vexed's ERE journey from the very beginning!

[vexed87]

This weekend I had a slight slip up, I jested about buying an Apple MacBook Air in another thread about downgrading from my smartphone, and I have now somehow managed to talk myself into buying one.

Before we get judgmental , it's 2013 model (used, obviously) via ebay purchased new last year but mine for half the RRP. I even managed to convince the seller to drop the shipping costs (due to listing error, less RAM than advertised). Luckily, selling off my 'junk' from the spare room and CD/DVD and Xbox games collection mostly cancels out the purchase so it shouldn't effect this month's budget too much, although I know this is money that could have gone towards savings.

I feel guilty for having bought an apple product, especially when I have a perfectly functional first gen core-i5 desktop PC. I have however been yearning to buy a laptop for many years (I have never owned one) as I was finding the desk (and dingy spare room/office) to be sapping my creativity, I hope to benefit from the freedom of taking my computer anywhere with me. In order to justify the purchase to myself, I know if I find I'm not getting any value from it, I'll simply sell it on for what I paid, surely it won't depreciate a great deal more from £500 in the next year?

I'm kicking myself for not sleeping on this, but before I knew it the bid was in and I won the auction. I will perhaps report back in a week (from the MacBook) and let you know how I'm feeling about it. Not sure it was worth delaying my ERE plans by .5 of a month, but at least I have two computers that will last me another 5 years. Please feel free to berate me for my foolish behavior! I deserve it.

[Ydobon]

Haha - justify, justify

I regret fancy tech purchases these days (sitting typing this on a Core-i7 monster laptop that was too much in 2012, and is still too much!)

[vexed87]

I have successfully cleared the spare room at home. It used to be where my clutter was dumped. Now there's just a desk and a sofa bed that never gets used. It feels good to have finally discarded a lifetime's accumulated consumer tat. Everything that was useful was sold or given away, it's a real eye opener of how much stuff will ultimately end up in landfill. I felt rather guilty taking two rubbish bags of junk out, but it's gone now and never to be repeated!

I picked out what could be sold on gumtree and listed it, including things like PC case fans, power supplies, various cables, DVD racks, Nintendo DS and games I forgot I owned! More money towards the MacBook Air I purchased last month (the jury is still out on whether that was a wise decision!)

I'm thinking of moving the sofa out of the room too and turning it into a gym. A home gym is a bit of a luxury I know, but I have been neglecting my strength training lately and think it will motivate me to get back into it. In terms of equipment, I think I only need to add a barbell, full length mirror (for checking form) and a rubber floor mat. I already have dumbbell's and pull up bar (one of those that mount on door frames) as well as resistance ropes. I'll be picking this stuff up on ebay/gumtree as I spot them.

After reading the 'Salmon Confidential' thread I have put some serious thought into going veggie, while I haven't made the decision yet, I haven't actually eaten meat since 30th March. I can't say I have missed meat. Even if I don't completely cut it out, I now realise I was eating too much of it. Making the most of my new pressure cooker has really helped me change terrible habits. The SO and me are eating a lot more beans and lentils, no grumbles from the SO so far!

There's not a lot more I can do to cut down expenses, estimated savings rate for May is 82%. This will improve slightly in the coming months with a pay bump, changes to tax relief and reduced mobile phone bills as I switch to pre-paid, so the only thing left to do is chase a promotion or taken on some side gigs. I have to admit, now that I think about it, I am not really enjoying what I do for money. I work in a bureaucracy (albeit necessary one). I feel like I literally push paper around all day. I really need to work on finding work that I can love. I knew this day would come, but now I can't put it off anymore!

[cmonkey]

Regarding the Macbook, do what Jacob does and resell for nearly the same price down the road. Net cost ~ 0. If you can resell something for near the cost you purchased it doesn't count as an expense.

I am not familiar at all with Apple products, do they hold value? I know PCs do not.

