wolf's journal

Where are you and where are you going?
wolf
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Re: wolf's journal

Post by wolf »

End of Q2 2020 financials

Expenses p.m. average = 449€
(without health insurance)

Savings Rate = 93%
(higher than usual due to a one-time extra income)

Withdrawal Rate = 2.5%

Cash = 40%
(invested heavily in bonds and gold)

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal »

Another good quarter @wolf. Your expenses have now consistently stayed under 1 JAFI for over three years, right? I'd sure be interested in a "nuts & bolts" post about how you are consistently doing this, if you would enjoy writing one. You're quietly dominating this board in spending and accumulation. :D

It's funny because a couple years ago when you first starting bring up the FI, but not with safety margin, I didn't grok it at all. Now, as I get closer to a FI myself (mostly due to spending decreases), I certainly do. Although I've yet to find a relationship with work that I feel is ideal for myself.

wolf
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Re: wolf's journal

Post by wolf »

classical_Liberal wrote:
Mon Jun 29, 2020 3:18 pm
Your expenses have now consistently stayed under 1 JAFI for over three years, right?
To answer your first question @classical_Liberal: It depends.
I'd like to be transparent with that, in order to have a fair comparison/view

If I only count my real expenses, I'm at 0.66 JAFI. (that is what I report quarterly)
If I'd count my real expenses + health insurance*, it would be 0.90 JAFI.
If I'd count my real expenses + health insurance + rent**, it would be 1.52 JAFI.

* currently it is payed directly from my gross income. If I'd to pay it when FIRE'd it would be 2300€ p.a.
** I don't rent currently because I live in my own apartment outright, which is fully paid off.

So I'm maybe not that JAFI-frugal you thought I'd be. Nevertheless it is low and I'm totally fine with that.

I'll answer your second question maybe in another post more detailly, although it is very difficult or very easy to be answered (depending on the complexity or simplicity of the "expected" answer ;) Most of it is already been discussed here or answered in various posts. To give you a preview, which you already know: live efficiently and effectively. That's the easy answer of course, which could mean cooking your own pizza, making your own peanut butter, switching a Smartphone with a dumbphone or ride your bike in really bad weather instead of taking public transportation ;) And below the surface is a whole system of values, tactics, strategies, tools, etc...

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal »

Yeah, don't feel obligated. There just aren't too many people running around here at or below 1 JAFI. So I think any and all examples of how these lifestyles are set up can be beneficial.

BTW, I don't think it's fair to ding yourself on rent when you own. I realize you may rent in the future, but that seems like you're double dipping yourself. Then again, ERE accounting is complicated. Each person must use a system that makes sense for themself.

wolf
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Re: wolf's journal

Post by wolf »

My lifestyle hasn't changed very much in the few years. The biggest contributing factor was going car-free. I sold it 2016, right around the time, when I knew of ERE. It was a coincidence or not. I don't know. I had the idea of selling the car before I knew of ERE. Then I read Jacob's blog and the decision was super easy to be made.

Secondly, I would say what helped the most was trying to not buy anything. With those experiences I learned, what I really wanted and needed. My consumer expenses decreased a lot (relatively speaking) due to not buying anything.

Thirdly, always cook your own food and drink healthy. In my case green tea. I love it. And I buy that green tea in bulk of course.

I also let go of expensive hobbies which didn't add anything positive to my life, e.g. Stand Up Paddling, because it got crowded where I used to do it.

In total it could be very well summarized with Jacob's 21-day-makeover program.

What helped me the most is to question everything every time. Therefore I lived almost three years without a fridge or try doing the Dumbphone Detoxing. But those are only examples. The foundation of this is to question everything every time. How could you improve, reduce, optimize, eliminate or change it, in order to live more effectively and efficiently. And then try and do it.

Overcoming my own habits and renewing my belief system helped as well.

Added afterwards: I haven't traveled for over two years now. That didn't increase my spending.

