Liberate Mind: Family Edition

Where are you and where are you going?
LiberateMind
Posts: 197
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: 197
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
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Re: Liberate Mind: Family Edition

Post by rube »

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

LiberateMind
Posts: 197
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
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Re: Liberate Mind: Family Edition

Post by George the original one »

Nicely done!

2Birds1Stone
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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: 197
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: 197
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: 197
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.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

So it has been around four months since I quit the job and things are stabilized now, both on finance front and on home front. So what happened in the last few months.

- On the finance front, DH is providing for the home expenses a set amount and I handle the expenses , gifts to family, insurance from there. Right now it is running deficit , that is expenses/investments exceed the income. Most likely will catch up soon as one of major insurance payment is done for the year.

- Bought a farm in parents name with a split with the sister, so now I own around 2 acres of farm at least in paper so building up things to reach level 5.

- On career front, instead of being approached for contract, I got offered the job again if I want to. Rejected it maybe bit ungracefully as I got the offer out of blue during one of my emotionally draining periods. Along with that two of superiors who promised that they will write a linkedin profile recommendation is showing no indication of doing that. That might have played a part too.. But then I am more than willing to let go of opportunities with the past company as most of the times the opportunities are via promises and this shows I just cant rely on them to keep it.

- Lost around 4 kg of weight by reducing carbs and increasing protein with a bit of exercise. Following MadFit in youtube and became a fan. Very grateful that she provides such amazing content for free.

- Tried IVF and failed and that put a big dent on net worth and emotions. Here your family is everything here, going through that was a emotionally difficult experience. Have one more chance left and literally scared to death to try again and fail , so postponing it for few months. Even though I am open to adoption, my husband is not. My situation right now opens up a lots of questions in my mind.

- Lacking the confidence I used to have in my previous days, as lot of my identity is tied to my employment or may be salary. Slowly trying to build up a persona irrespective of outside circumstance. I was always good at planning and following through, now a days that habit has fallen into abyss.

- One of the things I am grateful for is, this gap has helped me identify lack of strength in certain areas in my life. Most of the times I compensated for these lack with career. Planning to build my character , understand people much better instead of rosy lenses.

Long story short, life was a mess for the past few months, trying to rebuild my life in the positive direction. I will try to post here more to keep my accountability and build discipline.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Finance :

For all the months below is stabilized, the idea is to have it with a bit of pinch so that we will feel the need to keep it under control. Remaining salary of DH is directly going towards his investments.
Income : 65000
Food Coupons : 3000

My investments stay stable whatever returns incurred there will stay there, taking out 5K monthly to pay parental allowance + few gifts. But as of now, I would be able to cover that without reducing the net worth from previous year.

Financials
Jan :
Income : 68000
Expenses : 41427
Investments : 33275 ( Gold - Even though this is investment most likely will be used to gift the family during functions. So like setting aside for future use).

Balance : (6702)

Big expenses:
- 6K For medicals on IVF
- 5K to Maid for health scare in her family.
- 2.5K for gift for kids.

Feb:
Income : 68000
Expenses : 92913
Investments : 5000 ( Gold ).

Balance : (35895)

Big expenses:
- 10K Cousin bro marriage.
- 8K Spectacles
- 5K Laptop battery
- 3.7K gift for kids
- 2.5K Charity

Mar:
Income : 68000
Expenses : 39225
Investments : 5000 ( Gold ). + 64K Term Insurance + 22.5K General Insurance

Balance : (98880)

Big expenses:
- 3.5K Eating out
- 3.5K DH Birthday celebration.

So running around 99K deficit should catch up on the upcoming months. Right now the investments and deficit pretty much break even , the idea is to have a positive balance in the coming months. Might be bit tricky as a big expense on car is popping up to the tune of 35-40K.
Last edited by LiberateMind on Thu Apr 01, 2021 11:55 am, edited 1 time in total.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

On the finance front, April is shaping up to be good month ( except for car expenses but have to deal with it when it comes) few things done to improve finances.
- Reduced the broadband plan to check whether this is sufficient. Looks okay though.
- Reducing dairy , mainly for health reasons.
- Bulk ordered in online store to get the deals.

