Quarterly Returns – Q3 2020

Quarterly return posts supplement my monthly Financial Dashboard, covering investments in detail and looking at my yearly targets. Here I track purchases and sales, document progress against my (in progress) investment strategy, and discuss re-balancing and changes over time.

2020 continues to be the weirdest year in a while, so how are we faring financially?

Q3 Returns:

Net worth excluding my DB pension & student loan

  • Cash Savings Accounts £13,300 (+1,100)
  • Investments £6,100 (+£1,000)
  • Property £48,600 (+£5,700)
  • Cars £2000 (no changes)

Slow increases in my cash savings, which comes as a bit of a shock to me given the amount of spending we’ve been doing on house renovations. My investments have actually gone down slightly, with a gain over the three months of less than I’ve put in. Reasonable jump in our property equity consistent with an increase in local house prices, and this has driven the rise in my net worth.

Yearly Targets:

Goal 1: Build an emergency fund

My first 2019/20 goal was to build an emergency fund, as per the r/UKpersonalfinance flow chart (1). My goal emergency fund is three months total household expenses (£6k) in my name, plus a further three months (£6k) held jointly.

Source: https://flowchart.ukpersonal.finance/ (1)

This has steadily increased, but recent DIY and impending builders/ plumbers/ electricians fees mean that attempts to stay above £10k are unlikely. The goal remains achievable.

Goal 2: Save 30% of my income

I calculate my savings rate using this formula:

Savings rate as % = ((Income – spend) + Cash savings + Investments + Pension contributions) / (Income + Pension contributions)

YTD Savings Rate

My savings rate has been all over the place this quarter, thanks to some early/ late payment of my salary, and then a subsequent overpayment and underpayment. Wish my payroll department could sort itself out. I’m still averaging 37.17% over the year, so on track to beat my goal.

Goal 3: Calculate savings made by growing my own food

This goal has been somewhat forgotten, as I got distracted from the garden by house renovation. We have had a good glut from the harvest; toms, potatoes, courgettes, marrows, pumpkins, french beans, peas, carrots, onions and plenty of salad veg. I have failed to maintain my spreadsheet, but I have been keeping a diary of what’s grown well (or not). I’ve had great success with varieties bought from the Real Seed Company, so would recommend them for next year (2).

Goal 4: Make changes to reduce carbon footprint

I continue to work from home, we’ve only had a couple of long weekends away in the UK (so no foreign hols), we continue to eat local produce, and we use Splosh for our household cleaning (3). I’ve spoken about them before; they’re a zero waste refillable start-up, and unlike most of the eco washing stuff we’ve tried, their stuff actually works really well. We’ve found we actually save money as well, as the concentrate is strong stuff even watered down, and we use less. If you want to give it a go use referral code YQL240THX1 to get 15% off.

Goal 5: Automate investments and savings

My regular savings account and FreeTrade investment is all now automated and working nicely. A few of the savers have come to an end, and I’ve pivoted that money to pay off new credit card debt from house renovations. My final regular saver comes to an end in December, and I’ll need to have a think about the best direction for that cash. In my investments, I’ve mixed adding new funds/ stocks and topping up existing holdings.

Core/ Satellite Passive/ Active Split

After purchasing a few stocks and active funds in Q2, it was back to slow and steady drip feeds into my iShares EM ETF and Vanguard FTSE All World holdings. Both have hovered around my buy price through the quarter, and I wouldn’t be surprised to see losses. I’m currently holding a reasonable chunk in cash to deploy if necessary and as an extra buffer for the next 3-6 months. Or at least that’s the cognitive trick I play on myself to tell myself that I’m not timing the market.

Fancy a free share? Sign up to Freetrade using this link, and we both get one.

Hope everyone else (outside of lockdowns) are seeing gains,

The Shrink

References:

  1. https://flowchart.ukpersonal.finance/
  2. https://www.realseeds.co.uk/
  3. https://www.splosh.com/how-it-works

3 thoughts on “Quarterly Returns – Q3 2020

  1. Great to see a reference to r/UKPersonalFinance on another blog. That sub was a huge influence on me and my initial interest in getting a grip on my finances.

    Liked by 1 person

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