Hello from a reborn Dane :-D

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The Wolf
Posts: 3
Joined: Thu Jun 15, 2017 4:14 am

Hello from a reborn Dane :-D

Post by The Wolf » Mon Jun 19, 2017 9:14 am

Hi everyone! New arrival here and just wanted to say hello :D

How I got here: learned about MMM through Tim Ferris’ podcast episode. Then about ERE as Jakob’s name came up when reading more about the subject. I’m 28 years old, Copenhagen based, and dreaming about FI before I turn 40. Only started getting more hardcore a couple of months ago, but I’m really excited about the journey.

On this forum, I’m particularly interested in learning more about the Danish perspective on the journey towards FI. Many aspects in the MMM world seems focused on the American context for many sound reasons. As an example, I sympathize with MMM’s focus on bicycles, but being Copenhagen-based I’m already there, right? 😊 Secondly, the Danish tax system is very different from the American equivalent. As an example, we Danes have big incentives to focus savings on pension and real estate (personal home) rather than stashing up equity and bonds (frie midler).

I live with my girlfriend at an exceptionally low rent, so I don’t feel a strong incentive to take on an even more expensive mortgage setup in the short run. Especially not as the CPH housing prices are at an all time high and a correction seems inevitable at one point. Seems sounder to find a less expensive place outside Copenhagen and fix it up over time when we are ready for that move. What’s your thoughts on the market right now?

So my stashing-up strategy right now is fairly simple: max out the tax deductible pension (ratepension). 2) Save as much as possible (and place in various value stocks) to build up for future home purchase and thus avoiding any expensive bank financing (the 80% you can mortgage finance in Denmark is exceedingly inexpensive these years).

Right now I’m investing about 75% of my after tax income, which I’m pretty pumped up about. Hopefully I can keep up the level over time.

Thoughts or comments are more than welcome. Looking forward to becoming wiser through this forum 😊

Best regards!

MDFIRE2024
Posts: 200
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Hello from a reborn Dane :-D

Post by MDFIRE2024 » Mon Jun 19, 2017 11:51 am

Welcome.

Impressive saving rate, just after some few months in hardcore mode

FruFrihed
Posts: 18
Joined: Mon Jun 13, 2016 9:36 am

Re: Hello from a reborn Dane :-D

Post by FruFrihed » Mon Jun 19, 2017 4:22 pm

Welcome! I'm a fellow Dane living in Copenhagen as well. I'm impressed with your high savings rate! Is your girlfriend also aiming for FI?

The Wolf
Posts: 3
Joined: Thu Jun 15, 2017 4:14 am

Re: Hello from a reborn Dane :-D

Post by The Wolf » Tue Jun 20, 2017 6:11 am

Hi both!

Thanks for your heads-up :) I might still be having a "FI honeymoon" mindset these days, so I'll be more impressed with my progression if the savings rate is just as high 6 months down the road.

@FruFrihed: My wonderful girlfriend is ever supportive in all my ventures in life and also this one (up until now at least). However, we've also had a serious talk about the impact of our future as I initially wasn't successful in explaining her the implications of my new conviction. She was suddenly foreseeing a highly deteriorated quality of life with no room for any impulse requiring out of the pocket expenses. However, this is definitely not a life I would enjoy over the next 10 years. I guess it's critical to remind oneself that you're "solving" a lifetime optimization problem and not participating in a race towards FI at all costs. But she does see the rationale and the energy that it has instilled in me up until now. What's your experience? :)

FruFrihed
Posts: 18
Joined: Mon Jun 13, 2016 9:36 am

Re: Hello from a reborn Dane :-D

Post by FruFrihed » Fri Jun 23, 2017 12:57 pm

My experience is that it takes a little getting used to. My husband first thought that I was just very unhappy with my job. He couldn't imagine why I would pursue FI unless I really disliked my job. But he accepted it. Then he started seeing the benefits of being independent of a job as it gives more bargaining power. Now he also sometimes gets excited about being able to take time off work for longer periods. He still thinks that he will never quit a full time job but he is definitely on board with the FI goal 😊 He is frugal by nature which has probably made it easier though.

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Eureka
Posts: 252
Joined: Fri Jun 10, 2016 11:03 am
Location: Copenhagen, Denmark

Re: Hello from a reborn Dane :-D

Post by Eureka » Fri Jun 23, 2017 5:56 pm

Hi reborn Danish wolf and welcome here!

Are you aware of the meetup we have next month on 15 July? It is about an hour south of Copenhagen, but most of us are from Copenhagen and it is a good opportunity to get to know likeminded souls irl.

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