It has been a while that I’ve talked about my personal finances in terms of net worth. As we started the last month of 2017, let’s end the year with some great results.
In the beginning of the year I recalled one conversation where I mentioned I would like to pass the 50.000 € threshold (approximately $59.000) by the end of this year. To be honest, it was at the spur of the moment I said this, without putting any thought into it. So, when calculating my new net worth, a big victory jump followed after seeing the end result. Considering that this excludes the December income, I crossed another very important threshold.
That’s right. Lite up the fire works and pop the champagne because I crossed the 50.000 threshold!
Comparing this amount with the one from December 2016 means I managed to safe about 19.300 € ($23.000). This is the result of consistent saving behaviour, dividend income and capital growth. Bare in mind that this is a preliminary number as the December payment still needs to hit the account, together with some dividend income.
Actually, I reached the 50K threshold already a few months back as I forgot to include the amount in my tax advantaged pension account. In a previous post, I mentioned this should be around 2800 € ($3300). As I’m currently living in Belgium, I restarted this account, merely due to the fiscal incentive of the Belgian government. 30% tax return for 2017? Check! I made an appointment with a representative from to company to reactivate my previous plan. Turned out they sent the head of Flanders to my house. He was even more surprised during the obligatory survey he had to conduct. In order to invest in stocks, banks and brokerage companies in Belgium need to obtain your investors profile. This is determined by a series of questions and allows them to inform themselves about your investing history, income and etc.
During the survey, these two questions popped out:
What’s your net worth?
- Less than 10.000
- Between 10.000 and 25.000
- Between 25.000 and 50.000
- Between 50.000 and 125.000
How much can you safe each month?
- Less than 250
- Between 250 – 500
- Between 500 – 1000
- More than 1000
I answered honestly on both questions. Sidenote: He said that if I wanted to think a bit about what my net worth was, I could take a few minutes… No need, I said, and I ticked the box between 50.000 and 125.000.
Suddenly, his interest was caught. You could sense some kind of curiousness starting to arise. With a more interested mindset, we went over to the second question. With the same ease, I checked the box “more than 1000”. This resulted in another reaction from his side: “WHAT, REALLY??”. Followed by multiple questions. Do you invest? What kind of job do you actually do? What kind of companies do you invest in?
So there I was, explaining the deputy of Flanders how to invest your money in the stock market.