February 2012 update ($182,600 +$13,000 or +7,0%).

I have managed to accumulate another  $3,400 towards my annual investment goal and  this year I was paid a small bonus at work. After a few small presents I decided to invest it all (around $10,000).

The portfolio changes:

↓ Emerging market securities were down 1,5%

↓ The energy company stock is down about 3,7%

↑ Cash contribution of $13,400

How to make willingness to achieve financial independence more clear and inspirational?

 - Keep the record where your money goes to. At least for a few years . It will help you to understand your needs and the split  between your essentials and the rest.

My original goal to achieve financial independence was $60,000 a year.  Percentage wise it goes like this (simplified):

 -  You can have accumulate your wealth towards one item at the time using the projected interest rate. For my financial independence plan it is 3%.

So to have the items for life I need:

January 2012 update ($169,600 +$4,000 or +2,0%)

I have managed to accumulate another  $3,400 towards my annual investment goal , which had been the only growth contributor.

 

Energy stocks screening

Energy Prices forecast:

mcf - hundreds cubic feet.

January 2012 Analysis major Oil Companies analysis:

 * Gazprom has big exposure to one country only - Russia

Is real estate (property) worth investing as rental income?

Is real estate (property) worth investing as rental income?

I would like to make on assumption in order to reduce uncertainty and number of plausible scenarios :  the  real estate price will be constant and appreciate at inflation rate and all received income will be invested in mutual fund to get average income.

I am considering buying a well positioned one bed room apartment – 750 square feet (68 m2)  with parking lot.

Initial cost $ 170, ooo,  the parking lot will cost additional $ 50,000.  The parking will improve occupancy rate and make it more attractive in busy center.

The apartment will be furnished, so additional $20,000 is required to buy the basics.  Total investment is $240,000 USD.

2012 Goals

Financial:

- Accumulate at least $40,000 for investments during 2012, beginning  2013.

- Create feasible plan 10 year and review the priorities.

- Diversify the nest egg.

- Think about additional source of income.

Blog:

- Regular monthly updates

- To cover  6 themes

I have no intentions to move towards an entertaining blog with 2-3 weekly posts.   I will endeavor my best efforts to stay on personal subject of financial independence.  

Educational:

-  Create list of books to read  & read them- 12 books in minimum.

-  Publish reviews.

- Have solid understanding of mutual funds and energy sector stocks.

Family Budget:

- Stay under $75,000 with the family expenses

- Accumulate $7,000 towards durable goods replacement over 10 years.

Be happy.

End of 2011 - Period 2010-2011 ($ 165,000, +$45,000)

Financial goal:

- In the overall  the only changes were the additional savings and some fluctuation due to the fact that the assets are held in four different currencies.

- At the current inflation rate and the administration fees  combined around 5%,  it is very much uncertain how to get to my point B. My original goal was to have $ 2 million.

Inflation adjustments -two observations:

- Financial independence goal review. I should either to adjust for  inflation my nest egg or the financial independence goal, i.e. it should go to $ 2.1 million.

- Beyond financial independence. The invested money will earn at equal or just above the inflation rate,  the returns (annual income) will start depreciate immediately.