Financial update August 2016

It has been a while since the last update!

In the interim been through a few changes on the personal front. We’ve had some new beginnings on the earnings front as well as cutting out some long-standing big expenses.

Furthermore, a windfall from the sale of some businesses has resulted in a lump sum of additional capital that needed to be deployed. Together with currency volatility it has made for some interesting investments over the past 10 months.

Where are we now?

Well, in terms of net worth we have killed the home loan debt and no are sitting in the position of no debt on the balance sheet. However, we cannot really invest that capital so from a purely liquid capital point of view we’re sitting at around 21x average annuallised expenses and getting close to the major 25x. My chart as at August 2016 relative to my expenses now looks like this:


passive income of 4% of investments versus monthly expenses


Rolling 12m average of income versus expenses

That purple line tracking my 4% theoretical withdrawal versus expenses is getting very close to my expenses now, and I reckon within 12 months will start to see the monthly red line dipping below it. Once the 12m average line starts to dip below the purple line in the second diagram then I know that it is official in terms of financial independence.

Then I’m definitely crossing that off of the bucket list. I then will make a call as to whether it is to start a new business, carry on and get more of a buffer/increase some expenses, or to just take a break for a while.