August 2024 update:
Code: Select all
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
// Assets
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Stocks: 46.625,06 EUR
Cash: 20.899,79 EUR
+----------------------------------+
TOTAL = 67.524,85 EUR
+----------------------------------+
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
// Liabilities
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Debt: 0 EUR
+----------------------------------+
TOTAL = 0 EUR
+----------------------------------+
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
// Monthly income
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Job: 2.000 EUR
+----------------------------------+
TOTAL = 2.000 EUR
+----------------------------------+
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
// Monthly expenses
// ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Rent: 500 EUR
Electricity: ~40 EUR
Water: ~20 EUR
Internet: 40 EUR
Food: ~400 EUR
Gym: ~50 EUR
+----------------------------------+
TOTAL = 1.050 EUR
+----------------------------------+
Progress until retirement (considering 25x yearly expenses):
I've got some good news: my girlfriend has got a job in the retail industry, earning minimum wage and working within the consumer paradigm. Customers buy clothes they won't use for more than a year, putting money in my girlfriend’s pocket, which, by osmosis, also ends up in Mr. Okomurahata’s bank account.
Following the news, we’ve agreed to contribute proportionally to our meagre salaries. So, the distribution of expenses will be around 30% for her and 70% for me. I imagine chaps from the States laughing at the salaries we have in Spain. If you thought my salary was low (pretty much minimum wage in the States), my girlfriend's is even lower. But hey, it’s a test to see if an average European can retire early.
In summary, we are now two DINKs with low salaries. Playing with the numbers, a virtual reduction in expenses by 30% thanks to my girlfriend’s contribution puts me at a current WR of ~13%. This could be the biggest jump in my WR in a while. However, I’ll continue to maintain my goals, because at any moment, my girlfriend could find someone other than Oku, and I’d be back to square one.
Reading from the forum, the biggest mistakes people make that prevent them from achieving FI are:
1. Buying a house bigger than they can afford and getting into debt for it.
2. Buying a car (even worse if it’s on credit).
3. Getting married and having kids. Weddings and babies delay the FI date because things get more complicated as the family grows and as you involve the government in family decisions (chances of divorce also increase substantially after getting married).
4. Buying too much stuff, going to restaurants, excessive shopping, electronics, i.e., consuming more than you have. I don’t like restaurants because I have to make forced conversations with waiters and try to be nice to people, but I do like electronics and the latest gadgets.
5. Optimising expenses too much and retiring too early, then moving to a third-world country, e.g., Thailand.
Out of all the traps, Oku steps into number 4 but falls like a waterfall into trap number 5. The idea of living near the beach, doing nothing while drinking watermelon ice shakes and dealing with the subsequent diarrhea is appealing to Oku, don't ask me why. The unstructured time, the 'no rules', the street food, the coffees. The free time to read and write whatever I want. The price of flâneurism in Thailand is much cheaper than in other European countries.
The problem is I don’t want to fall into the trap and do it too early, running out of money and needing to come back to my desk, chaining myself to my chair, and saying, 'Yes boss, I’m having so much fun here, the place is amazing, and the coworkers are some of the best people I’ve ever worked with! If I didn’t need to pay the bills, I’d come here for free!'.
With 175k, I could take some time off and be almost free. With 315k, Oku would be booking flights to some Asian country, riding a motorcycle and having great adventures, meeting weird strangers, having coffee, exercising, reading, etc.