I very much optimized my current lifestyle. What I wanted to try is, if I could also live below 1 JAFI with a different lifestyle, e.g. with traveling, renting, rural house, etc. I lack the experiences of different lifestyles. I hasn't lived in a van, cabin or common housing. I has not yet traveled full-time and lived below 1 JAFI. I lack those experiences. And therefore I like to read not only your Journal @classical_Liberal, but also all others, who live differently, e.g. @2Birds1Stone, @Nomad, @slowtraveller, @ffj, etc. That is what I'm looking for in the future. I want to try different lifestyles and improve them as well, as well as I have already optimized my current lifestyle living an existence of a salary man in an apartment. Well, I'm looking forward to it, whatever comes.

wolf
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Re: wolf's journal

Post by wolf »

I read "Walden". I find it very much aligned with the frugality dimension of ERE. It could be one of the philosophical foundations of ERE.

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Re: wolf's journal

Post by jacob »


wolf
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Re: wolf's journal

Post by wolf »

classical_Liberal wrote:
Mon Jun 29, 2020 3:18 pm
It's funny because a couple years ago when you first starting bring up the FI, but not with safety margin, I didn't grok it at all. Now, as I get closer to a FI myself (mostly due to spending decreases), I certainly do. Although I've yet to find a relationship with work that I feel is ideal for myself.
Does this mean, that you build up some safety of margin?
My mindset shifted from wealth/FI money accumulation to wealth/FI money preservation during the last few years. If you've got money (FI, flexibility, security, etc.) you'll want to keep it and don't loose it. I guess therefore I changed to a more conservative portfolio allocation.

Regarding work: your ahead of me in terms of finding the ideal type of work arrangement. I only know full time work, with a small sabbatical break of about 7 months. There are different types of work arrangement. Should I stay at FT work and have sabbaticals (mini-retirements) in between? Should I work part-time? Etc. In theory I thought them through, but I am missing practical experiences.

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal »

wolf wrote:
Mon Jul 06, 2020 11:33 am
Does this mean, that you build up some safety of margin?
Yes, but not just financial in terms of nest egg. Based on my 12-mo rolling semi-ERE expenses, I'm very close to a historical FI when I include retirement SS pension.

The Margin of safety. Yes, I'd like to have another 150K of assets. I'd also like to cut my spending down another 25-30% and reach my eventual 12K a year goal. I'd also like to learn to live multiple different lifestyles on this 12K a year. I'd also like to find a paid-by-other job way to make 12K a year that is enjoyable to me. I'd also like to find a self-employed way to make 12K a year that's enjoyable to me. I'd also like to find ways to create indulgences that I can enjoy without relying on the monetary system at all, because the day may come when I can't spend money to entertain myself.

These are all safety margins to me, I really only need one to be "safely" FI, but I'd like them all. :D

wolf
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Re: wolf's journal

Post by wolf »

Well said classical_Liberal. I'm totally on the same page with you regarding margin of safety, although I'm tightly connected to a salary man lifestyle right now. In a few posts earlier, I posted my wishes to learn and master different lifestyles, based on ERE principles. That is what you also wrote! :-) Due to my J in INTJ I hold onto my salary income until I've got the FI money margin of safety settled. If I look onto my S-curve of my current lifestyle (1-person apartment living, salary man) I'm at the upper third regarding ERE principles I would say (without optimizing my housing further).
If I had to name the different lifestyles I would like to learn and master it would be
- van living
- rural housing with a local income source
- full-time traveler with longer stays locally
- part-time work (with my current housing situation)
- alternating between working and sabbaticals (due to the fact that it isn't the case in Germany to hop on/off a job regularly, at least what I'm used to do)

@classical_Liberal: what do you have on your mind with "multiple different lifestyles"? I mean you are a well-traveled man and I would say an expert at moving and renting. I can (and will) learn a lot from you regarding that kind of lifestyle.

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal »

