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Måned: februar 2016

Income & expenses statement January 2016

So have just checked my bank account for income and expenses for January 2016. My top goal for 2016 is to pay of the last part of the loan towards our house. Currently EUR 19.463.

One of the ways to achieve this is by lowering my spending. I in general find it much easier to lower spending than to raise income;)

In this statement, I only consider my personal finances. So do not include my companies (apartments and consultancy work).


  • Salary after tax: EUR 3.212


  • Joint expenses with girlfriend (rent, utilities etc): EUR 805
  • Food account: EUR 268
  • Vacation: EUR 227 (payments towards a vacation in April)
  • Car mortgage: EUR 170
  • Car insurance: EUR 91
  • Fitness membership and personal trainer: EUR 421
  • Coffee, alcohol, food out: EUR 38
  • Books: EUR 25
  • Clothes: EUR 27
  • Movie: EUR 3
  • Other items: EUR 1

Savings rate: 34,1%

Hmm, this is much lower than my goal of 50%;(

Quite disappointed about this.


This is my first month with income statement and this shows exactly why this should be done. I see myself as a very frugal individual. But looking at the numbers I can see that I don’t save as much as I want to.

Joint expenses with girlfriend. We looked at these spendings and can see that we can lower this with EUR 134 from March. Reason being that we no longer have a dog.

Food account. We can save some money here. We have decided that I go to a different supermarket (Lidl). Also we will make larger portions at a time and thereby freeze some food for other days.

Car expenses. 12.3% of my expenses is because of the car I only use once a week. There is only one conclusion here. I will have to sell the car if I want to achieve my +50% savings rate. By far the easiest way to lower my expenses. I investigated the matter and I actually have more debt in the car than it is worth. Debt is approx. EUR 10.000 but the value is only around EUR 8.000.

I have not made the final decision yet.

Vacation. Of all things, I think that vacations are key to happy living. Will have to see if I can attain my goal even with vacations.

Fitness membership and personal trainer. I have had a bad back for 1 year now. So have invested some money in a professional personal trainer for 3 months, quite expensive EUR 362 per month. Will unsubscribe the membership at the gym. That will save me EUR 50 per month.

The rest of the expenses are rather low. So for now no reason to change these habits.

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Going for a Chris Ferguson Poker Challenge

In my bucket list I have listed that I want to succeed in my own version of the Chris Ferguson Poker Challenge.

What is challenge about?

Chris Ferguson is a professional poker player who back in 2007 turned a zero USD poker account into $10.000. He did this by grinding his way from freerolls to micro level poker tables and gradually playing higher levels when his bank roll allowed it.

His principles:

• He was not allowed to play a table with more that 5 percent of his bank roll. This number was 2 percent for larger poker tournaments.
• If he made winnings at a table, he would have to leave this table if the amount represented more than 10 percent of his total bankroll.

It took Chris 7 months to build a bank roll of USD 6,5. All most 10 months later he reached USD 10.000.

My project

I will make some adjustments to this strategy. First of all I will start with a no deposit poker bonus somewhere. This will give me 5-20 USD and thereby same me at least 7 months;) Also I will set a lower goal. I expect that the skills at the higher tables will be too high for me and hence take me very long time. The target will be EUR 2.000 which is amount I spend on a new dividend stock.

My point is also to prove that you can make a relaxing recreational activity into a profitable project that can help you to financially freedom.

Also if this project is successful and I enjoy playing, then EUR 2.000 actually represents more than expenses I have for a whole month. This meaning that I could repeat this once a year and have 10 pct of my yearly expenses covered through a recreational activity.

First obstacles is TIME. We have just founded our Adwords consultancy business, so extra time has to go towards this project.


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Happy day! We just purchased another rental apartment.

My brother and I have now completed the purchase of our 3rd apartment.

I will in this blog post go through the  numbers.

Purchase price: EUR 126.846

Initial puchase costs
Title fees: EUR 1.109
Lawyers fees: EUR 461
Estimated rehab costs (worst case): EUR 6.200

Private loan for the full amount EUR 127.517 (4,75% in interests rate)

Monthly cashflow
Expected rent: EUR 872
Interests (first year) per month: EUR 505
Taxes: EUR 19
Estimated common costs: EUR 156. This includes savings for future repairs, insurance, and some utility.

Budgeted profit before taxes:
Cash flow pr. month: EUR 177
Return on investment (financed): 27,33%

Return on investment if cash financed: 6,42%. This equals a cash flow of EUR 679 per month.

All a decent return for an apartment in a central location in a larger town in Denmark. The apartment also has some appreciation potential , something that is not budgeted for. The seller purchased the apartment at the top of the marked back in 2008 for EUR 172.483. So 36% higher than our price. The marked has recovered in the two largest cities in Denmark, but there will still go some time before we are at the same prices in other cities. I recon at least 5 years or more, but as mentioned we a buying for cash flow so we are not budgetting with any appreciation.

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