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  • eurfi 10:49 on 2017-01-21 Permalink | Reply  

    Answering questions about my part-time work 

    Whenever I feel a little bit bored and sitting in front of my computer I browse the “Ultimate List of Blogger Net Worth” for new entries. And so I stumbled upon http://retireinprogress.com/. I commented on his post about working 80 %. He starts working 4 days a week in January 2017, for me it ends.

    After some back and forth he asked some very interesting questions, that warrant a longer answer:

    Do you consider your part-time experience a failure for your entrepreneur endeavor or for your overall life quality?
    What I read is that you ended up being lazy in the 20-40% time you got back compared to a 100% position. What makes you think that when fully FI you won’t be lazy? What makes you feel that when fully FI you won’t fill your life with small chores, errands and meaningless activities?

    The answer is not easy or straight-forward for me. Let me explain my current situation a little bit: I’m feeling very stressed. Time is too limited between multiple jobs (“main job”, side job, side hustle, active investing) and family and house. We prioritise the kids very high, so besides working almost everything else is neglected (e. g. house is dirty, chores get done on the last minute). I see this with worries. My wife not so much – she thinks everything is “fine”.

    I would like to escape this stress by quitting my main job. This would give me plenty of time for all the neglected stuff and also for my interests. After talking with my wife about this, there are two ways for me to achieve this: net worth over 600k or having a “business” with at least 1,000 Euros profit a month. If all goes like planned, we might have a net worth of 600k mid 2020. This would mean 3.5 more years to endure. So, the business option could be a short-cut time-wise. I’m still working on it, but time is more limited than last year.

    Now, with the stage set, let’s answer those questions:

    Do you consider your part-time experience a failure for your entrepreneur endeavor or for your overall life quality?

    Yes, it is clearly a failure for my entrepreneur endeavors. My overall life quality was better. But having the goal to work on your business and in the end not doing it, gives you guilty conscience. So I did not fully enjoy the leisure days.

    What makes you think that when fully FI you won’t be lazy?

    Isn’t that the point of being FI? Joke aside, I have a lot of interests, that are parked now, because I don’t have the time. I’m quite certain I would work on them. And I would spend more time during the week with my kids.

    What makes you feel that when fully FI you won’t fill your life with small chores, errands and meaningless activities?

    I guess a big part (at least in the beginning) would actually be small chores and errands. There is so much neglected. Every room I enter I see stuff that should be done. 2017 I would like to work more on these things, because some of them can be done while working full time. It is a matter of organisation (and goal-setting).

    Sorry, this was a lengthy post and in the end I’m just hoping. Nobody knows how it is really going to be. I accept the critic that my free days 2016 showed a more lazy future. I counter that with a need for decompression. After that period I will be productive again.

    • Mr. RIP 11:34 on 2017-01-21 Permalink | Reply

      Thanks for your answers EurFI, the picture is clear now 🙂
      I can see that with just a single extra day available per week you’d just do urgent but not important stuff and will reach your long term goal later, which is not good for now.


    • Team CF 15:58 on 2017-01-26 Permalink | Reply

      Same as you, I’ve too many things I would like to do and feel that when FI I would finally have the time to do those. I have absolutely no worries that I can fill my time (and then some). You would also have the ability to schedule all these things the way you want, this gives the feeling of freedom which is something I also look forward to in FI.
      What will likely happen is that Mrs. CF will continue to work (because she loves it), while I persue other opportunities. Might already happen in 2018….well before FI!


      • eurfi 18:53 on 2017-01-26 Permalink | Reply

        Already in 2018 – congratulations.
        I have (theoretically) this possibility as well. But I need another income stream with about 1 – 1.5k per month. Then my wife would let me leave my jobs and pursue the business. Currently at zero, unfortunately.


    • Financial independence 3:26 on 2017-02-01 Permalink | Reply

      First of all – many thanks for sharing. i would perceive 600k a risky scenario , as it does not seems to cover higher/cumulative inflation over time, potential loss and fact that it is much more difficult to get a job once you have been out of it for a significant period of time.

      as we have similar situation st home in regards to chores , i think it is matter of priorities and something will always take precedence, as they are already low on priority list. this needs to be sorted in the current constrains, if considered important.


      • eurfi 21:40 on 2017-02-01 Permalink | Reply

        I agree with the 600k. Especially after I now realised, that our FIRE spending won’t be 2.1k (as originally expected), but more like 2.6k. On the other hand, leaving my job will open new income opportunities. And as software developer (who intends to continue programming) I will find a job again. I’m convinced I could make a killing as freelancer (if I wanted to work full time).

