Part time work full time happiness

Where are you and where are you going?
thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Time for an update:

Assets of $83,500 less tiny credit card balance and student loan of $18,500 leaves $65k net worth.

My savings rate for last month was 60% of after tax income. This wasn't a highly paid month so I think this was probably an all time low in spending for me. It was the equivalent of minimum wage after tax.

Despite my high savings rate my net worth has not increased that substantially as my assets keep taking a battering due to global economic insecurity. This is quite depressing and it seems NZ and Australia are likely to be highly impacted by the economic situation. At least I did get two lots of dividends for the first time amounting to $50. Not a lot but somewhat encouraging to receive my first dividends.

I have been looking at getting secondary contract work and it looks like I might be getting some soon. Its not fun hobby work but it should be well paid and I do want to build multiple income streams and it is easiest to do that using my existing skill sets. I like that I can also do the work remotely so if I ever decide to pack it in and leave my job and the city I could go to a little house on a beautiful remote beach and all I need for a bit of income is my laptop. Life might just be a little bit more stressful for a while with two lots of work going on. But I think I have capacity for it and is worthwhile to save more.

I checked out my years to FI using an online calculator. I was quite depressed to see that it calculated 12 years. At least it is likely that over time my income will reduce and potentially substantially like double or more. But it will still need to be work I enjoy.

I am lacking motivation at the moment. It feels like a mountainous task ahead to make any progress with the income v expense situation and assets which keep plummeting. I am also not doing anything particularly extreme. I am just being frugal. I might need to think about doing something more extreme to cut my big two: rent and food. Maybe living in a caravan or something and using solar panels for electricity. It takes quite a bit of planning though.
Last edited by thrifty++ on Sat Apr 06, 2019 2:59 pm, edited 1 time in total.

cmonkey
Posts: 1814
Joined: Mon Apr 21, 2014 11:56 am

Re: Bon voyage

Post by cmonkey »

Sorry to hear about the more difficult outlook. The past few weeks have been pretty unmotivating/long for me as well, due to a quiet amount of work going on at work. Motivation can be hard to come by at times especially when you are looking at a timeline like 12 years. Have you tried making any timelines of your own based on finely tuned calculations? The prime tool I use is the FV function in Excel using a negative payment amount to calculate future investment values.

One other thing worth considering is your post-FIRE level of expenses. If you anticipate having a lower expense level (living in Canada I think?) maybe you don't need to cover your current expenses and would thus have a shorter timeline.

You are ahead of me on the dividend front! I haven't received anything yet. I think my first month is December.

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Thanks Cmonkey. Yes it is a good idea to think of where you came from. I think three years ago I was basically at around zero net worth so its nice to have come up from there.
I was planning on doing my own FI calculation but had not gotten around to it. I will do so at some point. I am basing my FI calculations on where I love. I don't think I would early retire where I live because its so expensive. Unless I owned my own house. I would like to move somewhere else I think to try and grow wealth. I am hoping at some point I can transfer with work. But yes am planning to spend lots of time overseas in places far cheaper than where I am.
Last edited by thrifty++ on Sat Apr 06, 2019 2:57 pm, edited 4 times in total.

cmonkey
Posts: 1814
Joined: Mon Apr 21, 2014 11:56 am

Re: Bon voyage

Post by cmonkey »

thrifty++ wrote:I actually like work being quiet and low stress so I can focus on non work stuff lol
Same here but I have pretty much run out of ERE type things to work on, as I am satisfied with my timeline and money tracking. I am left with researching investments and listening to podcasts. :)

spoonman
Posts: 695
Joined: Thu Mar 28, 2013 4:15 am

Re: Bon voyage

Post by spoonman »

Trust me, your horizon to FI is far less than 12 years. Time and again I've seen cases where people reach their goals a lot quicker than they originally anticipated. A market meltdown at this stage in your journey is only a good thing because you can snatch cheap shares. Just a few months ago the market was way overpriced.

Persistence and a good dose of serendipity can go a long way.

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Thanks Spoonman. I think your right. In all likelihood my rates of spending will continue to decrease, my rate of saving is likely to increase and my income is likely to increase.
As for buying shares I am too risk averse to buy at the moment. I strongly think that NZ and AUS shares will keep dropping until at least mid 2016. But I could be wrong. Maybe its due to being a first time investor. But for now I'm going to sit back and save until I find more information that convinces me its a safe time to buy.

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

I'm a little bit excited that my ERE plans might be getting a huge boost on the income side of the equation.

I have been looking at doing some contracting work on the side and am now in the process of negotiating the details of a contract. It will be about an additional 5 to 10 hours a week and will be paid at a high rate. The work can be done from wherever I can take a computer. So most likely at home in my PJs most of the time. So while not a passive income and it will take up more of my own time I still feel like this is making me more financially independent. The work is also not too stressful.

Also I am excited to get into this type of work as I could do it from overseas I imagine if I have my first mini ERE next year. And ultimately would be nice work to ease into early ERE doing.
Last edited by thrifty++ on Wed Jan 23, 2019 3:04 am, edited 3 times in total.

heyhey
Posts: 113
Joined: Sat Jul 19, 2014 7:17 pm
Location: Herts UK

Re: Bon voyage

Post by heyhey »

Exciting stuff, thrifty! Hope it goes well :)

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Thanks heyhey :)

cmonkey
Posts: 1814
Joined: Mon Apr 21, 2014 11:56 am

Re: Bon voyage

Post by cmonkey »

There are a lot of work from home/online work opportunities out there. Being in IT, I am considering it as a post-FI thing if I ever get bored or simply boosting my income ;) Hope things work out for you!

spoonman
Posts: 695
Joined: Thu Mar 28, 2013 4:15 am

Re: Bon voyage

Post by spoonman »

Congrats on securing that contracting work, sounds like it will empower you in several ways.

