Liberate Mind: Family Edition

Where are you and where are you going?
LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

@basuragomi,

We are still in the planning phase, nothing decided clearly yet. Most likely the expenses for the first year would be cashflowed by DH as the break is mainly for the family. And we maintain seperate assets except for one plot where we plan to build on. Most likely maintaining seperate asset will continue.

I have put a plan for my cashflow separately will do a detailed post on finances later.

LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

@wolf , Thank you.. In paper it looks great..😊.. But reality is more messy with lot of late night thinking like what the heck am doing
.. planning to do regular postings..but then lets see how it goes
. :D

rube
Posts: 686
Joined: Tue Oct 02, 2012 7:54 pm
Location: Europe (NL)

Re: Liberate Mind: Family Edition

Post by rube »

Thanks for the update LM. Good luck and I will following your regular posts.

LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

@rube, Thank you. Will try to post more frequently.

George the original one
Posts: 5364
Joined: Wed Jul 28, 2010 3:28 am
Location: Wettest corner of Orygun

Re: Liberate Mind: Family Edition

Post by George the original one »

Nicely done!

2Birds1Stone
Posts: 1237
Joined: Thu Nov 19, 2015 11:20 am
Location: Earth

Re: Liberate Mind: Family Edition

Post by 2Birds1Stone »

Hello LM! Reading your update from Nov 20th put a big grin on my face. Very happy that the experiences I documented somehow inspired you to pull the trigger. Also looking forward to your detailed financials post and ongoing developments in reality vs. expectations. Giving yourself 3 years to figure out life is a gift that you have to approach with gratitude each and every day. Congratulations!

LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

@GTOO, Thanks. Good to hear from you after a long time. :D

@2B1S, Live to please :D .. But then your journey definitely helped in making the decision... Very interested in hearing out how your work life is going to be after the break.. esp. with respect to the mindset / lifestyle. So please keep posting.. even though most of us don't reply here, we sure do read it and internalize in our lives..

Finance

My last paycheck would be on the end of Nov. Planning to cash flow based on the loans provided to family. I have taken up DH loan and prepaying it , planning to close it with my final settlement or EPF ( kind of retirement savings) amount. Already have a ongoing loan with my parents.

So typical monthly cashflow on 2021 will look like this. Both the loans close at the end of 2023, instead of paying interest to the banks they redirect it to me.

Parents Business Loan EMI: 10500
DH Loan EMI: 22250

Estimated Income : 32750 for next 36 months.

Expense
Parents allowance : 5000

Along with this I will be getting dividends. Put in advance for purchasing an acre of agricultural land.. So after paying that off by end of Mar, will reevaluate the cash and then do some investments on that. From the remaining cash, planning to cashflow my education / certification during my break as well. Already the current employer is asking for 2 weeks of temporary work during Jan, lets see how it goes. Details on the temporary employment yet to be discussed and finalized upon. Except for EMI, most of the things are floating around and not set in stone. So we will see how it goes..

LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Random Musings

- Last Friday is last day in my job. Got a memorable farewell and emotional good byes from the team. Even though I like the people , the job will not work out in long term for me. Might have to do 2 weeks of knowledge transfer to the person coming in in Feb or Mar, under contract rates lets see how it goes. 3 different people wanted to know whether I am interested in part time, good to see that I am being valued. Don't know how the position would be when I return to job market, as the tool which i have worked on is ancient now.

- Had some trouble sleeping in after quitting the job. Feeling bit nervous and afraid even though I know logically this is the right step. Hopefully this is a transient feeling and it will go away.

- Am trying to build the routines similar to that of work days, except that I close 2-3 hours earlier. Remaining time spent on learning python and machine learning as this is my chosen area of exploration now. Have a big learning plan. Recently started doing some hobby project on python, on analyzing my portfolio. Lets see where it goes.

- Trying to eat healthy with more veggies and fruits. No excuses now. This is still not internalized as a habit.

- Finance wise, I might be able to maintain around 85% of my networth in the upcoming years. Planning on taking some contracts after 3 months, nothing long term just to keep me busy and cover my living expenses. Time to review which level I am in.

- Tracking my daily usage of time on and off in the past 5 days. Mostly likely will keep at it , till I reach a optimal routine in my day..

LiberateMind
Posts: 159
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Looking Back
LiberateMind wrote:
Mon Jun 01, 2015 12:37 pm
Finance Update

Goals:
Level 1 (Emergency Fund - Cash) - Fixed Deposit
Level 2 (Short Term - Cash) - Two years of living expenses in FD
Level 3 (Intermediate Term - Cash+Bonds+GOLD) - Five years of rent and living expenses.
Level 4 (Long Term - SWR 6% - PP Protofolio) - Income should cover the living expenses.
Level 5 (Long Term - SWR 4% - PP Protofolio + Own home and farm) - Retirement (PP income should cover the living expenses).
Level 6 (Long Term - SWR 2% - PP Protofolio + Own home + Rental home (2 max) + 3 Acres land ( For own Food) + Twice the income to cover living expenses ) - SO RICHHHHHHHHHH.. No need to work ever again for money.

Once Level 4 is achieved, I would consider myself FI. Level 5, retirement is another option now. :) Level 6, my whole family is FI now.. :D
I can easily say level 1, 2 & 3 are achieved now.

Level 4- If I liquidate my real estate investments and put it a FD at 6% interest rate, it will cover my part of expenses. Real estate is non-income producing for me, but will be having enough capital appreciation to cover inflation and then some. Investing further in the existing real estate will not provide good returns. So most likely it will stay there. With my PP portfolio, I can cover 65-75% of my living expenses in my current location and might be more like entire if we go lean. But that is not what we aim for during retirement , so lets say this level partially achieved. Most likely would have achieved full status if I have worked 2 more years.

Level 5 - PP will cover 65% , Have a plot to build our home on in tier 2 city, have 1 acre farm + 1 acre in the process of buying. So the logical next step for us is to build a home. This is not yet decided as our requirements for land is high and the costs are hhhuuggee in the current location. Most likely we will revisit this when I re-enter the employment or start another income stream before going there. There is a good chance we will not settle down in our current city, as COVID has opened up lot of Work from home positions.

So what's on the plan, try to keep the networth as close to possible on close of 2020 and Cover the living expenses as much as possible from passive income. I would like to buy a car for my DH, so that might put a big dent on the networth in the upcoming year. Not really worried about that though. Lets see what good fortune 2021 brings us.

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