wolf's journal

Where are you and where are you going?
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Seppia
Posts: 566
Joined: Tue Aug 30, 2016 9:34 am
Location: Italy

Re: wolf's journal

Post by Seppia » Tue Apr 03, 2018 7:27 am

Great stuff.
I'm wondering, why did you decide to get into prepping?
Do you sense an impending risk or is it just a sort of "training" to expand your knowledge?
Which resources are you using to learn about the subject?
Thanks

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Tue Apr 03, 2018 1:29 pm

Hmm...Let's think...How did I get into prepping? Very good question. Last year I heard about prepping. Then I forget about it again. And this year I think I read some articles about it and watched some videos. I am also interested in trekking, outdoors, survivalism, etc. I don't sense a specific risk. I just want to be prepared for some short term risks. On the personality level I am risk averse and strive at the same time for freedom and independence. I guess, the one comes with the other. Therefore I wanted to add some (mental) security to my life by prepping. But it is prepping "realistically". I don't buy any weapons, nuclear things, etc. I buy and store what I consume. It is about getting to know boundaries and getting more aware about those kind of things, like emergencies, grit-down scenarios, first aid, ... It is basically learning layer by layer from the expected to the unexpected scenarios.
What I really find very helpful is the book "The Prepper's Blueprint". Unluckily I found all the content from the book on the original website later (Link here) If you are interested have a look.

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

April 2018 Financial Summary

Post by wolf » Fri Apr 27, 2018 6:38 am

Savings Rate = 85,2% (12 months rolling average)
Yearly Expenses = 6298€ (12 months rolling average)
Withdrawal Rate = 10,0% (yearly expenses + margin of safety + health insurance cost*)
FI = 46% (accumulated money compared to goal of 350k€)
Invested = 76% (invested FI-money in market, rest of it in cash)
Passive Income = 34% (covering my yearly expenses, see line above)

*I added health insurance cost into WR, because I have to pay it directly in the FI-future. Nowadays it is paid indirectly by my salary. Therefore the change compared to WR in March

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Seppia
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Location: Italy

Re: wolf's journal

Post by Seppia » Sat Apr 28, 2018 6:37 pm

Thanks a lot for the link and explanation
Keep kicking ass!

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Milestone towards FI / FF

Post by wolf » Sun May 13, 2018 4:46 am

Inspired by all the topics around here, e.g.
- Deliberately Coasting to FI
- Money is a solved problem
and all the lessons learned and experiences I collected from FI-/FF-persons, I came to the conclusion in the recent days to set and define the next milestones on my journey towards FI / FF. All this is based up on my ERE-principles, -mindset, -lifestyle and -techniques.

In the past year I set my FI goal to 350k€. On top of that I thought about my FF goal, which I set to 420k€. Those both goals are calculated with my expenses, estimated budget in RE, a margin of safety, safe withdrawal rate, etc. You know it. :-) It varies and it depends on "1000" things. In the end I came up with those two numbers.

It is a journey, not a destination. Because of that, I wanted a milestone. That milestone could be also the starting point of "Deliberaty Coasting to FI / FF". Well, first of all, I gotta set the milestone and decide then what I'll do when I reach it.

So...milestone is set to 210k€ till end of 2019. That number is 60% of FI and 50% of FF. I could reach that, if I continue to save 85% of my income.

My estimation shows that I would need another four to six years (starting 2020) till I'll reach my goals completely between 2024 and 2026. So, if I'd want it more comfortably, I could decide to go with a lower SR (around 70-75%), starting in 2020.

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

May 2018 Financial Summary

Post by wolf » Wed May 30, 2018 7:05 am

Savings Rate = 85,0% (12 months rolling average)
Yearly Expenses = 6145€ (12 months rolling average) *
Withdrawal Rate = 9,5% (yearly expenses + margin of safety + health insurance)
Milestone = 79% (accumulated money compared to milestone of 210k€ by end of 2019) **
Invested = 65% (invested money in equity/bond/commodity market, rest of it in cash)
Passive Income = 34% (covering my yearly expenses, see line above)

* it is without health insurance
** I changed controlling from FI% to my next milestone%, which is 210k€ I'd like to achieve by end of 2019. Then I'd like to reevaluate possibilities to "coast deliberately to FI/FF"

fingeek
Posts: 49
Joined: Wed May 24, 2017 8:16 am
Location: South Wales

Re: wolf's journal

Post by fingeek » Wed May 30, 2018 7:19 am

This is really great - I love how you are consistent with your yearly low expenses! It puts me to shame, and gives me ideas - Keep up the good work!

