Bankai's Journal - ERE mode:hard

Where are you and where are you going?
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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Wed Apr 04, 2018 2:30 pm

My wife says thanks :)

I work as an analyst in a corporation and DW has a lower management position in civil service.

Re Peterson, I initially avoided the topic about him on these forums as I assumed he's a politician and I'm not interested in politics. Having come across his book and some online lectures, I now avoid this topic as I want to read the book first before I read people's opinions on him. So far, very interesting read although I just started. Looking forward to discussing the details once I finish the book.

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Sun May 13, 2018 3:59 pm

April update

April/Q2 goals:

* Exercise every day - 26/30 days in April
* Read one book a week - fail, read nothing
* Reduce time spent playing games, ideally to zero - fail
* Complete an online course I started in Jan - fail

I didn't make any progress with most of my goals in April. I still exercised regularly, however most days I was too tired/lazy after work to read anything.

At least on the financial front things are better:

Mortgage and bills: £761
Food and household: £222
Paints: £61
Clothes: £22
Eating out: £2
Travel: £19
Stuff: £25 (new pot and chopping board)

Total expenses in April: £1114
Per person: £557

Savings rate: 67%
Including mortgage principal: 74%

So close to 'the dream' (75% SR). However, I expect expenses to rise in the next 2 months as we will be going on 2 weeks vacation.

Goals for May:

* Exercise every day - I've been exercising every day for the last 36 days and I want to keep this going for at least the rest of May
* Read one book a week
* Complete an online course I started in Jan

2Birds1Stone
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Re: Bankai's Journal - ERE mode:hard

Post by 2Birds1Stone » Sun May 13, 2018 6:17 pm

Where are you guys going this time around? *wave*

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Tue May 15, 2018 4:11 pm

We're going to the Czech Republic. I've never been there but I heard a lot of good things about it. Looking forward to trying delicious Czech cuisine and beers. We are likely to spend the most time in Prague, which doesn't worry me too much since it's considered one of the most beautiful cities in the world. But we will also be taking trips to nearby attractions.

Seppia
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Re: Bankai's Journal - ERE mode:hard

Post by Seppia » Tue May 15, 2018 5:09 pm

Make sure you visit Kampa museum near the river and Veletrzni Palac museum, so that you see a lot of Kupka paintings.
Prague is also famous for its modern art galleries, you can find cheap and excellent stuff.
A good one is Vltavin, near the national theater (narodni divadlo) and another one is Galerie Moderna along the river.

Some of my favorite artists within affordable range (if buying a lithography) are Frantisek Gross and Josef Istler

Gross
https://www.google.com/search?q=frantis ... 68&bih=922

Istler
https://www.google.com/search?client=sa ... aSye0hc%3D

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Sat May 19, 2018 3:42 pm

Thanks Seppia, these look good. We don't have a 'to see' list yet - still doing initial research/reading on Prague. I'm not much into modern art - maybe my tastes aren't fully developed yet - but I can totally see something like this https://www.google.co.uk/search?q=josef ... ohGeA0JGM: on our living room wall.

Speaking of which, lately we've been discussing buying some art to decorate the flat. I'm inclined towards actual paintings (probably of local, not well-known artists - we don't want to spend thousands) rather than printouts. It clashes a bit with my minimalistic tendencies so I'm not 100% decided yet. I wonder how many ERErs buy art?

Seppia
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Re: Bankai's Journal - ERE mode:hard

Post by Seppia » Sat May 19, 2018 5:24 pm

Seriously, go to Vltavin and Galerie Moderna in Prague.
You will find a lot of unique pieces and lithographies from young artists for cheaper than you could buy a printout in NYC or any major metro area.

Vltavin is the one with the largest selection of young artists (= cheaper)
Look for the online auctions (you need to create a profile to buy but you can browse without one).
I've bought from them multiple times and they are trustworthy.

http://www.auctions-art.cz/?lang=en

wolf
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Re: Bankai's Journal - ERE mode:hard

Post by wolf » Sun Sep 02, 2018 3:39 am

The idea for JAFI came from YOU! I only did the work. ;)

The honour is yours! Thank you very much.

1 Jacob Adjusted For Inflation (JAFI)

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Sun Sep 02, 2018 12:56 pm

Thanks, wolf :)

Also, it's about time to update this journal.

Here are the expenses for the last 15 months.

Image

One-offs (which have a bad habit of recurring...) were as following:

May - accommodation and flights to Prague
June - eating out fiesta while in Prague
July - home gym & Stockopedia subscription

Prague - we like to go abroad once a year. The total cost of c. £1k between the two of us is totally acceptable. And oh man, Prague is beautiful. It's also possibly very nice destination for (early) retirement.

Pros:

Food is good and cheap, transportation is dirty cheap (annual pass for public transport including buses, trains and underground is about £120), connoisseurs of good beer will not be disappointed nor will they spend much. Great architecture, friendly people, safe. Plenty of attractions: museums, galleries, theatres, multiple open-air festivals, concerts etc. Not enough time to run out of things to do. Great base to visit Poland, Germany and Austria as well as for shorter trips within the Czech Republic itself thanks to its central location.

Cons:

Waves of drunken tourists take over the city centre on the weekends. Real estate is crazy expensive relative to average income. The language is probably very difficult to learn for people not knowing any Slavic language already.

