FI in Sweden

Where are you and where are you going?
Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

FI in Sweden

Post by Forskaren » Fri May 05, 2017 12:45 pm

I have started a journal named ERE in Sweden. I think FI in Sweden will be more suitable to describe my life.

During 2016 I kept good track of my economy. During 2017 I am doing some exploring/spendrift stuff with less tracking. During 2018 I intend to go back to strickt tracking.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Oct 14, 2017 12:58 am

I am using a very simplified system this year to keep track of my economy. I only track earned income and money saved.

I estimate my savings rate to 51% so far this year. MY SWR is 2.7 %

Earned income so far this year (including pay this month):
$35800

Savings from earned income:
$18270

Estimated expenses:
$17530

Extrapolated annual expenses:
$21040

Net worth (not including retirement savings):
$782 600

SWR:
2.7 %

wolf
Posts: 720
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: FI in Sweden

Post by wolf » Sat Oct 14, 2017 6:42 am

Hi forskaren (I always read forsaken). So a new journal? As I already mentioned un your other journal I am very impressed by your numbers in your age. I didn't read how you have saved such a high networth. Was it the good stock market, inheritance or real estates or something else. If you don't mind sharing it, I am interested into the history of forskaren and how you managed to pile up such a high amount of money. That would be my first question. My second one would be: I understand that you like your work, but for what are you saving money? Do you have some things in mind what you will use your money for? Can't be just saving in order to increase networth, can it?
Well how is it going with women? Recently I am attracted to many woman around me. Although I am still single, I can imagine myself being in a relationship some time.
Take care and keep on going!

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Oct 14, 2017 11:13 am

Hi again MDFIRE!


I have always been a bit frugal. I am 38 years old now.

I started to get an ok salary at the age of 27. Not extremely high, but I was living like a student. At the age of 31 I got an inheritance of about $100000. I invested it all in the stock market including any other savings I had. I just checked my brokerage account and one Swedish stock index increased about 60-70% from that time until now. My account increased 270 % in the same time period. If you include that I sometimes used leverage by borrowing money cheaply and investing that, I probably closer to an increase of 290% on my own invested capital.

Over the years I think my savings rate been in the 40-70% range of my earned income.

Yes, I am looking for women to. My main criteria is that the relationship would be an improvement of my total quality of life. Perhaps I am a bit picky about giving up parts of my freedom.

wolf
Posts: 720
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: FI in Sweden

Post by wolf » Sat Nov 04, 2017 1:09 am

Hi Forskaren. How is it going? I think about afterFIRE-life sometimes. Has your attitude toward money changed after FIRE? I guess a FI person does less money/cost controlling/budgeting. Is there also a bit of a small loss of purpose because money is not the main goal anymore (if it was)?
Regarding woman. I dated a woman in the last two months three times. I actively lowered my expactations, because I don't find it good, that she smokes. But anyway, we met three times. I was friendly and texted her. Then "out of the blue" she didn't answered my messages anymore. No explanation. I don't understand her behaviour. I guess, that is another episode regarding with women. Have you met a woman lately? Wondering if you have more luck?

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Nov 04, 2017 3:04 am

No progress on the dating front.

I am this year experimenting with more spending and less tracking.

I tried eating out more for lunch, but I prefer my own cooking. No need for cost increase.

I tried drinking more soda and alcohol. Generally, alcohol make me too tired, so I seldom drink now. I am neutral to booze and wine, I don’t hate or enjoy them much. I like beer sometimes, but my favorite is cold lager beer. When lager beer is cold, even cheap ones taste ok for me. Soda can be tasty on special occasions, but I don’t prefer it everyday. No need for cost increase.

I spent more money on presents and being “generous”. I gave my father the maxed out version of the 10.5 inch iPad pro. Generally, giving feels good. I guess it can be good with an permanently increased budget for being “generous”.

I am looking at some travel destinations, but I am starting to feel tired of tourism travel. Next year could be without any tourism travel. Area for cost cut.

In the beginning of the year I spent money on buying movies digitally. I don’t feel that strong urge to see movies straight away, I can wait. I recently cut down on screen time and especially news. Feeling great. Definitely area for cost cut.

I spent more money on clothes. Historically that have been very low spending for me. A somewhat increased standard of clothing and shoes is worth it. That could increase career success, dating success and general comfort . Area for an increased spending.

I still have to find hobbies or other activities that feels more rewarding than my job. No plans to quit job yet.

Next year I will go back to a strict tracking of expenses.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sun Dec 31, 2017 7:50 am

The year without detailed tracking of expenses is coming to an end.

My savings rate based on earned income has been about 50% this year compared to 67% the year before. My SWR is about 3%. My passive income would be larger than my earned income, if I could gain 6% or more on my capital after taxes and inflation. This year my capital gained about 17% after taxes and inflation.

My goal for next year is to keep the savings rate around 60% and eliminate all debt that I am using for my investments. By eliminating the debt, the risk will go down.

The financial state of my employer has improved some during this year and there is a lot of new business on the horizon. My employer is owned by an investor that only want to own companies 5-6 years and flip them for a profit. Quite a lot of the "old timers" has left the company for different reasons, which can be a bit worrisome.

In the next year I don't see any significant risk for losing my job or getting much different responsibilities. In the long term it is quite a lot of both risk and opportunities.

My health is quite ok except that I need to lose some weight.

frihet
Posts: 140
Joined: Thu Jun 06, 2013 10:33 pm
Contact:

Re: FI in Sweden

Post by frihet » Mon Jan 01, 2018 4:44 pm

Hej Forskaren,

That's a solid financial situation you've got. You have been braver than me using leverage. Looked into knockout lånet at Nordnet a while ago. It's really strange that you can borrow at 1% . That's basically free money.