I'm glad you changed from your *2024 username to, as it's no longer limiting you :).

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Wed May 30, 2018 1:10 pm

Thank you fingeek! Each journey is individual and has its own challenges. So I hope you don't feel really ashamed, because it is not comparable. On the other side you are one of my role models around here. If I had learned one thing since I found out about FI/ERE, it is, that you could learn from others but you shouldn't compare with them (in a negative way). We gotta motivate us and share our wisdom, experiences and lessons learned. For me that are the huge benefits of this forum!

That's true. My former user name indeed limited me in some way, although it was a good start to have a vision in the beginning of the process. Changing the user name was the easiest part, but changing all my controlling and planning charts and lists is ongoing ;-)

...and I'll try to "keep up the good work!" :-)

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

IPIP NEO personality test results

Post by wolf » Sat Jun 23, 2018 3:11 am

Just for future reference: details of my IPIP NEO personality test results (23th June 2018)
  • EXTRAVERSION 1
  • AGREEABLENESS 28
  • CONSCIENTIOUSNESS 90
  • NEUROTICISM 2
  • OPENNESS 36
(1 = low; 99 = high)

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

June financial summary

Post by wolf » Thu Jun 28, 2018 5:04 am

Savings Rate = 86,1% (12 months rolling average)
Yearly Expenses = 6065€ (12 months rolling average) *
Withdrawal Rate = 9,1% (actual yearly expenses + margin of safety + health insurance)
Milestone = 81% (accumulated money compared to milestone of 210k€ by end of 2019) **
Investment Ratio = 66% (invested money in equity/bond/commodity market, rest of it in cash)
Passive Income = 36% (actual dividend&bonds passive income covering my actual yearly expenses, see second line)
Monthly Investment = 4002€ (goal is to invest around 4000€ monthly using cost average effect)

* it is without health insurance
** After achieving the milestone, I'd like to reevaluate possibilities to "coast deliberately to FI/FF"

EDIT: added "monthly investment ..."
Last edited by wolf on Fri Jun 29, 2018 9:39 am, edited 2 times in total.

thrifty++
Posts: 784
Joined: Sat May 23, 2015 3:46 pm

Re: wolf's journal

Post by thrifty++ » Thu Jun 28, 2018 6:28 am

Wow thats a huge savings percentage and such a low expense sum. Would love to know how that is achieved. Looks like you will be achieving your goals really fast

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Thu Jun 28, 2018 11:33 am

thrifty++ wrote:
Thu Jun 28, 2018 6:28 am
Would love to know how that is achieved.
Thank you thrifty++.

Well, I live very frugally. I have read your journal and I guess you know how that is possible. :-)

Still there are some few factors, that help hugely. First, I live in my own apartment. That means I don't pay any rent and therefore cost for accomodation is very low. Secondly, I live carfree for two years. Usually I use my bike 90% of the time and 10% public transportation. Last but not least, I live quite simple and avoid spending too much. If you are interested you can find more about my ERE-lifestyle with cost influencing topics here.

Although Germany does tax you much from your gross income, I think that it is quite ok to strive for FI here. Income is increasing due to the good economy. And cost of living is relatively low due to high competition. I did some research. I wanted to find out, where it is the easiest to attain FI. So I tried to create a SR-comparison-index for countries and cities. You can find the results below. Germany ranks within the Top10 countries to achieve FI fast. But I admit that there are many factors. It could only be an indicator. I find the first SR-comparison between cities quite interesting, because it is based on good and up-to-date data quality. You can have a look here:

SR comparison of Cities 2018
SR comparison of countries 2015

You're right. A high SR helps to achieve FI quite fast. But what does fast mean? Either way, we talk about years. I am in a similar situation like you. I feel that the middle part of the journey is quite long. I think I read it in your journal too. In the beginning everything about the FI-journey was exciting, because I created many excel sheets, set up habits, etc. After a while almost everything is in autopilot mode. There is a routine. I am quite thankful for that too, but it is also challenging because now I realize that there is still a long way to go. So my focus comes back from the future to the present. I try to focus on "today", rather than "tomorrow".

