Emergency Fund – Do you Really Need One in 2021?

In Financial Independence, Save

If you are interested in personal finance, you probably have come across the concept of emergency funds. An emergency fund is simply some money available directly that you can use for emergencies. Most people will advise you to get such an account. And they will insist heavily on this subject.

It is an interesting subject since not everybody agrees on the importance of the emergency fund. Some people have an emergency fund that can cover one year of expenses. And some people think you do not need one.

An emergency fund is a good thing. But you should be aware of its cost. It also has disadvantages. And you may not need an emergency fund as big as some people tell you. Too many people put too much emphasis on their emergency funds.

In this article, we are going to see both sides of the story. We are going to see in detail what an emergency fund is and whether you should have one or not.

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How to manage your finances as a couple?

In Financial Independence

Today’s post is a guest post by Yasi Zhang from Fast Track, talking about the very important subject of how to manage your finances as a couple. I am very happy to have her as a guest writer today.

Money is a topic most people avoid talking about, so do newlywed couples. It is awkward to discuss money with your partner, but it is an essential exercise to do together as a couple because you are building a financial future together!

Some people have asked me about how to manage finances as a couple, and I find it might be a common struggle for many if you avoid talking about it with your partner.

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Our 2021 Goals – Let’s do even better!

In Financial Independence

Each year, we set ourselves goals for the entire year. These goals are varied and cover different aspects of our lives. Many of them are financial since this is, after all, a financial blog. But we do have personal goals as well.

Since we are now well inside January, it is time to set up our 2021 goals. In this post, I will go over our goals for the year 2021. Some of them are very similar to our 2020 goals, but we try to do better every year with our goals.

So, without further ado, let’s take a look at our 2021 goals.

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2020 Goals Review – How did we do?

In Financial Independence

It is now time to review of 2020 Goals. At the beginning of each year, we set ourselves some goals. And during the entire year, we track them month after month. Then, at the end of the year, we review how well (or how poorly) we did!

2020 was definitely a weird year, but it is not a reason to give up on our goals or review. COVID-19 definitely had an impact on some of our goals. But not enough to make us change them.

So, let’s see our review for 2020!

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Updated Trinity Study for 2021 – More Withdrawal Rates!

In Financial Independence

Would you like to know precisely which withdrawal rate is safe and will sustain your lifestyle for a very long time? You will find the answer in this article with updated results from the Trinity Study!

I have recently talked in detail about The Trinity Study. This study researched different withdrawal rates for retirement. Although the original research was not about early retirement, it is referred to a lot in the Financial Independence and Retire Early (FIRE) movement!

However, for me, there are two caveats with the original study. First, they are only covering the period until 1995. And then, they are not covering more than thirty years of retirement. Thirty years is not enough for some people wanting to retire early.

Therefore, I decided to reproduce all the results of the original study. I used much more recent data from 1871 to 2020. I have also considered periods as long as 50 years. It means many more withdrawal simulations than the original study.

In this article, you will find how I did it and all the results I have gathered from this data!

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Depreciating assets will hurt your wealth

In Financial Independence, Save

Depreciating assets are assets that lose value over time. Some assets are losing value at a rapid pace, while others are losing it more gradually.

It is essential to take depreciation into account when you compute your net worth and consider financial decisions. Depreciating assets can hurt your net worth badly.

Depreciation is one reason why some people think they are much more wealthy than they really are. And it can cause damage when they realize it!

In this article, we are going to talk about depreciating assets and what to do about them.

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The Simple Path to Wealth Book Review

In Investing, Financial Independence

I have recently ordered a few more non-fiction books, and I have just finished The Simple Path To Wealth. This book was on my reading list for a very long time.

The Simple Path To Wealth, by Jim L. Collins, is about investing simply to amass enough money to reach Financial Independence. The entire focus of the book is to keep investing as simple as possible. And it is something done quite well.

In this article, I share my review of The Simple Path To Wealth, what I liked, and what I did like.

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The 4 Stages of Wealth

In Financial Independence

During your financial life, you will go through several stages of wealth. Maybe you have already crossed several of them, or maybe you are at the first stage of wealth.

Regardless of where you are, it is important to know what is ahead and prepare for your future stages of wealth. There are many things you can do to prepare your future financial stages.

In this article, I will talk about the 4 main stages of wealth and what you can do to live better through all of them.

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7 Things To do in Lockdown To Improve Your Finances

In Financial Independence, Save

The second wave is now well established in Europe. Several countries are back in lockdown. And several states of Switzerland are now in lockdown as well. Some states are only in semi-lockdown, but new measures are taken daily. I would not be surprised if we went into a nation-wide lockdown very soon.

In this context, many people have less to do than usual. So, why not dedicate some of this extra time to improve your finances?

In this article, I want to talk about 7 things you can do in lockdown to improve your personal finances.

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12 Tips to Protect Your Online Personal Finances in 2021

In Financial Independence

These days, most of your personal finances are probably online. You probably have access to your bank through an online banking platform. Also, you are likely to access your broker through your browser or your phone. If someone is getting access to your online personal finances, he can do a lot of harm! You need to protect yourself!

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