Missing Targets – 2019 Full-Year Forecast

2019 has only a few more weeks to go and unfortunately, my budget is telling me that I am going to miss some of my personal financial goals and targets this year.

Since I had a one month gap in between jobs (which was a goal for 2019 to have) and missed one salary payment, my total annual income will, unfortunately, go do down slightly from last year, despite having negotiated a roughly 10% salary increase in my new job. I would have hit the target if my negotiation skills would have been better, but that’s how it turned out.

This also affected the savings rate which comes down compared from last year by almost 10%. This one was however more due to some personal expenses: More travel, and as my daughter is growing older I have now a few additional expenses on that front.

Still, I am on track to have saved/invested roughly 32% of my total annual income. That’s not bad, but below my 40+ target. However, on a good side, my dividend income will turn out to increase more than 30% compared to last year. Some of this is due to dividend increases. Some are due to additional stock purchases. But the overall result is satisfactory.

My goal to improve my time management and the new job made one sacrifice necessary: I had to time-out on my side-hustle. As some of my readers know, I am opening a new hotel in Thailand and while the job itself is already very time consuming, the only way to maintain a somehow healthy work-private-life relation was to stop.

I also didn’t really prepare for a market crash by saving cash in an equivalent amount of 50% of my depot volume. I invested every single penny this year. However, a large portion of that money didn’t go into the stock market. Instead, I have started a project with my dad to build a small guesthouse in Poland. We are modernizing one building on our land and will prepare 4-5 rooms for rent. This is mostly to the benefit of my parents, as their social security pension will turn out way too low to support them after retirement next year. In the long-run, however, this should also be of benefit to my brother, sister and myself. If not by running the business on our own later on, then at least through value appreciation for this beautiful piece of land.

Last but not least, my exercise routine has improved further as the place where I live right now has an amazing gym. My daughter is joining me occasionally, but her attention span is still too low to focus on one thing for longer than 20 seconds… I am ok with that.

With less than 10 weeks to go, the result is becoming already obvious and predictable. Having a personal budget in place makes it easy to see where my strengths and weakness this year are or have been, and what I will need to work on along the finishing line.

To sum it up, I will win some, I will lose some. But 2019 will not end as a bad year at all.

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