Hola Net Worth – A New Positive Beginning
During these last days I’ve had massive loses on my algotrading account, when I say massive, I really mean it, it’s almost all wiped out! This is not a saving ninja thought experiment, this is real! So, I have been questioning myself for a few days whether this blog does actually make any sense at all or not anymore.
Table of Contents
Yes it does! And now more than ever!
I love the FI community, it helps me to keep pushing towards the similar type of goals we’re all after and I’m learning and improving much quicker than I expected, why should I stop that now just because of a failure? I have only two choices here, love or fear. I am choosing love!
Yep, it’s true! I’ve learned it the hard way, to be precise a 45.000€ investment turned into trash, not the best way to get that million, right? This is a quite expensive life lesson, isn’t it? But again, I’ve got only two choices: love or fear. To me fear right now means giving up, while love means acceptation, recovery, learning and move bl*dy on!
Sorry if that post is turning out to be a bit exclamatory.
So, is my investment with Algotechs completely lost? Not completely but it’s nearly there. The thing is that I’m emotionally exhausted, checking the trades every hour and worrying about whether it will recover or fully vanish. It affects my work efficiency, my emotional behaviour and leads me in the wrong way. I need to stop it and the only way is forgetting about it and accepting it as a loss. If in the future it turns out that it recovers a bit and allows me to withdraw money, I will consider it as an income. I have taken several screenshoots during the fall, which will be posted on my next portfolio update, so you guys can see what I am actually talking about and the “great” efficiency of the Algotechs ATS software.
So, as a recovery, I decided to do the numbers to find out my true net worth. That doesn’t change my initial goal described at the beginning of my blogging journey, which is “increase my investment portfolio value to one million euros”. It will be much harder now, but easier than before…
Hola Net Worth, a new positive beginning!
My net worth is slighly over 400,000€, that’s excluding algotraded funds. How is that? Didn’t I say I was poor? Yep, I was and because I was (or better said, my parents were) now I am not. The reason? The Industrial Warehouse. Many years ago, my father bought a business that was at the edge of bankruptcy, don’t ask me why, he never told me. Soon after, the business failed and all the machinery or valuable assets were taken by the banks, hence why I love them so much! That was the starting point of a compounding miserable life that would last many years. Both, my mum and dad worked 12h/6 days a week working literally for the banks. But furthermore, that wouldn’t be the true price they would end up paying, they paid with their health. My mum became mentally ill and my dad died of cancer at the age of 48, how expensive is that? I was 20 at that time and have no siblings.
My father had a life insurance that covered the remaining liabilities, I inherited all his properties and some cash was paid to me. All the sudden I was “rich”, but lost something much more valuable, my father. I used this cash to finance my university degree, which I really struggled to pass, as I had never expected to have money for it and wasn’t properly prepared. The rest of the story continues on my about page.
I could continue explaining more facts about my life, but at the end this is supposed to be an “investing the wrong way FI?” blog, so let’s get to the charting/tabling side.
Net Worth Balance Sheet
Real Estate makes up 71% (284K €) of my total assets and I have no plans to own more. The Industrial Warehouse is rented by a printing house company an adds a little over 1000€/month of gross passive income. My mum enjoys most of it, so I don’t count it as a passive income but as an occasional income.
My new investment portfolio makes up 18% (71K €) of my total assets, which 9.7% are invested in alternative investments like P2P/B lending and Real Estate Crowdfunding. Considering the risks, this is the limit I am happy to invest via crowdfunding platforms for now. That means I won’t reach my passive income goal of 700€ by the end of 2019. I think that was a silly goal after all, as it just led me to investing compulsively, without taking into consideration the real risks. However, I will keep diversifiying among platforms and even include new ones.
Stocks make up 4% (16K €) of my total assets. I own two stocks that I haven’t mentioned earlier, basically, it’s because I didn’t want to complicate things more at the beginning. I traded a bit stocks last year using the Trading 212 brokerage platform and earned 217€. The positions are small but it’s still worthwhile as equity trades on this platform are “free” of comission. I keep AMAT and FSLR, which both belong to the semi-conductor industry that was hammered in 2018 and hasn’t recovered yet.
Corporate bonds make up 3% (12K €) of my total assets.
Treasury Bills, my safest investment, makes up 1% (3K €) of my total assets.
Cash makes up 9.4% (37K €) of my total assets.
Others (car) make 1.6% (6K €)
Until next time, time to go play the right way 😉
This is it! Don’t forget to check out my new net worth page, where you’ll find a couple of doughnut charts and highlights. Any thought are welcome.
I would like to end expressing my gratitude towards others, in this case to some bloggers that inspired me and helped me to get my net worth done using some of their online content:
- Total Balance
- Route2FI
- Money Mow
- Quietly saving
- Finance your Fire
Last thought: I will continue to do what life has taught me to do, turning adversity to advantage!
