How to calculate economic return on loft insulation and energy consumption in developed world

    When we bought out house loft insulation had only 25 mm loft insulation thickness, with recommended 275-300 mm of fiberglass.  I decided to do put some more, while also use it as an opportunity to clean up the dusty loft (no storage there).

With the current insulation in winter our second floor was colder than first floor due to roof loft heating losses. Additionally, I was encouraged by perceived saving due to improved insulation.

      How to calculate economic effect from insulating your loft and any potential energy savings?

Previous insulation – 25 mm, new – 275 mm.  I decided to use mineral fiberglass insulation, although if I do it again I would use more expensive natural wool. Advantages of natural wool: it absorbs condensed water and then evaporates it, traps any gases and contamination (i.e. breathes), does not loses thickness when gets wet with condensed water.  Disadvantage: more expensive, perhaps more flammable.

Materials I used for the loft insulation:

Diall Loft insulation – 23 rolls - 290 GBP -3m2 per pack, coverage - 68m2.

Gardman Bubble Greenhouse Insulation - 6 rolls - 99 GBP (as a vapour barrier).

Knauf Eko Roll Loft Insulation – 14 rolls - 280 GBP – 5.5m2 per pack – coverage - 77m2.

Loft Vent Trays (plastic) – 40 pieces – 60 GBP.

Total cost:  730 GBP or 10.2 GBP/m2

      Additionally, I used this as an opportunity to apply some teak oil to the joists and the roof beams, to preserve and protect them - 20 L at 160 GBP. No installer will do that for you, unless you specifically ask and pay.

All together it took 5 days ~ 7-8 hrs each or 40 hrs.

 How I calculated the economic effect and return on the loft insulation:

August 2017 update ($448,991 +$1,333 or +0.3%)

↑ Emerging Markets Stock Index Fund is up by 2,4% or $1,724

↑ US 500 Stock Index Fund is up by 0.2% or $234

Grand total additions:  $1,958

↓ Eurozone Stock Index Fund is down by 0.5% or $537

↓ Global Small Cap Index is down by 0.1% or $88

Total loss: $625

July 2017 update ($447,658 +$17,520 or +4%)

↑ Emerging Markets Stock Index Fund is up by 2,4% or $2,915
↑ Eurozone Stock Index Fund is up by 0.3% or $325
↑ US 500 Stock Index Fund is up by 2.0% or $2,010
↑ Global Small Cap Index is up by 2.2% or $2,253
↑ EUR is up to USD by 4% or $10,018
Grand total additions:  $17,520

May 2017 update ($429,446 +$11,446 or +3%)

↑ Emerging Markets Stock Index Fund is up  by 1.6% or $1,764

↑ Eurozone Stock Index Fund is up by 1.7% or $1,934

↑ US 500 Stock Index Fund is up by 1.3% or $1,342

↑ Global Small Cap Index is up by 0.3 or $301

↑ EUR is up to USD by 3% or $6,102

Grand total additions:  $11,446

Financial independence portfolio performance review

I think that benchmarking, when used in the right context is a representative reflection of affairs, especially in finance where it is numbers game. I analyzed my portfolio performance and investment choices made.

These are better presented in a table (all sum of money is in thousands):

	2012	2013	2014	2015	2016	2017
Cumulative	21	140	202	215	303	303
Inflation adjusted	22	146	217	236	337	347
S&P500	23	173	265	280	412	440
Yearend value	20.7	141	169	167	316	304

Cumulative:              The invested money added up together.

Inflation adjusted:   The invested money adjusted for the inflation and added up together (as if I would have invested in Treasury Inflation Protected Securities aka TIPS).

S&P500:                     If I would invest money in S&P500 (commissions are not included).

Yearend value:          Value of my portfolio at the end of the year (including received dividends).

Here is the same information presented on a chart and “how and  why” this happened and what to do next.

April 2017 update ($390,514 +$10,514 or +3%)

↑ Gazprom shares are up 5% or $5,778

            ↑ iShares core DAX is up 1% or $257
            ↑ iShares Emerging markets Sovereign debt ETF (IEMB ) is up by 1% or $200
            ↑ iShares Emerging markets Corporate debt ETF (EMCR) is up by 1% or $280
            ↑ EUR is up to USD by 2% or $4,961
            ↑ GBP is up to USD by 2% or $715
             Grand total additions:  $12,191
            
            ↓ Company shares are down by 2% or $500
            ↓ Vanguard S&P500 ETF is down by 1% or $803
            ↓ Rosneft shares are down by 4% or $449
             Grand total losses:  $1,752

March 2017 update ($384,408 -$5,531 or +1%)

↑ Vanguard Emerging markets ETF is up by 1% or $161

↑  Company shares are up by 1% or $201

↑ Rosneft shares are up by 2% or $225

↑ iShares core DAX wen up 4% or $920

↑ GBP is up to USD by 1%, for my portfolio it is $358

↑ Precious metals are up by 1% or  $531

Grand total additions:  $2,396

↓ Vanguard S&P500 ETF is dow by 1% or $642

↓ Gazprom shares are down 6% or $7,223

↓iShares Emerging markets sovereign debt ETF (IEMB ) down by $60

Grand total losses:  $7,925