EDIT: I had a typo. I even lived carfree for two years now, not one. :roll:

oldbeyond
Posts: 163
Joined: Thu Nov 29, 2012 10:43 pm

Re: wolf's journal

Post by oldbeyond » Thu Jun 28, 2018 12:16 pm

There’s a Chinese idiom that goes ”pull the seedlings to make them grow”. I’m like that too, obsessing over a process that by and large is on autopilot. That stage of “can’t do much ‘bout it” is really rather freeing - the seedlings will grow of their own accord. You do your watering and take care of the weeds, and then you can go in peace. But it has been hard for me to accept that and focus on other areas of my life. Perhaps that should be the goal in lieu of another spreadsheet.

thrifty++
Posts: 784
Joined: Sat May 23, 2015 3:46 pm

Re: wolf's journal

Post by thrifty++ » Thu Jun 28, 2018 2:28 pm

You are very frugal. I do most of the same things as you except for the intermittent fasting, and not using the fridge and rare use of heating, dishwasher and clothes washing machine. I have to pay rent which is a substantial cost contributor.

I only eat out or drink out at bars of cafes with other people. On occasion. Do you do that socially or never?

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Thu Jun 28, 2018 3:14 pm

@thrifty++ : sometimes, maybe once a month. I am introverted and don't want/need much social interaction besides work, neighbours, family and a few friends. I live also in a small town, which suits my personality. Friendship has also changed since I moved away and since I started the journey of more personal reflection and growing. So overall I feel a quite good balance between time with others and for myself. Well I guess it is quite the opposite of a hipster urban lifestyle. Although sometimes it would be interesting to meet my very old friends. But people move away and change. I do too.

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Thu Jun 28, 2018 3:18 pm

oldbeyond wrote:
Thu Jun 28, 2018 12:16 pm
That stage of “can’t do much ‘bout it” is really rather freeing - the seedlings will grow of their own accord. You do your watering and take care of the weeds, and then you can go in peace.
Very well said! I feel like that these days, weeks, months, ... Nowadays I am looking for peace with the autopilot 😀

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Monthly Investment using Cost Average Effect

Post by wolf » Fri Jun 29, 2018 9:38 am

This month I started my monthly investment process using the cost average effect. My goal is to invest around 4000€ every month from now on.

Till this month I invested very irregularly. I know my asset allocation and I know that I need to start investing. But I find investing quite challenging because of the high valuations and because of my cautious personality. I must admit that I am risk averse. And every time I invested some money I thought about it very carefully. It tried to find the (perfect) time and lowest price. So sometimes I missed opportunities, because I didn't invest. And since I found out about ERE I started only to save and collect cash and avoided investing it. Therefore I missed the great bull market last year.

So I reflected my financial behaviour and came to the conclusion that the cost average effect could suit my needs very well. Although I think that it isn't the best way to invest money (in terms of total return), I am confident that it is the best method for me in my situation. I am sitting on some cash and I want to invest it. I am a big supporter of diversification. Therefore the logical consequence for me was that I could diversify also the times I invest.

So from now on I am gonna invest around 4000€ monthly. I'll report about it in my monthly financial summaries. I updated my last one. You can have a look here: June financial summary

fingeek
Posts: 49
Joined: Wed May 24, 2017 8:16 am
Location: South Wales

Re: wolf's journal

Post by fingeek » Fri Jun 29, 2018 10:22 am

4000€/month - WOW! That's really great. You are flying 😁.

Is your milestone % = "percentage complete to when I can FIRE"?

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf » Fri Jun 29, 2018 12:47 pm

@fingeek: thank you!

Yeah, investing 4k€ monthly would be really great.
Now I am just at the beginning. Next month is going to be the second time, ..., till it gets a habit.
Currently I save around 3k€ p.m. on average from my net-income. That means I'll reduce my cash position around 1k€ p.m. That still gives me a feeling of safety, because it will take some time until my cash position would be around 6k€ (roughly 1 yearly expenses).

Indeed, my milestone (210k€ till end of 2019) = 50% FF goal.
I hope, that the second part of the journey towards FF will be easier.

wolf
Posts: 607
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

July 18 Financial Progress

Post by wolf » Tue Jul 31, 2018 2:23 pm

Savings Rate = 86,5% (12 months rolling average)
Yearly Expenses = 6144€ (12 months rolling average) *
Withdrawal Rate = 9,0% (actual yearly expenses + margin of safety + health insurance)
Milestone = 82% (accumulated money compared to milestone of 210k€ by end of 2019) **
Investment Ratio = 66% (invested money in equity/bond/commodity market, rest of it in cash)
Passive Income = 47% (actual dividend&bonds passive income covering my actual yearly expenses, see second line)
Monthly Investment = 4149€ (my goal is to invest at least 4000€ monthly using cost average effect)

* it is without health insurance
** After achieving the milestone, I'd like to reevaluate possibilities to "coast deliberately to FI/FF"

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