Going English…

It’s been a while since my last post, so a quick update is in order. First things first, I’m changing from Dutch to English. Hopefully I’ll get a bigger audience, because last years I got very little response. Also there’s another reason. This year I started to blog a bit about financial issues, mainly about keeping alive long enough to witness a wonderful space future.

One way to be part of a space future is, besides a good health, a fat bank account. Now you can save and invest your savings all you like, but it won’t make you exactly rich. Most people just have a salary and even with a frugal life, accumulating enough wealth is difficult. And a pile of wealth is what we’re aiming at. A couple of years ago I bought the book “The Millionaire Next Door”. The authors in this book explain why some people acquire wealth and others only debt.

I’m not going to explain the whole book, you better buy it yourself because it so well suited to an ordinary individual with a job. One thing I’ll mention and that is the rule of thumb the authors use to figure out if you’re accumulating wealth fast enough or if you’ll have a very poor pension. The rule is, multiply your age with your income before taxes and divide by 10. This should be you net worth if you’re an average saver. Also calculate your true worth, that is all your assets (f.i. your house) minus your debt (your mortgage). Divide your true worth by the ideal worth. If this number is lower than 0.5, woe unto you, if it is higher than 2, start dreaming about retiring.

So how did I fare?

2002 0.67
2003 0.73
2004 0.76
2005 0.89
2006 0.89
2007 0.91
2008 0.89
2009 0.94

Not very fast, I’d say. Almost average. What my income is and what I posses, a house f.i., that is not for the world to know, but this way I’ll stay average. By saving alone nobody gets rich, therefore one needs extra revenues. One way is to monetise this website, but I’m still guessing how to do that. That was a very long explanation why switching from Dutch to English. Sorry.

Now, I also need to update my Permanent Portfolio status, so there:

August 1st.

Amount Percentage
Stock 5.60 5.10%
Bonds 0.00 0.00%
Cash 104.11 94.90%
Gold 0.00 0.00%
Total 109.71 100.00%

September 5th.

Amount Percentage
Stock 5.89 5.37%
Bonds 0.00 0.00%
Cash 103.95 94.63%
Gold 0.00 0.00%
Total 109.85 100.00%

Still no changes, savings are going well and the Euro is going strong. Last months, whole summer really, it was really busy and I hadn’t the time to give PP the attention it deserves. Nevertheless I need to start to allocate my little bit of cash. It’s getting risky with all my eggs in one basket.