wolf wrote:
Tue Jul 07, 2020 12:45 pm
I posted my wishes to learn and master different lifestyles, based on ERE principles. That is what you also wrote! :-)
Yeah, I was having a forum conversation with J+G a while back. Talking about why pushing the envelope on spending is good as a goal in itself. It occured to me, If it takes so much more effort to get from the 2 JAFI range down to the 1JAFI range (proportionally vs previous reductions), maybe it'd be better using that effort to learn a half dozen ways to do 2 JAFI first. IOW, focus on generalization across lifestyles instead of a specific lifestyle. One of my greatest fears is locking myself into one lifestyle with preferences changing later. Though mileage may vary in this strategy, because some people have no desire for more than one lifestlye. Although, I do tend to think It'd be a more resilient skill set.
wolf wrote:
Tue Jul 07, 2020 12:45 pm
@classical_Liberal: what do you have on your mind with "multiple different lifestyles"? I mean you are a well-traveled man and I would say an expert at moving and renting. I can (and will) learn a lot from you regarding that kind of lifestyle.
Again, I'm looking for the 12K or 1.5 JAFI range here. Mostly because I feel that is easily sustainable in so many different ways. So not as low as you may be in spending. Basically my list is the same as yours. Although, I'd add in Ultra Urban living in US as well.

Right now I'm on what I call Home base + Travel. This is a compromise of sorts with the GF. It has some unique problems wrt spending reduction. However it has significant advantages from income and other capital generation. If I can get this to 12K I think these others will be much easier. It's a great upper Wheaton level learning ground, because what I really have to do is reduce spending from the generation of other capital flows. There are only so many wheaton 4-5 ways to travel hack, or house hack, ect. So, If I have my cake and eat it too (a home with phases of slow travel, having a vehicle for US travel too), I absolutely have to integrate upper wheaton level systems into my life to get to a 12K spend. Because there will be periods with double housing payments, wasted vehicle expense, etc.

From there I think moving into an even lower spending, van or RV travel, or slow international travel only, will be more achievable. If I can even get the GF on board with any of those, or if our relationship status changes.

2Birds1Stone
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Re: wolf's journal

Post by 2Birds1Stone »

classical_Liberal wrote:
Tue Jul 07, 2020 2:31 pm

From there I think moving into an even lower spending, van or RV travel, or slow international travel only, will be more achievable. If I can even get the GF on board with any of those, or if our relationship status changes.
Don't wanna hijack, but you got this! If I can pull off $12k/yr, you can too!!

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal »

@2B1S
Thanks for the encouragement!

wolf
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Re: wolf's journal

Post by wolf »

I'm finishing a book about the Enneagram Personalities these days. As an INTJ I definitely see myself as a type FIVE, although I have many similarities of my behavior (and motives?) with a type NINE. If I can remember correctly, that wasn't the case back 5 to 10 years. Anyway, it's a great spiritual and psychological tool for personal growth and development. After finishing the book, I'll dig deeper into types FIVE and NINE.

wolf
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Re: wolf's journal

Post by wolf »

I finished reading "In over our heads" (Kegan). It motivated me to dive deeper into development psychology. Therefore I bought an academic textbook with an overview of various psychological development theories.

wolf
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Re: wolf's journal

Post by wolf »

Will wrote:
Sun Jun 28, 2020 10:04 am
Hi Wolf,
What is the name of the documentary? I have the feeling that I could benefit a lot from watching it, smartphone use is really one of my weak spots.
I found it again :-)

https://www.arte.tv/de/videos/071494-00 ... life-3-10/

niemand
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Re: wolf's journal

Post by niemand »

Thanks for the link from my side @wolf. I’ve been struggling with sleep recently, and I think I’ll start ditching the smartphone at night to improve “sleep hygiene” going forward.

What have you learned since starting your dumbphone experiment?

wolf
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Re: wolf's journal

Post by wolf »

I learned from my dumbphone experiment, that if it is accessible very easily, then I face a higher risk of just using it for a moment. Of course it would not be then just moment, but many minutes instead. Additionally I learned, that I could use it only for some topics, such as reading the ERE Journal. It is easier and more comfortable for me to read the ERE forum on my phone, than on my computer. Whenever I finished using my dumbphone I switch it off. I experienced the usage of it intensely. It's worth as an experiment as a no-buy-month, etc.

wolf
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Re: wolf's journal

Post by wolf »

End of Q3 2020 financials

Expenses p.m. average = 450€
(without health insurance)

Savings Rate = 93%

Withdrawal Rate = 2.3%

Cash = 35%

classical_Liberal
Posts: 2147
Joined: Sun Mar 20, 2016 6:05 am

Re: wolf's journal

Post by classical_Liberal »

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Last edited by classical_Liberal on Fri Feb 05, 2021 2:57 am, edited 1 time in total.

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