Journal of MDFIRE2024

Where are you and where are you going?
MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

12 monthly average costs regarding my current ERE-Lifestyle

Post by MDFIRE2024 » Thu Sep 28, 2017 6:00 am

MDFIRE2024 wrote:
Tue Sep 26, 2017 1:05 am
I want to give an overview about my ERE-lifestyle with cost influencing topics.
In some of my next posts, I am going to show my 12-month average rolling cost. Then you can compare a bit and have a reference.
In some posts earlier I described my current ERE-Lifestyle Link

Septemer is coming to an end. Therefore I can calculate my costs for the last 12 months (Okt16 - Sep17).

I have spent 6.066 € in the last 12 Months.
It is 7142 USD, therefore 1.02 Jacobs. :D

Please be aware, that I haven't done any travelling within the last 12 months and there were no huge expenses or repairs.
I am currently finalizing my second three-week-RE-Simulation, which means that I have stayed at home and haven't travelled.
Also, there is no health insurance included because this is payed directly from my work income.
But the costs cover needs and wants very well. I haven't missed something. I am content and happy with my current ERE-lifestyle.
If I wanted to calculate more accurately my expected monthly costs for retirement*, I had to add about 2500€ (3000USD) because of mandatory health insurance.

* not working in a regular job contract for a company

My housing is Efficient, based on Fish's ERE Housing Score Link :D

User avatar
frugal
Posts: 72
Joined: Thu Sep 06, 2012 11:35 pm

Re: Journal of MDFIRE2024

Post by frugal » Sat Sep 30, 2017 1:19 am

jacob wrote:
Wed Sep 27, 2017 5:32 pm
@frugal - There is no brief explanation of those "tools". A detailed understanding of a complex issue requires personal effort. A good way to start is to click on the links in the previous post and reading as much as possible.
yes JACOB

sometimes the english is not understandable to me

I also perfer to read experience of other members than read old articles

Thank you!

User avatar
onewayfamily
Posts: 26
Joined: Mon Jul 24, 2017 9:13 am
Contact:

Re: Journal of MDFIRE2024

Post by onewayfamily » Sat Sep 30, 2017 4:41 am

Frugal - Those 'old articles' are essentially the original source information, at least as formulated by Jacob, and contain the best information you'll find here. I think Jacob said once that he basically said it all in the book - actually come to think of it that was I believe the first time I was introduced to the idea of FIRE - listening to a podcast of an interview with Jacob where he said that.

To MDFIRE - that list you wrote of your lifestyle could basically be quoting me, and I suspect many others on the forum. A few points that I did want to give another perspective for you though:
- loans/debt: I agree in most cases these are negative, especially if used to purchase depreciating items or non-assets, but getting heavily into mortgage debt and buying a few apartments to rent out is pretty much what enabled our FIRE in the first place, simply saving and investing without leverage would have taken a lot longer. Obviously this has to be done right, with a lot of research etc.
- computers/phones etc: I also buy used/refurbished where possible, but I still try to get items that are up-to-date and fast enough so that I'm not wasting time that I could use more productively. E.g. you can get a phone/laptop that is a couple years out from the latest model, either new/used/refurbished for a good price, and you will still get good speed and performance. If you use something heavily it's worth paying extra to have a good experience I believe. You may already do this, I just wasn't sure from the level of detail in your post.

User avatar
frugal
Posts: 72
Joined: Thu Sep 06, 2012 11:35 pm

Re: Journal of MDFIRE2024

Post by frugal » Sat Sep 30, 2017 10:56 am

Hi!!!

Which old articles?

Thank you

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Sat Sep 30, 2017 12:10 pm

frugal wrote:
Sat Sep 30, 2017 1:19 am
jacob wrote:
Wed Sep 27, 2017 5:32 pm
@frugal - There is no brief explanation of those "tools". A detailed understanding of a complex issue requires personal effort. A good way to start is to click on the links in the previous post and reading as much as possible.
yes JACOB

sometimes the english is not understandable to me

I also perfer to read experience of other members than read old articles

Thank you!
@frugal: those "old articles" you thought of and you probably refered to the links I posted. Can you please solve this discussion about "general ERE, web-of-goals, system thinking, old articles..." outside of my Journal? Would be very kind of you. But you can of course post something within the context of and regarding my personal ERE-journal. Thank you.

