wolf's journal

Where are you and where are you going?
wolf
Posts: 718
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Sat Nov 24, 2018 2:50 am

Last year I defined a goal, in order to save energy.
Since then, I only used less than 300 kwh (for a one-person-household in my apartment)
What I did was to try to use only maximum two electronic appliances* (loads) at the same time.
*such as: light, pc, TV, Smartphone, stove, Internet.
This is especially challenging, if it's dark outside. But it worked so far pretty good. I came up with ideas how to make it work.
I wanted to find out about the minimum, what I need energy-wise.
The goal of using maximum two electronic appliances at the same time was a challenge in the first place, but nowadays it is just normal for me.
And I am really happy with it, because I think, that I use energy very efficiently and wisely.
So, if you'd like to save energy: Try to use only maximum two electronical appliances (per person) at the same time in your apartment.
Although, I don't know if the goal has to be higher for a house.

Seppia
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Location: Italy

Re: wolf's journal

Post by Seppia » Sat Nov 24, 2018 3:10 am

That's a great idea wolf, we should look into it as well.
Electricity consumption is one of those things I don't look too much into, because we already spend slightly less than half what people with a comparably sized apartment spend (meaning less than a third of what our peers spend since we have a smaller place).
So it's one of those areas where I hit my personal "good enough" ceiling.

But we should never stop to try improving

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FBeyer
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Re: wolf's journal

Post by FBeyer » Sat Nov 24, 2018 4:21 am

wolf wrote:
Sat Nov 24, 2018 2:50 am
Last year I defined a goal, in order to save energy.
Since then, I only used less than 300 kwh (for a one-person-household in my apartment)
What I did was to try to use only maximum two electronic appliances* (loads) at the same time.
*such as: light, pc, TV, Smartphone, stove, Internet.
This is especially challenging, if it's dark outside. But it worked so far pretty good. I came up with ideas how to make it work.
I wanted to find out about the minimum, what I need energy-wise.
The goal of using maximum two electronic appliances at the same time was a challenge in the first place, but nowadays it is just normal for me.
And I am really happy with it, because I think, that I use energy very efficiently and wisely.
So, if you'd like to save energy: Try to use only maximum two electronical appliances (per person) at the same time in your apartment.
Although, I don't know if the goal has to be higher for a house.
We -family of three- use a bit less than 350 KWh per year for a 90m2 house. We basically only use two appliances at the same time, although it was never a concious choice; just a natural result of living in a smaller house.

wolf
Posts: 718
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Sat Nov 24, 2018 1:29 pm

@FBeyer: that's great. Wow, such a low energy consumption per person!

It started as a challenge for me. Since discovering ERE I started many such challenges in my life. And reducing my energy consumption in my apartment was one of them. It makes you aware of inefficiencies energy-wise, e.g. when I visit my parents at their house I see many such energy waste. Then I am the one who switch off the lights and other things :-)

Seppia
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Location: Italy

Re: wolf's journal

Post by Seppia » Sat Nov 24, 2018 1:37 pm

FBeyer wrote:
Sat Nov 24, 2018 4:21 am
We -family of three- use a bit less than 350 KWh per year for a 90m2 house.
I just looked up our consumption and holy shit is that low!

Since we moved we are using about 70KWh per month (2 person household), and again in terms of energy we spend significantly less than our peers.
We do have induction cooking, which is thirsty for electricity, but still...

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

November 2018 Financial Progress

Post by wolf » Fri Nov 30, 2018 6:56 am

Savings Rate = 89% (12 months rolling average)
Yearly Expenses = 4973€ (12 months rolling average) *
Withdrawal Rate = 6,5%(actual yearly expenses + margin of safety + health insurance)
Withdrawal Rate = 2,6% (based on actual yearly expenses without any margin of safety) *
Milestone = 89% (accumulated money compared to milestone of 210k€ by end of 2019) **
Investment Ratio = 70% (invested money in equity/bond/commodity market, rest of it in cash)
Passive Income = 63% (dividends and bond yields covering my actual yearly expenses)
Investment Rate= 3500€ (this month)
JAFI = 0.97 (assuming I had to pay health insurance like I were RE)

* without health insurance
** After achieving the milestone, I'd like to evaluate possibilities of coasting deliberately to FI and semi-ERE

edited:
Withdrawal Rate is now based on actual yearly expenses, without any margin of safety
Last edited by wolf on Sun Dec 02, 2018 3:14 am, edited 1 time in total.

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

Re: wolf's journal

Post by classical_Liberal » Sat Dec 01, 2018 12:26 am

The progress continues. Excellent work wolf!

I'm finding as I approach my coast to FI/semi-ERE financial goal, I'm starting to creat ea variety of mental excuses regarding how it's not good enough. Are you experiencing any similar thoughts?

How is work for you? You don't seem to mention it that much, so I assume it's not consuming too much of your mental energy, or maybe it just doesn't play too much of a role in life satisfaction/dissatisfaction for you.

wolf
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Location: Germany

Re: wolf's journal

Post by wolf » Sat Dec 01, 2018 3:18 am

Thanks!

