Month-End: September 2020

This month has seen a healthy increase in our net worth of 1.6% taking it to a record all time high.

There’s an inevitable phenomenon that as one saves and invests, soon the monthly fluctuations in your net worth can easily exceed sums that you once considered large. New TV for £1000? That’s 1% on a £100k portfolio. New car for £25,000? That’s how much £10k of Tesla shares bought in March have jumped up by. It becomes a bit of a rollercoaster and stocks and shares can become shocks and scares (as I read once from a broadsheet newspaper).

The thing is that if you are planning on using investments to fund luxuries like a cruise or school fees and things don’t pan out as you’d hoped (especially with people like Winter Rock Associates and their fees eating away at your nest egg, you’ll end up in a bad place.

This month’s numbers:

The big news is that the Registers of Scotland have shown higher house prices than I’d pessimistically predicted and I’ve uprated our house value. That has meant our net worth is looking a lot better than it was a few days ago. I’ve previously said I was pessimistic about price but what do I know? Recent anecdotes that I’ve written about here and here show the housing madness / boom and it seems like things are not slowing down. We might all be broke and the economy ruined but at least our houses are working hard!

The Lady got paid for her new job which boosted our income as I only got paid about £400 due to me not having much work on the go at the moment. This looks like it might continue for some time which is ok by me since like Bertrand Russell, I am in Praise of Idleness. Although I have been busy in the house with DIY and an endless cycle of cleaning.

We are in the middle of replacing our floors at the moment, so I have not fully done September’s numbers but spending was around £4300 thanks in part to childcare, although this should reduce next month as the Master gets more funding and the cost will drop. Childcare is expensive!

Dividends were lower than last month at about £2,400 due to my super-secret side hustle incurring costs which would be described as “capital investment” but which I classify as a balance sheet loss. P2P paid £1800, ISAs £100, EIS paid £646 and VCTs paid £600.

Money movements this month included filling up my ISA, investing in the side hustle and as of the 1st of October, I successfully sold £23,000 in VCTs that had matured – that’s worth a post in itself if I can get round to it. the VCT money can be put to work elsewhere. I might even move to consider investing in JISAs or possibly back into VCTs.

Projects for the rest of the year

I’ve decided to make £1,000 in cashback before Christmas and write some posts on it. I’d like to write a post about investing for children and I’ve started but it takes a lot of time to get it right. It’s also the kids’ birthdays in October which require a few posts and projects. I’ve also dabbled in FreeTrade and I’d like to write about that a bit – it’s a nice app but as an investment vehicle, I have some concerns. The weather is rubbish here and lockdown combined means more time at home and less travel.

The Month Ahead

We have to pay for the floors – which is expensive! It’s also the kids birthday and Hallowe’en – good family times. I might also buy some more wood in our battle of FIREe vs. Fire. Also, I might have some exciting news next month. It remains to be seen what it’ll be but it’s a biggie!

Thanks, GFF

9 comments

  1. ‘stocks and shares can become shocks and scares – love it! 🙂

    My monthly dividend this month would have been enough to cover the purchase of my new monitor so that’s a nice way of looking at the income.

    Liked by 1 person

  2. I’ve given up trying to figure out house prices. Some are up and some are shockingly low. It seems to vary from one valuer to the next.
    Enjoy your October. I used to hate halloween, but I got into it when the kids were wee. It’s always great when you see the little ones out guising. My two used to do very well when they went around doing magic tricks rather than the normal jokes.

    Like

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