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Sat Sep 30, 2017 12:23 pm

onewayfamily wrote:
Sat Sep 30, 2017 4:41 am
To MDFIRE - that list you wrote of your lifestyle could basically be quoting me, and I suspect many others on the forum. A few points that I did want to give another perspective for you though:
- loans/debt: I agree in most cases these are negative, especially if used to purchase depreciating items or non-assets, but getting heavily into mortgage debt and buying a few apartments to rent out is pretty much what enabled our FIRE in the first place, simply saving and investing without leverage would have taken a lot longer. Obviously this has to be done right, with a lot of research etc.
- computers/phones etc: I also buy used/refurbished where possible, but I still try to get items that are up-to-date and fast enough so that I'm not wasting time that I could use more productively. E.g. you can get a phone/laptop that is a couple years out from the latest model, either new/used/refurbished for a good price, and you will still get good speed and performance. If you use something heavily it's worth paying extra to have a good experience I believe. You may already do this, I just wasn't sure from the level of detail in your post.
Thank you onewayfamily for the positive feedback!
- I see the point in loans and debt, which you mentioned. I guess it is a very personal thing, that I don't want to be dependent on something. I have thought about Real Estate Investing and Renting with debt involved, but I don't think that this is something for me. Although the leverage effect could be huge. Have you made or are you making good experiences with Real Estate and Renting? Or was it buying and selling Real Estates?
- Performance and speed and productivity. I know. Last year I have replaced my old PC and a month ago I have replaced my old smartphone. Both were really slow in the end. I have experienced a huge performance improvement. I guess I try to use the "Middle Way" as you mentioned. I don't buy the latest products, but also not the oldest and cheapest ones. Take Care!

Sabaka
Posts: 22
Joined: Wed Apr 26, 2017 9:41 am

Re: Journal of MDFIRE2024

Post by Sabaka » Sun Oct 22, 2017 12:02 pm

Hiya man, just checking in, you're doing awesome! :D
I thought my own life was a constant experimentation in self-improvement, you beat me by miles!
Would just be interested to know your reasons behind not consuming any news, etc? Apologies if you've already answered this!

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Sun Oct 22, 2017 12:32 pm

@Sabaka: Thank you!

Yeah, I am constantly trying to reinvent myself, improve, develop...etc. At the same time I try not do judge and compare myself with others. "Live and Let Live" somehow. :-) I hope we (all here in this forum) can learn from each other and develop somehow together, although the "connection" are only online and virtual, but at the same time real. Well, I feel very good to be part of this community and develop myself at the same time.

Regarding your question about avoiding news. Some months ago I have discovered a good essay about it. There are many reasons. You can discover it by yourself here: http://www.dobelli.com/en/essays/news-diet/

User avatar
Forskaren
Posts: 111
Joined: Sat Nov 07, 2015 4:04 pm

Re: Journal of MDFIRE2024

Post by Forskaren » Sun Oct 22, 2017 1:08 pm

Let us know how avoiding news improve your life.

I have noticed that I feel better if I take a break from news, tv and random internet surfing

finity
Posts: 11
Joined: Wed Oct 11, 2017 4:11 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by finity » Mon Oct 23, 2017 1:18 am

MDFIRE2024 wrote:
Sun Oct 22, 2017 12:32 pm
although the "connection" are only online and virtual, but at the same time real. Well, I feel very good to be part of this community and develop myself at the same time.
While the connections are online, you probably still get to know a lot of people here better than good friends in RL. How many people openly tell you about their financial position including income, savings and spending, their life goals, what they went through and how they are planning to spend their life? Not many, I guess ;)

