Updates from April, 2015 Toggle Comment Threads | Keyboard Shortcuts

  • eurfi 9:26 on 2015-04-23 Permalink | Reply  

    My 9 to 5 escape plan / wish 

    For me, learning about Early Retirement / Financial Independence was like the red pill in Matrix. Once you know about this possibility (and become “infected” by the idea), there is no way back.

    When I look at my long term financial plan there are two milestones: Reaching 600k at the end of 2020 and reaching one million at the end of 2023. If I keep my side job then 600k should be enough to safely quit my day job. At one million everything is covered. But 2023 is almost 9 years away, even 2020 is far away. For my taste too far. I struggle to think about working 5 or 6 more years. It’s all so insignificant…

    You work your but off on a stressful day and at the end of the day you ask yourself, “what have I achieved”? “What stays?” The answer is – nothing. In the grand scheme of things all is insignificant. After all those years there is only little to show for.

    I have lots of ideas of things I would rather do, but the time between working, family and house is just spread too thin. At the moment it is all too much for me. So there is a strong wish to quit 9 to 5. I can’t say that I have a plan, but at least a vague idea. If I can generate 1,500 Euros a month (or maybe 15k a year) via some other venture I could at least cover our expenses (together with my side job and my wife’s salary). We could not save anything from our salaries, but we also would not have to touch our savings. All growth in networth would then come from my stock market (options) activities.

    Of course, this slows down the path to true Financial Independence, but hey, my life would be almost the same as already retired. I asked my wife if should would also like to retire – no, she would like to continue to work. I assume this will change over time, if I’m truly retired and would enjoy the sweet things of life.

    So, my next goal wouldn’t be retirement, it would be a lifestyle business. 15k a year – sounds like two months working as IT freelancer (maybe in the winter). Or having a side project netting 1.5k a month. Or both. 🙂

     
    • No More Waffles 11:51 on 2015-05-01 Permalink | Reply

      EurFI,

      I’ve been thinking about this approach as well, like I recently mentioned in reply to one of your comments on my own blog. I’m still not sure what to think of it.

      On the one hand it doesn’t make sense to work full-time now just to be able to quit working in the future, while on the other having to work until 65 doesn’t sound appealing at all, even though it’s just three months out of the year or something like that.

      Food for thought…

      Cheers,
      NMW

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    • eurfi 13:23 on 2015-05-01 Permalink | Reply

      I think the crucial thing is to keep increasing the networth. As long as you can do that, you are on track (but at a slower pace of course).
      And I do not intend to not earn any money – it is just not as steady as a salary income. I think about entrepreneurship – maybe the business works, maybe not.

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      • ambertreeleaves 20:46 on 2015-05-12 Permalink | Reply

        Interesting thoughts… They cross my mind as well. A first step of FI would be to convert my day job in a freelance day job, using the skills I already have. Once that is achieved, I could switch to an 80pct or half time doing that and using the other half to explore new jobs, to travel,…

        I see some conditions to reach the freelance half time: Be debt free, have the kids out of the house or their full education cost covered, have enough net worth to cover at least half of our expenses using a SWR of 4pct

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        • eurfi 21:15 on 2015-05-12 Permalink

          I was thinking about freelance as well. But I decided to do the full step and rather try to build my own business (together with investment income). I would do it as a fallback if nothing else works out.

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  • eurfi 23:05 on 2015-04-19 Permalink | Reply  

    Saving money by procrastination 

    At the beginning of the month I wrote about upcoming expenses. I didn’t name them, but it was furniture for our kids rooms and some garden stuff. And I was already seeing 1,500 till 2,000 Euros go out of the window…

    Ha! Turns out it won’t be that bad. Overall it is maybe 200 Euros!

    We discussed several times the furniture for the kids rooms, but couldn’t agree on something. Then we finally had something, but didn’t immediately buy it (as it was relatively expensive and had lots of options). A few days ago we discussed again and my wife got sick about it, that we discuss this again. And then she said “I would like best …” – which is by far the cheapest solution!