Tags In
Tony
Related Posts
18 Comments
Leave a ReplyCancel reply
ABOUT ME
SUBSCRIBE TO BLOG VIA EMAIL
FINANCIAL TOOLS I USE
Online Banking
Crypto
Zero Commission Stock Investment Apps
(free share worth up to €/£100)
Index Funds Investing Accounts
(up to £50 bonus)
(no management fee for 1 year, Spain only)
Others
(Get it for FREE)
Thanks for sharing OMJ. I love seeing other peoples asset breakdown. I haven’t published my Net Worth yet but it’s under consideration. I’m heavily invested in stocks so less in cash and property than you but have considered commercial premises. Good luck on your journey, I’m following.
Hey thank you for stopping by,
I would encourage you to do it, it keeps it more organised and structured, at least from my experience.
I am not planning to update it very often though, once or twice per year I think should do.
Thank you, I’m following back 😉
I’m sorry to hear about your investment. Thank you for being so candid and honest in your write up. This is why I love our FI community. We share all our lessons so we can learn from one another.
The path towards FI is not easy or perfect. Nor should it be. If it was, everyone would be FI. Books and blogs posts are great for information, but it is experiences like these which make the best teachers. They are invaluable, although gut wrenching at the time.
Keep at it. Before long, you will be writing about aiming for two million.
CC
Hi Cashflow Cop,
Many thanks for your words, they are very helpful.
Agree, writting about our mistakes teaches others and that’s one of the reason why this community is great, we support and help each other, creating a positive blogosphere circle, which is my main reason of being here 🙂
Again, I couldn’t agree more with you. I’ve learnt a lot in a short period of time, trying to find answers to questions I didn’t know how to answer, a research I would have never bothered to do.
Thanks for being so supportive, truly appreciate it.
Damn.
Oh well. That’s life.
Luckily it’s only money and you can always get more of it. 400 000 is an extraordinary amount in itself.
Just hang on!
Thanks Eelis, I will and now stronger than ever. The Spanish bull is coming! hehe 😉
I’m glad you included it, amigo! Rise and shine. There is a new bull in town ??
What do you know? Mr. Algotrading just became Mr. Real Estate it seems! ?
How nice of you to join me (and thanks for the shoutout) ?
So what are the plans now, going forward? More stocks?
Sorry about your big hit, but at least you’ve still got some good strong assets left that will keep you afloat ?
To be honest I don’t know Nick. I’d like a little brake and get my mind to a rational status. I’m still quite emocionally controlled by all this stuff, which could make me take wrong decisions. I may take them anyway but I want to be at least fully counscious of it.
Thanks, yep real estate is there to protect me in the future, which is a big advantatge. Even if I lose all my investmet portfolio I would still have a frew bricks left to sleep under, hehe
Have a great days!
I can relate to that feeling. The guys who purely invest in the same single ETF month after month, year after year might have the best approach after all ?
But it’s just so damn boring! ?
All things considered, it might not be the worst time of the century, to have a little break from the financial markets anyway ?
I’m trying to trust my gut feeling a little more these days.
It probably is for the majority of us, who don’t fully understand the game and don’t have time to do the homework. The thing is that I like the game too much to be doing just that and love the learning an researching process involved in it, which motivates me. Buying a world tracker and sitting down for 30 years may be the best thing to do, but my jumpy ass doesn’t allow me hehe.
Thanks for your time Nick 😉
I’m sorry about your investments, I can imagine what it must feel like (I’ve had the crypto-experience). I really appreciate how open you are about it, it’s a great lesson you’re sharing, although bittersweet at the moment
Your asset breakdown is interesting, I always love reading about it. I’m mostly invested in stocks but would love an investment property for the long term!
I’m following along your journey and love reading your posts!
Thank you for your kind words Radical FIRE,
The feeling is certainly not great, but it’s the way it goes and sooner or later most of us will experience a loss, hopefully not as big as mine though!
Thanks for following, I love reading your posts too, they are full of helfpful advices!
Sorry for your losses, Tony.
You seem like you’ve overcome it and I think sharing your experience with other people makes it better. Taking a step back is usually a good approach to getting things back in control.
Stay strong. ?
Thanks for time MonkWeath,
I’ve been depressed for a few days, impacting negatively my job and personal life. This is how life works and most of the times it’s upon us to take back the control of ourselves.
Agree, writing and sharing it with others helped me to accept it, and move on with another life lesson learned.
The support of other people is also very helpful, so thanks for contributing 🙂
Thanks a lot for the mention!
I’m sorry to hear that algotrading didn’t turn out the way you expected and I know the feeling of depression after losing a big pile of money. The good part is that after a while you forget about it and it doesn’t really matter anymore. I’m happy to hear you are “choosing love” and continuing the journey 🙂
Thanks Carl,
At the moment it is still very recent and although I am trying to turn the coin over to shorten the depression phase, time and patience is the only real cure I think.
I wasn’t aware that you lost a big pile of money too, I would love to read about your experience as it may be helpful to me and others.
[…] knew this would happen and that’s why I considered the whole lot as lost money on my last net worth and portfolio update. I am glad I did so, otherwise, I would have had a second consecutive month […]