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

How avoiding news improve my life

Post by MDFIRE2024 » Mon Oct 23, 2017 6:46 am

Forskaren wrote:
Sun Oct 22, 2017 1:08 pm
Let us know how avoiding news improve your life.
I have noticed that I feel better if I take a break from news, tv and random internet surfing
I have experienced the same. I avoid watching TV news, surfing on websites with news, reading daily newspaper, push news ticker, breaking news...
Instead I try to read weekly one quality newspaper on weekends, reading books and quality magazines.
Overvall I feel, that by avoiding news it improves my life in the following ways:
- less distraction from breaking news, ... e.g. more deliberate practice time and slow thinking
- less advertisements, therefore less influenced on consumer/buying decisions
- more time for other things and activities
- better investment decisions. Before I sometimes acted upon news regarding investment decision. After avoiding news I see it as an aspect of many others, e.g. researching sentiment in the media, but I am not influenced by the "market experts" who regurlary comment in the media and news
- less addiction to news and media. I don't have to know about the latest updates and news anymore
- more understanding that I don't control things by reading about them. News = past! What I think now and do = present and future!
- more mental energy to think about other stuff, e.g. stoicsm, ERE, personal development, psychology, ...
- more depth of knowledge
- of course no costs for newspaper, ...
- less stress. The less I know about bad stuff, crisis, crashes, deaths, ... the less I think about in the past. Of course I know about such things, but I cannot do anything against it anyway.
- more positve emotions than negative emotions overall. News cover negative thing moreoften than positve ones because we as humans are attracted to negative things, e.g. we have more attention to warnings, dangers, ... evolutionally
- less "cluttered mind"
- no (future) regrets, that I someday complain that I wasted time with reading newspapers and breaking news titles, watching TV, ...
- more productivity and effectiveness (Doing the right things by avoiding things that don't improve my life)
- better understanding, that I find out about important things in the world anyway by friends, family, colleagues, neighbours, ...
- IMO people become addicted, dependent, influenced, biased, ... by news and media

Well, I could write even more if I try to think longer about it. Does anyone can add positive aspects by avoiding news?

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Tue Oct 24, 2017 11:38 am

I posted something about my introversion, relationships and my current social and emotional challenge going from independence to interdependence here: viewtopic.php?f=9&t=8902&p=154079#p154079

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Visualization of my FI-money "ant-hill" based on Buddhism guidelines

Post by MDFIRE2024 » Sat Oct 28, 2017 2:02 am

Inspired by Buddha’s guidelines on how to look after your money
I created a physical visualization of my progress towards my FI net worth.

They say, that "... riches will be steadily accumulated like an ant-hill that grows high." Therefore I thought about an ant-hill (pyramid).

Each month I cross fields. When I arrive at the top I will have achieved my FI-money-goal. Each field represents 1.000€.

That and other visualizations keep me motivated and help me stay on track towards my FI-goals, besides ERE, of course. ;)

Image
Last edited by MDFIRE2024 on Mon Oct 30, 2017 12:42 am, edited 2 times in total.

User avatar
Fish
Posts: 236
Joined: Sun Jun 12, 2016 9:09 am

Re: Journal of MDFIRE2024

Post by Fish » Sat Oct 28, 2017 9:54 am

The image worked when you first posted, but it isn't displaying anymore. (It's probably working only for you.) If I go to your image link, I get a Google login page. Maybe try uploading the image to a site like imgbb or imgur.

I did see the image earlier. (You have nice handwriting! :)) It is a nice and simple way of visualizing progress. The YMOYL wall chart is the standard, but since your expenses are more or less fixed then the net worth goal is also fixed. I might need to try it. At my level of expenses I kind of get discouraged by the enormity of the task (it feels like I'm perpetually 1/3 of the way to FI) and maybe checking a few boxes every month will remind me that I'm making incremental progress. Is the number of boxes checked based on the amount saved each month, or based on the change in net worth? How would you handle negative changes in net worth due to investment price fluctuations? Would you erase boxes?

Anyway, I also want to mention that I admire your enthusiasm, positive attitude, and desire to learn. Thanks for bringing all of that to this forum.

Jason
Posts: 604
Joined: Mon Jan 30, 2017 8:37 am

Re: Journal of MDFIRE2024

Post by Jason » Sat Oct 28, 2017 10:12 am

I've been employing visualization techniques lately. It is essentially comes down to this - "when doing that which I love the most it is the only thing I have to do and I am doing it where (Geographically) I would prefer to be."