Recently I am thinking more about semi-ERE. I ask myself, when is enough enough. Given my already low WR (actual expenses vs. NW), I am not sure anymore what "number" I'd like to achieve. In the last two years I created many excel spreadsheets with many KPI's, goals, milestones, ratios, controlling data, etc. And then I defined the absolute number of 420k as my ultimate financial freedom goal. But I am not sure anymore, if that's the right approach. Part of the reasons why I doubt it, is that I was able to reduce my expenses. That had some positive influence on my WR and it made me think about the absolute (not relative!) goal.

So, one part in me wants to aim for semi-ERE within the next 2 years. And the other part tries to go "hardcore" (earning, saving) till I reach my ultimate goal. And yes, I also create some mental excuses. I think about all the risks in life, what could happen, and what could threaten the semi-ERE-approach. In that context it is also not beneficial, that I am riskaverse and conservative (financially). I am experiencing similar thoughts. So, when is enough enough? I gotta figure that out within the next two years, because I really like to semi-ERE.

Regarding my work: It is ok. I am content with it. Pay is good and many other things as well. It is not consuming too much of my mental energy, because I "only" work less than 40 hours per week. I've got flexible work hours, homework, many vacation days, and great collegues. Unluckily the company I am working for wants to reorganize work. So I cannot plan for the next few years. There will be (dramatical) changes and they will also influence me. Maybe I gotta change jobs/company/work place, etc. So many things are uncertain for me. If I had about 100k more I really would consider semi-ERE now, but I don't have it. Therefore I take the chance proactively and adapt accordingly, which means I make the best out of it. And who knows maybe the changes will have a positive impact on my plans. Luckily I work in IT and I live in Bavaria/Germany, where work conditions are very good now.

In conclusion, I aim to achieve the following in the next 12 months:
- adapt to the changes at work (maybe change jobs/company, etc.)
- save as best as I could in order to achieve my already defined milestone of 210k
- think more about semi-ERE and what it means for me (when is enough enough?)

Jean
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Joined: Fri Dec 13, 2013 8:49 am

Re: wolf's journal

Post by Jean » Sat Dec 01, 2018 4:25 am

You could take avantage of your salary to buy Real estate, rent most of it, and then just work part Time to pay off wathewer smallish mortgage you got.

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

Re: wolf's journal

Post by Sabaka » Sat Dec 01, 2018 3:25 pm

Awesome work Wolf, you're smashing it!

I've been having a lot of the same thoughts recently. Not about semi-FIRE exactly, but just about what I want to achieve from FIRE in general. I understand the benefits of taking a really analytical approach to FIRE and planning it to a tee, but from my (admittedly limited :lol: ) experience of life so far, the one truth that consistently reaffirms itself is that life rarely goes to plan. "A plan never survives first contact" :lol: .

So, currently, one of my main focuses is learning to enjoy the process. To get to that good balance between planning for the future and living for the present :) .

wolf
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Location: Germany

Re: wolf's journal

Post by wolf » Sun Dec 02, 2018 3:24 am

Due to the discussions and thoughts about semi-ERE I changed the calculation for my Withdrawal Rate, which I post monthly (see above).
Till now I posted a WR which included a Margin of Safety of 100% and with health insurance (it is covered directly from work income).
I don't want to trick myself and chase a number, just because of the number. I want to show the numbers as they are. So therefore my reported WR will be based purely on my actual expenses. I hope that this is a step in the right direction toward semi-ERE. I think this change will give me more clarity, when I think (and decide) about semi-ERE. And of course I hope that questions from you about the actual WR help me to understand the transition phase from fulltime work to semi-ERE better. I really do appreciate the discussions with you. Thank you for that!

classical_Liberal
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Re: wolf's journal

Post by classical_Liberal » Fri Dec 07, 2018 4:30 am

@wolf
I like the concept of using ERE numbers in a strategic/psychological manner. I think I may steal it with a twist. Since expenses are an issue for me, I think I will begin reporting at what level of annual spending I could be FI. ie I'd be FI if monthly/annual spending was $X.

2Birds1Stone
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Re: wolf's journal

Post by 2Birds1Stone » Fri Dec 07, 2018 4:50 am

@c_L, it's a fun thought exercise. When you internalize that 4% covers all of your true needs........the rest becomes a game.

wolf
Posts: 718
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Fri Dec 07, 2018 10:52 am

Indeed, it's a strategic/psychological mindshift. And it can be used to your advantage.

Like jacob posted in ERE indicator
jacob wrote:
Sat Oct 15, 2016 5:50 pm
We become what we measure.

In the context of semi-ERE I also learned from SustainableHappiness's Journal
SustainableHappiness wrote:
Wed Dec 05, 2018 9:02 am
That is, I would have been stressed out making most of those decisions if I hadn’t changed my mental framework up. So probably 70% mental, 30% situational to toss a number on it.

Therefore I try to think about the mindset, which is required for semi-ERE (or Deliberately Coasting to FI).

First I reported the hypothetical WR, which had a Margin of Safety of 100%. It was about 6,x% the last month. It can motivate you to achieve less than 4%. It's like chasing, till you reach it.

Now I changed the reporting to my actual WR, which is based on my actual expenses. It's less than 4% already. So now it feels a lot more like that:
2Birds1Stone wrote:
Fri Dec 07, 2018 4:50 am
When you internalize that 4% covers all of your true needs........the rest becomes a game.

wolf
Posts: 718
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Sun Dec 09, 2018 6:29 am

Just for a reference in the future. In case I review my journal.

The Periodic System of ERE

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