        So, I consider 600k as a starting point for discussion, where I could (and probably would) leave my job. My wife wants to stay – even better for the math.


  • eurfi 23:15 on 2017-01-09 Permalink | Reply  

    2016 – Yearly Expenses 

    While 2015 was financially spectacular, I did not achieve similar results in 2016. In the beginning of the year I bet on a rallye (didn’t happen) and in the final month on the year I bet on a decline (also didn’t happen). So I lost needlessly money. In between were some good months, so in the end all was okay (but not spectacular).

    2012 – 2016 in comparison

    But in this post we talk about the expenses, so let’s compare the years:

    • 2012 – 42k
    • 2013 – 44k
    • 2014 – 33k
    • 2015 – 34k
    • 2016 – 35k

    I was expecting rising expenses and wanted to stay below 36k (stretch goal was to stay below 2015’s level). For 2017 I’m expecting slightly lower expenses (around 100 Euros each month).

    Expenses by Category

    • pension payments – 18 %
    • children – 16 %
    • housing – 15 %
    • groceries – 13 %
    • car – 7 %
    • travel – 5 %
    • clothes – 5 %

    Children related expenses jump from the 4th place last year (13 % back then) to the second place this year. We did more vacations than 2015 (or at least paid more for it) and my wife bought a lot of clothes (for our standards).

    Goals for 2017

    • yearly expenses below 2016 level
    • net worth of 450k

    I have not really thought about other goals. So maybe I will add some during the year.

    Savings Rates for 2014 – 2016

    Reader Niterainbow asked about my savings rate. I could not answer it, because I never calculated it. I was very interested in this as well:

    • 2014 – 38 %
    • 2015 – 41 %
    • 2016 – 41 %

    For 2017 I predict over 50 %. As I’m now working full-time again we will earn more. Above 50 % is a nice number!

    What is even more interesting (at least to me), is that in all 3 years our expenses would have been covered without my salary. I calculated it like this: yearly net worth gain – my net salary. This number was positive even in 2014 (were the net worth gain was only 33.4k).

    • MustardSeedMoney 4:49 on 2017-01-11 Permalink | Reply

      Wow that’s incredible that you have been able to keep your expenses trending down and keeping your savings rate so high. Awesome job and I can’t wait to you hit your 50% savings rate!!!


    • eurfi 0:11 on 2017-01-12 Permalink | Reply

      Thanks. The drop from 2013 to 2014 is about our move into our house and a change in health insurance. So when we ignore these “other” years. The expenses are going up from 2014 to 2016. 😦
      But this is okay, because I believe 2017 can be cheaper than 2016.


    • Team CF 15:53 on 2017-01-26 Permalink | Reply

      Pretty impressive 2016 and cool to see the developments of the last few years. Good luck jacking up the savings rate to over 50%.
      Oh, and stop timing the marget 😉


      • eurfi 18:56 on 2017-01-26 Permalink | Reply

        Why should I stop my active investing (I’m mostly selling options)? My 2015 result catapulted our finances to a new level. I will put even more effort in it. There is a lot of room for improvement (and potential).


  • eurfi 21:32 on 2017-01-01 Permalink | Reply  

    December 2016 – Net Worth and Expenses 

    Back in November I started a bearish leaning trade that did not work out at all. It had the potential to destroy my goal of reaching 360k net worth by the end of the year. But it turned out well – I made it!

    • brokerage accounts 295.5k (+2.5k)
    • ETFs 12.0k (+1.5k)
    • cash 23.1k (-26.8k)
    • alternative investments 35.3k (+0.1k)
    • taxes -0.2k
    • total 365.7k (+7.6k) [+2.1%]

    I had to pay my taxes for last year. ETFs gained nicely.

    Monthly Expenses

    • January 2.8k
    • February 2.6k
    • March 3.4k
    • April 3.7k
    • May 3.3k
    • June 3.2k
    • July 2.9k
    • August 2.6k
    • September 2.9k
    • October 2.7k
    • November 2.5k
    • December 2.4k

    December was a cheap month, despite the usual Christmas gifts. Our yearly expenses were 34.7k – well below the target of 36k. I have some error in my accounting, running expenses are always higher than the final number.

    I will talk about the full year numbers in a detailed post. Yearly goals will follow too.

    I wish all my readers a happy New Year and a successful 2017.

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