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Sat Oct 28, 2017 12:35 pm

@Fish,
now it works. Checking boxes remind me of that incremental progress you mentioned. The number of boxes represent the amount of accumulated FI-money at the beginning of each month (after I have saved the portion from my income and after I have checked the current value of my investmens). Since starting the "ant-hill" pyramid I have not experienced a negative change, luckily. But if so, then I wouldn't check any new boxes. Therefore the number of checked boxes represent my (last) all-time high of accumulated FI-money. I don't erase boxes. I check boxes, as long as I will have achieved my goal :-)
Thank you Fish, I appreciate it! I am trying to contribute, because I have to thank Jacob, you and all other participants on this forum for all this great wisdom about life and ERE.
Fish wrote:
Sat Oct 28, 2017 9:54 am
(You have nice handwriting! :))
I wrote it with my right hand. I am usually left-handed, but I have trained myself to write with my right hand for the last couple of years. My writing with my left hand is not so nice :-)


@Jason,
insighful statement, or is it a quote? Do you visualize it physically or digitally, or both? When I posted it, I thought about digitalizing the "ant-hill" into a spreadsheet.

Jason
Posts: 604
Joined: Mon Jan 30, 2017 8:37 am

Re: Journal of MDFIRE2024

Post by Jason » Sat Oct 28, 2017 1:22 pm

I made that shit up. But I was kind of thinking about the Michelangelo quote about removing the unnecessary marble in order to find the sculpture.

So I picture my life as a block of marble. Ok. What I do want it to look like i.e the sculpture. I realized that I want it to look like me doing what I love to do the most, as much as possible. Then I compared it to my life as it is. The difference are the things that take me away from the sculpture. So that necessitates a confrontation with both the abstract and the material constituents of my life (the marble) with the sculpting tools of ERE. ERE really is about elimination. So I start with the easy stuff which is the material stuff. Like spending and unnecessary crap that I have allowed to remain in my house. Then I move on to the hard stuff - the non-material. Do I need to eliminate doubt? Yes, so I start hammering away at doubt. Do I need to eliminate negativity? You betcha. So I start going after that. Do I need to eliminate beating myself up at past failures. Hell to the yeah. Do I need to deal with the fact that I'm basically lazy. Yes. On and on.

And before I know it, I see my perfect life doing what I want to do where I want to do it. And then soon after that, I'm dead but I figure there's no way to hammer that shit out.

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Sun Oct 29, 2017 12:50 am

@Jason:
That's a great way to see ERE and self-actualization. I gotta think about ERE and my interpretation of it in that way you described. Intutionally I think I will see some new aspects of ERE, when I look it that way. Thank you for posting this! You will read my interpretation of it soon.

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

My interpretation about Jason's inspirational thoughts

Post by MDFIRE2024 » Sun Oct 29, 2017 3:17 am

I brainstormed quite some time about Jason's thoughts. I tried to find ideas to each sentence he said and I found various thoughts within myself.
For me, being on the ERE journey is like comparing my Current-Self with my Future-Self. I am not final and I never will be. But there is a start and a beginning of my ERE journey. Let’s just say, that I think currently about those three aspects:
1. How I want to be
2. What I want to do
3. What I want to have

Being+Doing+Having. That could be one way for me to think about my Future-Self.
So first, I want to live authentically within my core values and virtues. That means, that I want to be independent, free, conscious, integer, trustworthy, honest, genuine , rational and open.
Secondly, I want to grow, develop, learn, experience, behave healthy, think, write and just be myself.
Thirdly, I want to have fulfilled my basic and comfort needs. I want to have a life full of memories and experiences. I want to have skills, competency and wisdom. I want to have a book and a pencil to write my daily Journal. I want to have my freedom to do what I want to do without any dependencies to work for money. I want to have a bike for mobility and I want to have various sources of information (books, internet, videos, etc.) That is my interpretation of my Future-Self for the moment.

ERE gives my tools, methods, instruments, techniques and a way of thinking to make changes from my Current-Self to my Future-Self. ERE is some way of a change management toolset, as I think about it. There is this need to change myself. In order to achieve things I have to let go, eliminate and reduce, as Jason said. On the other hand, I think I have to learn and grow.

These two ways (eliminate+learn) can be combined with Being (habits, thoughts, feelings), Doing (activities, skills) and Having (things, posessions). By that, I look at my life from a different view, perspective and angle and through different „glasses“. I have learned that by looking at something from a different perspective, I will learn something new about it.