[vexed87]

Apple products seem to carry higher residule values than regular PCs, a bit like a BMW I guess. In theory the higher sticker price can be recouped if sold on as apple products are still desirable in the used market.

I bought this mid 2013 model at 50% of it's list price. Computers could never really be considered an investment item as they continue to depreciate due to the silly consumer upgrade cycles, though this plays to our advantage as we get last years tech for 50% less!

I think if I sell up within the year, I could break even, sale after 1-2 years I could maybe get away with losing £100-£150 on it which is negligible really. In all likelihood, if I keep it for a year, I'll keep it until it is considered obsolete by ERE standards (not silly consumer upgrade standards!) so if it survives 5 years of use here, I'll be happy.

[vexed87]

I have been thinking a lot lately about how I get relatively little pleasure out of what I do for a living. I have very little freedom to decide what work I take on and it seems to be getting much worse in recent months as the management are piling more bureaucratic form-filling to my desk, eating up the little time I had to be innovative within my own role.

As an INTJ type, I strongly dislike my freedoms being eroded by ever increasing piles of busywork, there's little incentive to continue working hard as I now find myself endlessly catching up with the paperwork. Theres little time to improve our office processes which is what I was initially hired to do (which I had quite enjoyed), it seems everytime I land a new job it's great for 6-12 month then the role changes so much that it's no longer what I was looking for in the first place. There is little room for progression internally as I work in a niche area of research and above my there is one manager. I can only expect the occasional pay rises in line with inflation and certainly no performance driven bonuses (a major limitation of working within the public sector!) Yes, I can take the skills and experiences and move on to another organisation, but if it means trading one set of bureaucracies for another, it's not going to do it for me long term.

I didn't study Biological Sciences to push paper around an office, yet rather to satisfy my curiosity in life and its various disorders, yet I have failed at turning this in to a money spinner. It seems like pursuing an interesting career within the field is increasingly unlikely as academia isn’t for me either. I'm putting serious thought into pursuing a new career direction entirely, whether this means outside of the public healthcare system, or in an entirely new direction, I'm not sure. I love problem solving and process design and have always had a lot of interest in computers, so I'm thinking of re-specialising in some sort of programming/engineering trade.

I can’t justify student loans, or delaying ERE for re-education, so plan to direct a new career primarily through self-study. Perhaps there's a niche I could fill using my knowledge of the clinical research industry, I know of several lucrative fields where current systems are missing a few tricks and with the right skills in programming, I could potentially compete with the current research software establishment who are slow to adapt to change in the industry, it shocks me how poor their customer service and products are, there must be some way of muscling in their market while they are sleeping! Perhaps worth some pondering going forwards.

For the first time in a long time, I’m getting excited about my career, where I am isn't working but now I have realised it, I can get on with changing things. What have I let myself in for…???

Edit: Corrected some typos

[vexed87]

I've just picked up a copy of A Guide to the Good Life: The Ancient Art of Stoic Joy by William Irvine. I haven't finished it yet but... holy sh*t!

What difference that book makes to your outlook on life. I had heard of hedonistic adaptation before, but didn't realise how much I was a prisoner to it. I have not been materialistic for a long time now so I wasn't feeling this way about possessions anymore, but I didn't apply the same logic to my working life and relationships. (For the uninitiated... http://en.wikipedia.org/wiki/Hedonic_treadmill)

My last post, case in point, was a massive rant about how my pretty well paid job in a safe location, in purpose built, modern clean and cool office with a friendly line manager, hot showers, bike racks and lockers was making me unhappy! To anyone else it would seem like a perfect place to work. Yes the admin can get a bit tedious, but it's hardly as bad as it could be.

If you haven't read this book yet, stop what you are doing and get a copy! It starts a bit slow but stick with it and you won't put it down.