Home gym - we paid £580 for home gym consisting of a power rack, a bench and an olympic barbell with a set of plates. Why not a gym subscription instead? Several reasons: the cheapest gym is £15 a month or £180 a year so home gym pays for itself within 3 years. Going to and back from the gym costs extra time. If going after work, which would be best from time optimisation perspective, you can expect queues to the best/most popular machines. There's always (small) risk of someone stealing your stuff. And there's also sweat on handles, benches etc. We can both use the home gym and the shower is always few steps away. On the other hand, the footprint of these items is massive, but we only kept a desk with pc in our spare bedroom anyway. Resale value if we leave the UK should be around 50% or so. There are some limitations to what you can do, i.e. no standing overhead press or deadlift, but overall it covers almost all the exercises I want to do.

Savings rate* was:

May - 46.4%
June - 85.8%
July - 62.6%
August - 75.1%
YTD - 62.3%

With (hopefully) all the big expenses for the year already behind us, I expect spending in the months ahead to be in the region of 1 JAFI** per person. This should allow for SR of 75% for Sep-Dec.

NW is £79k, up from £65k in December. My 'soft' target for 2018 was to increase NW to £80k. It looks like I'll beat this comfortably thanks to a pay rise I got taking me for the first time above the UK average & median income.

Image

Cash is in 5% savings. Pension is in index funds. Shares are in individual stocks in S&S ISA.

* I include both pension contributions and capital repayment part of mortgage payments as savings.

**JAFI of $8500 translates to £6550 or about £1100 a month for both of us.

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Bankai
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September update

Post by Bankai » Wed Oct 03, 2018 2:11 pm

Expenses in September were £1094 or £547 per person. This is a whisker below 1 JAFI pp. Excluding the capital part of the mortgage payment, expenses were £864 or £432 per person. Other than food and bills, we spent less than £150 on everything else.

Sep SR - 79.5% (inc. pension contributions and capital part of the mortgage payment)

YTD SR - 64%

NW - £81.5k - the target of £80k hit 3 months ahead of plan. The revised target is £85k by year end.

Workouts - 24 out of 30 days (80%). I'm up to 11 pull-ups (from 7 in mid-July). Gained 2kg over the last 2.5 months. Eating 3k kcal as an ectomorph is not easy.

Walking - 291k steps vs. target of 300k.

Overall, pretty good month.

Image

Image

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Sat Nov 03, 2018 12:15 pm

Finance

Expenses in October were £1140, or £570 per person (1.05 JAFI annualised). Excluding the capital part of the mortgage payment, expenses were £910 or £455 per person (0.83 JAFI annualised). Other than food and bills, we spent less than £206 on everything else.

Oct SR - 78.4% (inc. pension contributions and capital part of the mortgage payment). This is the third month in a row when I'm at or above "the dream" (75% SR).

YTD SR - 65%

NW - £79.7k - market correction hit me for ~£4k (or 5% of my NW) between my trading account & pensions. Since I sold/was stopped of most of my positions, I'm sitting on the sidelines waiting for the market environment to improve. There are currently too many uncertainties in the market for my style of investing to be profitable.

Health

Workouts - 28 out of 31 days (90%). I'm up to 13 pull-ups (from 7 in mid-July). Benchpress is 91% of bodyweight - would be good to get this to 100% by year-end. Weight is the same as last month - I didn't eat as much as I thought I did.

Walking - 353k steps vs. the target of 310k. YDT I'm at 3m steps & 40k behind the target.

Image

Image

Shares represents the value of my trading accounts, however I'm currently mostly in cash as mentioned above.

2Birds1Stone
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Re: Bankai's Journal - ERE mode:hard

Post by 2Birds1Stone » Sat Nov 03, 2018 12:23 pm

I continue to be amazed by your low spending. I'm going to try my hardest to get our household spending to <$36k/yr, and even that seems like it will be a struggle.

wolf
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Re: Bankai's Journal - ERE mode:hard

Post by wolf » Sun Nov 04, 2018 1:44 am

Bankai wrote:
Sat Nov 03, 2018 12:15 pm
1.05 JAFI annualised
Since creating the JAFI-metric, I'm using it also in my monthly controlling. Great to see, that you do, too! :)
And having a JAFI around ~1 is great! Keep the good work, as always.

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Bankai
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Re: Bankai's Journal - ERE mode:hard

Post by Bankai » Wed Nov 07, 2018 4:47 pm

@2B1S - we're not that far away, I'm probably ~35% lower (than $36k) while living in a (much?) lower CoL area.

I think the keys to our low expenses are as follows (in this order):

* (relatively) low mortgage payment
* walking distance to work, groceries & parks (no car)
* my wife likes cooking and does it pretty well (low eating out)
* internet as the ultimate entertainment (no recurring expenses on 'fun')
* 1 cheap holiday abroad per year (£700 for 2 weeks in central/eastern Europe beats £4k for a week in Vegas or Dubai anytime)

@wolf - yeah JAFI & 75% savings rate are good benchmarks to always keep in mind. Being at or around both consistently almost guarantees to reach 4-3% SW at some point over the next several years. Although overkilling both (i.e. 0.8 JAFI & 80% SR) would be even better.

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