Let’s have a look and see what my Net Worth is looking like for February. I’ll also have a look at how I got in with the goals I set myself for February and set myself some things to work on in March.
As usual I’ve got last month’s figures in brackets for comparison. I’ve got my Defined Benefits Pension in there based on twenty years worth of money if I start drawing it at 60. I’ve also got my Net Worth not including the DB Pension or the house equity, which seems barmy, but is really just to represent how close I’m getting to mortgage neutrality.
Mortgage £94,345.97 (£94,838.70)
Cash £35,523.72 (£34,965.12)
Defined Benefits Pension £130,653.60 (£130,653.60)
AVC’s £10,814.45 (£10,307.70)
Shares £52,479.19 (£49,209.19)
House £250,000 (£250,000)
Total Assets £479,470.96 (£475,135.61)
Net Worth including house equity
£479,470.96 – £94,345.97 = £385,124.99 (£380,296.91)
Net Worth excluding house equity and Defined Benefits Pension
£98,817.36 – £94,345.97 = £4,471.39 (-£356.69)
So let’s unpick those figures a little bit. A nice little bump up in the work share price has had a rather nice impact on my numbers. The only slight down side to that is that the proportion of my investments in work shares as opposed to index trackers has increased. It’s good that they’re worth more, but it still really concerns me that I’m not diversified enough. I’ve more or less filled up this year’s ISA allowance, so next month when we pass the cut off date I can think about selling some of them and putting more into my Vanguard account. The problem is every time the share price recovers a bit I get all optimistic about them and think that they might go somewhere close to where they were before. That would make FIRE sooner rather than later much more realistic, but at some point I will have to just cut my losses and accept that it’s more important to be diversified rather than wait for some magical jump up in the share price. That’s a mental adjustment that I need to make rather than anything else though.
The really big news this month is that I’ve become mortgage neutral. Cue champagne corks popping and fireworks going off. Actually as I don’t drink that’s not quite right, but there was rather a lot of smiling happily at my spreadsheets the night I did my net worth figures this month. I’ve been banging on about becoming mortgage neutral for a long time now, so it feels fantastic to have actually got there. Post lockdown I’ve got some spending planned to have a bit of a life and to tick off some things on my 60 for 60 list, so the key is going to be to try and stay mortgage neutral.
I was mortgage neutral in my last house, even though I didn’t measure all my figures in nearly so much detail as I do now as that was pre my discovery of FIRE. It’s almost four years since I moved, so it’s really nice to get back to that same position financially. I moved from a 3 bedroom semi to a 4 bedroom detached house. The move wasn’t strictly speaking necessary, but with two teenage boys the extra bathroom has certainly come in handy. And I have to say that it would have been incredibly difficult to work from home in the last house. Strictly speaking it wouldn’t have been allowed as you need to have a room where the door shuts and people don’t need to walk through it to get to other rooms. Pre Covid for people who worked from home you had to have an inspection to make sure there set up in the house was suitable as we are speaking to customers on the phone, so privacy is an issue. Things have relaxed slightly to get the majority of people safely out of the office, but you still have to have somewhere to work. One of my colleagues has spent the last year working on an ironing board as she doesn’t have room for a desk. Having the spare room to work in has made working from home so much more convenient. On balance, although moving hasn’t helped my FIRE figures I’m still really glad I did it. It’s not like the money is lost either. I can always downsize as my teenagers make their way in the world, or even rent a room out at some point in the future.
All in all it’s safe to say I’m pretty happy with this month’s figures. Let’s move on now to see how I got on with my goals for February. The fact that I’m about to have to go and check what they were probably doesn’t bode all that well.
- Get under 10 stone. FAIL I’m going to officially give up on this one, but to be fair I got within spitting distance of it. I got down to 10 stone 0.4 lb, so I think I can probably live with that.
- Weigh under ten and a half stone on 1st March. PASS Just, but I was 10 stone 6.4 lb on 1st March. It all went a bit pear shaped (literally) the last few days of the month, but I snuck under the magic ten and a half stone and I’m back much closer to the ten stone mark again.
- Exercise at least four times a week for at least 30 minutes each time. FAIL I was well on track with this right up until the last week of the month. I haven’t been able to run due to injury, but I was walking four times a week for about 50 minutes a time. I was loving it. Unfortunately I went out walking in the snow and ice and fell and ended up flat on my back. This really hurt my already injured hip, and I’ve not been able to exercise since. I can’t wait to get back to it, but for now recovering from the injury is more important. So it’s physio exercises and lots of rest.
- At least once a week cook a recipe that isn’t one of our go to recipes. PASS I was messaging one of my friends saying that I was bored with what I was cooking and wanted to try some different recipes, and was interested in trying out more veggie meals. This somehow turned into us doing a month long challenge to not eat any meat. We exchanged recipes and sent photos of our meals to each other. I must have done at least ten different recipes during the month, and I’ve now got some new meals that will be part of our repertoire.
- Finish Cien Días. PASS I’m putting this as a pass, but strictly speaking that’s not quite right. The day after I set my goals they released an extra 35 episodes on Netflix. I’m currently working my way through them, but that’s going to take a bit of time. As long as I amend the goal to finish series one of Cien Días then I can safely say I’ve achieved it.
February has been a bit of a tricky month for me. I feel like I’m making lots of good healthy choices, my weight is staying pretty low and I was doing well on the exercise front. My injury has really put a spanner in the works for me, but I was doing well with keeping up with walking when I couldn’t run. Falling on the ice is really annoying, but I know that it’s too sore now to even be able to walk. I even had to take some time off sick as it was too painful to work. That is definitely a sign that I need to give my body a chance to recover. I’m doing my physio exercises and I’m hopeful that I’ll be able to get back to the walking fairly soon and build up to running at some point. I need to listen to my body and not be tempted to push too hard too soon. I need my body to keep working for the long haul, so it’s really important that I take my time and heal properly.
Let’s get some goals set for March then
- Watch 16 episodes of Cien días. This should definitely be possible. I’m still not understanding all of it, but I think it is helping my Spanish skills. There is a danger that if I watch it after work I’m tired and not concentrating all that much, but I reckon even just immersing myself in the language without focussing massively has to be helpful.
- Weigh under ten and a half stone on 1st April. Sound familiar? I really just want to keep myself accountable here. I want to continue to make healthy choices and part of that should be reflected in my weight. Ideally I want to be around the ten stone mark, but the extra half a stone gives me some leeway for emergency chocolate eating.
- Do my physio exercises at least five days a week. Ideally this will be every day, but I’ll build a little bit of slack into my goal. I would like to increase the number of reps I’m doing, but I’m finding if I do too much it’s too sore, so that’s counter productive.
- Research one of the trips on my 60 for 60 list. Pretty much nothing on my list is possible at the moment with lockdown restrictions, but that doesn’t stop me planning trips away for the future. The current thinking is maybe a trip to Russia next year with the younger son. It’s somewhere we’ve both always wanted to go to, so I’m thinking maybe next year will be the year. I need to get an idea of the costs involved and balance my spending on experiences with my desire to reach FIRE. Hopefully I’ll be able to do both.
I think that’s enough for now. I need to start to recover from this injury, and it’s really tempting to put some running goals in there, but I need to be sensible about that and listen to my body about when I’m ready to start that up again. I’ll continue to make healthy choices most of the time, work on recovering from my injury and work towards getting back to my running. I’ll keep plugging away with my Spanish TV watching and start to look into a trip to Russia. That should give me something to look forward to, which I think is crucial in these difficult times.