I am still considering the career change, purely because I can't be doing the same thing day in day out for the rest of my working career, but it has made my position clear, there's no fire, I earn a good wage (could be better I guess buttttt...) I'm happy, and safe and need to focus on the positives. In the mean time, I can take the learning a new trade at a leisurely pace and really enjoy it, rather than turn it into a chore and stress myself with the pressure of getting out.

I attended a wedding this weekend, it was a lovely day but cost the bride's family a small fortune, we are talking £>30,000. I managed to get away with spending only £30 on drinks for my SO's closest friends, brownie points for me. I also picked up some good tips on what not to do at my own wedding next year! I had the pleasure of meeting some fellow INTJ types (perk of being in a room with 120 people!) and had a blast talking to them about investing, cycling to work and the end of civilization as we know it (and enjoyed a few nice ales!)

I loved the blog post on psychology types, quite well timed for me (http://earlyretirementextreme.com/perso ... tance.html)

My SO, who is a Guardian type (ESFJ?), much to my relief has declared her desire to avoid an extravagant wedding like the one we just attended. I already knew she had no interest going crazy, but I do worry about her sometimes. Her personality type can lead her slightly astray, i.e. feeling the pressure of societal norms is one of her weaknesses, though ultimately I seem able to win her over with a reminder of the bigger picture.

I don't think I will ever understand how society has made it acceptable to blow >£30,000 in one day, but then again. I'm a rational type.

[Ydobon]

It's a bit harsh to say that feeling the pressure of societal norms is a weakness! We all feel the pressure, some of us are just better at resisting than others

[vexed87]

Opps, to put it more delicately, what I meant was she seems to care more about traditions and what people would think of her not following suit than I do! If someone said I was 'crazy' for wanting to marry abroad, just the two of us, I wouldn't bat an eyelid, whereas SO would fret endlessly about the insult.

In fact she was getting emotional about the wedding this weekend, second guessing herself and thinking we should say 'sod it' to all tradition and just marry in a registry office, just the two of us. The ERE in me was screaming 'YES!!', but I know in her heart of hearts she wants to marry in a church, surrounded by her loved ones. I know it would be wrong of me to push her into anything other than that. I'm secretly pleased though that she wants to stick it to tradition

[Ydobon]

I got married abroad (in Greece). At roughly £4,500, it was about 1/3 of what friends spent in the UK, even when they tried to be relatively frugal.

It was a fantastic small ceremony, surrounded by 30 of our closest friends and relatives. I am aware that we effectively shipped some of the cost onto our guests by getting married abroad, but we chose an island that had cheap accommodation and budget flights from every major airport in the UK to minimise this. We also asked that people skipped gifts as recognition of this and almost everyone stuck to the idea (with the exception of parents/grandparents/the folk who would always want to give a wedding gift).

We didn't have a penny in debt after our wedding, despite a 3 week honeymoon to Greece and the US. I think it was just about that point where I started to grow up in terms of money management.

Happy memories, 5 year anniversary next year

[vexed87]

I am aware that we effectively shipped some of the cost onto our guests by getting married abroad...

Sounds like you had a great time, we seriously considered it as an option too, but ultimately as above, our main concern was shifting expense to family. Primarily to our parents due to siblings who could not cover their own flights and accommodation. Instead we have opted for a reception venue at cost price (family connections) and free catholic church (after discounting cost of legal documentation etc).

My SO is insisting on a professional photographer, that's about the only non ERE aspect of the wedding, and one I think I can live with in the grand scheme of it all.

[Ydobon]

Free Catholic church? How are you getting away with bunging the priest the expected gratuity?

(Speaking as a lapsed Catholic here who has been to several Catholic weddings, not trolling!)

[vexed87]

We have to cover the cathedral's costs, although these are negligible considering the alternatives! Further donations are voluntary though. I'm told there will be a collection from guests after the ceremony, which I'm sure will be very lucrative with 80+ guests. My SO also attends mass so is expected to tithe (admittedly I always seem to forget my wallet when I get dragged along ). I think they manage to balance the books somehow...

