YAW Journal (Vol. 2: Er-eesti Boogaloo)

Where are you and where are you going?
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YoungAndWise
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YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by YoungAndWise » Fri Aug 11, 2017 6:25 pm

Eeresti? (ERE in Estonia?)

What is this attempt three at writing this post to start my new journal? Anyone I decided to restart my journal as my old one was getting long in the teeth and honestly i have changed as a person, and so have my end goals.

The situation at is most basic form is that I turned down the contractor job in Austin, as honestly I didn’t want it and did not want to spend my year as contractor a Sword of Damocles on my head with a rent of $1,100 a month, and I got the full ride scholarship alongside living stipend for the first academic for the university I applied to. Alongside with the internship in which I will save about 4,000 USD alongside 1,000 from my awesome neighbor, I think we have wiggle room in my budget if things go fubar. As for specific tactics on saving money and staying under 350 EUR per month from the scholarship? Another journal post or another time

As for specifics reason for not wanting it and taking the Estonian graduate is something I can go into a latter post, but not right now as I want to keep this short and not a thousand words long. Besides this post is just a reboot and going over all general changes in my ERE plan (or more appropriately RE).

So here is how it has changed:

1. Location (aka Settling Down In Place is Much Better Than Dealing With Visas, Permits, and other bullshit every other year)
I am not a seer or a mystic so I can't see into the future, but I honestly don’t see myself moving as much as I imagined I would. I honestly care more about being around a trusted circle of friends, even if they are spread across the continent. Which means yes, there is a high probability of me staying in Estonia after my degree is over on a more or less permanent basis, or at least in the Baltic Sea Region. Because of the Work Placement part of the degree and the general skillset I will gain from the program (Basics of Programming, Project Management, etc.) I believe I can easily be hired after finishing. I am already researching and seeing what companies for future employment so unless a Recession happens between now and then I believe I will be alright. If not, I can get employment in the US or just say fuck it and join the Peace Corp or Americorp because fuck it I will only 24 then so I have a year or two left to spare before I really need to start a career and having compound savings work in my favor.

2. Homesteading Instead of a Digital Nomad (Or how Estonia is really good for ERE in the long run and please keep this a secret.)
Funny thing about Estonia? The Land Value Tax is based on value of land and not on improvements, so I can possibly buy land and improve the cost of it without a rise in Land Value Tax. So the option of pulling a Three Acres and Liberty is much cheaper here than say U.S., especially places where health care won't bankrupt me in a situation, in exchange for higher taxes

3. Length (Or End Date)
For me financial independence end date has been pushed back because of my student loans and lower income levels of Estonia alongside a higher tax rate. So an end date around late 40s to early 50s is realistic. And when I mean "end date" I mean probably just go into maintenance mode and just coast with some consultant work on the side to supplement my income.

Am I saying I am not going to save aggressively? No I am; I am just being realistic because of the situation I will be going and also I am beginning know what I want and willing to spend money on. Which is having a decent desktop computer instead of a shitty laptop.

And also the work I am planning on going into, Urban/Regonal/Rural Planning, is something I might enjoy as career in the long-run as currently I am contacting a guy who does planning for a village that is essentially only a thousand or so people, and I enjoy it somewhat to be honest. Not exactly a lot of money but I rather enjoy an actual work and life balance instead of going through hell while on the road of FI. Less Stress = Better Mental and Physical Health in the long run.

That is three major changes going on with my long-term ERE plan, which seems different from the usual things written by my people around my age who are pursuing FI or RE, mosty wanting to travel the world and the like. However being in Eurasia, travelling the world will be much easier, and cheaper.

Next post I will covering how the hell I am going to be saving money and staying the $350 number while improving my health at the same time, because of Web of Goals and shit.

henrik
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by henrik » Sat Aug 12, 2017 2:23 am

Please carry on and make this my favourite journal.

You are right about the land tax. It is only based on the assessed value of the land multiplied by the rate set by the municipality. Furthermore, the values have not been reassessed since 2001 (they're talking about it now). You also get a break for a portion of the land where it's your primary (registered) residence. AFAIK it's up to 1500 sq m in towns and up to 2 ha in the countryside. My total land tax bill this year was 25€ for three different locations.
As for other taxes, there are various ways of optimising and/or deferring especially if you're working independently and not planning on spending all your income. Yet you'll still pay proportionally more than probably anywhere in the US.