    She is now happy, I’m happy. So maybe, procrastination is a viable money saving habit… 😉

     
    • ambertreeleaves 20:49 on 2015-05-12 Permalink | Reply

      Great story…! should happen more. We had something similar and after a few chats, pauzes etc we ended up with bass furniture for the short/medium term (The long term plan for a fully fletched custom room is put on hold for the next 5-10 years)

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  • eurfi 19:12 on 2015-04-14 Permalink | Reply  

    Recovering Bargain Hunter 

    Yesterday showed me the progress I made.

    There were two opportunities to buy things cheap – and I didn’t do it. Because in the end I didn’t need it. First thing was the Amazon Fire HD7 for 79 Euros (instead of 119 Euros) – just on Monday. And the second offer was some outdoor gear (a solo cooking system). For both items I had plans: The tablet in the kitchen for cooking recipes or to manage stuff in the freezer. And the cooker for outdoor tours (but we already have a bigger version).

    I didn’t buy any of them. And this is good, because in the end I wouldn’t have use it much. If only I had this insight every day…

     
    • There's Value 23:53 on 2015-04-17 Permalink | Reply

      I wonder if there is a way that we can have this insight more often – how can we change our thinking so that we don’t waste money on things that are not really very necessary, or wouldn’t get much use?

      Cheers

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      • eurfi 21:46 on 2015-04-18 Permalink | Reply

        I have read in serveral blogs about a waiting period before doing purchases – I think that is an excellent way.
        For me, when I talk with my wife, she sometimes talkes me out of things.

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        • There's Value 8:24 on 2015-04-19 Permalink

          That can be very useful too! Makes us consider things from a different perspective

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    • Financial Independence 15:11 on 2015-04-19 Permalink | Reply

      Congrats on developing frugality habits.
      I could only wish that on the way to financial independence I could convince myself and the wife to do the same.
      She looks at it differently – when you go and do not need to count money to buy the things you want, you are free. Hence our budget explodes every year, again and again.

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      • eurfi 22:39 on 2015-04-19 Permalink | Reply

        Thankfully my wife is thrifty. There are a few hot topics (mostly insurance, and maybe car), but overall we agree and do not spend that much. I try to buy the non-essential stuff used. Sometimes it works, sometimes it doesn’t.

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  • eurfi 23:07 on 2015-04-07 Permalink | Reply  

    The expenses – they are rising… 

    The new month is just seven days old (just a week), but our expenses for April are already nearing 2.000 Euros. April won’t be the month were I reach any of my monthly goals (below 2.5k or below 2.0k). We spent 330 Euros for new lamps (we had just lamp sockets before), there was an insurance bill over 200 Euros and I bought meat for over 100 Euros. And there is some time left 😉

    We might buy some furniture for our kids rooms, some garden stuff and there are more lamp sockets in the house. But all of these are one-time expenses. So, while I don’t like them, they are not as bad as recurring expenses (ok, the insurance bill is recurring).

    I already revised the yearly goal of below 30k expenses to stay below last year’s 33k. The current spending is already at 11.5k (since 1/1/15). So if we stay for 2015 below 36k (which average to 3k per month) I will be satisfied. There are just too many expenses coming.

     

     
    • There's Value 22:06 on 2015-04-09 Permalink | Reply

      sometimes it’s really disheartening when our spending plans get ruined! My grocery bill is already way over and we have 2 more weeks ’til payday! What a shame. Fortunately for us, we are not going to us the train or car so much this month, and we won’t be eating out much either, so that will help to balance things out a little.

      Cheers

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      • eurfi 20:01 on 2015-04-10 Permalink | Reply

        For me it’s not so much about payday, more like the monthly total expenses. And it’s almost 3 weeks left in the month. Of course we are now already over 2k. And tomorrow is a flee market and I assume we will spend around 50 Euros for children stuff. But at least this saves us money versus buying brand new.

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        • There's Value 10:05 on 2015-04-11 Permalink

          Yes, the flea markets are pretty cheap and children’s brand new things are SO expensive. We got a lot of things second hand for our son, and they are just fine. Why pay more?

          Cheers

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        • eurfi 21:57 on 2015-04-11 Permalink

          Turned out is wasn’t that successful. Just spent 15 Euros, but got several pants, t-shirts and puzzles. My wife shops for clothes and my topics are books and toys. 🙂

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        • There's Value 23:15 on 2015-04-11 Permalink

          great to only spend €15 though!

          Like

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