Hearing you talk about Montreal is making me a bit nostalgic about the place! It's a great first-ERE location.

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Thanks guys. Yes its totally empowering. Feeling more secure and less job dependent. Actually if I didn't have my "day job" I think I could over time manage to fill up a decent amount of earnings contracting from home! Im sure many people could do the same. That's a kind of FU money I suppose!

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Time for a monthly update for October!

Net worth:
Assets + $86k
Less student loan - $17850
Less credit card - $100 approx

Net Worth +$68k

Well I am gradually increasing my net worth at a faster pace than ever since I started ERE properly 5 months ago. It still feels like chicken feed compared to most others on here. I am looking forward to when I hit $100k assets. I think the capital accumulation will help quite a bit when I hit that point.

My savings percentage was not so flash this month. It was down to 51%. However much of this was attributable to me needing to make a number of purchases for my consultancy side business. You gotta spend money to make money I guess. So higher income will start rolling in from next month. I will be able to write off much of these expenses at tax time as well so it may turn out they costed me nothing in the long term. If it were not for these purchases my savings percentage would have been 56%. So still not that flash. Too much money on dining and drinks. $300! What a waste!

Im actually finding it quite stressful at the moment juggling my full time job as well as the consultancy work. The consultancy work is turning out to take up much more time than I envisaged. Most of which I will need to write off due to my inefficiency. Over time though I think I will have all my systems in place and will be much more efficient. Its just quite stressful in the short term. But I will feel better when some extra money rolls in next month at least.

llorona
Posts: 444
Joined: Sun Sep 23, 2012 11:44 pm
Location: SF Bay Area

Re: Bon voyage

Post by llorona »

You're doing great! The first $100K is the hardest. Keep at it!

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Thanks llorona! :)

thrifty++
Posts: 1171
Joined: Sat May 23, 2015 3:46 pm

Re: Bon voyage

Post by thrifty++ »

Monthly hash up for November 2015.

Total assets $89,700 approx
Less student loan $17,200 approx
Less Taxes on consulting income $350 approx

Net worth $72,144

My savings rate for the month was 60%. I'm a little disappointed it was not higher given that I have received some consulting income on top of regular salary. Mind you with my consulting income its all taxed at the highest possible rate. It is likely that if I am strategic about it I can keep a whole chunk of that tax at return time. But hard to say how much yet.

Gosh I cant believe I am disappointed at a 60% savings rate.
Last edited by thrifty++ on Sun May 28, 2017 5:20 am, edited 1 time in total.

cmonkey
Posts: 1814
Joined: Mon Apr 21, 2014 11:56 am

Re: Bon voyage

Post by cmonkey »

Hey you beat me this month. 60% isn't so bad!

OldPro
Posts: 298
Joined: Tue Mar 31, 2015 12:37 pm

Re: Bon voyage

Post by OldPro »

I just came across your postings thrifty and thought I would add a word on 'drinks' since it is an issue you are concerned about.

I used to own a bar in a tourist area and as you might imagine, it was very easy to drink too much. So I weaned myself off the alcohol in my drinks over a short period of time. You may be familiar with the fact that after the first drink or two you cannot really taste the alcohol any more anyway. I now drink a drink with about 20% of the normal measure. If someone gives me a 'full strength' drink, it tastes horrible to me now.

Here is where it might relate to your situation. When visiting other bars, I would have a quiet word with the bartender explaining that I wanted my drinks to be 'micro' (small in Greek) and would show him what I meant. After that, every time I visited that bar I would just indicate 'micro' with my thumb and index finger spaced close together and all my drinks would be made accordingly. At the same time, when it came time to pay my bill, it was much lower than it would have been if I was drinking full measures. If you frequent the same local bars repeatedly, you may be able to make a similar arrangement. So you still socialize, you still drink but just don't drink as much alcohol and don't pay as much.

Here's the other advantage that provides a chuckle. Spending the evening with friends and tourists, they would see me having multiple drinks and yet never getting drunk. Since my drink looked the same and they were not aware the content differed, they didn't understand why I was never drunk.

Also, re cost of living in Aukland vs. Montreal, I would not look for 50% differences. More like 25%. https://www.expatistan.com/cost-of-living/index

Dave
Posts: 545
Joined: Fri Dec 19, 2014 1:42 pm

Re: Bon voyage

Post by Dave »

60% is still solid - great job Thrifty!

Over time, I think you become more efficient and get closer to your target 75%. That is how it seems to go. Especially since housing costs are hard to change in the short-term, so those changes take a year or two.

Dave
Posts: 545
Joined: Fri Dec 19, 2014 1:42 pm

Re: Bon voyage

Post by Dave »

OldPro wrote:When visiting other bars, I would have a quiet word with the bartender explaining that I wanted my drinks to be 'micro' (small in Greek) and would show him what I meant.... So you still socialize, you still drink but just don't drink as much alcohol and don't pay as much.
This is a great idea, thanks for sharing OldPro!

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