April update:

After reading YMOYL I have taken a renewed interest in analysis of my financial data. I previously used YNAB to record my expenses though decided that its reporting features were too restrictive. I use excel in work for performance reporting so have decided to try my hand at tracking my finances in it too. The YNAB data collected through 2014 was limited in terms of details. I didn't break down my spending into any specifics, i.e. groceries into staples vs discretionary purchases, alcohol etc, so I'm starting a fresh as of March, luckily the net worth data I have is still useful, although nothing to shout about!

You might notice I started to get serious about my financial situation about June last year, although progress was painfully slow due to various financial commitments which thankfully all ended recently. I ditched the car in February this year and discovered ERE just a few weeks before... I haven't witnessed the full benefit of following my new financial philosophy yet, however my expenses have been unusually high these last two months due to extraordinary/unplanned expenses, despite this my net worth has moved up not down! Now I have no debts I should be able to see some quick progress in my net worth over the next few months.

You will notice I am tracking two values for net worth, the first is the total net worth figure, including my workplace pension, although this cannot be accessed until traditional retirement age >55, therefore I have excluded this from my second line, 'ERE Net Worth' which will be my preferred gauge of progress. In order to reach FI I'll need >£200,000 in liquid assets. I admit, there are a few other assets that I haven't bothered to list which I may add in the future, though for the time being I'll only be tracking liquid/cash assets.

I have also included a summary of expenses for April, these were quite high compared to my budget for the month. However I'm really pleased I managed to bring my food bill down from £300 to £237, despite high spending on alcohol. The budget feeds myself, my SO and the dog (leftovers). Spending on alcohol, restaurants, drinking in bars, taxis and giving is much higher than I would normally allow, but it was my SOs birthday and her close friend's wedding that ruined me this month, despite this I managed a savings rate of 52% in April. When sticking with my budget, I should be achieving 72% savings rate. Spending on books was also significant this month, however I am stocking up for a two week break in Greece next month. Obviously, these are mostly from the ERE reading list (bought used of course!)

My SO told me today she has been thinking about homesteading, this isn't something I expected her to dream about in all honesty, but seems like my endless ranting about self-sufficiency is sinking in! I haven't sold her on the idea of keeping pigs and chickens, but there's time. I'm extremely excited and upbeat about the future. This month is my first opportunity to see my 75% savings rate finally come to fruition. Fingers crossed.

[Ydobon]

Another fan of discrete values for liquid and illiquid NW values here.

Am I missing something obvious, or have you forgotten to include rent/mortgage payments in your expenses for April?

Is homesteading the same as smallholding? My wife is just about sold on the idea of buying a croft and using FI money to build an energy neutral house and trying our best to be as self sufficient as possible. More Passivehaus on the Machair than Little House on the Prairie, but you get the general idea

Cost of land will always be the stumbling block in the UK, I have been looking at some wonderful SIP houses of late that seem more than adequate for the rigours of the North....

[steveo73]

I've just picked up a copy of A Guide to the Good Life: The Ancient Art of Stoic Joy by William Irvine. I haven't finished it yet but... holy sh*t!

This is a great book isn't it.

This month is my first opportunity to see my 75% savings rate finally come to fruition. Fingers crossed.

I stuck about this rate all year last year. It feels great doesn't it.

[vexed87]

Am I missing something obvious, or have you forgotten to include rent/mortgage payments in your expenses for April?

Nope, I have a pretty sweet deal living in my parents loft space, it's a self contained flat with its own external access, kitchen, bathroom etc. No basement dwelling here...

I paid a significant sum the first year I lived here to cover costs of development of the space and now get to live here rent free (including utilities) as long as my SO can bare being neighbors with my relatives. I give her to Feb 2016 next year before she forces me to move on. The plan is to throw as much down on a house deposit as possible, probably 30-40% deposit, then start saving for FI.

Is homesteading the same as smallholding?...