We might go into increased deficit at the end of this month, only target is to reduce the gap as much as possible and keep the living expenses below 40 K.

Gift giving is main part of our family culture, so most likely that will controlled but not reduced. But we do give gifts as investments or based on the needs as much as possible to keep the practical value. One time or the other we are the recipients of the gift as well. Right now the family car is with us as we had the need for it during hospital visits, now it will go back to parents as the need is over. But while returning the car, we would like to give it in more pristine condition than we have received it like changing tires and servicing the car. That way, better deal for both of us.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Financials
Apr :
Income : 68000
Expenses : 66590
Investments : 5000
Balance : (3590)

Big expenses:
- 30K for IVF related ( Cashflowed by DH )
- 16K for Car Service.
- 6K for home travel.
- 5K on gifts to family.
- 4K for annadhanam ( Temple related thingy, where people give free food to the village ).
- .5K to Maid for health scare in her family.

Deficit : (105470)

On the car front , parents are not willing to let us spend the entire service cost , so we split 50/50. Usually we travel to home by public transport but due to corona scare and IVF related stuff took car to visit home that increased the expenses to the tune of 3K. Gift giving is kind of out of control right now, but still no regret there. Have to plan and cash-flow it properly so that it doesn't derail our plans.And again while returning from home we got a small sack of rice, coconuts and onions all farm grown. So its kind of back and forth. But then tend to provide more than we receive, no regret on it though.

May might be again a stretch as one of my mom's sister (chitti) is into an accident and lost her limb. All the families are going to pitch in to help their family to give good medical care to her, even though majority of the cost will be borne by them. We don't know the cost but will feel the pinch in the budget for sure. I guess this is what savings is for to help the family now and then.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Financials

May :
Income : 68000
Expenses : 36175
Investments : 5000
Balance :26825

Deficit : (85218)

Moments of the month:
- Still reeling from the chitti's accident . Within 15 mins, her entire life trajectory was changed. Though she is in good shape now, she might be dependent on her family for the existence. If money is not a problem, then she might get movable limbs. But most likely movable limbs will cost almost their entire family's net-worth. None of us are in a position to help her to get her life back. All we can do is support. Life is not going to be same for her. It made me fully appreciate the collective society we live in as well. No one person is alone, irrespective of anything I can think of. At the minimum for anyone in the family will not go into deep end.

- One of DH's Friend requested support for his in-laws in my location as he is away. Times are tough when the parents chose to live in cities in isolation but providing good future for the kids. Here they don't have the support network which they can rely on.

- This has lead to lot of introspection in my life about how I live my life, do I have good friends/ family to rely on , whether the wealth is enough in circumstances like this. Right now we are childless couple in isolation with a social network far away from where we live. Mostly this is a byproduct of working on two time consuming jobs and visiting families only during the leaves.

- On the financial front, pretty good month able to reduce the deficit a bit looks like will be able to break even by this year end.

- Quality of life and weight reduction has stalled a bit , have to concentrate on this again.

- Got a call from my manager on the job offer, which lead to a sleepless night while evaluating it. Would appreciate the thoughts on evaluating it. posted a separate topic on this one. viewtopic.php?f=24&t=11999

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

So, around a year passed since i posted here. Some updates on life.

- Declined the job as I was not comfortable with the position I would be in. Major layoffs in the company this year.
- Started applying for jobs, no positive response so far.
- Got into depression and taking medication for that.
- Trying to find myself again , by exploring.
- Joined masters in AI and it is taking up most of the time.
- Trying to define life's priorities.
- Decided this is not retirement rather a sabbatical. As I am not comfortable with unemployed environment.
- On Finance front, DH got promotion and getting a hefty raise around 40% . So we are comfortable financially.
- Staying at native as I am recovering from depression, might continue to stay for a while.

