and you get tax refund in December 2015. Good because housing costs has gone down but even now I believe that in Decemeber 2015 I will get roughly 1k-2k taxrefund.

This taxrefund will certainly reduce the economic blow of roughly 6400 euro repair cost in December 2016 or January 2017 or whenever that bill finally comes.

Enigma
Posts: 130
Joined: Tue May 03, 2016 10:52 am
Location: WashingtonDC/TN
Contact:

Re: My journal and the long way to financial freedom

Postby Enigma » Sun May 08, 2016 5:51 am

I started getting ready for my tax burden in November and it took me till March before I was completely done. This year I wasn't as prepared as years prior. I plan to be better at it by the end of this year.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Sun May 08, 2016 6:35 am

Enigma wrote:I started getting ready for my tax burden in November and it took me till March before I was completely done. This year I wasn't as prepared as years prior. I plan to be better at it by the end of this year.

Yes I completely understand you own more real estate then me.

Actually if you take literally I have updated every now and then a file on my computer with tax information. I did start in year 2015 already putting some information put still it takes many hours some information for example how much interest you pay for whole year is impossible to know in advance.

Taking MORE FRUGAL actions or preparing for nasty pretax payment of June 2016 every 2 month I need to pay pretax estimated tax for that year regarding landlord income.

Emergency Fund(with high interest crystal more then 1%): 5165.00+NOTE this Emergency fund is located in high interest well crystal clear more then 1% interest. However due to a bit slow access and withdrawal system from that special account I should have David Ramsey baby step 1 account.

David Ramsey Baby step 1 fund started not yet since I am greedy on the emergency fund interest.
0 euro(1000 euro goal to reach).

pretax payment fund 3/6 deadline to pay June 2016: 500/930(roughly)

Travel fund reduced frugally now to: 250 euro , but in June when I get money I will increase it again at least slightly.

In addition enough money for automatic mortgage reductions, food living costs etc.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Sun May 08, 2016 6:57 am

Actually there is more money coming in June clearly, but problem is that money can be delayed to late June.

My vacation is 20th June to 10th July 2016. However since I have part time job I can actually start a few days before 20th and start working again a few day after 10th July making it a 4 weeks holiday IF I choose to do so.

The economy is a bit stressed. Since I will get late June payments and the economy is stressed I will NOT take a long holiday abroad.

Say example 2-5 days vacation abroad(rest of vacation frugally in my own country, but I can enjoy summer swim go to waterpark(Serena waterpark is best in Finland of all waterparks)etc.) and if that June money is payed so annoying late I could do my abroad vacation early July if that is what it takes to have enough travel money to enjoy everything legal!

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Wed May 11, 2016 2:53 am

Veni Vidi Vici! My luxury gym treats me as a VIP customer!!!
I sent them a message saying for economical reasons due to big repair costs at
end of this year and due to warm summer I want to quit membership.
They replied saying you can freeze membership instead if I want.

I replied that makes no sense to freeze when freeze payment is 10 euro/month
and on top of that I pay more/month then the current discount campaign.

They replied and this I want to accept that ONLY FOR ME as VIP CUSTOMER they offer freezement without the normal 10 euro/month payment and they will reduce my
train fee to the campaign fee 66 euro/month
(which gives acccess to ALL gyms in
a big city that belong to the luxury gym group).

This freezment starts 1st June 2016 and I do sports during that time but I can train outside. The freezement is as long as I want, but likely 1st June-30st September 2016.

October month can be already slightly cold in Finland you can compare it to Canada weather.
I will not pay a single euro gym costs for June 2016-September 2016 and then reduced to cheap 66 euro/month. A cheap gym in my country can cost 25 euro/month, but this is a luxury gym including group training, coffee room, Finnish sauna& showers etc.
Last edited by Masterlandlord on Thu May 12, 2016 4:40 am, edited 1 time in total.

DJFlare99
Posts: 151
Joined: Tue May 03, 2016 3:01 pm
Contact:

Re: My journal and the long way to financial freedom

Postby DJFlare99 » Wed May 11, 2016 11:18 pm

Reading about your finances in Finland is fascinating. Concept is the same as US I suppose, but still fascinating.

Masterlandlord
Posts: 395
Joined: Thu Sep 25, 2014 12:25 pm
Contact:

Re: My journal and the long way to financial freedom

Postby Masterlandlord » Fri May 20, 2016 1:25 am

Update I talked with tax office and my tax refund at end of year is little lol only about 100-200 euros. I do know how to get legally more tax refund for next year though refund in year 2017.

I struggle with my living costs I got a huge phone bill over 100 euro probably for long calls to service numbers in tax office.


What you fail to see is that people like CecilyC and me don't have HUGE income.There is an income BUMP(BUFF) in June for me that I do know, but that might come late June.

On top of that my luxury gym took in advance payment for October month since I have break June-September when I think it is enough warm.

My travel fund has been reduced now to 50 euro. I am thinking this sound like a one weekend travel with boat and a hostel instead of hotel. However god forbid not a hostel with many sleeping in same room. I always want separate room also for the fact that if you bring a woman to the room and have well intimate night.

However you never know I have already stated before the my travel is likely late June or early July since then I have certainly gotten all the June income.
No progress? Yes it will be progress a slow progress like a GRIND 25the this month is my second mortgage payment the first one is already paid for this month then I will check what debt is left.


Return to “Fiscal Fitness Journals”

Who is online

Users browsing this forum: No registered users