Updated Trinity Study Results for 2019 – More Withdrawal Rates!

Categories Financial Independence45 Comments on Updated Trinity Study Results for 2019 – More Withdrawal Rates!

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

I have recently talked in details about The Trinity Study. This study researched different withdrawal rates for retirement. Although the original research was not about early retirement, it is referred 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 2018. I have also considered periods as long as 50 years.

In this post, you will find how I did it, and all the results I have been able to gather from this data!

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How to Calculate Your Net Worth Easily

Categories Financial Independence, Investing10 Comments on How to Calculate Your Net Worth Easily

Your Net Worth is a very important personal finance metric! This will tell you how much money your assets are really worth. It can also tell you how close you are to being Financially Independent. This is one of the best personal finance metrics that you should always keep track of.

Computing your net worth is not very difficult. However, there are some subtleties when doing. And it is important to get it right.

In this post, we are going to see how to calculate your net worth. It will tell you how much your possessions are really worth, in money. Having a clear idea of your exact net worth is very important. It will help you to see how far you are from reaching your goals. If you keep track of it, you will also see how well you are doing.

So, let’s get into it!

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9 Things that are Terribly Wrong With FIRE

Categories Financial Independence22 Comments on 9 Things that are Terribly Wrong With FIRE

The Financial Independence and Retire Early (FIRE) movement is an excellent thing. It is all about getting financially free from the job. That means you can start a new career or even retire without having money issues. Most people are going to like this!

However, it is not perfect, and by far. A lot of people following the FIRE philosophy are quite depressed. And even some early retirees are feeling depressed even though they reached their goal of becoming Financial Independent.

You should not believe that becoming Financially Independent will solve all your problems! Because it will not! It is not a cure for all your problems. A lot of your issues will carry over to your retirement. It is essential to fix your issues during the FIRE journey and not wait for FI to fix everything for you!

If you already do not know what to do with your weekends, you will be even more bored once you retire! And if you are not careful, you may well run out of money before you think!

Without further ado, let us see what is wrong with the FIRE movement and community!

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All you need to know about the Trinity Study

Categories Financial Independence, Investing8 Comments on All you need to know about the Trinity Study

You probably have heard of the 4% rule if you are interested in Financial Independence. But do you know where it comes from? If you have read a lot about it, you probably heard about the Trinity Study. It is where it all started.

But do you know what the Trinity Study is? Probably not. A lot of things said about the Trinity Study are not correct. I am feeling like a lot of people talking about this study have not even read the original paper.

There is nothing mystical about this study. It is merely a research paper by three professors of The Trinity University. Hence the name.

And do you know that it has nothing to do with early retirement? So, why is it the cornerstone of most Early Retirement articles?

Today, I want to go into details about this paper and what it exactly is! We are going to see what is inside the Trinity Study. And also what this data is showing us. And finally, we are going to see what people get wrong when they talk about the study.

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How to make your Savings Rate Explode with Math

Categories Financial Independence6 Comments on How to make your Savings Rate Explode with Math

You probably all know what savings rate are. It is simply the percentage of your income that you are saving. If you do not know your personal savings rate, you should probably start with calculating it.

The basic formula is fairly simple. You need to divide your savings by your income. And this gives you your savings rate. It seems simple, right?

Well… Not really that simple. There are many ways to calculate it. The problem comes from what you count as expenses and income. And because of that, it is extremely difficult to really compare savings rates.

And it seems to me that most people on the internet are trying to inflate their savings rate by using the computation that yields the higher number. So today, we are going to see how to increase your savings rate with math!

In this post, I am going to show how we increased our savings by 26% without doing anything! And so can you!

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Why do so many programmers choose to FIRE?

Categories Financial Independence6 Comments on Why do so many programmers choose to FIRE?

You have probably seen that many of the prominent bloggers behind the Financial Independence and Retire Early (FIRE) movement are programmers. At least, they used to be before they retired.

I am myself a software developer or a programmer as you would like to call it. Since I discovered the FIRE movement, I have been wondering why there are so many programmers in this community.

In this article, I am going to try to answer this question. We are going to see what are software developers to start with. And I am going to list eight reasons I have found why there are so many of them trying to retire early.

If you know any more reason a programmer would want to FIRE, please let me know in the comments below!

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How to Calculate your Financial Independence (FI) Ratio

Categories Financial Independence, Retirement18 Comments on How to Calculate your Financial Independence (FI) Ratio

When you have a goal, it is always good to know your progress towards this goal. If you are trying to become Financially Independent, it will be important for you to know how far away you are from your goal! For this, you will need to know your Financial Independence (FI) Ratio. This ratio will tell you how close, or how far, you are from reaching your goal.

If your goal is to become FI, you will have a certain amount of net worth that you will have to reach before you can become FI. This is your FI number. Once your net worth equals your FI Number, you are financially free. That is the main idea.

Your FI ratio will tell you exactly where you are on your path to Financial Independence. In this post, we are going to see exactly how to compute your goal and then how to compute your progress towards the goal. This could help you a lot to see if you need to adjust your strategy to reach your goal on time.

Stay tuned if you want to know when you are going to be financially free!

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Out of The Rat Race – Financial Freedom – Book Review

Categories Financial Independence2 Comments on Out of The Rat Race – Financial Freedom – Book Review

I just finished reading Out of The Rat Race – The Quest for Financial Freedom, by Eric Duneau. This book is about getting to Financial Freedom and be free to choose what you want to do with your valuable time.

The author of the book reached Financial Freedom in the United Kingdom by investing in Real Estate properties and renting them. He did that by only saving about 8% of his income. This is important because most other literature advises a much higher saving rate.

This book is quite interesting to read. It is very well written and contains a huge wealth of information on the money system in the world. It offers an alternative to the common idea of Financial Independence.

Stay tuned if you want to know why we cannot trust money and how a man became financially free while saving only 8% of his income.

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9 Essential Weapons of Financial Independence

Categories Financial Independence4 Comments on 9 Essential Weapons of Financial Independence

(This post was first published on YourMoneyGeek. Thanks a lot to Michael Dinich for the opportunity!)

Financial Independence is a great thing. It means you are free to choose to do what you want and do not have to rely on your job to support your lifestyle. Who would not want that? More and more people are trying to become financially independent.

However, the road to Financial Independence is paved with obstacles. To overcome these obstacles, you will need to use all the weapons that are available to you. Mastering these weapons will make your journey to Financial Independence faster and simpler.

In this post, I am going to go over the 9 most essential weapons that are available to you to reach Financial Independence. Some of these weapons are absolutely essential while others are more optional. However, you will need to use a combination of these weapons and master them if you are serious about becoming financially free!

Stay tuned to master your fight to Financial Independence!

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The Happy Mind – Live Happier – Book Review

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I have just finished reading The Happy Mind by Kevin Horsley and Louis Fourie. This book is about living a happier life. This is the first book I ever read on happiness. Normally, the books I read and report on this blog are more related to personal finance. But as we are going to see, the two concepts are not unrelated!

This book is about how to define happiness. It is actually more difficult than it seems to define this concept. It is very specific to each people. But, by studying happy people, we can get a better view of what makes them happy. And on the contrary, by studying unhappy people we can learn even more about happiness.

From the definitions of happiness, the book goes on to give many practical tips about how to get your life in the tracks to happiness. This will not change your life overnight. But adopting some of these pieces of advice could help live your life better.

Stay tuned if you want to learn all about happiness.

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