Minimalism, Simple Living, Downshifting, Buddhism, Spirituality, Psychology, Personal Development and Growth, Maslow’s pyramid of needs, Loevinger’s stages of ego development, even Project Management, Kaizen (Japanese for continous improvement) and Kaikaku (radical change), Process Management, Goal- and Processorientation, Comfort- and Stretchingzone, Personality Models, Philosophy, Stoicism, Producing/Consuming/Pausing, etc. All that has shaped me so far and will shape me in the future.

I don’t know where all this leads in my life. I am quite sure that if I live authentically all the time, I will be happy and satisfied with the progress and the results at the end.

For me this is about both: journey and destination, process and goal.

From Loevinger’s stages of ego development I learned about the postconventional stages (but I don’t want to judge or compare). I have learned about conscientious, individualistic, autonomous and integrated stages. There is a good German translation of the wikipedia page. They call it self-determined, relativise (put into perspective), systematic, integrated and flowing stages. I want to be like that. I want to do things like that. I want to have things like that. Well, but from Buddhism I have learned to let go. So, I try to let go to want. Instead, I just be, do and have. And that, I find sometimes difficult and other times easy. It changes always, so do I.

Again, Jason many thanks for your inspirational thoughts. By thinking and writing about it, I have learned something new. And that has a positive influence on my day and my life :-)

User avatar
fiby41
Posts: 759
Joined: Tue Jan 13, 2015 8:09 am

Re: Journal of MDFIRE2024

Post by fiby41 » Sun Oct 29, 2017 6:22 am

I cannot view your embedded image.
Could you post the link to it please?

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Mon Oct 30, 2017 12:48 am

@fiby41: now it should work (again). I am sorry, but I haven't found an easier way to this with Google-Picassa. I gotta write that steps down, in order to remember these the next time, because I don't post pics that often. Well, I hope it works now (finally).

User avatar
fiby41
Posts: 759
Joined: Tue Jan 13, 2015 8:09 am

Re: Journal of MDFIRE2024

Post by fiby41 » Mon Oct 30, 2017 1:13 am

Yes its showing now. Thanks for the visualisation and explaining it.

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

October 2017 financial status

Post by MDFIRE2024 » Wed Nov 01, 2017 12:09 pm

  • Savings Rate = 87% (12 months rolling average)
  • Withdrawal Rate = 8,1% (12 months rolling average + Margin of Safety)
  • yearly expenses = 5815€ (12 months rolling average)
  • FI = 42% (accumulated FI-money compared to FI-goal of 350k€)
  • invested = 55% (invested FI-money in stock market, rest of it in cash)
  • passive income = 12% (compared to yearly expenses)
  • time to FI(RE) = 86 months (counting down months till end of year 2024)

User avatar
Bankai
Posts: 96
Joined: Fri Jul 25, 2014 5:28 am

Re: Journal of MDFIRE2024

Post by Bankai » Thu Nov 02, 2017 4:39 pm

You are doing great indeed! With this level of savings, surely you will be FI long before 2024? Or are you planning for ultra conservative WR/significantly higher expenses in future?

MDFIRE2024
Posts: 349
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: Journal of MDFIRE2024

Post by MDFIRE2024 » Fri Nov 03, 2017 1:03 am

@Bankai: Thank you! There is a special effect involved in this high SR. This year I have made two FIRE-Simulations. Instead of traveling (expensive), I staid at home (cheap). Therefore this high SR is because of staying at home and not traveling or doing more expensive stuff.
I think also that I could be FI before 2024. It of course depends. I am also planning conservative. Aditionally, I want to fulfill some (small) dreams, when I have more time, e.g. in a sabbatical, mini-retirement, part-time work, in between jobs, ... That is the reason why I look beside my past expenses (needs and wants living in Germany) also to possible future expenses ("Ultimate Lfe's Adventour List", traveling and living in other countries).
I also think that Germany is good regarding Local Purchasing Power (income and cost of living https://www.numbeo.com/cost-of-living/r ... ountry.jsp) And if I travel and/or live in other countries, I guess that won't be as cheap as in Germany, e.g. New Zealand, Australia, Sweden, USA, ...
Anyway, FI comes first, then maybe FF and after that RE or a mini-retirement, sabbatical, but all the time ERE-Lifestyle.
I think I want to be prepared and therefore plan conservative. I can't hide my "German"-safety mentality here. :-)

Post Reply