Very detailed presentation and many details, thank you at this point for your effort and work. I don't quite understand about the dividends. 🤔 On the one hand, you write that they amount to 163 euros, along with a small amount of interest. And amount to a fifth of your expenses. On the other hand, you reinvest dividends amounting to 110 euros. Does the reinvestment run under expenses in your calculation? And I know that real frugalists can be real hardliners when it comes to costs, and to a certain extent they have to be. Then your monthly expenses would be a little over 800 euros.... That's really hardcore. Hats off to you. Thank you for more information and continued maximum success on your journey
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@Dividendenopi I'm glad you asked. I've written about my reinvestment strategy before.
It works like this: I use the previous year's dividends and the forecast here to determine how much I will net.
I then arrive at a figure for the weak months. I call this the target figure.
There is also a mini buffer in the budget in case the actual payment falls below my planned amount. This is the case for 4 months this year, but with only small differences.
Why the plan size? Because I have included my dividend reinvestment of this amount in the savings plans and don't want to adjust it every month.
So: in 4 out of 12 months, I almost reach the target amount, so that I add something from the mini buffer. In the remaining months, I'm always over the target and can even leave the cash lying around, or I pull it together and reinvest it in a one-off savings plan. In future, I could also use the "too much" from the December distribution and leave it for the capital gains tax on the advance lump sum.
This strategy ensures that I don't have to keep touching the savings plans and that the deposits pay for themselves with the savings plan amount that exceeds the amount allocated from the net salary.
I therefore have the luxury of being able to distribute the "extra" dividends over the size of my plan.
The plan size is deliberately set rather low, because if I were to align it more with the strong months, I would always have the problem of having to dip into real reserves to make additional contributions. And reaching into the nest egg for this is a no-go.
In June, I'm thinking about using the considerable extra dividend $DHR, $UPS, $TGT to make additional purchases. Or topping up an ETF further, e.g. $FGEQ or $ISPA.
It works like this: I use the previous year's dividends and the forecast here to determine how much I will net.
I then arrive at a figure for the weak months. I call this the target figure.
There is also a mini buffer in the budget in case the actual payment falls below my planned amount. This is the case for 4 months this year, but with only small differences.
Why the plan size? Because I have included my dividend reinvestment of this amount in the savings plans and don't want to adjust it every month.
So: in 4 out of 12 months, I almost reach the target amount, so that I add something from the mini buffer. In the remaining months, I'm always over the target and can even leave the cash lying around, or I pull it together and reinvest it in a one-off savings plan. In future, I could also use the "too much" from the December distribution and leave it for the capital gains tax on the advance lump sum.
This strategy ensures that I don't have to keep touching the savings plans and that the deposits pay for themselves with the savings plan amount that exceeds the amount allocated from the net salary.
I therefore have the luxury of being able to distribute the "extra" dividends over the size of my plan.
The plan size is deliberately set rather low, because if I were to align it more with the strong months, I would always have the problem of having to dip into real reserves to make additional contributions. And reaching into the nest egg for this is a no-go.
In June, I'm thinking about using the considerable extra dividend $DHR, $UPS, $TGT to make additional purchases. Or topping up an ETF further, e.g. $FGEQ or $ISPA.
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