But I can't make myself to do it anyway. Far to risk averse. I think you are doing the right thing leveraging down.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Tue Jan 02, 2018 5:29 am

Hej Frihet,
Yes, leveraging can be very tempting right now. But I suspect it can be a bit too greedy right now, also remember that some companies are already leveraged internally.

Still, an old investment advice is too keep your age in bonds and the rest in stocks. Even without leverage I will be very aggressive with close to 100% in stocks. I would have 38% bonds and 62% stocks if I was following the advice....

If you are well off, I see two different schools when it comes to adjusting the general advice.

-Careful: You don't need to take risks since you already reached the goal. Invest in lower risk than the general advice.
-Aggressive: You can take the losses, so you should invest more aggressive than the general advice.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Wed Jan 31, 2018 11:41 am

January data:
Report US$

Earned income 3538

Expenses
Rent 541
Transport 88
Food 321
Entertainment 55
Other 207
Total 1211
Savings 2326

Savings rate (%) 66

herp
Posts: 105
Joined: Sat Apr 08, 2017 1:11 pm

Re: FI in Sweden

Post by herp » Fri Feb 02, 2018 10:02 am

Hi Forskaren

Looks like a great start to the year! I'll be following your new journal.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Wed Feb 28, 2018 4:57 pm

Nothing really special about February expenses. I bought an Apple tv 4k, which I included in the entertainment category. I like Apple music for watching music videos.

I had to pay some insurance which was included in the other category. No refueling of the car or other transport expenses this month.

February data
Report US$

Earned income 3547

Expenses
Rent 533
Transport 0
Food 301
Entertainment 281
Other 233
Total 1347
Savings 2199

Savings rate (%) 62

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Mar 31, 2018 4:40 am

In March I probably had the highest monthly expenses in about five years. The last time was when I bought my car and had about -400% savings rate that month.

In March I still had a positive savings rate, which was the good news. The bad news was that my car needed maintenance and repairs. Which was expensive. In many ways owning and operating a car is expensive.

The food cost was a bit high this month, the local convenience store is quite expensive. But it is 8 km to a normal store.


Report US$

Earned income 3964

Expenses
Rent 520
Transport 2106
Food 358
Entertainment 169
Other 129
Total 3282
Savings 681

Savings rate (%) 17

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Thu Apr 12, 2018 12:19 pm

In Sweden you normally get most of your dividends from stocks in April and May. I am thinking about using the dividends this time to decrease the debt I use for leverage.

Right now I use debt to own about 103% of net worth in stocks. My goal is to be about 96% stocks, 2% cash, 1 % stuff, 1% gold.

herp
Posts: 105
Joined: Sat Apr 08, 2017 1:11 pm

Re: FI in Sweden

Post by herp » Thu Apr 12, 2018 12:59 pm

Am I understanding you correctly that you have effectively leveraged 3% of your net worth?

If that's the case, I wouldn't worry about it if the interest rate is low enough. On the other hand, you could certainly make the argument for just getting rid of the debt for the emotional benefit.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Thu Apr 12, 2018 1:12 pm

Debt a bit over 4% of net worth. I own some other stuff than stocks.

Emotional is a big part of it. I like the idea of being debt free with plenty of cash.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sun Apr 29, 2018 8:12 am

In April I had about $100 returned from taxes, which I included in my earned income.

I bought some cloth and shoes for the spring and summer, which increased the spending in the "other" category.

"Transport" costs were not high, but not low either. I changed my car insurance to a new company. To avoid an extra paper billing fee, it was cheaper to allow them to automatically deduct monthly payments than to pay for the whole year up front. I also bought some train tickets and fueled my car.

In the "food" category, I spent quite some money in the village convenience food store. I also ate lunch in a restaurant a couple of times. I bought some sparkling wine to drink to shrimps. Alcohol is expensive in Sweden.

In the "entertainment" category I spent money on Netflix, Apple Music and games on the Xbox.

Around 50% savings rate is actually quite ok, considering that I already have significant investments. In March I had significant extra costs due to my car, while in April the costs were more under control. I still consider that I splurged some.

Report US$
Earned income 3595

Expenses
Rent 508
Transport 226
Food 415
Entertainment 150
Other 519

Total 1817

Savings 1778
Savings rate (%) 49

I do not include dividends from my stocks in my monthly reports. I have started to receive some of the annual dividends and used that to lower my debt. The debt is used for leverage on the investments.

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Jun 02, 2018 1:15 am

The expenses in May was not abnormal. The other category was the largest due to that I bought a new wifi router when my old one failed. Furthermore, I had to visit the dentist.

My car is fueled by diesel. The diesel prices are close to all time high in Sweden. The Swedish currency is weak, the oil price pretty high and each year the taxes on diesel is automatically increased.


Report US$

Earned income 3152

Expenses
Rent 484
Transport 187
Food 383
Entertainment 40
Other 500
Total 1594

Savings 1558
Savings rate (%) 49

Forskaren
Posts: 135
Joined: Sat Nov 07, 2015 4:04 pm

Re: FI in Sweden

Post by Forskaren » Sat Jun 30, 2018 3:18 pm

In June the savings rate was good. No expenses were of serious concern.

I am also debt free now, so no debt used for investments. I also made a big realignment of investments where I switched from single stocks to mostly global index funds.

Report US$

Earned income 3970

Expenses
Rent 491
Transport 43
Food 306
Entertainment 87
Other 286
Total 1213
Savings 2758

Savings rate (%) 69

herp
Posts: 105
Joined: Sat Apr 08, 2017 1:11 pm

Re: FI in Sweden

Post by herp » Sat Jun 30, 2018 4:37 pm

Looks like a good month. Paying off the debt I think was a wise move.

Did you incur any capital gains taxes when you did the realignment of investments?

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