May 2017 Cheesy Index

It is that time of the month again, the time to present to you the May 2017 Cheesy Index! Let see how we did this month in increasing the ration between our net worth and our FIRE target number (which is under 7 figures in case you are wondering).

May 2017 Cheesy Index

We were pretty much at a stand still for May. We are up to 61.6%, that’s just 0.2% for the month. This is partially driven by the low savings rate and the exchange rates really hurt this month too. That being said, despite all these “setbacks”, we still moved ahead! Should be happy with that. There will be a time when we won’t see another increase, guess this is a nice mellow trial in “disappointing” results. Will have to get used to it at some point.

May 2017 Cheesy Index

May 2017 Cheesy Index

Exchange Rates Again

So, the pain continues.  The exchange rate was CAD 1.516 by the end of May. Compare that to CAD 1.49 by the end of April and even CAD 1.42 by the end of March. That is now an almost 7% change in the wrong direction. But such is life and there will be more fluctuations to come.

On the other hand (I’m the glass half full type of guy), our net worth expressed in USD actually did increase by about 6% since March. Not that this is helping us in any way, but it’s fun to think about it 🙂

How was your May? Did your net worth or index grow too. Hope it was more than ours 🙂

Please follow and like us:

14 comments

  1. I have been wondering about that myself. A lot of people in the financial independence community started their journey after the 2008 financial crisis. How will they handle large drops in their wealth? They are so used in having steady progress in their wealth.

    Even with indexing, large drops will happen. I have been an active investor since 1997 so after investing through the 2001 tech melt down and the 2008 financial crisis I know I can stomach huge drops.

    1. We only actively started investing in 2014, so we have no idea how it feels. Fortunately some of the effects will be buffered by the real estate. But I will not like a drop in net worth for sure!

  2. I love the cheesy index!!! 61% is terrific and it appears you are inching closer to that 65% mark by the day. Keep up the awesome work and I’m sure the exchange rates will turn your way in no time 🙂

    1. We do hope to see another jump again this month, exchange rates changed for the better and we got a tax return. Still confident we can hit 65% this year 🙂

  3. How about expressing the cheesy index in the ccy that shows the highest gain. That way, you can be more excited each month? Just joking. With the next correction, the index will dive lower… It will be interesting to see what the cash flow does.

    1. Yeah, brilliant idea! Only report positive yields/developments 🙂
      But you have a point, the cheesy index will dive on the next crisis, but as long as the cash-flow remains the same we don’t need be worried what so ever.

  4. Patience, haha, challenging indeed 😉 It is about the long run indeed, where the underlying values are of importance rather than the curency in which they are reported.
    Canada is beautiful!!

  5. Those damn exchange rates… They also find a way to effect your results 😉
    It could also provide a nice environment to purchase more of those Canadian stocks though…

    1. Think we are heavy enough on the Canadian stocks at the moment, time to get more exposure to Europe and the US with additional dividend stocks. Just need to figure out in the next months if we go the real estate or the stock market route…….if it is the stock market route, will need to open a new trading account.

  6. Exchange rates also had a negative impact on me during the last two months. But hey, once you reach FIRE, these would be the times to arrange a trip to Canada! 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.