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Viktor K
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by Viktor K » Sat Aug 12, 2017 2:59 am

Being realistic about your ERE date will probably benefit you psychologically. I tend to be quite romantic about when I can ERE.

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YoungAndWise
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by YoungAndWise » Sat Aug 12, 2017 3:10 am

henrik wrote:
Sat Aug 12, 2017 2:23 am
Please carry on and make this my favourite journal.

You are right about the land tax. It is only based on the assessed value of the land multiplied by the rate set by the municipality. Furthermore, the values have not been reassessed since 2001 (they're talking about it now). You also get a break for a portion of the land where it's your primary (registered) residence. AFAIK it's up to 1500 sq m in towns and up to 2 ha in the countryside. My total land tax bill this year was 25€ for three different locations.
As for other taxes, there are various ways of optimising and/or deferring especially if you're working independently and not planning on spending all your income. Yet you'll still pay proportionally more than probably anywhere in the US.

Holy shit that is a large amount of land tax payment wise.
And probably during the first few years I will working with a company then going independent consultant. And I imagine between the income tax and social tax, I will probably only take only 6/10 or 1/2 my pay home with me. Worth it for having major health catastrophe not bankrupting me, especially when I get older imo. Also from what I heard Estonian schools are getting comparable to Finnish schools in rankings.

henrik
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by henrik » Sat Aug 12, 2017 8:37 am

YoungAndWise wrote:
Sat Aug 12, 2017 3:10 am
I imagine between the income tax and social tax, I will probably only take only 6/10 or 1/2 my pay home with me.
6/10 is about right. Depends, but not too much (taxes are mostly flat). There is a difference between the gross pay in your contract and total expense for the employer, since most of the social stuff is technically paid by the employer and not by you. For practical purposes though, with a monthly gross salary of 1500€, your net would be ca 1200€ and total expense to the employer is ca 2000€ - so 6/10.

What do you get for that? Pension schemes I and II (assuming you'll pay in at least 15 years, cross EU transfers of "time served" apply in certain conditions, currently accessible at 65 for someone your age); tax payer funded education at all levels (does not apply to foreign language programmes); tax payer funded health care (ex-dental) that mostly works (those who complain probably haven't been around much); heavily subsidised public transportation; Trump umbrella :)

SnailMeister4000
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by SnailMeister4000 » Sat Aug 12, 2017 1:31 pm

YoungAndWise wrote:
Fri Aug 11, 2017 6:25 pm
(...) Estonia is really good for ERE in the long run and please keep this a secret (...)
I totally believe you, but the local language is probably filtering out a lot of otherwise potentially interested foreigners, no? I mean, unless you are Finnish, it's probably quite a killer to learn, isn't it?

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YoungAndWise
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by YoungAndWise » Sat Aug 12, 2017 1:58 pm

SnailMeister4000 wrote:
Sat Aug 12, 2017 1:31 pm
YoungAndWise wrote:
Fri Aug 11, 2017 6:25 pm
(...) Estonia is really good for ERE in the long run and please keep this a secret (...)
I totally believe you, but the local language is probably filtering out a lot of otherwise potentially interested foreigners, no? I mean, unless you are Finnish, it's probably quite a killer to learn, isn't it?
Yes Estonian is a killer language to learn, and while majority of the younger population knows Estonian and you can probably go through life without learning it, you will win the hearts of Estonians in general by even learning several simple phrases let alone the language. Also in the the countryside, where it is cheaper to live, you will probably need to learn Estonian.

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YoungAndWise
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Re: YAW Journal (Vol. 2: Er-eesti Boogaloo)

Post by YoungAndWise » Tue Sep 19, 2017 2:45 pm

The First Month

Life is good.

My budget is slowly getting into a steady state.

Travelled to Tallinn a little bit with a friend.

Working on my abstract proposal already

Waistline is shrinking, slowly.

And for the first in a long time

I feel alive.

P.S. I am bottle of Alexander in when I wrote this. But it feels right, none the less.

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