I think they are pretty much the same thing, a quick google threw up this which was an interesting read
http://www.motherearthnews.com/homestea ... lding.aspx

I stuck about this rate all year last year. It feels great doesn't it.

It does, but I have some work to do on my income levels as it would drop markedly once my living arrangements come to an end.

[cmonkey]

This month is my first opportunity to see my 75% savings rate finally come to fruition. Fingers crossed.

Good luck! I have subscribed to your journal due to your homesteading ambitions and the fact that we are at similar points in our ERE journey.

[vexed87]

@cmonkey, Thanks, I'll try not to disappoint! I need kick myself into gear and dig myself a patch, maybe this Saturday... I know I have been putting it off. I have been diligently composting green waste for a few month's now, but I don't think I'll get to use the proceeds until next year if the current rate of decomposition is anything to go by! I think I'm guilty of over complicating the growing veg process in my head by starting from seeds early etc. Ok, I'm committed, I am putting it out there that I will get my hands dirty this weekend and just experiment with sowing some seeds straight into the soil, if it fails, at least I can say I tried

This month has been an arduous one due to several work commitments, one in particular has had me stressed out for a couple of weeks as I was due be speaking in front of an audience for a 3 hours. It was tough but I enjoyed it in the end. It's something I never thought I'd be able to pull off previously. I have been pushing myself to take on new responsibilities so I can refresh my CV and hopefully this will give me the kick to take my career up a notch and bring home a little more bacon. To give you American's a bit of perspective, my wage is roughly equivalent to $40,000, however I understand taxes in the UK are higher so not sure how useful that comparison is after tax that's ~$26,000.

I need to start looking for a higher paying job now I have swiped all the low-hanging fruit from my monthly budget. As you can see, the budget is pretty minimalist. There are other one off expenses which I don't budget towards as they vary so much, but I consciously keep those expenses to an absolute minimum.



I still haven't managed to start work on my woodwork/bookcase project either, probably because I can't bring myself to fork out on the power/hand tools. I think I'll need to budget these in June or July otherwise it will never happen. Other than my achievement in work, I haven't really made much progress in self improvement/ERE philosophy in May, and thanks to a family member needing some cash, my savings rate is looking like its >50% this month. Not great, better luck next month I hope. At least I have a vacation to Crete, Greece to look forward to in June. It's not going to be very ERE, as I will no doubt be eating in fancy restaurants and drinking lots of beer, but it will be my last until I am FI. I'll certainly be taking some alcohol from duty free and shopping in supermarkets for drinks/snacks to keep costs down.

The Warrior diet will be going out of the windows for the next few weeks as I know I won't be able to maintain it on my vacation, too much temptation... . I'll update the thread with my analysis on expenses in a week or so.

[cmonkey]

Do you have an allotment?

I doubt you will fail unless pests get your seedlings. Slugs can be a real problem! Water the seeds each evening and the new seedlings every day until they have true leaves. Then water every other day until they are a couple weeks old. Then once a week is fine.

I know what you mean about the tools. I have some work to do on the house, but I can't stand the though of purchasing anything new and I can't find much in the way of used. So I just put it off and save the money. I think I will eventually buy the tools, then sell them again and get most of the money back.

I will be interested on your thoughts of Greek tourism given their financial situation.

[vexed87]

The property I live in has a 17,000 sqft field which is doing nothing. I'm going to start a 8 x 4 ft plot this weekend with any luck. But your right, I think pests are going to be a big problem as it's open country and anything can get in the field and snack on my hard work. I'll probably just pony up for some planks and build a raised bed or two and take my chances.

Re. buying tools, this is a good idea, buying second hand is hard work though when you know nothing about quality tools so it's pot luck whether you are buying duds or not. I think this tends to be why I get plagued with inaction when picking up a new skill/hobby as I will other-think/over-plan things!

Will update you with my experience of Greece, it's been a while since I was last there so much looking forward to it.