So thats all happening in my life now, cashflow is still running deficit. But not majorly, will come under control in few months.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

Finances:

My finances are stable so far except for few bulk expenses here and there. Overall, the investment growth and expenses are a wash. Inflation is a high factor in india, so converting cash into gold or other stock market investments.

Family Finances:

The incoming and outgoing of the DH salary is pretty much stable. 40% of the salary is towards monthly expenses, 12% towards parental allowance, 12% into debt servicing, 10% towards savings, 25% kept for misc and savings. This is the monthly break down. Most likely after the raise, it would be spent toward buying a car. We are in a unique situation where buying a car is essential and DH have big plans for it, so most likely the raise would be spent towards there. We have around 12 years of expenses saved up together. If it things come to worse, we can cut our expenses by 30-50% and live on agri land and investments.

This journal would mostly be concentrating on 40% allocation of expenses and my personal journey. The idea is not to reduce the expenses wildly, but to use it wisely. The next plan is either buying a car or buying a home to live. Buying home would be most likely in 2025. So have to put some savings towards that. Other than that financially no concrete plan. DH is reluctant to retire or even to start a business. But he is in a niche field and employment is based on one company alone. So better to be safe than sorry.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

My personal journey:

- Career: I am doing MS in AI and ML. Though it is interesting job prospects are not that great. Till now 2 interview though not in ML, falied to convert that into a job offer. I cannot go back to my previous company given massive layoffs. Started leetcoding a bit with a group of 3 people, it is interesting so far. Planning to spend more time on that along with ML.

- Health: Health is at worst right now, due to medications and laziness. Started to walk around the block for about 30 mins a day. other than that life is pretty sedanatary. Have to find a way to work on that.

- Finances: This part is good and setup fine thanks to this site and jacob.We can live on barebones if things come to worst. But the probability of that happening is very low and most likely will not happen. So we are in a position to take decisions based on life quality rather than money.

- Self improvement : Doing meditation and journalling on and off. Able to see the benefits of it. Doing Michael sealy hypnosis series on and off to remove mental blocks mainly. Recently reading a book , I could do anything if only i knew what it was.. Going pretty great.. Thanks for the reference of that book in the forum. I am able to identify some self -sabotaging behaviours on my part. Yet to complete.

Will put goals for may and post it here tomorrow.

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Lemur
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Re: Liberate Mind: Family Edition

Post by Lemur »

Use a pedometer through a phone or watch and aim to hit a step goal daily. Try 8000 as a start. See how long you can keep the streak alive. Preferably, consider doing this during the day (especially in the morning for circadian rhythm purposes) to get some vitamin D. This is a good way to build a habit and hit a health goal at the same time. If the train breaks, then your rule is never fail twice in a row. Start the next streak.

I don’t know what your day job is - haven’t read too much of your journal but if you’re like me at a desk / standing desk all day then you’ll have to build deliberate movement to hit this goal.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

@Lemur,

Thanks for the reply. I am setting 5000 steps as a start. I am hoping for consistency than on and off energy bursts. Yes, I am that weak physically now. I am working mostly at desk , so physical activity is important for me.

LiberateMind
Posts: 197
Joined: Fri Oct 26, 2012 8:18 pm

Re: Liberate Mind: Family Edition

Post by LiberateMind »

May Goals:
Complete modules on time.
Walk 150K steps.
Meditate 4 hrs.
Journal 20 days.

Experiment:
Without internet browsing/social media till 11:50 am.

On other things, approached for an internship like opportunity with my mentor, will know the result in few days. This is to familiarize myself with the production like environment. I have to remember to slow down , so that I can go steadily approach my goals. Now a days I have the tendency to overcommit and underdeliver. Recipe for low self esteem. Trying to reduce the commitments for may , so that I can enjoy the journey as well.

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